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2009-10
Departmental Performance Report

Parks Canada Agency

The original version was signed by
The Honourable Jim Prentice, P.C., Q.C., M.P.
Minister of the Environment and Minister responsible for Parks Canada Agency

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Table of Contents

Minister's Message

Chief Executive Officer's Message

Section 1: Parks Canada Agency Overview

• Mandate
• Vision
• Responsibilities
• Strategic Outcome and Program Activity Architecture
• Summary of Performance
• Expenditure Profile
• Voted and Statutory Items
• Contribution of Priorities to Strategic Outcome
• Risk Analysis
• Canada's Economic Action Plan

Office of the Auditor General Reports

Management Statement of Responsibility for Performance Information

Auditor General's Assessment of Performance Information

Section 2: Analysis Of Program Activities

• Strategic Outcome
  • Program Activity 1: Heritage Places Establishment
  • Program Activity 2: Heritage Resources Conservation
  • Program Activity 3: Public Appreciation And Understanding
  • Program Activity 4: Visitor Experience
  • Program Activity 5: Townsite and Throughway Infrastructure
  • Internal Services

Section 3: Supplementary Information

• Summary of the Evaluation of the Parks Canada Agency Human Resources Regime

Section 4: Audited Financial Statements

• Management Responsibility For Financial Statements
• Auditor's Report

End Notes

Minister's Message

As the Minister responsible for the Parks Canada Agency, I am pleased to present to Canadians this report providing an overview of last year's achievements. As evidenced by this report, the Parks Canada Agency had many exceptional achievements in 2009/10, particularly in the development and promotion of our national parks, national historic sites and national marine conservation areas.

The 2009/10 period was one of significant change throughout the world. The Government of Canada responded to the global financial crisis by implementing many initiatives to help the Canadian economy, which led to significant investments in Parks Canada's infrastructure. Canada's Economic Action Plan directly contributed to enhancements to visitor facilities in national parks and national historic sites and to the rapid implementation and completion of highway improvements in our national parks.

During this productive year, we completed the considerable expansion of Nahanni National Park Reserve, arguably the most significant conservation achievement in a generation, while paving the way for other major achievements. We entered into an agreement with the Government of Newfoundland and Labrador to create a national park reserve in the Mealy Mountains region, which will become the largest national park in mainland eastern Canada, and we took critical steps towards the establishment of national marine conservation areas in Lancaster Sound, at the eastern entrance to the Northwest Passage, and in the Haida Gwaii region; the latter will become the very first natural area protected from the mountain tops to the depths of the ocean.

I am also proud to highlight that during the period covered by this report, 33 new national historic designations of people, places and events were made. The new designations enrich the image we hold of our history, and reflect Canada's diversity and richness as well as its values and traditions.

From 1885, year of the creation of Canada's first national park, to now, Canada has established a system of national parks, national historic sites and national marine conservation areas that is present in every province and territory. These protected places are unique and irreplaceable sites where Canadians are invited to live meaningful experiences, to connect directly with the wilderness for which our country is famous and to get a personal view of the fascinating and inspiring stories of the men and women who helped shape Canadian values and national identity. Those stories will also inspire future generations of stewards of our territory, culture and historic heritage.

Chief Executive Officer's Message

It is with pride that I submit the Performance Report of the Parks Canada Agency for 2009/10. I believe that national historic sites, national parks and national marine conservation areas reflect the very essence of what it is to be Canadian. They reflect our collective heritage, achievements and human ingenuity. In short, they tell, in a breathtaking way, the story of Canada.

Over the past year, Parks Canada has continued to respond to changing demographics and societal trends, rapid advancements in technology and evolving patterns of development that create competing demands for land, time and resources. What has not changed is our primary objective to connect the hearts and minds of Canadians to our natural and historic landmarks, our national treasures. We do this by providing Canadians with opportunities to have memorable experiences in these unique, inspiring and irreplaceable places.

Parks Canada has further developed its understanding of the needs and interests of its visitors and of the Canadian population over the last year, and worked more extensively with our partners in the Canadian tourism industry to explore ways to provide new and innovative visitor experiences. We have reached out to youth, new Canadians and urban dwellers, and have embraced new media as other ways to engage Canadians. And we have adopted creative and collaborative approaches to improving and maintaining the ecological integrity in Canada's national parks by integrating ecosystem protection and meaningful visitor experiences, through Action on the Ground initiatives.

One of our successes during the past year was the reintroduction of the black-footed ferret into the Canadian prairie wilderness in Grasslands National Park in Saskatchewan. Once considered North America's rarest mammal, the black-footed ferret was last seen in Canada in 1937. Its reintroduction to its natural habitat contributes greatly to the recovery of the species and furthers prairie conservation efforts across North America.

Thanks largely to the funding provided by Canada's Economic Action Plan, Parks Canada also successfully delivered an ambitious capital program in 2009/10 that led to improvements in many of our national historic sites, parks infrastructure and visitor facilities. The National Historic Sites Cost-Sharing Program has also produced great results by supporting third party owners of national historic sites in their conservation and improvement efforts.

This reporting period ends with the launch of a variety of great celebrations marking the 125th anniversary of Canada's first national park, Banff National Park, in 2010, and the 100th anniversary of its National Park Service in 2011, which was the first of its kind worldwide.

Parks Canada employees across the country have directly contributed to our achievements. Our team of passionate and knowledgeable people is responsible for our success in meeting our corporate commitments and providing service excellence to Canadians across the country. Through partnerships with Canada's Aboriginal peoples, with Canadians in local communities, stakeholders, environmental and cultural heritage groups, as well as with other levels of government, Parks Canada continues its dedicated work for Canada and for all Canadians.

Section 1: Parks Canada Agency Overview

Mandate

On behalf of the people of Canada, we protect and present nationally significant examples of Canada's natural and cultural heritage, and foster public understanding, appreciation and enjoyment in ways that ensure the ecological and commemorative integrity of these places for present and future generations.

Vision

Canada's treasured natural and historical places will be a living legacy, connecting hearts and minds to a stronger, deeper understanding of the very essence of Canada.

Responsibilities

Parks Canada manages national parks, national marine conservation areas and national historic sites on behalf of Canadians. Parks Canada is a proud steward of these heritage places and protects and presents them for the benefit and enjoyment of Canadians, while ensuring that they remain unimpaired for present and future generations.

National parks and national marine conservation areas are representative examples of Canada's terrestrial and marine regions. They offer to Canadians a variety of recreational activities and learning experiences as well as a unique opportunity to personally connect with these heritage places.

Each national historic site tells its own story and contributes to our understanding of Canada as a whole. They are special places where visitors can learn about the persons and events that shaped Canada as we know it today and where they can experience Canada's history. Parks Canada strives to ensure that the system of national historic sites—comprised of places, persons and events of national historic significance— fully reflects the country's rich history. The system is developed in collaboration with Canadians to define important aspects of Canada's history.

In addition, some of Parks Canada's activities are focussed on formal designations by the Government of Canada and, where mandated, provide support for the preservation and presentation of designated heritage properties that are managed by others through the National Historic Sites of Canada Cost-Sharing Program. These include many historic sites, heritage railway stations, heritage lighthouses, federal heritage buildings, archaeological sites, the gravesites of Canadian Prime Ministers and Canadian heritage rivers.

Parks Canada also contributes to international heritage conservation through its leadership and participation in international conventions, programs, agencies and agreements, notably the World Heritage Convention.

There are approximately 22 million visits annually to the heritage places administered by Parks Canada. The Agency supports over 31,000 jobs in the Canadian economy, including employment in numerous communities across the country.

Strategic Outcome and Program Activity Architecture

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Summary of Performance

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
655,035	827,450	777,773		4,417	4,582	165

Total authorities include planned spending of $655 million, plus $172.5 million provided through Parks Canada's carry-forward authorities, supplementary estimates and additional statutory requirements, for a total of $827.5 million. The increased authorities include additional funding approved as part of Canada's Economic Action Plan; funding received for the assessment, management and remediation of federal contaminated sites; additional resources for an advertising campaign; as well as collective agreement.

Actual expenditures were lower than the total authorities by $49.7 million. This relates mainly to project delays associated with the National Historic Sites of Canada Cost-Sharing Program, the completion of the twinning of the Trans-Canada Highway in Banff National Park to the British Columbia border, and delays in establishing new national parks and national marine conservation areas.

Strategic Outcome

Canadians have a strong sense of connection, through meaningful experiences, to their national parks, national historic sites and national marine conservation areas and these protected places are enjoyed in ways that leave them unimpaired for present and future generations.

Performance Indicator, Target and Date

• Maintain or improve the overall ecological integrity in all national parks from March 2008 to March 2013
• Improve the overall average commemorative integrity rating from 6.0/10 in March 2008 to 6.6/10 in March 2013
• Increase the percentage of Canadians that report a personal connection to Parks Canada administered places by March 2014

Full details on Parks Canada's performance in relation to these performance indicators are presented in Section 2 of this report.

Program Activity	2008/09 Actual Spending ($000S)	2009/10 ($000S)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
1: Heritage Places Establishment	29,323	24,031	24,031	25,625	15,240	Clean and Healthy Environment; Vibrant Canadian Culture and Heritage
2: Heritage Resources Conservation	183,956	200,046	200,604	253,072	191,926	Clean and Healthy Environment; Vibrant Canadian Culture and Heritage
3: Public Appreciation and Understanding	39,300	26,683	26,683	33,647	54,165*	Clean and Healthy Environment; Vibrant Canadian Culture and Heritage
4: Visitor Experience	244,923	227,203	227,360	290,057	274,984	Clean and Healthy Environment; Vibrant Canadian Culture and Heritage
5: Townsite and Throughway Infrastructure	102,957	62,086	97,086	141,787	153,628*	Safe and Secure Communities
Internal Services	83,330	79,257	79,270	83,262	87,830*	N/A
Total	683,789	619,306	655,035	827,450	777,773

Note: Commencing in the 2009/10 Estimates cycle, the resources for Internal Services are displayed separately from other Program Activities; they are no longer distributed among the remaining Program Activities, as was the case in the Main Estimates of previous years. Figures for 2008/09 have been adjusted to separate Internal Services and to allow for comparability of spending information by Program Activity between the 2008/09 and 2009/10 fiscal years.

* In certain program activities, spending exceeds authorities due to internal realignment of programs and priorities. Total Agency authorities were not exceeded.

Totals may not agree due to rounding.

Vibrant Canadian Culture and Heritage is influenced by Heritage Places Establishment, Heritage Resources Conservation, Public Appreciation and Understanding and Visitor Experience because they

• establish Canada's national parks and national marine conservation areas, as well as designate persons, places and events of national historic significance to Canada as symbols to the world and as part of the fabric of our nation;
• create a system of national historic sites that respects the significance and irreplaceable historical legacy reflecting Canada's values and identity;
• preserve Canada's natural and historical heritage and make it available to Canadians to discover and enjoy; and
• enhance pride, encourage stewardship and give expression to our identity as Canadians.

Clean and Healthy Environment is influenced by Heritage Places Establishment, Heritage Resources Conservation, Public Appreciation and Understanding, and Visitor Experience because they

• maintain and restore ecological integrity in national parks through the protection of natural resources and natural processes;
• ensure commemorative integrity of national historic sites managed or influenced by Parks Canada;
• ensure the ecologically sustainable use of national marine conservation areas; and
• ensure that many of Canada's most special natural and historical heritage resources will not be lost and that current and future generations will enjoy a system of protected heritage places.

Safe and Secure Communities is influenced by Townsite and Throughway Infrastructure because it

• ensures the availability and maintenance of provincial and inter-provincial highways and bridges that connect communities and pass through national parks and national historic sites;
• ensures that water level management is compliant with legislation, for effective commercial and recreational navigation at nine national historic canals and waterways; and
• provides municipal services to ensure that residents and visitors are safe and secure.

