Quarterly financial report for the quarter ended December 31, 2018
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 Agency’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 Agency’s Audit Committee.
1.1 Basis of Presentation
This quarterly report has been prepared using an expenditure basis of accounting (modified cash accounting). The accompanying Statement of Authorities includes the Parks Canada Agency’s spending authorities granted by Parliament and those used by the Agency consistent with the Main Estimates and Supplementary Estimates for the 2018-19 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 moneys 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.
The Agency uses the full accrual method of accounting to prepare and present its annual departmental financial statements that are part of the department performance reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.
2. Highlights of fiscal quarter and fiscal year to date results
The above chart outlines the total authorities available within the Agency as of December 31 of each year, the expenditures during the third quarter as well as the year to date expenditures. Significant changes to authorities and to expenditure patterns are outlined in the following sections.
2.1 Statement of Authorities (Table 1)
Authorities available for use
This quarterly report reflects the funding available for use from the 2018-19 Main Estimates, authorities for Budget 2018 measures, the 2018-19 Supplementary Estimates A and the 2017-18 unused spending authorityFootnote 1. The authorities at the same time last year consisted of 2017-18 Main Estimates, the 2016-17 unused spending authority, the 2017-18 Supplementary Estimates A and the 2017-18 Supplementary Estimates B.
As per Table 1 (Statement of Authorities), at December 31, 2018, Parks Canada’s total authorities available for use for the year ending March 31, 2019 are $295.4 million or 18 percent higher when compared to the same quarter of the previous year (from $1,630.2M to $1,925.6M). The increase in authorities is primarily due to the following factors:
- A net increase in authorities related to infrastructure investments - $162.2 million;
- An increase in unused spending authorities in 2017-18 as compared to 2016-17 - $89.5 million;
- Additional authorities received to implement A Nature Legacy for Canada - $57.0 million; and
- Authorities for compensation adjustments related to the most recent collective agreement - $21.9 million.
These increases are offset primarily by a $20.0 million decrease in authorities on a comparative basis due to funding received in 2017-18 for a one time settlement of payments in lieu of taxes related to the Halifax Citadel National Historic Site.
Authorities used during the quarter
In the third quarter of 2018-19, total net budgetary expenditures were $375.3 million compared to $338.4 million reported for the same period in 2017-18, resulting in an increase of approximately $36.9 million or 11 percent. The increase in authorities used is primarily related to the increase in funding in the Agency’s infrastructure investment program as well as the increase in salary rates negotiated in the Agency’s new collective agreement.
2.2 Budgetary Expenditures by Standard Object (Table 2)
Planned by Standard Object
Total planned expenditures in the third quarter of 2018-19 are $295.4 million or 18 percent higher compared to the previous year. This variance is primarily due to the ramp up of authorities in the Agency’s infrastructure investment program, as well as an increase in authorities from unused spending authorities from the previous fiscal year.
Expended by Standard Object
As per Table 2 (Budgetary Expenditures by Standard Object), the total expended in the third quarter ending December 31, 2018, is approximately $36.9 million or 11 percent higher compared to the previous year. The overall increase can be explained by the following:
Compared to the same quarter last year, Acquisition of land, buildings and works expenditures increased by $16.2 million, Professional and special services expenditures increased by $8.1 million and Repair and maintenance expenditures increased by $6.6 million. These increases in expenditures are consistent with the increase in funding in the Agency’s infrastructure investment program.
Personnel expenditures have increased by $12.8 million compared to the same quarter last year. This increase is primarily due to increased salary rates negotiated in the Agency’s new collective agreement.
Meanwhile, Rental expenditures decreased by $7.9 million on a comparative basis, primarily due to an increase in expenditures in the fire management program in 2017-18 as a result of a series of record-breaking wildfires in British Columbia and Alberta.
All other expenditures are consistent with prior year spending trends.
3. Risks and Uncertainties
Parks Canada's objectives and Core Responsibility are influenced by various internal and external factors. The Agency undertakes a risk assessment every year to support decision making related to priority setting and resource allocation. The risk assessment identifies key risks that have the greatest impact on the Agency's ability to achieve its Core Responsibility and departmental results, as well as planned mitigation strategies. The Agency has identified the following key corporate risks for 2018-19:
- Remaining relevant to Canadians, particularly in some of Canada’s largest cities;
- Establish, develop and maintain effective relationships with external parties to achieve common goals and objectives;
- Environmental forces adaptation and response;
- Built asset condition and long-term sustainability; and
- Reconciliation with Indigenous peoples.
4. Significant Changes in Relation to Operations, Personnel and Programs
The following significant changes occurred to operations, personnel and programs over the third quarter of 2018-19:
- Daniel Watson, Chief Executive Officer, left Parks Canada on October 9, 2018. This role has since been filled on an interim basis by Michael Nadler.
5. Approval by Senior Officials
Acting Chief Executive Officer, Parks Canada
February 28, 2019
Chief Financial Officer, Parks Canada
February 28, 2019
Parks Canada Agency
For the quarter ended December 31, 2018
Statement of Authorities - Table 1
|(in thousands of dollars)||Total available for use for the year ending March 31, 2019Footnote *||Used during the quarter ended December 31, 2018||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,705,573||332,187||836,993|
|Vote 5 - Payments to the New Parks and Historic Sites Account||9,007||0||0|
|Statutory - Contributions to employee benefit plans||49,390||11,946||35,837|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||161,590||31,177||125,691|
|Total budgetary authorities||1,925,560||375,310||998,791|
|(in thousands of dollars)||Total available for use for the year ending March 31, 2018Footnote *||Used during the quarter ended December 31, 2017||Year to date used at quarter end|
|Vote 1 - Program expenditures||1,455,814||304,485||808,214|
|Vote 5 - Payments to the New Parks and Historic Sites Account||25,546||0||0|
|Statutory - Contributions to employee benefit plans||49,599||12,328||36,984|
|Statutory - Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act||99,232||21,564||67,446|
|Total budgetary authorities||1,630,191||338,377||912,644|
Parks Canada Agency
For the quarter ended December 31, 2018
Budgetary Expenditures by Standard Object - Table 2
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2019Footnote *||Expended during the quarter ended December 31, 2018||Year to date used at quarter end|
|Transportation and communications||40,189||5,901||16,236|
|Professional and special services||408,744||66,985||142,763|
|Repair and maintenance||53,817||11,618||26,058|
|Utilities, materials and supplies||86,441||14,603||37,638|
|Acquisition of land, buildings and works||772,543||152,135||329,162|
|Acquisition of machinery and equipment||42,753||5,244||13,151|
|Public debt charges||0||36||84|
|Other subsidies and payments||20,187||(351)||14,527|
|Total budgetary expenditures||1,925,560||375,310||998,791|
|(in thousands of dollars)||Planned expenditures for the year ending March 31, 2018Footnote *||Expended during the quarter ended December 31, 2017||Year to date used at quarter end|
|Transportation and communications||38,050||6,003||17,182|
|Professional and special services||336,646||58,895||144,275|
|Repair and maintenance||42,698||4,983||22,024|
|Utilities, materials and supplies||90,452||14,306||36,079|
|Acquisition of land, buildings and works||540,054||135,912||301,626|
|Acquisition of machinery and equipment||61,407||5,394||15,148|
|Public debt charges||0||0||0|
|Other subsidies and payments||64,612||1,777||17,048|
|Total budgetary expenditures||1,630,191||338,377||912,644|
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