Quarterly financial report for the quarter ended December 31, 2019

1. Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the manner prescribed by the Treasury Board. The 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 2019-20 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.

The Agency 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.

2. Highlights of fiscal quarter and fiscal year to date results

 

2.1 Statement of authorities (Table 1)

Authorities available for use

This quarterly report reflects the funding available for use from the 2019-20 Main Estimates, the 2019-20 Supplementary Estimates A, authorities received via allocation from Treasury Board Vote 5 - Government Contingencies, and the 2018-19 unused spending authority^{Footnote 1} . The authorities at the same time last year consisted of 2018-19 Main Estimates, authorities for Budget 2018 measures, the 2018-19 Supplementary Estimates A, and the 2017-18 unused spending authority.

As per Table 1 (Statement of authorities), at December 31, 2019, Parks Canada’s total authorities available for use for the year ending March 31, 2020, are $252.0 million or 13 percent higher when compared to the same quarter of the previous year (from $1,925.6 million to $2,177.6 million). The increase in authorities is primarily due to the following factors:

• An increase in spending authorities related to infrastructure investments - $128.1 million;
• An increase in unused spending authorities in 2018-19 - $135 million.

Authorities used during the quarter

In the third quarter of 2019-20, total net budgetary expenditures were $404.3 million compared to $375.3 million reported for the same period in 2018-19, resulting in an increase of $29.0 million or 8 percent.

The increase in authorities used during the quarter is primarily due to an increase in expenditures related to the Agency’s infrastructure investment program, as well as grant payments related to the establishment and development of Thaidene Nëné National Park Reserve and Tallurutiup Imanga National Marine Conservation Area.

2.2 Budgetary expenditures by standard object (Table 2)

Planned by standard object

Total planned expenditures in the third quarter of 2019-20 are $252.0 million or 13 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, and 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, 2019, is $29.0 million or 8 percent higher compared to the previous year. The overall increase can be explained by the following:

• Compared to the same quarter of last year, expenditures for the acquisition of land, buildings and works have increased by $21.1 million primarily related to the Agency’s infrastructure investments program.
• In addition, transfer payments have increased by $19.9 million compared to the same quarter of last year. This is primarily related to grant payments for the establishment and development of Thaidene Nëné National Park Reserve and Tallurutiup Imanga National Marine Conservation Area.
• These increases were partially offset by a decrease of $8.7 million in professional and special services expenditures primarily related to the Agency’s infrastructure investments program.

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. The Agency has identified the following key corporate risks for 2019-20:

• Environmental forces adaptation and response:

  The magnitude and rapid pace of environmental changes, including climate change, may affect Parks Canada's ability to maintain the integrity of its ecosystems, cultural resources and infrastructure.

• Reconciliation with Indigenous peoples:

  There is a risk that Parks Canada’s actions may not fulfill obligations to Indigenous peoples and that Canadians may not support or understand Parks Canada’s reconciliation actions.

• Relationships:

  There is a risk that Parks Canada will not establish the partnerships required to achieve Agency results.

• Relevance and public support:

  There is a risk that Parks Canada’s programs and services may not meet the expectations of Canadians.

• Built asset condition and long-term sustainability:

  There is a risk that a sustainable asset portfolio will not be maintained to support the delivery of Parks Canada's mandate.

4. Significant changes in relation to operations, personnel and programs

Jaclyn Staniforth was appointed Chief Audit and Evaluation Officer effective October 15, 2019. The role was filled on an interim basis by René Lajzerowicz.

Line Lamothe was appointed Vice-President, Human Resources and Employee Wellness, effective November 4, 2019. The role was filled on an interim basis by Shirley Squires.

Andrew Campbell was appointed Senior Vice-President, Operations, effective December 16, 2019. The role was filled on an interim basis by Michael Nadler.

5. Approval by senior officials

Approved by:

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Parks Canada Agency
For the quarter ended December 31, 2019
Statement of authorities - Table 1
(Unaudited)

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Parks Canada Agency
For the quarter ended December 31, 2019
Budgetary Expenditures by Standard Object - Table 2
(Unaudited)