Expenditure Profile

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Voted and Statutory Items

Vote or Statutory Item	Truncated Vote or Statutory Wording	2009/10 ($000S)
		Main Estimates	Planned Spending	Total Authorities	Actual Spending
25	Program expenditures	465,152	500,881	654,972	605,295
30	Payment to the New Parks and Historic Sites Account	500	500	500	500
(S)	Expenditures equivalent to revenues resulting from the conduct of operations pursuant to section 20 of the Parks Canada Agency Act	111,000	111,000	115,875	115,875
(S)	Contributions to employee benefit plans	42,654	42,654	56,103	56,103
	Total	619,306	655,035	827,450	777,773

Contribution of Priorities to Strategic Outcome

Program Priorities	Type	Status	Linkages to Strategic Outcome
Establishing National Parks and National Marine Conservation Areas	Ongoing	Parks Canada met its objective of making demonstrable progress in four national park proposals and two national marine conservation area proposals: Nááts'ihch'oh national park reserve; Mealy Mountains national park reserve; Northern Bathurst Island national park; East Arm of Great Slave Lake national park reserve; Gwaii Haanas national marine conservation area reserve and Haida heritage site; and Lancaster Sound national marine conservation area. In addition, Parliament passed legislation that expanded Nahanni National Park Reserve six-fold within the Dehcho region. The Agency also signed a Memorandum of Understanding with the Government of Nova Scotia to work towards designating Sable Island as a national park or as a national wildlife preserve, legally protecting and recognizing a nationally significant natural area. However, Parks Canada did not meet its goal of establishing two national parks and one national marine conservation area by March 2010. Further details can be found in Section 2 of this report under Program Activity 1.	Canada's national parks and national marine conservation areas are symbols to the world and are part of the fabric of the nation. Presenting and preserving Canada's natural heritage and making it available to Canadians for their discovery and enjoyment contribute to our country's economic development and are of key importance in creating a strong sense of connection in the hearts and minds of Canadians.
Achieving Ecological Integrity Results on the Ground in Canada's National Parks	Previously committed to	Parks Canada met its objective of investing in active management and restoration projects to improve the ecological integrity of national parks. The Agency implemented the Action on the Ground integrated funding strategy, providing first-year resources to multi-year projects aimed at addressing the most pressing ecological integrity issues. Further details can be found in Section 2 of this report under Program Activity 2.	Canada's national parks and national marine conservation areas are symbols to the world and are part of the fabric of the nation. Presenting and preserving Canada's natural heritage and making it available to Canadians for their discovery and enjoyment contribute to our country's economic development and are of key importance in creating a strong sense of connection in the hearts and minds of Canadians.
Investing Strategically in Historic Assets	Previously committed to	Parks Canada met its goal of making targeted investments in the national historic sites it administers, paying particular attention to improving the condition of built cultural resources, which improved the elements of commemorative integrity rated in poor condition. Further details can be found in Section 2 of this report under Program Activity 2.	Canada's national historic sites are symbols to the world and represent the breadth and diversity of Canada's history. Presenting and preserving Canada's cultural heritage and making it available to Canadians for their discovery and enjoyment contribute to our country's economic development and are of key importance in creating a strong sense of connection in the hearts and minds of Canadians.
Increasing Public Awareness and Engagement	Ongoing	In 2009/10, Parks Canada met its goal by launching a number of mass media initiatives, including two waves of a television ad campaign, to inform Canadians of their national heritage places; developed a policy and guidelines for partnering with the private sector; and engaged stakeholders and partners in a dialogue about meaningful opportunities to be involved in connecting Canadians to their natural and cultural heritage. Further details can be found in Section 2 of this report under Program Activity 3.	With the collaboration of stakeholders and strategic partners, Parks Canada aims to reach Canadians, at home and in their communities, to increase their understanding, appreciation, support and engagement towards natural and historical heritage. This, in turn, will strengthen their sense of connection to their national parks, national historic sites and national marine conservation areas.
Improving Visitor Experience	Ongoing	Parks Canada met its objective of implementing targeted initiatives to attract a greater number of visitors to national parks, national historic sites and national marine conservation areas. The Agency diversified its accommodations offer and prepared new recreational activities to be introduced in the 2010/11 visitor season, such as the My Parks Pass youth program, the Greatest Summer Job program and new vacation planners. The Agency also enhanced its interpretive presentations, trained employees in ways to improve the quality of visitors' experience at Parks Canada's heritage places, and froze admission fees. Further details can be found in Section 2 of this report under Program Activity 4.	Parks Canada strives to provide high-quality pre- and on-site trip planning information, reception and orientation, interpretation, campgrounds, infrastructure, hiking trails, opportunities for recreational activities, visitor safety and ongoing post-visit relationship. The meaningful experiences fostered by these activities lead to a sense of relevance and connection to Canada's system of special heritage places.
National Historic Sites Renewal	New	Parks Canada met its goal through its ongoing work to develop the National Historic Sites Renewal strategy. The Agency is building a team dedicated to implementing the strategy and initiated work on an element of the strategy that will engage Canadians in helping the Agency determine what Canadians want and need at their national historic sites.	The National Historic Sites Renewal initiative will contribute directly to the Agency's Strategic Outcome by enhancing the sense of connection Canadians have to their national historic sites.
Management Priorities	Type	Status	Linkages to Strategic Outcome
Renewing the Parks Canada Workforce	Previously committed to	During 2009/10, Parks Canada met its goal of continuing to take steps to address challenges in recruitment and retention and in maintaining a representative workforce. The Agency decreased the gap in its representation of women by 3.2 percent since 2005/06 and maintained its positive representation of Aboriginal peoples of eight percent, above the labour market availability of 6.2 percent.	The continuing program to promote diversity in the workplace and to develop a response to changing demographics will ensure that Parks Canada's workforce is reflective of the Canadian population. This, in turn, will foster a more personal and relevant connection to Canada's treasured natural and historic places in all Canadians.
Asset Management	Previously committed to	During 2009/10, Parks Canada met its goal of enhancing Agency asset management governance systems, internal policies and procedures, making tangible progress to ensure compliance with the Treasury Board policies on Investment Planning — Assets and Acquired Services and the Management of Projects. The Agency assigned a project lead and strengthened project management tools and training.	Parks Canada's governance and investments in historical and contemporary facilities will serve to enhance visitor experience, foster public appreciation and enjoyment, and improve the commemorative integrity of protected heritage places.

Risk Analysis

In 2008, Parks Canada developed its first Corporate Risk Profile and formally introduced risk management into its strategic planning. The Agency implemented a four-step approach based on the identification of corporate risks and the assessment of those risks, the development of mitigation strategies for key corporate risks and the monitoring of progress made in the implementation of mitigation strategies. The Parks Canada Agency Corporate Plan 2009/10–2013/14 presented five key corporate risks—competitive position; public support; support from Aboriginal peoples; information management; and job market pressures—and strategies to mitigate these risks. In 2009/10, Parks Canada continued to improve its risk management practices by integrating risk management into its business planning process. The Agency also added risk management as a component of its training for supervisors, managers and executives which will, over time, foster a better understanding of risk management across the Agency. Parks Canada's efforts at attenuating its key corporate risks are presented in the following paragraphs.

Competitive position and public support

Parks Canada is one of many organizations offering places of natural and cultural interest to Canadians. The risk exists that Parks Canada's service offer could become less competitive than that of other parks, cultural attractions and leisure activities, with the result that fewer Canadians would choose to visit our national heritage places. Despite a higher number of visitors at some places, visitation figures for 2009/10 indicated that attendance had declined by three percent at national parks and by five percent at national historic sites, compared with the average number of visits to national parks and national historic sites over the period 2005/06 to 2009/10.

In 2008/09, Parks Canada introduced the Agency renewal initiative, a component of which aims to increase Parks Canada's relevance to Canadians. As part of this initiative, Parks Canada undertook a number of actions in 2009/10 to mitigate the risk of a weakening competitive position. Examples include the launch of two national media awareness campaigns; the development of new activities and accommodations for the 2010 summer season; the launch of a new brand identity showcased in public programs, and a fee freeze. The Agency also provided hands-on instruction on quality service standards to over 4,600 employees. To diversify its engagement opportunities, Parks Canada also developed a policy, guidelines and tools for collaborating with the private sector and trained approximately 60 specialists in working with this sector.

Support from Aboriginal peoples

Support from Aboriginal peoples is critical to Parks Canada's ability to meet its corporate objectives related to protecting and presenting heritage places. Over the course of 2009/10, the Agency made progress on several initiatives to help ensure continued support from Aboriginal peoples. Parks Canada undertook the development of an Aboriginal engagement framework to support the establishment of formal Aboriginal advisory relationships in locations across Canada. To support the implementation of the Crown's interim guidelines on consultation and accommodation throughout Parks Canada, the Agency developed a specific training course for its employees. In addition, Parks Canada collaborated with Indian and Northern Affairs Canada in the development of five pilot projects on Aboriginal cultural tourism to support capacity building in Aboriginal communities.

Information management

One of Parks Canada's key corporate risks is the ability to capture and manage data and information. To mitigate this risk, the Agency, among other activities, established the Enterprise Information Committee in September 2009 to provide oversight of information management. In December 2009, the Committee endorsed a strategic framework and a policy framework that will contribute to the setting of priorities for addressing the risk associated with information management. In addition, Library and Archives Canada, on behalf of Parks Canada, began work on a records disposition authority. The Agency also signed a Memorandum of Understanding with Library and Archives Canada to initiate an assessment project to define record-keeping requirements.

Parks Canada made progress in 2009/10 towards ensuring compliance with the Government Security Policy by creating a dedicated security unit to advance the development of an Agency security program. The Agency implemented a formal governance structure for business continuity planning and developed business continuity and pandemic preparedness plans within all of its operational management units.

Job market pressures

In 2009/10, Parks Canada refined its approach to corporate recruitment and retention, within the context of the Agency renewal strategy, by broadening the definition of diversity beyond traditional employment equity criteria to include the diversity of official languages, competencies and intergenerational groups. This action will serve to ensure that the Agency continues to recruit and retain a competent, representative and highly engaged workforce. The approach is based on a risk management methodology that takes into account both short-term and long-term risks. The initial focus of this approach is on short-term risks that have a high impact on Parks Canada's organizational priorities. Measures that mitigate those risks will be developed and are expected to be implemented in fiscal year 2010/11.

Sixty-eight percent of Canadians live in one of the country's 33 census metropolitan areas, while the majority of Parks Canada's facilities are located in rural areas and small towns. This poses particular challenges in recruiting skilled employees to work in many of these areas. To help meet this challenge, many national parks and national historic sites participated in career fairs or other public activities in urban centres to deliver information about the Agency to students and to raise their awareness about career opportunities. Parks Canada created a career Website that provides information on living in particular regions or towns, the benefits of working for Parks Canada and about the hiring process at Parks Canada. The Website also includes testimonials from current employees.

Canada's Economic Action Plan

Through Canada's Economic Action Plan, Parks Canada Agency has been given an opportunity to make additional investments for the benefit of Canadians and to accelerate many of its activities that contribute to the achievement of its performance objectives. The Agency received approximately $374 million to fund five initiatives:

• Improvements to national historic sites and visitor facilities;
• Twinning of the Trans-Canada Highway;
• Remediation of federal contaminated sites;
• Arctic research infrastructure; and
• Modernizing federal laboratories.

With the infusion of funds received through the Economic Action Plan, Parks Canada will deliver a capital program over three times its regular value. In 2009/10 Parks Canada spent $98.5 million, or 95 percent, of its allocated funding for the year and anticipates investing one hundred percent of its allotment. Over the life span of the Plan, the Agency expects to initiate approximately 235 projects across the five initiatives. Almost 75 percent of national parks, each national marine conservation area, one quarter of the national historic sites managed by Parks Canada and more than 70 national historic sites managed by third parties will execute one or more projects funded by the Plan.

Through the Economic Action Plan, the Parks Canada Agency invested the available funding in 2009/10 by:

• initiating more than 100 projects that will make substantial improvements and enhancements to Parks Canada historic sites and visitor facilities, completing a number of these projects in 2009/10 and positioning itself to deliver the remaining projects in 2010/11;
• accelerating its contribution to the Federal Contaminated Sites Action Plan; and by
• making significant progress on delivering its program of planned investments in infrastructure, including the Trans-Canada Highway.

Parks Canada demonstrated effective reporting on the management of the Economic Action Plan projects, meeting all the reporting requirements of the Government of Canada. The following text provides information on some of the projects funded by the Economic Action Plan that support each of the five initiatives, while contributing to the achievement of Parks Canada's Strategic Outcome.

Improvements to National Historic Sites and Visitor Facilities

Parks Canada received approximately $216.8 million over two years to invest in improvements to the built heritage of national historic sites and to visitor facilities.

These improvements involve major repairs and renovations to aging visitor reception centres and enhancements to visitor experience infrastructure, such as exhibits, roads, trails and public facilities. These improvements also contribute to enhancing commemorative integrity, visitor experience and visitor safety. Examples of these projects include:

• Belly River Bridge¹, Alberta – Parks Canada rebuilt this bridge that links Waterton Lakes National Park to Glacier National Park in the United States, improving visitor access to Waterton Lakes National Park;
• Halifax Citadel National Historic Site¹, Nova Scotia – Parks Canada completed major work on the north face counterscarp. The project involved the stabilization of close to 370 metres of the counterscarp wall and associated musketry gallery, as well as significant masonry repair to the walls and arches and drainage improvements in this area;
• Banff Park Museum National Historic Site¹, Alberta – Parks Canada restored the exterior finish of this site to its original condition; and
• Fortifications of Québec National Historic Site, Québec – Parks Canada will invest approximately $9 million in improvements and repairs to three gates to the walled city, to the Saint-Louis Forts and Châteaux National Historic Site, the Wolfe-Montcalm Monument, the Governor's Gardens and to the Dufferin Terrace.

Eight million dollars, included in the $216.8 million previously mentioned, was dedicated over two years to Parks Canada's National Historic Sites of Canada Cost-Sharing Program, which provides funding to national historic sites that are owned and managed by third parties. Over 70 projects will improve the commemorative integrity of these national historic sites and ensure that Canada's historical and natural heritage is presented and protected for the enjoyment, education and appreciation of all Canadians, today and in the future. Examples of these projects include:

• Former Hamilton Customs House National Historic Site of Canada¹, Ontario – Parks Canada contributed funding to the conservation project to restore the exterior of the building. Columns on the façade were repaired while the entrance steps were replaced;
• Saint Joseph's oratory of Mount Royal National Historic Site of Canada¹, Québec – Parks Canada contributed funding to the conservation project intended to restore the Oratory in two phases. In the first phase, completed in 2009/10, the roof was replaced. The masonry will be repaired in the second phase which will conclude in 2010;
• St. Patrick's Roman Catholic Church National Historic Site, Saskatchewan – Replacement and refinishing of the exterior doors; replacement of the Lexan covering over the stained glass windows; replacement of all of the masonry on the exterior stone walls; repairs to the front steps and ramp and to the interior plaster; and refinishing of pews; and
• Nordegg National Historic Site, Alberta – Preservation and rehabilitation of nine buildings and structures, including a worker's home and log cabin, a powder magazine and a boiler house.

Twinning of the Trans-Canada Highway

Parks Canada received $130 million over five years for the twinning of the Trans Canada Highway, with $70 million covering the 2009/10 and 2010/11 fiscal years and $60 million allocated for fiscal years 2011/12 through 2013/14. The twinning of the Trans-Canada Highway through Banff National Park to the British Columbia border will improve visitor access to the national parks and national historic sites in the mountains, enhance wildlife protection measures and improve the safety of individuals travelling along this transportation corridor. Elements that have been completed include nine kilometres of highway east of Lake Louise, and wildlife overpasses that will reduce mortality rates of animals crossing the highway.

