Quarterly financial report for the quarter ended September 30, 2024

From: Parks Canada Agency

Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board. This report should be read in conjunction with the Main Estimates, the Supplementary Estimates and the previous Quarterly Financial Reports.

A summary description of the Parks Canada’s programs can be found in Part II of the Main Estimates, and a detailed description in Part III – Departmental Plans.

This quarterly report has not been subject to an external audit. However, it has been reviewed by the Parks Canada’s Audit Committee.

Basis of presentation

This quarterly report has been prepared using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Parks Canada’s spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates for the 2024-25 fiscal year. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.

The authority of Parliament is required before money can be spent by the Government. Approvals are given in the form of annually approved limits through appropriation acts or through legislation in the form of statutory spending authority for specific purposes.

Parks Canada uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

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Highlights of fiscal quarter and fiscal year-to-date results

This section highlights the financial results for the quarter and fiscal year-to-date ended September 30, 2024, and provides explanations of variances compared with the same period last year.

Statement of Authorities (Table 1)

Authorities available for use

This quarterly report reflects the funding available for use from the 2024-25 Main Estimates and the 2023-24 unused spending authority. The authorities at the same time last year consisted of 2023-24 Main Estimates and the 2022-23 unused spending authority.

At September 30, 2024, Parks Canada’s total authorities available for use for the year ending March 31, 2025, are $96.6 million (or 7%) lower when compared to the same quarter of the previous year (from $1,450.8 million to $1,354.2 million). The variance is primarily due to the following factors:

1. A permanent increase in authorities due to the following factors:
   • $52.7 million resulting from the ratification of the collective agreement; and
   • $10.0 million related to a permanent adjustment to the revenue authorities.


2. The permanent increase in authorities is offset by the following decreases:
   • $74.6 million related to temporary funding for Real Property & Asset program (including $15.3 million related to Hurricane Fiona Recovery Fund);
   • $31.7 million related to a lower amount carried forward from the previous year to continue work on departmental priorities;
   • $23.7 million related to Refocusing Government Spending;
   • $30.1 million for other net decreases related to temporary funding:
     • $15.4 million related to Tallurutiup Imanga National Marine Conservation Area Establishment and Inuit Impact and Benefit Agreement);
     • $4.4 million related to Implementation of Rights and Reconciliation Agreements in Atlantic Canada;
     • $3.9 million related to Wildfire preparedness and response capacity;
     • $3.7 million related to the Enhanced Nature Legacy;
     • $2.7 million related to Wood Buffalo NP Action Plan & Wood Bison.

Authorities used during the quarter

In the second quarter of 2024-25, total net budgetary expenditures were $383.7 million compared to $342.9 million reported for the same period in 2023-24, resulting in an increase of $40.8 million (or 12%).

Table 1 provides information on the authorities available for use and used during this quarter.

Budgetary expenditures by standard object (Table 2)

Planned by standard object

Total planned expenditures, for the year ending March 31, 2025, are $96.6 million (or 7%) lower compared to the previous year. The decreases are mainly observed in Acquisition of lands, buildings and works, repair and maintenance planned expenditures, due to decrease in the Assets investment program funding and in Other subsidies and payments, due to decrease in funding to the New Parks and Historic Sites Account.

These decreases are partially offset by increases in Personnel planned expenditures, largely due to the ratification of a new collective agreement.

Expended by standard object

As per Table 2 (Budgetary Expenditures by Standard Object), the $40.8 million increase compared to the same quarter of the previous year is mainly due to the following increases:

• $36.3 million in Other subsidies and payments mainly due to fund deposits into the New Parks and Historic Sites account, allocated for various parks;
• $17.8 million in Personnel due to the revised salary rate, following the ratification of the collective agreement in 2023-24;

Offset by the following decrease:

• $13.2 million in Acquisition of land, buildings and works mainly due to the Hurricane Fiona recoveries in 2023-24.

New Parks and Historic Sites (Table 3)

The expenditures for New Parks and Historic Sites in the second quarter ending September 30, 2024, is $3.6 million (or 175%) higher compared to the previous year. The total available at the beginning of the year is $53.9 million (or 34%) higher compared to the previous year.

Table 3 provides information on the New Parks and Historic Sites account available for use and used during this quarter.

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Risks and uncertainties

Parks Canada undertakes a corporate risk assessment every year to support programs, priority setting and resource allocation. The risk assessment identifies key corporate risks that have the greatest impact on the organization’s ability to deliver its Core Responsibility and achieve Departmental Results. Parks Canada has identified the following key corporate risks for 2024-25:

Environmental forces adaptation and response

Due to the magnitude and rapid pace of environmental changes (for example, increased incidence of major weather events such as wildfires), there is a risk that the integrity of ecosystems, cultural resources and infrastructure, and the continuation of service to Canadians cannot be protected or maintained against these forces which may lead to Parks Canada being unable to deliver its mandate.

Relationships with Indigenous peoples

There is a risk that Parks Canada may not be able to fulfill its obligations to keep in step with evolving jurisprudence to support the Government of Canada’s commitment to implement the United Nations Declaration on the Rights of Indigenous Peoples Act. Falling short of obligations and the inability to take actions in the spirit of the United Nations Declaration on the Rights of Indigenous Peoples will have a negative impact on relationships with Indigenous peoples, communities, and organizations. These relationships are integral to the management of protected heritage places and to supporting the connection that Indigenous peoples have to these places.

Visitation and relevance to Canadians

Socioeconomic conditions and other market influences are changing. To maintain its relevance to Canadians and visitors, Parks Canada must adapt its programs and services to meet their expectations.