Remediation of Federal Contaminated Sites

Through the Economic Action Plan, the federal government aims to accelerate activities under the Federal Contaminated Sites Action Plan, managed by Environment Canada. Parks Canada received approximately $25.6 million over two years as part of the accelerated funding initiative. The injection of funds will allow the Agency to remediate contaminated sites in national parks, contributing to improving the ecological integrity of the parks, and in national historic sites, enhancing their commemorative integrity. Through these investments, Parks Canada will have conducted in two years work that would otherwise have taken six years to complete.

As of March 31, 2010, Parks Canada has 442 known and suspected contaminated sites. Parks Canada's strategy is to identify sites within its portfolio that are currently suspected of being contaminated. Each site will then be assessed and, where contamination is confirmed, priority will be given to address potential impacts to ecological and human health at the highest-risk sites.

With funding from the Economic Action Plan during fiscal year 2009/10 and under the auspices of the Federal Contaminated Sites Action Plan, Parks Canada conducted contaminated site assessments in 17 national parks and eight national historic sites. At the same time, remediation and/or risk management at high-risk sites were undertaken in 12 national parks and seven national historic sites. As a result of these activities, 84 percent of sites that were known as of March 31, 2009 have now been assessed and 25 percent of high-risk sites have developed or implemented a remedial and/or risk management action plan. Here are two examples of contaminated sites remediation activities that were completed in 2009/10:

• Pacific Rim National Park Reserve, British Columbia – The site, located on Prideaux Island, consists of a former mine pit. Parks Canada undertook active remedial measures that included the removal of debris from the pit, transportation and disposal of the refuse, and backfilling with locally available waste rock, thus mitigating the risks for further impacts to cultural features on the site; and

• Lachine Canal National Historic Site, Québec – The site, adjacent to the Atwater Market, suffered contamination from mixed chemicals and heavy metals, likely from backfills dating back to a period of industrial occupation during the 19th and 20th centuries, before the site was acquired by Parks Canada. In 2009/10, contaminated material was excavated and disposed of, the site was backfilled with clean local soil and further capped with sand. As a result of these activities, Parks Canada restored the condition of the site to harmonize with neighbouring properties while meeting legal and environmental obligations.

Arctic Research Infrastructure

Parks Canada received approximately $0.9 million through the Arctic Research Infrastructure funding initiative, managed by Indian and Northern Affairs Canada, to support a robust network of research infrastructure put in place to complement the High Arctic Research Station when it becomes fully operational. For example, the Agency will purchase and install shelters to protect researchers from the elements and wildlife, as the scientists conduct research related to ecological integrity indicators in Quttinirpaaq National Park.

Modernizing Federal Laboratories

Parks Canada received approximately $0.3 million through the Modernizing Federal Laboratories program, managed by Natural Resources Canada, to purchase a vessel that will serve as a platform to conduct research supporting the protection of the marine environment and the ongoing underwater archaeology program. This work will contribute to ecological integrity in Parks Canada's national parks and will advance the understanding of national marine conservation areas.

For further details on the Economic Action Plan and the projects it funds, consult the Plan's Website at www.actionplan.gc.ca.

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Office of the Auditor General Reports

The Auditor General has assessed Parks Canada Agency's performance information presented in Section 2 of this report. This assessment is only a review level of assurance, and does not constitute an audit. The Auditor General's Assessment Report is presented before the performance information in Section 2.

The Auditor General has audited Parks Canada Agency's financial statements. These financial statements and the auditor's report are presented in Section 4.

The Auditor General has not evaluated or audited any other sections of this report.

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Management Statement of Responsibility for Performance Information

I submit, for tabling in Parliament, the 2009/10 Departmental Performance Report for the Parks Canada Agency.

This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2009/10 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance.
• It is based on the Agency's Strategic Outcome and Program Activity Architecture which were approved by the Treasury Board.
• It presents consistent, comprehensive, balanced and reliable information.
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it.
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

In addition, the Parks Canada Agency Act requires the Auditor General of Canada to provide an assessment of the fairness and reliability of the performance information.

Management has established systems and practices designed to provide reasonable assurance of the fairness and reliability of the Agency's performance information. Parks Canada is continually improving its financial and performance information, introducing new measures in some areas and enhancing data collection in others. Some information is based on management's best estimates and judgements. Limitations on the quality of the information and plans for improvements are indicated in the report.

The Agency's senior management oversees preparation of this document and approves the final report. In my view, the information is the best available and represents a comprehensive, balanced and transparent picture of the performance of Parks Canada for fiscal year 2009/10.

Original signed by

Alan Latourelle

Chief Executive Officer
Parks Canada Agency

Gatineau
August 6, 2010

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Auditor General's Assessment of Performance Information in the Parks Canada Agency's 2009-2010 Performance Report

To the Chief Executive Officer of Parks Canada Agency and the Minister of the Environment

What I Assessed

As required by the Parks Canada Agency Act, I have assessed the fairness and reliability of the Parks Canada Agency's performance information for 2009-2010 with respect to the objectives established in its corporate plan.

Management's Responsibility

The performance information reported in the Agency's performance report is the responsibility of management.

My Responsibility

My responsibility is to assess the fairness and reliability of the performance information included in the Agency's performance report against the objectives established in its corporate plan.

My assessment covered only the performance information included in the section of its performance report titled "Analysis of program activities". My assessment did not include the objectives set out in the corporate plan or information referenced by Web links included in the report. My responsibility does not extend to assessing or commenting on the Agency's actual performance.

The Nature of My Assessment

My assessment consisted of a review performed in accordance with the standards for assurance engagements established by the Canadian Institute of Chartered Accountants. The assessment consisted primarily of enquiry, analytical procedures, and discussion related to the performance information. I conducted this assessment using the criteria for the assessment of fairness and reliability described in the Annex.

An assessment based on a review provides a moderate level of assurance and does not constitute an audit. Consequently I do not express an audit opinion on the Agency's performance information.

Conclusion

Based on my assessment, nothing has come to my attention that causes me to believe that the Agency's performance information for 2009-2010, with respect to the objectives established in its corporate plan, is not, in all significant respects, fair and reliable using the criteria described in the Annex to this report.

Original signed by

Sylvain Ricard, CA
Assistant Auditor General
For the Auditor General of Canada

Ottawa, Canada
August 6, 2010

Criteria for the Assessment of Fairness and Reliability Office of the Auditor General of Canada

The following criteria were developed to assess the fairness and reliability of the information about the Agency's performance with respect to the objectives in its corporate plan. Two key issues were addressed: Has the Agency reported on its performance with respect to its objectives? Is that information fair and reliable? Performance information with respect to objectives is fair and reliable if it enables Parliament and the public to judge how well the entity or program in question is performing against the objectives it set out to accomplish.

Fairness

Relevant – The performance information reports in context, tangible, and important accomplishments against objectives and costs.

Meaningful – The performance information describes expectations and provides benchmarks against which performance is compared.

Attributable – The performance information demonstrates why the program made a difference.

Balanced – A representative and clear picture of performance is presented, which does not mislead the reader.

Reliability

Reliable – The performance information adequately reflects the facts.

These criteria were developed specifically for the assessment. The Parks Canada Agency has acknowledged that they were suitable for the assessment.

More information on the criteria is available on our Web site at http://www.oag-bvg.gc.ca/internet/English/meth_gde_e_10217.html

Section 2: Analysis of Program Activities

Strategic Outcome

Canadians have a strong sense of connection, through meaningful experiences, to their national parks, national historic sites and national marine conservation areas and these protected places are enjoyed in ways that leave them unimpaired for present and future generations.

Parks Canada accomplishes its Strategic Outcome by ensuring Agency activities and investments are relevant to Canadians and thereby create meaningful experiences in the enjoyment of national heritage places. This, in turn, fosters a strong sense of connection in the hearts and minds of Canadians as these places are protected in ways that allow present and future generations to enjoy them.

Parks Canada has developed three tangible and measurable performance indicators that inform management of the Agency's progress towards its Strategic Outcome. Contributing directly to these high-level expectations are the results of all of the Program Activities that comprise the Agency's Program Activity Architecture. Measuring these results allows Parks Canada to assess its overall performance and to determine the progress the Agency has made in attaining its long-term goal.

Parks Canada's performance results for all Program Activities are evaluated using the following performance rating system established by Treasury Board:

• Exceeded: more than 100 percent of the expected level of performance;
• Met All: 100 percent of the expected level of performance;
• Mostly Met: 80 to 99 percent of the expected level of performance;
• Somewhat Met: 60 to 79 percent of the expected level of performance;
• Not Met: less than 60 percent of the expected level of performance.

Performance Indicator, Target Date and Performance in 2009/10

1. Maintain or improve the overall ecological integrity in all national parks from March 2008 to March 2013

As of March 31, 2010, all 42 national parks have identified key ecological integrity indicators. Twenty-nine of the parks have determined the condition of these indicators and 24 have identified their trend. Programs focussed on initiatives to improve ecological integrity in Canada's national parks have been ongoing. In 2009/10 Parks Canada provided first-year funding for multi-year active management and restoration projects through the Action on the Ground integrated funding strategy. This strategy improves upon past programs through a more targeted approach that incorporates ecological integrity indicators of key park ecosystems into the program framework. Parks Canada's performance related to this indicator will be evaluated in 2013.

The condition and trend of the ensemble of key ecological integrity indicators identified for each national park paint a picture of the overall ecological integrity of that park, and also provide the baseline against which maintenance or improvement is evaluated.

In some national parks, native biodiversity and habitat are under considerable stress from external environmental forces, such as climate change, biodiversity loss and the pervasive presence of exotic/invasive species in the greater park ecosystem, all of which influence the ecological integrity of national parks. To attenuate these risks, Parks Canada targeted investments in priority active management and restoration initiatives to improve ecological indicators and make a demonstrable difference. Examples of such initiatives include recovery actions for species at risk, active management and restoration of degraded ecosystems, restoring fire to the landscape and remediation of contaminated sites. Concrete examples of these initiatives are presented later in this report under Program Activity 2.

2. Improve the overall average commemorative integrity rating from 6.0/10 in March 2008 to 6.6/10 in March 2013

As of March 2010, Parks Canada achieved an overall average commemorative integrity rating of 6.5². This includes data from 133 sites evaluated as of that date, and new results for sites where reassessments have taken place during the period covered by this report. The formal program of establishing commemorative integrity baselines ended in 2009 with the evaluation of 133 national historic sites of a total of 167. The remaining 34 evaluations will be conducted as part of a new management planning process, but new baselines are not expected to be established in the 2010/11 fiscal year.

Parks Canada continues to perform formal re-evaluations of those elements of commemorative integrity rated as poor after five years. This process will continue until 2013, at which point all sites that had poor ratings at their original baseline evaluations will have been re-evaluated. Parks Canada's performance related to this indicator will be evaluated in 2013.

Commemorative integrity is based on three elements: Condition of Cultural Resources, Selected Management Practices and Effectiveness of Communication. Four of seven national historic sites that were re-evaluated in 2009/10 made improvements to their commemorative integrity, from significant and major impairment to minor impairment, which directly contributed to the overall improvement of commemorative integrity. Bar U Ranch improved its poor rating in the Condition of Cultural Resources element of commemorative integrity, while both Bar U Ranch and Trent-Severn Waterway improved their poor ratings for Selected Management Practices. Merrickville Blockhouse, Boishébert and Trent-Severn Waterway improved their Effectiveness of Communication element. See Figure 1 for additional details on the re-evaluations conducted in 2009/10.

As of 2009/10, 62 percent (82) of the 133 national historic sites that have been evaluated so far exhibit no or minor impairment to their commemorative integrity, 30 percent (40) exhibit significant impairment, and eight percent (11) show major or severe impairment. See Figure 2 for additional details.

Parks Canada has gradually and consistently improved its overall average commemorative integrity rating over the past three years, from 6.0 in 2007/08, based on 119 baseline evaluations completed by that date, to 6.4 in 2008/09 and 6.5 in 2009/10. These data suggest that the Agency is on track to meet its target of an overall average commemorative integrity rating of 6.6 in 2013.

FIGURE 1
Results of 2009/10 Re-evaluations of Commemorative Integrity

National Historic Site	2004/05 Baseline		2009/10 Re-evaluation
	Commemorative Integrity Score	Degree of Impairment	Commemorative Integrity Score	Degree of Impairment
Bar U Ranch NHS	3	Major	8	Minor
Boishébert NHS	4	Significant	7	Minor
Merickville Blockhouse NHS	5	Significant	9	Minor
Trent-Severn Waterway NHS	2	Major	7	Minor

FIGURE 2
Level of impairment of Commemorative Integrity at national historic sites

Level of Impairment	2008/09		2009/10
	Number of sites	Percentage of total number of sites	Number of sites	Percentage of total number of sites
No impairment	9	7%	9	7%
Minor	69	52%	73	55%
Significant	41	31%	40	30%
Major	12	9%	9	7%
Severe	2	1%	2	1%
Total	133	100%	133	100%

3. Increase the percentage of Canadians that report a personal connection to Parks Canada administered places by March 2014

The sense of connection that any one Canadian has with national heritage places is as individual as individual Canadians themselves. For some Canadians, connection is fostered by the beauty of the place, the natural or historical significance of the place, or by seeing wildlife in a natural setting; for others, connection is created through fond memories of their experiences, walking in the footsteps of their ancestors, or by having the opportunity to experience the place with family and friends.

In 2008/09, through the National Survey of Canadians, Parks Canada determined that approximately 55 percent of Canadians have a sense of connection with Canada's national heritage places. Visiting national heritage places has been found to be an important element in how Canadians develop a sense of connection with them. Nine out of 10 Canadians who have visited one of Canada's national parks report a sense of connection to them, while only two out of 10 Canadians who have not visited a national park say the same. The results were similar for national historic sites. Opportunities to learn and experience national heritage places in informal and formal settings have been found to be important in contributing to fostering appreciation and support for national heritage places.

In 2009/10, Parks Canada embarked on a number of Agency-wide initiatives designed to foster and strengthen among Canadians a sense of connection to heritage places administered by Parks Canada. These included a six-week nationwide television and Internet campaign in May and June 2009 and a three-week television campaign during the 2010 Vancouver Winter Olympic Games, feature episodes on the "Rick Mercer Report" on the CBC television network, and hosting the Olympic torch relay at 34 national parks and national historic sites. In addition, outreach initiatives, including feature and special interest stories in print and social media, broadcasts, community events, and school visits by Parks Canada staff have helped bring the spirit and wonder of Canada's national heritage places to Canadians. Parks Canada also provided training to 4,672 employees on quality service standards and interactions with visitors, and diversified its offers related to accommodation and trails in national parks to satisfy the needs of a variety of visitors. The Agency also hosted a meeting with stakeholders and partners who examined ways to inspire Canadians to connect with nature and history and to mobilize them to support the conservation of Canada's national treasures. Parks Canada's performance related to this indicator will be evaluated in 2014.

Program Activity 1: HERITAGE PLACES ESTABLISHMENT

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
24,031	25,625	15,240		92	90	2

Benefits for Canadians

Creating new national parks and national marine conservation areas, and expanding existing national parks, protects portions of Canada's distinct landscapes and seascapes and their associated ecosystems. The designation of new places, persons and events of national historic significance builds on our system of national commemorations that reflects the breadth and diversity of Canadian history. These newly established heritage places contribute to regional economic development and the well-being of communities, and lead to new opportunities for visitor experience, education and long-term meaningful involvement in the place's planning and management. They are the means to pass onto future generations the living legacy that we have inherited from generations past. The establishment of these special places is essential to ensuring their ongoing protection.

Performance Expectations

The Expected Result of this Program Activity is measured by five performance indicators.

Performance Indicator 1	Target and Date	Result as of March 2010	Performance Status
Number of represented terrestrial natural regions in the system of national parks	Increase the number of represented terrestrial natural regions from 28 in March 2007 to 30 of 39 by March 2010	28 represented terrestrial natural regions in the system of national parks. No new regions represented from March 2007 to March 2010	Not Met
Performance Indicator 2	Target and Date	Progress as of March 2010	Performance Status
Number of unrepresented regions with progress in advancing through steps towards establishing national parks	Make demonstrable progress towards establishing four national parks in three unrepresented regions by March 2011	Demonstrable progress in four national park proposals in three unrepresented regions	Performance will be assessed in 2011 Progress made towards target is outlined in the following text

Performance Analysis

Parks Canada was not able to meet its target to represent additional terrestrial natural regions in the national parks system by March 2010. However, the Agency made progress in the establishment of four national parks in unrepresented regions and expanded Nahanni National Park Reserve. The national parks system currently consists of 42 operational parks representing 28 of the 39 terrestrial natural regions. With the expansion of Nahanni National Park Reserve, the national park system now totals 301,473 square kilometres, an increase of nine percent over last year.

Since March 2007, Parks Canada has concentrated its efforts on six proposed national parks and one park expansion. Progress on the establishment of these proposals is presented in Figure 3. In 2009/10, the Agency made demonstrable progress in the following proposals: Mealy Mountains, Nááts'ihch'oh, Northern Bathurst Island, and East Arm of Great Slave Lake. There was no activity in the Northern Interior Plateaux and Mountains natural region during the past year in the current candidate site, Wolf Lake. As with all unrepresented regions for which there is no confirmed or active candidate site, Parks Canada will consider other opportunities for protection if and when they arise.

The establishment of a national park begins with the identification of several natural areas that are representative of a natural region (Step 1); followed by the selection of a potential national park area (Step 2); then conducting a feasibility assessment including consultations (Step 3); negotiating park establishment agreements (Step 4); and formally protecting a park under the Canada National Parks Act (Step 5).

FIGURE 3
Progress of proposals to establish and expand national parks

Terrestrial Natural Region and National Park Area of Interest	Progress Statement in 2009/10
Mackenzie Mountains Nahanni National Park Reserve expansion and Nááts'ihch'oh(N.W.T.)	Passage of legislation (Step 5) Parliament passed legislation that resulted in a six-fold increase in the size of Nahanni National Park Reserve within the Dehcho region. Negotiation of agreements (Step 4) Parks Canada initiated public consultations and community meetings on boundary options for a new national park reserve (Nááts'ihch'oh) in the Sahtu Settlement area. The Agency concluded the negotiation of an Impact and Benefit Plan with the Sahtu Dene and Métis who then initiated a ratification process.
East Coast Boreal Mealy Mountains (N.L.)	Negotiation of agreements (Step 4) The Minister of the Environment and the Government of Newfoundland and Labrador signed an agreement to open negotiations for a land transfer agreement for a 10,700 sq km national park reserve in the Mealy Mountains and confirmed the boundary of the park. Parks Canada held additional consultations with Innu from Québec, who have an overlapping claim.
Western High Arctic Northern Bathurst Island (NU)	Negotiation of agreement (Step 4) Parks Canada held several meetings with the Qikiqtani Inuit Association and representatives of the community of Resolute Bay, agreeing to open negotiations for an Inuit Impact and Benefit Agreement that would lead to the creation of a new national park on northern Bathurst Island.
Northwestern Boreal Uplands East Arm of Great Slave Lake (N.W.T.)	Feasibility assessment (Step 3) Work continued on the social and economic study, as well as on the Mineral and Energy Resource Assessment technical assessment. Parks Canada negotiated a Framework Agreement with the Łutsel K'e Dene First Nation that would commit both parties to negotiate a park establishment agreement, as well as a similar Framework Agreement with the Northwest Territory Métis Nation, committing both parties to negotiate an Impact and Benefit Plan.
Manitoba Lowlands Manitoba Lowlands (Man.)	Discussions with First Nations re agreement (Step 3) Parks Canada held discussions with the Misipawistik Cree Nation and the Government of Manitoba regarding a potential Memorandum of Understanding that would guide a community-based process to build understanding and address concerns of the Misipawistik Cree Nation associated with a possible national park located within their traditional territory.
Interior Dry Plateau South Okanagan-Lower Similkameen (B.C.)	Feasibility assessment (Step 3) Parks Canada continued its work with the Government of British Columbia to revise its approach and address considerations raised by the ranching community, other stakeholders and First Nations during the consultation process.

Note: A region may be represented by a national park or national park reserve. A reserve is an area managed as a national park but where the lands are subject to one or more claims by Aboriginal people that have been accepted for negotiation by the Government of Canada. A region is considered to be represented when one or more national parks or park reserves are operational as a consequence of: signing a park establishment agreement (federal-provincial and/or Aboriginal agreements); the lands have been transferred to Canada (from the province); and/or the park/reserve is in a schedule of the Canada National Parks Act.

Lessons Learned

Building positive and productive relationships with Aboriginal groups, other governments and communities is essential for successful outcomes in the intricate process of creating new national parks. This was evident in 2009/10 in the successful expansion of Nahanni National Park Reserve. This expansion was achieved because Parks Canada worked at building a solid relationship with the Dehcho First Nations. It also occurred because of the significant public and political support that was expressed over the years for enhanced protection of this World Heritage Site.

In the case of the Mealy Mountains proposal, a steering committee composed of government representatives, Aboriginal organizations, and local communities recommended a framework for the continuation of traditional land use activities by Labradorians within the proposed park. It was precisely this approach that enabled the governments of Canada and Newfoundland and Labrador to declare that a national park reserve in the Mealy Mountains was feasible, to agree on a park boundary and to launch negotiations to create this park reserve.

To remain consistent with the pace of current establishment projects and with the availability of financial resources to develop and initiate new proposals, Parks Canada's performance expectations in Corporate Plan 2010/11–2014/15 are to increase the number of represented terrestrial natural regions to 29 by March 2013 and to make demonstrable progress towards establishing national parks in three unrepresented regions by March 2011.

Performance Indicator 3	Target and Date	Result as of March 2010	Performance Status
Percentage of recommended designations for under-represented themes in Canada's history	33% of yearly recommended designations are for under-represented themes in Canada's history	55%	Exceeded

Information on under-represented themes: http://www.pc.gc.ca/docs/r/system-reseau/sec4/sites-lieux44_e.asp
Information on the list of designations: http://www.pc.gc.ca/clmhc-hsmbc/index_E.asp

Performance Analysis

The Minister of the Environment made 33 new designations in 2009/10. Eighteen of these were in under-represented themes in Canada's history, representing 55 percent of the total number of new designations. The three under-represented themes are: Aboriginal history, Ethnocultural communities and Women. Designations may also cover more than one theme, such as Ethnocultural communities and Women, Aboriginal history and Women, and Ethnocultural communities and Aboriginal history. Of the designations in under-represented themes, four were related to women's history, one to Aboriginal history and 11 to the history of ethnocultural communities; two touched more than one of these themes. See Figure 4 for further details. As of March 2010, 2,021 persons, places and events have been designated of national historical importance.

One example of a designation in an under-represented theme is Waapushukamikw in James Bay, Québec, which was designated as a National Historic Site in April 2009. This Mistassini Cree religious practice site, famous for its hard white quartzite, was designated under the Aboriginal history theme. Another is the Refugees of the 1956 Hungarian Revolution, designated a National Historic Event in January 2010 and representing the ethnocultural communities theme. This designation commemorates the first large immigration wave from the Eastern Bloc. Under the women's history theme, Ethel Johns (1879–1968), a nursing leader, educator and nurse administrator, was designated a National Historic Person in April 2009.

FIGURE 4
Ministerial designations by type

	2007/08			2008/09			2009/10
	Total	Under represented themes		Total	Under represented themes		Total	Under represented themes		Total designations as of March 31, 2010
Type	Number	Number	Percentage	Number	Number	Percentage	Number	Number	Percentage
Places	12	5	11%	13	5	11%	9	3	9%	956
Persons	15	10	22%	21	17	39%	16	12	36%	648
Events	18	12	27%	10	6	14%	8	3	9%	417
Total	45	27	60%	44	28	63%	33	18	55%	2,021

Note: Totals may not agree due to rounding

Lessons Learned

Through Parks Canada's New Commemorations Initiative, the Agency invested $900,000 over the past three fiscal years to continue the direct engagement of women's, Aboriginal and ethnocultural organizations in the development of nominations within these three under-represented themes. The objective of the Initiative is to encourage public participation in identifying and bringing forward nominations in these areas to the Historic Sites and Monuments Board of Canada. An additional investment of $200,000 will be made in 2010/11 pending completion of a review of community consultation investment results achieved from 2000 to 2010.

This review of the Initiative's activities and outcomes was in progress at the end of 2009/10. Preliminary findings show that modest investments in direct engagement with priority communities have contributed significantly to the goal of ensuring that Canada's system of historical commemorations represents the breadth and diversity of Canada's history. Over 70 percent of all new commemorations in the three priority areas for the 2007/08 to 2009/10 period are the result of consultations funded by Parks Canada. The final evaluation report, to be completed in 2010/11, will include recommendations for the way forward.

Performance Indicator 4	Target and Date	Result as of March 2010	Performance Status
Number of represented marine regions in the system of national marine conservation areas	Increase the number of represented marine regions from three in October* 2007 to four of 29 by March 2010	Three marine regions represented. No new regions represented from October 2007 to March 2010	Not Met
Performance Indicator 5	Target and Date	Progress as of March 2010	Performance Status
Number of unrepresented regions with progress in advancing through steps towards establishing national marine conservation areas	Make demonstrable progress towards establishing national marine conservation areas in two unrepresented regions by March 2011	Demonstrable progress in two proposals for national marine conservation areas in three unrepresented marine regions	Performance will be assessed in 2011 Progress made towards target is outlined in the following text

National marine conservation areas and their establishment: http://www.pc.gc.ca/eng/progs/amnc-nmca/pr-sp/index.aspx
* March 2007 was printed in error in the Corporate Plan 2009/10–2013/14. The correct date is October 2007

Performance Analysis

Parks Canada was not able to meet its target of increasing the representation of marine regions to four of 29 by March 2010 as no national marine conservation areas were established in the period covered by this report. As of March 31, 2010, three of 29 marine regions were represented. However, in June 2010, the Agency tabled in Parliament an Order in Council that legally protects the Gwaii Haanas National Marine Conservation Area Reserve and Haida Heritage Site. This action increases the number of represented regions to five, as the new national marine conservation area reserve and heritage site represent both the Hecate Strait and the Queen Charlotte Shelf marine regions. This achievement will be captured as part of Parks Canada's performance in fiscal year 2010/11.

Since 2007, Parks Canada has concentrated its efforts on four proposed national marine conservation areas in unrepresented regions and made demonstrable progress in two of these proposals: the Gwaii Haanas National Marine Conservation Area Reserve and Haida Heritage Site and the Lancaster Sound national marine conservation area. Progress in 2009/10 on the establishment of national marine conservation areas in unrepresented regions is shown in Figure 5.

The establishment of a national marine conservation area begins with the identification of several areas that are representative of a marine region (Step 1); followed by the selection of a potential national marine conservation area (Step 2); then conducting a feasibility assessment including consultations (Step 3); negotiating marine conservation area establishment agreements (Step 4); and formally protecting a marine area under the Canada National Marine Conservation Areas Act (Step 5).