Recruitment and retention

Canada’s labour market is shrinking, with competitive demand for labour resources across the country. Parks Canada’s ability to attract, retain, and develop employees while maintaining a flexible, high-performing work environment is at risk and could negatively affect operational capacities and the well-being of its employees.

Service and digital

With the rapid pace of changes in technology and the expectations of service users, there is a risk that Parks Canada may not be able to provide modern services and safeguard data and information without continual investment in aging information technology infrastructure, digital solutions, cybersecurity, and reviews of its information management and information technology services. This may impact the health and safety of visitors, result in the loss of revenue, and the inability of Parks Canada to adequately deliver on its mandate.

Built asset condition and long-term sustainability

There is a risk that portions of the asset portfolio will deteriorate and no longer be able to be maintained in a safe and functioning condition due to aging infrastructure, inadequate funding for recapitalization and maintenance, climate change impacts, and inflationary pressures. As a result, public safety may be compromised, cultural heritage may be lost, and public access may be impacted.

Business innovation

There is a risk that Parks Canada may not have the capacity, business processes, and tools to effectively and efficiently support service delivery and meet government management accountability expectations, including IM/IT requirements, if corporate and internal services are not modernized.

Workforce, equity, accessibility, inclusion and diversity, and well-being

If Parks Canada fails to foster an inclusive and barrier-free work environment that reflects Canada’s diverse population, there is a risk that it will not have the cultural competencies and perspectives needed to serve all Canadians, and will not be able to build and maintain a healthy workplace, which may result in impacts on programs and services, and damage its reputation.

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Significant changes in relation to operations, personnel and programs

There have been no significant changes in relation to operations, personnel and programs to report during this quarter.

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Approval by senior officials

Approved by:

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Parks Canada
Statement of Authorities - Table 1
For the quarter ended September 30, 2024 (Unaudited)

Budgetary authorities (in thousands of dollars)	Fiscal year 2024-25 Total available for use for the year ending March 31, 2025 (1)	Fiscal year 2024-25 Used during the quarter ended September 30, 2024	Fiscal year 2024-25 Year-to-date used at quarter-end	Fiscal year 2023-24 Total available for use for the year ending March 31, 2024 (1)	Fiscal year 2023-24 Used during the quarter ended September 30, 2023	Fiscal year 2023-24 Year-to-date used at quarter-end
Vote 1 - Operating expenditures, grants and contributions	681,923	200,302	336,548	680,779	183,227	311,917
Vote 5 – Capital expenditures	339,751	62,810	85,426	375,665	75,098	102,009
Vote 10 - Payments to the New Parks and Historic Sites Account	35,650	35,650	35,650	81,305	-	-
Statutory - Contributions to employee benefit plans	63,469	15,867	31,734	63,250	15,812	31,625
Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act	233,398	69,103	117,213	249,757	68,719	112,415
Total budgetary authorities	1,354,191	383,732	606,571	1,450,756	342,856	557,966

(1) Includes only authorities available for use and granted by Parliament at quarter-end.

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Parks Canada
Budgetary Expenditures by Standard Object - Table 2
For the quarter ended September 30, 2024 (Unaudited)

Expenditures (in thousands of dollars)	Fiscal year 2024-25 Planned expenditures for the year ending March 31, 2025 (1)	Fiscal year 2024-25 Expended during the quarter ended September 30, 2024	Fiscal year 2024-25 Year-to-date used at quarter-end	Fiscal year 2023-24 Planned expenditures for the year ending March 31, 2024 (1)	Fiscal year 2023-24 Expended during the quarter ended September 30, 2023	Fiscal year 2023-24 Year-to-date used at quarter-end
Personnel	523,386	180,896	329,965	485,325	163,146	299,797
Transportation and communications	16,054	5,285	8,683	13,297	6,076	10,389
Information	16,209	1,500	4,486	15,876	1,637	5,075
Professional and special services	153,199	42,285	58,911	157,890	40,860	60,537
Rentals	33,559	23,909	29,278	31,512	21,618	25,406
Repair and maintenance	37,434	2,727	5,113	68,553	4,604	7,503
Utilities, materials and supplies	102,198	16,576	27,052	108,461	18,711	28,102
Acquisition of land, buildings and works	281,328	43,437	60,344	329,930	56,589	73,011
Acquisition of machinery and equipment	41,484	6,734	10,440	46,596	7,974	12,311
Transfer payments	89,498	11,808	22,883	88,777	9,381	23,230
Public debt charges	-	8	17	-	12	26
Other subsidies and payments	59,842	48,567	49,399	104,539	12,249	12,579
Total budgetary expenditures	1,354,191	383,732	606,571	1,450,756	342,856	557,966

(1) Includes only authorities available for use and granted by Parliament at quarter-end.

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Parks Canada
New Parks and Historic Sites - Table 3
For the quarter ended September 30, 2024 (Unaudited)

New Parks and Historic Sites Account (in thousands of dollars)	Fiscal year 2024-25 New Parks and Historic Sites Account for the quarter	Fiscal year 2024-25 New Parks and Historic Sites Account for the year	Fiscal year 2023-24 New Parks and Historic Sites Account for the quarter	Fiscal year 2023-24 New Parks and Historic Sites Account for the year
Available at beginning of year		211,253		157,324
Receipts:
Parliamentary authorities	35,650	35,650	-	-
Proceeds on disposal of tangible capital asset	-	-	22	26
Expenditures	(5,637)	(11,628)	(2,050)	(6,491)
Available at the end of the quarter		235,275		150,859