FIGURE 5
Progress of proposals to establish national marine conservation areas

Marine Region and National Marine Conservation Area of Interest	Progress Statement in 2009/10
Hecate Strait/Queen Charlotte Shelf Gwaii Haanas NMCA Reserve and Haida Heritage Site (B.C.)	Negotiation of an agreement and preparation of an interim management plan (Step 4/5) The Canada – Haida Gwaii Haanas Marine Agreement for the marine conservation area reserve was signed in January 2010. The final draft of the interim management plan was developed in consultation with the Haida Nation and other interests. In collaboration with Fisheries and Oceans Canada, Parks Canada concluded consultations with the fishing sector. Work began on an Order in Council to be tabled in both the House of Commons and the Senate in order to legally designate the marine area under the Canada National Marine Conservation Areas Act. (Note: The Order in Council was tabled on June 7, 2010.)
Lancaster Sound Lancaster Sound (NU)	Feasibility assessment (Step 3) The federal Minister of the Environment, the Qikiqtani Inuit Association and the Government of Nunavut signed a Memorandum of Understanding to guide the assessment. Parks Canada will lead the study in close collaboration with the Government of Nunavut, Qikiqtani Inuit Association, and local communities, along with other federal departments.
Strait of Georgia Southern Strait of Georgia (B.C.)	Feasibility assessment (Step 3) Parks Canada and the British Columbia Government continued to analyze issues and options for the purpose of concluding the feasibility assessment. The Agency continued its work to expand consultations with First Nations.
Magdalen Shallows Les Îles-de-la-Madeleine (Que.)	Feasibility assessment (Step 3) Parks Canada is in the early stages of a feasibility assessment and is continuing to work with the Government of Québec on a Memorandum of Understanding to guide the assessment work.

Note: A marine region is considered to be represented when one or more national marine conservation areas or reserves are operational as a consequence of: signing an establishment agreement (federal-provincial and/or Aboriginal agreements); seabed and any lands have been transferred to Canada (from province); and/or the national marine conservation area/reserve is in a schedule of the Canada National Marine Conservation Areas Act.

Lessons Learned

Parks Canada's work over the last several years in advancing the Gwaii Haanas proposal, to the point where the Agency is on the verge of establishing the first marine area under the Canada National Marine Conservation Areas Act, has produced several important lessons on which the Agency can build—firstly, close collaboration with the Government of British Columbia and the Haida Nation; secondly, the use of a range of consultative techniques, such as interim advisory councils and bilateral consultations with key parties; and finally, ongoing collaboration with regional opinion leaders to be able to respond to the various issues and opportunities.

To remain consistent with the pace of current establishment projects, with the availability of financial resources to develop and initiate new proposals, and with the creation of Gwaii Haanas National Marine Conservation Area Reserve in June 2010 representing two marine regions, the Parks Canada's performance expectation in the Corporate Plan 2010/11–2014/15, to increase the number of represented marine regions to five from 2010 to 2013 (as it will be met) will be revised for the Corporate Plan 2011/12–2015/16.

Program Activity 2: HERITAGE RESOURCES CONSERVATION

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
200,604	253,072	191,926		1,272	1,236	36

Benefits for Canadians

Conservation of healthy, diverse ecosystems within national parks helps ensure that Canadians continue to enjoy a wide range of environmental goods and services that are vital for human well-being, such as the provision of high-quality drinking water and mitigation against climate change and natural disasters. National parks contribute to Canada's economy through the provision of tourism opportunities, and enhance the physical and mental health of Canadians as sacred places and recreational resources. National historic sites and other historic places connect Canadians to their past and are tangible manifestations of the breadth and diversity of Canadian history. They also play important contemporary roles in their communities as places of gathering, business, entertainment, tourism and social unity. These heritage places are intrinsic components of the Canadian identity. The conservation of national parks and national historic sites and the ecologically sustainable use of national marine conservation areas are of prime importance as, together, they provide meaningful opportunities for Canadians to appreciate and personally connect with nationally significant places and stories and to engage directly in the management of Canada's national treasures.

Performance Expectations

The Expected Result of this Program Activity is measured by two performance indicators.

Performance Indicator 1	Target and Date	Progress as of March 2010	Performance Status
Percentage of national parks with at least one improved ecological integrity indicator	Outside of national parks in the far north with an already acceptable ecological integrity status, 80% of national parks have at least one improved ecological integrity indicator from March 2008 to March 2013	Selected national parks received funding for targeted multi-year priority active management and restoration initiatives to improve ecological integrity indicators	Performance will be assessed in 2013 Progress made towards target is outlined in the following text

Action on the Ground II: http://www.pc.gc.ca/eng/docs/bib-lib/~/media/docs/bib-lib/pdfs/aslt2%20aotg2_e.ashx
Principles and Guidelines for Ecological Restoration in Canada's Protected Natural Areas: http://www.pc.gc.ca/eng/docs/pc/guide/resteco/index.aspx
State of Park Reports: http://www.pc.gc.ca/eng/docs/bib-lib/docs5hi.aspx

Performance Analysis

As of March 2010, all 42 national parks have identified key indicators of ecological integrity, an improvement from 39 parks in 2008/09. Twenty-nine parks have determined the condition of these indicators (up from 25 in 2008/09), and of these, 24 parks³ have determined their trend (up from 23 in 2008/09). These determinations form the baseline against which changes in ecological integrity indicators will be evaluated in 2013.

In 2009/10, through the Action on the Ground integrated funding strategy, Parks Canada implemented active management and restoration projects for selected national parks. This consolidated funding source is designed to improve the integrated delivery of the Agency's programs and facilitate multi-year investments targeted at the most pressing ecological integrity issues in national parks. Figure 6 provides details for six examples of these projects.

Improvements in ecological integrity indicators resulting from management actions may be realized in one of three ways: improvement in the condition of the indicator (e.g. from poor to fair, or from fair to good); improvement in the trend of the indicator (e.g. from declining to stable); and meeting determined management effectiveness targets. Because ecosystems are complex and sometimes slow to respond to management interventions, the third method entails achieving ecological integrity outcomes (e.g. the ratio of native grasses to exotic grasses is improved by 15 percent) as a result of implementing planned active management actions. With an ecological integrity monitoring and reporting system in place, national principles and guidelines for ecological restoration established and targeted multi-year active management and restoration initiatives now underway and largely on track, Parks Canada is well positioned to report on ecological integrity improvements in future years.

Parks Canada also continued to develop coordinated ecological integrity monitoring programs for parks in the North. Given the large size and remote locations of these national parks, satellite-based remote sensing tools will be important for measuring and reporting ecological change. In 2009/10, Parks Canada, in collaboration with scientists at the Canadian Centre for Remote Sensing, began working on the development of cost-effective methods to assess changes in tundra, wetland, glaciers, and coastal ecosystems, through the ParkSPACE program that is funded by the Canadian Space Agency. A key deliverable from the ParkSPACE project is an operational plan that will identify tasks and assess the human and financial resources required over the long-term to measure ecological integrity by remote sensing for the purpose of reporting.

FIGURE 6
Examples of Action on the Ground projects and their achievements

National Park	Ecological Integrity Indicator to be Improved	Overall Project Objective	Project Achievements 2009/10	Ecological Integrity Improvement Expected by March 2013
Forillon NP	Coastal	To implement an integrated approach to addressing a priority ecological integrity issue of the Penouille peninsula	Put in place contribution agreement to conduct studies Initiated work to better understand coastal process Completed visitor use and attendance study of the Penouille Peninsula	Management effectiveness targets will be met
Grasslands NP	Grasslands	To improve ecological integrity in the Grasslands indicator	Released 34 ferrets in October 2009; 35% accounted for in spring survey Treated 70 hectares of new crested wheatgrass patches Seeded 32 hectares of cultivated fields to native vegetation Completed 94 hectares of prescribed burns Implemented interim stocking rates on 6 grazing units, totaling 56% of the park holdings in 2009/10 Increased Plains Bison population by 34 animals; the total population is 149 animals as of March 31, 2010	Management effectiveness targets will be met
Jasper NP	Native Biodiversity	To improve the population status of Woodland Caribou in the mountain parks	Conducted aerial surveys for population counts Completed scoping for habitat mapping project Completed genetic analysis Measured population growth rate Initiated development of public participation plan and communications strategy Developed communications and public engagement products Conducted consultations on the feasibility of translocation	Improvement in indicator condition
La Mauricie NP	Aquatic Forest   Wetlands	To restore the water level of selected lakes, riverine habitat and the integrity of fish communities To improve the ecological integrity of the forest of the park To restore water level of water bodies and associated wetlands	Completed plans to rehabilitate water bodies damaged by pre-park forest exploitation Two prescribed burns have been completed and plans are in place for future fires Plans completed to rehabilitate wetlands damaged by pre-park forest exploitation.	Improvement in indicator condition
Riding Mountain NP	Forest	To eliminate Bovine Tuberculosis from the Riding Mountain Regional Ecosystem	Determined target surveillance levels and objectives Tested elk populations Conducted annual wildlife (ungulates/ wolves) population survey Initiated a risk reduction program to reduce wildlife/livestock interactions	Improvement in indicator trend
Terra Nova NP	Forest	To improve the state of forest health through restoration of the critical role of fire in the ecosystem, mitigation of the impacts of hyper-abundant species and restoration of black spruce/balsam fir sites	Completed hyper-abundant moose management plan Established effectiveness monitoring Completed 30 public consultation sessions Completed prescribed burn preparation	Improvement in indicator trend

Note: For additional information on ecological integrity indicators of national parks, consult the State of Protected Heritage Areas Report 2007/2009 at http://www.pc.gc.ca/eng/docs/bib-lib/~/link.aspx?_id=820E61E642C24531A83C51F48B1E689E&_z=z

Lessons Learned

Ecosystems are complex and sometimes slow to respond to management interventions. External factors outside of Parks Canada's control, such as climate change and the pervasion of invasive/exotic species, also impact the health of ecosystems. To this end, and to reflect current fiscal realities, Parks Canada modified its performance target in the Corporate Plan 2010/11–2014/15, specifying that 20 parks are to improve one ecological integrity indicator by March 2014.

Performance Indicator 2	Target and Date	Result as of March 2010	Performance Status
Percentage of the condition of cultural resources and management practices elements of commemorative integrity rated as poor are improved	70% of the condition of cultural resources elements of commemorative integrity rated as poor are improved within five years	50% (1 of 2 sites)	Somewhat Met
	70% of the management practices elements of commemorative integrity rated as poor are improved within five years	100% (3 of 3 sites)	Exceeded

Definition of the concept of Commemorative Integrity: http://www.pc.gc.ca/eng/docs/pc/guide/guide/commemorative_1_0/commemorative_1_1.aspx
Cultural Resource Management Policy: http://www.pc.gc.ca/eng/docs/pc/poli/princip/sec3.aspx
List of National Historic Sites administered by Parks Canada: http://www.pc.gc.ca/progs/lhn-nhs/recherche-search_e.asp?s=1

Performance Analysis

Every five years, Parks Canada conducts reassessments of all national historic sites that earned poor ratings for any element of commemorative integrity. In 2009/10, the two national historic sites whose Condition of Cultural Resources element of commemorative integrity was rated as poor in 2004/05, and the three national historic sites with a poor rating for Selected Management Practices were reassessed, with 50 percent (one of two) and 100 percent (three of three) of sites respectively showing improved ratings. Additional details are provided in Figures 7 and 8.

Since 2007, when the reassessment of sites with poor ratings in commemorative integrity elements began, Parks Canada has invested in 14 national historic sites to improve those ratings. Six of eight (75%) sites improved their poor rating for the Condition of Cultural Resources element of commemorative integrity, while nine of 11 (82%) sites upgraded their poor rating for the Selected Management Practices element, contributing to an improvement in the overall commemorative integrity of national historic sites. These investments are ongoing as is the poor rating reassessment process. Combined with funding obtained through Canada's Economic Action Plan, it is anticipated that the commemorative integrity of national historic sites will continue to improve in years to come.

FIGURE 7
2009/10 Reassessment results of national historic sites with poor ratings in 2004/05 for the Condition of Cultural Resources element of Commemorative Integrity

National Historic Sites with Poor Ratings	2009/10 Rating	Progress Statement	Performance Status
Bar U Ranch NHS	Fair	The site made improvements to buildings of national historic significance. 79.3% of these buildings are now in fair to good condition, following extensive conservation projects undertaken since 2004, notably to the Cook House, the Log House and Pierson House. Extensive conservation work is underway at the Percheron Box Stalls.	Met All
Lévis Forts NHS	Poor	Through Canada's Economic Action Plan, major work on re-pointing masonry to improve the structural integrity of some of the buildings will be completed in 2010–11. The condition of these cultural resources owned by the Agency will be improved at project completion. Further investment will be required in the future.	Not Met

FIGURE 8
2009/10 Reassessment results of national historic sites with poor ratings in 2004/05 for the Selected Management Practices element of Commemorative Integrity

National Historic Sites with Poor Ratings	2009/10 Rating	Progress Statement	Performance Status
Bar U Ranch NHS	Fair	Since 2004, the site has made particular progress in the development of individual maintenance plans for buildings and in the monitoring of the condition of the different categories of resources. Almost all cultural resources are subject to routine monitoring.	Met All
Trent-Severn Waterway NHS	Fair	The site improved its management practices with a greater commitment towards identifying, evaluating and mitigating impacts of interventions on cultural resources while stressing appropriate Cultural Resources Management practices. Significant improvements were made to records and documentation with the addition of a new archive facility. The need remains for conservation maintenance plans for many of its resources.	Met All
Lévis Forts NHS	Fair	Improvement has been observed in management practices related to record keeping. Improvements were also noted in the monitoring and review systems in place to determine if conservation and protection objectives are met.	Met All

Some investments to improve the commemorative integrity of national historic sites were made possible through Canada's Economic Action Plan. The following are examples of these investments:

• Grosse Île and the Irish Memorial National Historic Site, Québec – Restoration and protection of buildings associated with this site of the Irish immigration to Canada, including the First-Class Hotel; and
• Dredge No. 4 National Historic Site, Yukon – Replacement of structural members of the lift arm and reparation or replacement of rotting wooden members of the dredge.

Lessons Learned

The condition of cultural resources is a challenging element of commemorative integrity to improve, often requiring major investment. Parks Canada has seen improvement in its built cultural resources as a result of targeted investments. To further improve the condition of cultural resources, the Agency made it a priority in 2009/10 to invest strategically in some national historic sites that had poor ratings in the Condition of Cultural Resources in advance of the five-year deadline. As a result of the Economic Action Plan, Parks Canada has been given an opportunity to accelerate some of this work for the benefit of visitors to these places and to contribute to the economic development of the local community.

Program Activity 3: PUBLIC APPRECIATION AND UNDERSTANDING

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
26,683	33,647	54,165		293	379	86

Note: Actual Spending exceeds Total Authorities due to internal realignment of programs and priorities.

Benefits for Canadians

To foster a sense of connection to Canada's places of natural and cultural heritage, it is important that Canadians have opportunities to understand, appreciate and support Parks Canada's heritage places. In turn, Canadians will increasingly take pride in these places, knowing that they have an opportunity to influence decisions and actions undertaken on their behalf.

Performance Expectations

The Expected Result of this Program Activity is measured by two performance indicators.

Performance Indicator 1	Target and Date	Progress as of March 2010	Performance Status
Percentage of Canadians that appreciate the significance of heritage places administered by Parks Canada	Increase the percentage of Canadians that appreciate the significance of heritage places administered by Parks Canada by March 2014	Parks Canada undertook key activities including outreach, external relations and media initiatives	Performance will be assessed in 2014
Performance Indicator 2	Target and Date	Progress as of March 2010	Performance Status
Percentage of Canadians that understand the importance of why Parks Canada protects and presents its administered places	Increase the percentage of Canadians that understand the importance of why Parks Canada protects and presents its administered places by March 2014	Same as above	Same as above

Parks Canada's media campaign: http://www.pc.gc.ca/cp-ac/index_e.asp

Performance Analysis

In 2008/09, using its National Survey of Canadians, Parks Canada established baselines for the percentage of Canadians who appreciate the significance of heritage places administered by Parks Canada and who understand the importance of protecting and presenting these heritage places. As a result of the survey, Parks Canada learned that 53 percent of Canadians appreciate the significance of heritage places and that 67 percent of Canadians understand the importance of protecting and presenting the heritage places administered by Parks Canada. With these baselines established, Parks Canada is now working towards increasing these percentages by 2014 through outreach, external relations and media initiatives.

In 2009/10, Parks Canada undertook a number of initiatives to help broaden the base of understanding and appreciation of its heritage places among the Canadian population over the long term. The Agency carried out two waves of a national television media campaign, first between May and June 2009, and again during the Winter Olympic Games in February 2010. Parks Canada conducted research before and after the first ad campaign wave to evaluate its impact on the overall awareness of Parks Canada within the Canadian population. The results revealed that there was a four percent increase in awareness of Parks Canada between the pre- and post-wave evaluations of the campaign.

Parks Canada also established a presence leading up to and during the 2010 Winter Olympic Games, which helped it reach a mass audience. Parks Canada collaborated with the Vancouver Olympic Committee and hosted the Olympic torch relay at 34 national parks and national historic sites during its run across Canada. The level of awareness of Parks Canada following the Olympic ad campaign had remained stable from earlier in the year.

Parks Canada used other media to inform Canadians about national heritage areas. Two episodes of the "Rick Mercer Report," with an average audience of one million per episode, featured national parks and the work of Parks Canada staff. A 13-part series entitled "A Park for All Seasons" aired weekly from January 7 to April 1, 2010 on the Oasis HD nature channel, which averages 1,800 viewers per minute of broadcast. Finally, 41 videos on national parks and national historic sites were uploaded to Parks Canada's channels on YouTube, MySpace and Yahoo. Collectively, the videos were viewed approximately 72,000 times during the period covered by this report.

Lessons Learned

Parks Canada's strategic outcome focusses on Canadians' sense of connection with Canada's natural and cultural heritage, specifically Canada's national parks, national historic sites and national marine conservation areas. In Parks Canada's Corporate Plan 2009/10–2013/14, the Agency established the general performance targets outlined on the preceding page. Parks Canada subsequently set an aggressive, specific target for the percentage of Canadians who appreciate the significance of heritage places administered by Parks Canada, published in the Corporate Plan 2010/11–2014/15. This new target of 60 percent by March 2014 aligns with corporate direction and ensures that initiatives designed to reach and engage Canadians in their homes, at school, in their communities and at leisure are targeted and strategic.

Conceptual understanding of public appreciation and understanding evolved in 2009 as well. The Agency concluded that the overarching objectives of this Program Activity are to contribute to Canadians' appreciation of places administered by Parks Canada and to garner support among Canadians for their protection and appreciation. As a result, Parks Canada modified its second performance target in the Corporate Plan 2010/11–2014/15, from the number of Canadians who understand the importance of why Parks Canada protects and presents its administered places, aiming instead for 80 percent of Canadians supporting the protection and presentation of places administered by Parks Canada by March 2014.

Program Activity 4: VISITOR EXPERIENCE

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
227,360	290,057	274,984		1,951	2,093	142

Benefits for Canadians

National parks, national historic sites and national marine conservation areas provide Canadians with visitor experience opportunities for enjoyment and learning. Parks Canada also encourages Aboriginal peoples to reconnect with their historically used lands through activities that enhance their cultural presence. This, in turn, leads to a sense of personal connection and the continued relevance of Canada's protected heritage places to Canadians.

Performance Expectations

The Expected Result of this Program Activity is measured by two performance indicators.

Performance Indicator 1	Target and Date	Result as of March 2010	Performance Status
Percentage of visitors that consider the place is meaningful to them	On average, 85% of visitors at surveyed locations consider the place meaningful (As per Corporate Plan 2010/11–2014/15)	Overall two-year average based on 29 surveyed locations: 82% 78%, based on 14 locations surveyed in 2009/10	Mostly met

Note: The Parks Canada Agency Corporate Plan 2009/10–2013/14 published the performance target as "Increase the percentage of visitors at all surveyed locations that consider the place is meaningful to them by March 2014."

Performance Analysis

In 2008/09, by means of the Visitor Information Program survey, Parks Canada established a baseline for the percentage of visitors who consider that the surveyed location is meaningful to them. Due to the timing of the release of the Corporate Plan 2009/10–2013/14, to which this Performance Report responds, a general performance target was established before a full analysis of the 2008/09 survey data could be done. Once that analysis was completed, Parks Canada was able to establish a new specific performance target of 85 percent in the Corporate Plan 2010/11–2014/15. For the fiscal year covered by this report, Parks Canada has decided to report against this new specific and up-to-date performance target.

2009 marked the second year that Parks Canada asked visitors if the national park or national historic site they visited was meaningful to them, indicating their sense of connection to the site. The results for the two national parks and 12 national historic sites surveyed in 2009/10 are shown in Figure 9.

In 2008/09, an average of 86 percent of visitors at surveyed locations felt the place was meaningful to them. In 2009/10, surveys produced an average of 78 percent, for a two-year average of 82 percent. With these results, Parks Canada is encouraged to see that Canadians' connection to Canada's treasured places is strong, as more than three-quarters of visitors who responded to the survey in 2009/10 indicated a personal connection with the place they visited.

Through Canada's Economic Action Plan, Parks Canada made investments in projects that will contribute to enhancing visitor experience and facilitate the creation of personal connection to Canada's heritage places. Examples of these projects include:

• Prince Edward Island National Park, Prince Edward island – Responding to visitor preferences, Parks Canada is investing over nine million dollars to improve the scenic experience of the Gulf Shore Parkway by resurfacing the road and by creating safer viewing opportunities and a walking/cycling corridor. In addition, the beach facilities and interpretation products will be renewed to reflect the needs of today's visitors;
• Cartier-Brébeuf National Historic Site, Québec – Located in the heart of Québec City, this site had deteriorated heavily due to human usage. Parks Canada invested in re-naturalizing the site by landscaping the area, creating cycling and walking paths, installing street furniture, and developing interpretive kiosks. The Lairet River, which had been buried and flowed through the site through culverts, was brought back to the surface;
• The War of 1812 – Parks Canada is investing in a number of national historic sites related to the War of 1812. Much of the investment will occur along the Niagara frontier and includes rebuilding bastions and log palisades, adding washroom and interpretive exhibits; and
• Fort Langley and the Gulf of Georgia Cannery national Historic Sites, British Columbia – Improvements to interpretive and multi-media exhibits will be made.

FIGURE 9
Percentage of visitors that consider the park/site meaningful to them

Location Surveyed	Total
La Mauricie NP	84%
Riding Mountain NP	80%
Canso Islands NHS	78%
Carillon Canal NHS	67%
Forges du Saint-Maurice NHS	79%
Fort Malden NHS	73%
Grosse Île & Irish Memorial NHS	82%
L'Anse aux Meadows NHS	90%
Louis S. St. Laurent NHS	77%
Manoir Papineau NHS	77%
Port au Choix NHS	72%
Province House NHS	78%
Red Bay NHS	80%
Saint-Ours Canal NHS	73%
Average for 2009/10 surveys only	78%
Agency overall average	82%

Note: Meaningfulness has been measured since 2008. The overall average is based on 29 locations surveyed in 2008 or 2009.

Lessons Learned

A personal connection is just that, personal. Feedback from visitors at the surveyed locations in 2009/10 revealed that Canada's national parks and national historic sites were meaningful to visitors, but for many different reasons. For some visitors, previous memorable experiences, spending time with family and friends or learning about their ancestors evoked strong emotions of attachment. For others, activities such as camping, picnicking or watching boats glide along a canal helped to create that sense of personal connection. And for even others, the opportunity to learn more about an event, to indulge their interest in history or to satisfy their curiosity was the allure of Parks Canada's heritage places.

Feedback from visitors on what is important to them at national parks and national historic sites provided valuable insight into what captivates them and helps to make the place meaningful to them. For example, in some locations, visitors cited the need to have amenities that would allow them to linger and connect with the place on their own terms and to experience it with others, such as benches along a trail or at a scenic point and picnic tables near picturesque areas. Some visitors indicated that providing more and different stories and bringing a place to life—living history— would help them engage and connect more with the place, while others expressed a desire for places of solitude to rejuvenate their spirit. Parks Canada will continue to integrate visitor feedback into decision making regarding its visitor service offer to encourage more Canadians to personally connect with the places the Agency administers.

Performance Indicator 2	Target and Date	Result as of March 2010	Performance Status
Percentage of visitors that are satisfied with their visit	85% of visitors at surveyed locations are satisfied with their visit	14 of 14 surveyed locations exceeded the target	Met
Percentage of visitors that are very satisfied with their visit	50% of visitors at surveyed locations are very satisfied with their visit	14 of 14 surveyed locations exceeded the target	Met

Performance Analysis

In 2009/10, Parks Canada met its performance target with respect to visitors at surveyed locations feeling satisfied and very satisfied with their visit. Many elements contribute to a visitor's level of satisfaction, including the availability and quality of learning and recreational activities, pre-visit information, the condition of facilities, service from staff, previous visits and value for money spent. Visitors to surveyed locations evaluated these elements in the Visitor Information Program survey.

All 14 locations surveyed in 2009/10 (two national parks and 12 national historic sites) exceeded the target of 85 percent of visitors satisfied with their visit, with one location posting a result of 100 percent. All surveyed locations also exceeded the target of 50 percent of visitors feeling very satisfied with their visit. The overall average of visitors who were satisfied and very satisfied with their visit to the Parks Canada places that conducted a Visitor Information Program survey is 95 percent and 68 percent, respectively. The results for the locations surveyed in 2009/10 are shown in Figure 10.

FIGURE 10
Percentage of visitors satisfied and very satisfied with their visit

Location Surveyed	Satisfied	Very Satisfied
La Mauricie NP	94%	55%
Riding Mountain NP	89%	52%
Canso Islands NHS	98%	87%
Carillon Canal NHS	95%	71%
Forges du Saint-Maurice NHS	95%	74%
Fort Malden NHS	97%	77%
Grosse île & Irish Memorial NHS	93%	60%
L'Anse aux Meadows NHS	96%	79%
Louis S. St. Laurent NHS	99%	88%
Manoir Papineau NHS	96%	74%
Port au Choix NHS	95%	67%
Province House NHS	95%	65%
Red Bay NHS	100%	84%
Saint-Ours Canal NHS	96%	72%
Average for 2009/10 surveys only	96%	72%
Agency overall average	95%	68%

Note: Satisfaction has been measured through the Visitor Information Program since 2001. The overall average is based on 104 locations of 212 places administered by Parks Canada.

Lessons Learned

Canadians have many choices available to them when it comes to travel and tourism, and in times of economic uncertainty, the value obtained for one's dollar is very important. Parks Canada recognizes that to be competitive in Canada's domestic tourism market and to encourage more visitors to its heritage places, the Agency must ensure that it is providing visitors with the highest quality of service, whether it is associated with its programs (e.g., guided tours, interpretation, recreation activities), or services (e.g., accommodations, reservation service), and facilitating opportunities for Canadians to experience nature and history in ways that meet their needs. As a result, Parks Canada is raising its performance target for the number of visitors satisfied with their visit to 90 percent beginning in fiscal year 2010/11.

Parks Canada also recognizes that considerable work is required in order to maintain high levels of visitor satisfaction at all of its locations. An important factor contributing to a visitor's level of satisfaction is the quality of interactions with Agency staff. In 2009/10, Parks Canada implemented standards for quality service, establishing a promise of service levels to visitors, as well as guidelines that focus Agency resources on prevention activities that favour positive interactions with visitors. Both these initiatives were supported by the training that was delivered to 4,672 staff in the field.

The availability and quality of activities are additional factors leading to overall satisfaction. While the level of satisfaction in these areas remains high, in response to changing visitor needs, Parks Canada introduced new forms of camping accommodation, including yurts and cottage-tents, and froze admission fees for individuals for the year.

Program Activity 5: TOWNSITE AND THROUGHWAY INFRASTRUCTURE

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
97,086	141,787	153,628		322	260	62

Note: Actual Spending exceeds Total Authorities due to internal realignment of programs priorities.

Benefits for Canadians

Parks Canada townsite and throughway infrastructure ensures various benefits for Canadians. Roads and highways maintained by Parks Canada that pass through national parks create vital links to a number of Canadian communities. A network of waterways supports commercial and recreational boating. Dams that form part of waterway infrastructure regulate water levels, supplying water for navigation, consumption and fire protection.

Five of Canada's national parks provide a haven for vibrant townsite communities, to which Parks Canada renders a variety of municipal or other services. The Agency also manages and maintains the provincial and inter-provincial highways and waterways that connect communities and pass through national parks and national historic sites.

Performance Expectations

The Expected Result of this Program Activity is measured by three performance indicators.

Performance Indicator 1	Target and Date	Progress as of March 2010	Performance Status
Percentage of townsite contemporary assets that are maintained and percentage of townsite contemporary assets rated as poor or fair that are improved	The condition of 75% of townsite contemporary assets is maintained, and the condition of 25% of assets rated as poor or fair is improved by March 2013	Parks Canada initiated 3 major capital projects to maintain or improve asset condition, with a total investment of $13.2 million in 2009/10	Performance will be assessed in 2013 Progress made towards target is outlined below

Lake Louise Community Plan: http://www.pc.gc.ca/pn-np/ab/banff/docs/planll/index_e.asp
Wasagaming Community Plan: http://www.pc.gc.ca/~/media/pn-np/mb/riding/pdf/2000wasag_e.ashx
Prince Albert NP Management Plan: http://www.pc.gc.ca/~/media/pn-np/sk/princealbert/pdfs/pd-mp_e.ashx
Waterton Lakes NP Management Plan: http://www.pc.gc.ca/pn-np/ab/waterton/plan/index_E.asp
Field Community Plan: http://www.pc.gc.ca/eng//docs/v-g/yoho/fieldplan/index.aspx

Performance Analysis

In 2009/10, Parks Canada invested approximately $13.2 million in capital projects to maintain or improve the condition of its townsite contemporary assets. Parks Canada renders a number of municipal and related services to the following townsites located in its national parks: Field in Yoho National Park, Lake Louise in Banff National Park, Wasagaming in Riding Mountain National Park, Waskesiu in Prince Albert National Park and Waterton in Waterton Lakes National Park.

Parks Canada normally conducts condition assessments of its assets on a five-year cycle and concurrently validates the data in the Asset Management System. Since efforts are currently focussed on delivering projects associated with Canada's Economic Action Plan, the Agency has deferred completing some condition assessments. Inspections of assets in Waterton and Wasagaming are expected to be completed later in 2010, Waskesiu in 2011, Field and Lake Louise in 2012.

The current information on the state of contemporary assets located in the five townsites is presented in Figure 11. Presently, 161 assets are in good condition, 28 are closed and the remaining 181 assets are in fair or poor condition. This list of asset inventory will be used in the future as a benchmark to determine future progress. Projects to improve asset condition are described in Figure 12.

FIGURE 11
State of townsite contemporary assets

Townsite	Condition Assessment
	Good	Fair	Poor	Closed	Not Rated	Total
Field	16	3				19
Lake Louise	24	4	3	4	2	37
Wasagaming	55	22	11			88
Waskesiu	36	35	20			91
Waterton	30	44	39	24		137
Total	161	108	73	28	2	372
Percentage	43%	29%	20	7.5%	.5%	100%

FIGURE 12
State of townsite contemporary assets

Townsite	Asset	Condition before the project	Project Description	Expected condition when project completed	Expected completion date
Wasagaming	Lagoon	Poor	Sewer Upgrade	Good	March 2011
Waskesiu	Townsite Roads	Fair & Poor	Resurfacing and reconstruction of 12.5 km of severely deteriorated residential roads	Good	December 2010
	Wastewater Treatment Facility	Poor	Upgrade to cells No.1 and No.2 and installation of two intermittent sand filters	Good	August 2010

Performance Indicator 2	Target and Date	Progress as of March 2010	Performance Status
Percentage of waterway contemporary assets that are maintained and percentage of waterway contemporary assets rated as poor or fair that are improved	The condition of 75% of waterway contemporary assets is maintained, and the condition of 25% of assets rated as poor or fair is improved by March 2013	Parks Canada initiated 19 projects to improve the condition of waterway contemporary assets, with an investment of $5.7 million in 2009/10	Performance will be assessed in 2013 Progress made towards target is outlined below

Performance Analysis

In addition to current investments, Parks Canada invested funds received from Canada's Economic Action Plan that will contribute to the improvement of the condition of waterway contemporary assets. Nineteen projects to improve spillways, locks, dams, bridges and retaining walls in canals that were in fair and poor condition were started during 2009/10 for a total investment of $35 million, of which $5.7 million was spent in 2009/10. These projects include work such as concrete rehabilitation for dams and bridge decks, rehabilitation of steel decks, and the application of protective coatings. These projects will improve the condition of multiple assets mainly along the Chambly, Rideau and Lachine Canals and the Trent-Severn Waterway.

Of the 231 dams managed by Parks Canada, 206 dams and water-retaining structures form part of the Agency's waterway assets and represent a complex subset. Dams are located across Canada in various national parks and national historic sites but the majority are located in Ontario and Québec. To mitigate potential hazards and ensure ongoing active management, the Agency implemented the Dam Safety Program Directive in April 2009 and has since made progress. The goal is to provide uniform safety management of Agency structures and general alignment with dam safety practices in the provinces where the structures are located, and with national and international good practice. Funding from the Economic Action Plan is being used to rehabilitate dams along the Trent-Severn Waterway; at Lock 37 Bolsover (Trent-Severn Waterway); the Jones Falls Weir (Rideau Canal) and to replace logs in log dams in the Haliburton area. In the last two years, most (31 of 42) of the dams that were inspected were found to be either in good or fair condition.

Preliminary hazard classification, the first step in the implementation of the dam safety directive, is now completed for 165 dams. This preliminary hazard identification is a key element in Parks Canada's dam safety program since the classification of the dams has a direct bearing on the frequency and type of inspections. Classification of the Rideau Canal, St. Peters Canal and Sault Ste. Marie Canal was completed in 2008; Trent-Severn Waterway was completed in 2009. The remaining 41 dams are planned for 2010. To date, 97 dams in waterways are classified as high-risk assets, meaning that there is potential hazard to life safety and/or extensive damage to assets, infrastructure and services. These dams require extra attention and more frequent inspections due to the possible consequences of their failure. So far, 158 dams have been classified as high-, significant-or low-risk and each of these dams requires a Dam Safety Review inspection, performed by a team of engineers. Parks Canada completed a Dam Safety Review on four high-risk dams in the Rideau Canal and another is underway on two dams in the Trent-Severn Waterway.

Bridges crossing waterways also represent a significant asset base. Parks Canada owns 116 road bridges, pedestrian bridges and structural culverts within its waterways. They are located along the Trent-Severn Waterway, the Rideau Canal and mainly within four navigation canals around the Montreal area: Carillon, Chambly, Lachine and Saint-Ours Canals. The condition of 73 percent of these bridges has been assessed in the last five years; 21 are in good condition, 37 are in fair condition, and 25 are in poor condition.

Along with developing and implementing policies, directives and standards, Parks Canada has taken active steps to ensure the safety of visitors and staff, strategically investing funds secured through the Economic Action Plan in the rehabilitation and recapitalization of higher-risk waterway assets.

The Lakeshore Road Bridge and the Port Severn Bridge No. 60 along the Trent-Severn Waterway National Historic Site, and Bridge No. 9 on the Chambly Canal National Historic Site are being rebuilt and improvements are being made to bridges along the Rideau Canal National Historic Site at Perth, Smith's Falls, and Rideau Narrows.

In addition to responsible decision making and realignment of resources to mitigate potential risk, the Agency is also building capacity to manage the waterway asset portfolio more effectively, ensuring that staff is aware of and implementing Agency directives and standards.

Additional information related to the condition of waterway assets and projects to improve their condition are presented in Figures 13, 14 and 15.

FIGURE 13
Hazard classification of dams

Waterway	No. of dams	No. of classifications completed	Hazard classification results
			High-risk	Significant-risk	Low-risk	Very-low risk	Not rated
Carillon, Chambly, Lachine, Sainte Anne-de-Bellevue and Saint-Ours Canals	40	0					40
Rideau Canal	40	40	17	13	7	3
St. Peters Canal	1	1				1
Sault Ste. Marie Canal	1	1		1
Trent-Severn Waterway	124	123	80	23	17	3	1
Total	206	165	97	37	24	7	41
Percentage	100%	80%	47%	18%	12%	3%	20%

FIGURE 14
Condition of bridges and dams related to waterways

Waterways	Number & Percentage	Condition Assessment
		Good	Fair	Poor	Closed	Not Rated
Bridges	116	21	37	25	6	27
	100%	18%	32%	22%	5%	23%
Dams	206	7	24	9	2	164
	100%	3%	12%	4%	1%	80%

FIGURE 15
Examples of Projects related to bridges and dams in waterways

Waterway	Asset	Condition	Project	Expected condition when project completed	Expected completion date
Chambly Canal	Bridge No. 9	To be reassessed	Major Recapitalization of Bridge No. 9	Good	December 2010
	Spillway No. 3 and No. 4	Fair	Recapitalization of Spillway No. 3 and No. 4	Good	November 2010
Lachine Canal	Locks No. 1 and No. 2	Poor	Recapitalization of Locks No. 1 and No. 2	Fair	March 2011
Rideau Canal	Perth Bridge	Poor	Recapitalization of Perth Fixed & Swing Bridge	Good	January 2011
	Retaining walls	Poor	Recapitalization of retaining walls in Ottawa Sector	Good	March 2011
	Bridge in Smiths Falls	Poor	Recapitalization of swing bridge on Abbott Street in Smiths Falls	Good	November 2010
Trent-Severn Waterway	Bridge No. 60	Poor (Closed in May 2009 for safety reasons)	Recapitalization of Bridge No. 60 – Bolsover	Good	January 2011
	Bridge No. 50	Poor (Closed in August 2008 for safety reasons)	Recapitalization of Bridge No. 50 – Bolsover	Good	July 2010
	Bridge No. 43	Poor (Closed in December 2008 for safety reasons)	Recapitalization of Bridge No. 43 – Bolsover	Good	March 2011
	Haliburton Dams	Poor	Replacement of Logs in Haliburton Dams	Good	July 2010

Performance Indicator 3	Target and Date	Result as of March 2010	Performance Status
Number of days of closure of through highways due to asset condition	No days of closure of through highways due to asset condition	0 days of closure in 2009/10	Met All

National Highway System Reports and Studies: http://www.comt.ca/english/reports-e.htm

Performance Analysis

Parks Canada observed no closures of through highways due to asset condition. To ensure that Parks Canada continues to meet this performance target, the Agency, with funding obtained through the Economic Action Plan, Gateways and Border Crossings Fund and Canada's Asia-Pacific Gateway and Corridor Initiative, initiated many projects to improve the condition of the highways. As of March 31, 2010, the total distance of through highways managed by Parks Canada is 1,058 kilometres⁴.

The twinning (two-directional widening) of the Trans-Canada Highway near Banff National Park is ongoing. The total investment in the twinning of the Trans-Canada Highway is $267 million, with $130 million over five years (2009/10 to 2013/14) funded through the Economic Action Plan, $100 million over five years (2008/09 to 2012/13) funded through the Gateways and Border Crossings Fund and $37 million over three years (2007/08 to 2009/10) funded through Canada's Asia-Pacific Gateway and Corridor Initiative. In 2009/10, Parks Canada Agency invested a total of $71.1 million.

A first portion of the highway east of Lake Louise (nine kilometres) was put into service in August 2009 and has led to a significant improvement in safety by addressing congestion problems at this section of the highway. The work included new bridges and fencing and crossing structures for wildlife, which enhances ecological integrity. Work is underway on another 14 kilometres closer to Lake Louise, and its completion is anticipated for fall 2011. Another nine-kilometre portion of the Trans-Canada Highway to the Alberta/British Columbia border should be completed in 2012. All work, including bridges, fencing and crossing structures, is expected to be completed by 2013/14.

Parks Canada also invested more than $13 million during fiscal year 2009/10 in various projects related to other through highways, such as the road reconstruction and resurfacing of many sections of the Cabot Trail in Cape Breton Highlands National Park to improve visitor access and public safety, pavement patching to address immediate safety concerns on Highway 16 in Jasper National Park and on Highway 93 South in Kootenay National Park, and the complete rehabilitation of the Belly River Bridge on Chief Mountain Highway in Waterton Lakes National Park. Funding from the Economic Action Plan is also being used to upgrade the conditions of roads in and around the Village of Banff (completed in 2009/10) and to improve the condition of roads in the Waskesui cottage community (to be completed over a two-year period ending in 2010/11).

Lessons Learned

Parks Canada places great importance on active and responsible management of its assets. In addition to a comprehensive policy framework, access to relevant and accurate data is key to identify potential risk areas and to support informed decision making to mitigate risk. Parks Canada secured funding through the Economic Action Plan and realigned resources to address areas of recognized risk, drawing on available data. The Agency continues to identify ways to better integrate asset management project information with existing tools and Agency systems in order to provide timely, accurate and nationally consistent data that facilitates informed decision making and thoughtful investments.

INTERNAL SERVICES

Financial Resources				Human Resources
2009/10 ($000s)				2009/10 (Full-Time Equivalent)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
79,270	83,262	87,830		487	523	36

Note: Actual Spending exceeds Total Authorities due to internal realignment of programs and priorities.

Internal services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program. Parks Canada’s 2009/10 activities related to the plans presented in Parks Canada’s Corporate Plan 2009/10–2013/14 can be found in Section 3.

Section 3: Supplementary Information

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2009/10 Performance Report can be found on the Treasury Board of Canada's website at: http://www.tbs-sct.gc.ca/ dpr-rmr/st-ts-eng.asp.

Sources of Respendable Revenue

User Fees/External Fees

Status Report on Projects Operating with Specific Treasury Board Approval

Details on Transfer Payment Programs (TPPs)

Response to Parliamentary Committees and External Audits

Internal Audits and Evaluations

Summary of the Evaluation of the Parks Canada Agency Human Resources Regime

The Parks Canada Agency Act requires the Agency to develop and apply a set of values and principles in the management of its human resources (Section 16 [1] [b]), and "The Chief Executive Officer must, at least every five years, have prepared by a person or body, other than the Agency or any of its officers or employees, a report on the consistency of its human resources regime with the values and principles that are to govern the management of its human resources." (Section 35 [1])

In 1998, with extensive consultation with staff, a Joint Union-Management working group developed the Parks Canada Agency Human Resources Values and Operating Principles which were approved by the Chief Executive Officer in February 1999. These values and principles then guided other Joint Union-Management working groups in the development of frameworks, which formed the foundation of the new Human Resources Regime for the Agency.

In June 2009, Parks Canada engaged The Centre for Public Management to conduct the second independent review required by the Act (the first review was submitted in July 2004). The final report of the second review was submitted on April 30, 2010 and is posted on Parks Canada's Website at www.pc.gc.ca.

An independent third party examined the Agency‘s values and principles pertaining to the results Parks Canada is seeking to accomplish with its Human Resources Regime (competency and effectiveness), human resources processes (fairness, respect, accountability, consistency and openness), and service delivery (efficiency, adaptability, and simplicity). The following excerpt provides the review's overall conclusions:

"Our overall conclusion is that the Human Resources Regime is in harmony with the Parks Canada Agency's values and principles—although, naturally, some areas need work to enhance ongoing conformance. We found that the Agency routinely considers and applies its values and principles in its analytical and decision-making processes. The Agency and its Human Resources Regime have come a long way and there is the commitment, planning, and spirit to go further.

"In our opinion, the Agency has made good progress in addressing the specific recommendations of the 2004 Review. Specifically, we found a high degree of conformity between the Human Resources Regime and most of the values and principles, although, we encourage the Agency to continue with actions to enhance conformity. Areas where we believe that more work is needed to reach a similar level of conformity fall under the value of respect (focused on harassment and discrimination), and the principles of consistency (performance management and rewards and recognition, below the national level) and openness (focused exclusively on effective communication)."

The Visitor Information Program

The Visitor Information Program uses a standard questionnaire to provide information to managers of national parks, national historic sites and national marine conservation areas about their visitors, including their use of products and services, their satisfaction with products and services, and other aspects of their visit. Selection of individual protected places to participate in the Visitor Information Program each year is aligned, as much as possible, with the timing of management planning and reporting requirements. The national parks, national historic sites and national marine conservation areas that participate in the Visitor Information Program over a five-year cycle account for 98 percent of the total recorded visits to heritage places administered by Parks Canada.

In 2009/10, 14 locations conducted the survey during the peak survey period of June to September 2009. Respondents were invited to participate on-site and were provided with the paper survey to complete and return. One site conducted the survey online.

The average response rate for heritage places surveyed in 2009/10 was 49 percent. Among the 12 national historic sites, the response rates were between 16 percent and 67 percent (for paper surveys). With the exception of one very low response rate (16%), the response rates for national historic sites are consistent with previous years (~50 to 60%). Response rates for the two national parks ranged between 16 percent and 24 percent (for paper surveys).

National Survey of Canadians

Parks Canada measured its Strategic Outcome (personal connection) and its performance related to Program Activity 3 (Public Appreciation and Understanding) using the National Survey of Canadians (NSC). The NSC was designed to provide information about Canadians' attitudes towards natural and cultural heritage; their awareness and understanding of the Agency, its programs and responsibilities; and their appreciation of the places administered by Parks Canada and general support for the Agency's mandate and activities.

The NSC is a telephone survey of a representative sample of Canadians (based on Statistics Canada's population statistics). The survey was composed of 40 questions, which took approximately 20 minutes to administer, and was conducted in the official language of choice of the participant. The survey was administered to 48,436 Canadian residents aged 18 and older between March 2 and March 30, 2009, and 3,779 respondents completed the survey, resulting in a response rate of eight percent – the industry standard for telephone surveys today. Based on the size of the sample, the results of the survey are considered accurate 19 times out of 20 (95% level of confidence).

Internal Services

Governance and Management Support

• In 2009/10, Parks Canada increased spending on internal audit and evaluation, restructured its audit function and fully staffed its evaluation function consistent with its commitments and with the extent of evaluation coverage of direct program spending, including all grants and contributions programs, between April 2008 and March 2013, to improve the way it plans, carries out, reports and acts on audit findings.
• Parks Canada made progress in 2009/10 towards ensuring compliance with the Government Security Policy by creating a dedicated security unit to advance the development of an Agency security program. The Agency implemented a formal governance structure for business continuity planning and developed business continuity plans and pandemic preparedness plans within all of its operational management units. In addition, Parks Canada continued to improve its risk management practices by integrating risk management in its business planning process. The Agency also added risk management modules to its training program, which will, over time, foster a better understanding of risk management across the Agency.

Resource Management Services

• Parks Canada has fully implemented the Policy on Financial Management Governance of the new financial policy suite of the Government of Canada. The Agency's progress on implementing remaining policies continues to proceed in line with government-wide expectations.
  
• Parks Canada is committed to the continuation of its accelerated learning program. Since 2008, some 40 percent of managers and supervisors have participated in the mandatory leadership training program. The goal of having 90 percent of supervisory employees complete these courses by March 31, 2011 will help build an engaged workforce and a supportive workplace.
  
• Aboriginal youth is the fastest growing segment of the Canadian population⁵. During 2009/10, Parks Canada participated in two Blueprint for the Future career fairs that reached over a thousand students. The job fairs were designed to expose First Nation, Métis and Inuit high school students to the wide array of potential careers available in all employment sectors and provided an opportunity for them to meet with Agency representatives to learn about the interesting and unique future career paths and occupational opportunities at Parks Canada. Through its Aboriginal Leadership Development Program delivered by Yukon College, Parks Canada aims to develop its own cadre of Aboriginal leaders with the fundamental long-term goal of retaining full-time Aboriginal leaders within the Agency.
• In 2009/10, Parks Canada reviewed the Strategic Framework for People Management to ensure that it provided the appropriate direction. As a result of this exercise, the Framework was modified to better reflect the Agency's Vision, its desired strategic outcome, renewal initiatives that are currently underway and other priorities and outcomes. Looking towards the future, the Human Resources function, through its community of professionals, will provide support to managers and employees in achieving management excellence, a leadership culture, managing change, continuous learning and a competent and sustainable workforce. The Framework takes an integrated view of human resources management activities and recognizes that a comprehensive approach to addressing leadership, workforce and workplace issues requires wide-ranging expertise, collaboration and agility.
  
• In September 2009, Parks Canada established the Enterprise Information Committee to provide oversight of information management. In December 2009, the Committee endorsed a strategic framework, a policy framework and an awareness strategy that will contribute to establishing the priorities for addressing the risk associated with information management, organizational capacity, enabling technology and compliance. In addition, Library and Archives Canada, on behalf of Parks Canada, began work on a records disposition authority. The Agency also signed a Memorandum of Understanding with Library and Archives Canada to initiate an assessment project to define record-keeping requirements.

Asset Management Services

• In 2009/10, Parks Canada assigned a senior manager to lead the transition to the Treasury Board Policy on Investment Planning — Assets and Acquired Services. Parks Canada also redrafted the Agency's suite of directives and standards related to the Project Management Policy and implemented them in concert with the delivery of projects funded through Canada's Economic Action Plan. With the goal of ensuring a consistent approach to project management and capacity building, Parks Canada provided project management training to almost one hundred project managers during the year.

---

Section 4: Audited Financial Statements

Parks Canada Agency
Management Responsibility for Financial Statements

The accompanying financial statements of the Parks Canada Agency are the responsibility of management and have been approved by the Executive Management Committee of the Agency as recommended by the Audit Committee of the Agency.

These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General. They include amounts that have been estimated according to management's best judgement. Where alternative accounting methods exist, management has chosen those it deems most appropriate in the circumstances. Management has prepared the financial information presented elsewhere in this Performance Report and has ensured that it is consistent with that provided in the financial statements.

Management has developed and maintains books of accounts, records, financial and management controls and information systems. They are designed to provide reasonable assurance that the Agency's assets are safeguarded and controlled, that resources are managed economically and efficiently in the attainment of corporate objectives, and that transactions are in accordance with the Financial Administration Act and regulations, the Parks Canada Agency Act, and internal policies of the Agency. Internal audits are conducted to assess the performance of management controls and practices.

The Audit Committee is responsible for receiving all reports from internal audit, evaluation and review studies for information and/or recommending for approval. The Committee also receives and reviews plans and reports from the Agency's external auditor, the Office of the Auditor General of Canada, and actively solicits their advice about the quality of the Agency's management system, and information for decision-making.

The Agency's external auditor has audited the financial statements and has reported on her audit to the Chief Executive Officer of the Agency and to the Minister of the Environment.

Original signed by Alan Latourelle Chief Executive Officer

Original signed by Céline Gaulin Chief Financial Officer

July 30, 2010

Auditor's Report

To the Chief Executive Officer of Parks Canada Agency and the Minister of the Environment.

I have audited the statement of financial position of Parks Canada Agency as at March 31, 2010 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Agency’s management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Agency as at March 31, 2010 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Original signed by

Sylvain Ricard, CA
Assistant Auditor General
for the Auditor General of Canada

Ottawa, Canada
July 30, 2010

PARKS CANADA AGENCY

Statement of Financial Position as at March 31
(in thousands of dollars)

	2010	2009
ASSETS
Financial assets
Cash entitlements (Note 3)
General operations account	77,816	80,568
Specified purpose accounts	2,695	3,214
New parks and historic sites account	20,461	21,228
	100,972	105,010
Accounts receivable	7,752	10,047
	108,724	115,057
Non-financial assets
Prepaid expenses	6,647	6,946
Inventory of consumable supplies (Note 4)	6,295	5,862
Tangible capital assets (Note 5)	1,600,708	1,488,953
Collections and archaeological sites (Note 6)	1	1
	1,613,651	1,501,762
	1,722,375	1,616,819
LIABILITIES
Accounts payable and accrued liabilities
Federal government departments and agencies	27,008	20,337
Others	59,704	68,724
	86,712	89,061
Deferred revenue (Note 7)	13,706	13,912
Employee future benefits (Note 8)	60,025	66,142
Provision for environmental clean-up (Note 9)	56,255	43,433
	216,698	212,548
EQUITY OF CANADA	1,505,677	1,404,271
	1,722,375	1,616,819

Contingencies and commitments (Notes 9 and 14)
The accompanying notes are an integral part of the financial statements.

Original signed by Alan Latourelle Chief Executive Officer

Original signed by Céline Gaulin Chief Financial Officer

Statement of Operations for the Year Ended March 31
(in thousands of dollars)

	2010	2009
Expenses (Note 10)
Parks Canada program activities
Heritage places establishment	15,186	17,902
Heritage resources conservation	192,722	181,803
Public appreciation and understanding	57,156	42,732
Visitor experience	224,673	226,654
Townsite and throughway infrastructure	47,391	47,284
Internal services	94,736	95,384
	631,864	611,759
Amortization of tangible capital assets	84,206	80,359
Total expenses	716,070	692,118
Revenues (Note 11)	111,251	109,926
Net cost of operations (Note 12)	604,819	582,192

The accompanying notes are an integral part of the financial statements.

Statement of Equity for the Year Ended March 31
(in thousands of dollars)

	2010	2009
Balance at beginning of year	1,404,271	1,375,467
Net cost of operations	(604,819)	(582,192)
Net cash provided by Government	662,994	541,486
Change in cash entitlements	(4,038)	25,012
Services received without charge (Note 13)	45,596	44,498
Transfer of assets and liabilities from other government entities (Note 15)	1,673	–
Balance at end of year	1,505,677	1,404,271

The accompanying notes are an integral part of the financial statements.

Statement of Cash Flow for the Year Ended March 31
(in thousands of dollars)

	2010	2009
Operating activities
Net cost of operationss	604,819	582,192
Items which do not involve cash:
Amortization of tangible capital assets	(84,206)	(80,359)
Net loss on disposal of tangible capital assets	(123)	(2,276)
Services received without charge	(45,596)	(44,498)
Variations in Statement of Financial Position:
Decrease in accounts receivable	(2,295)	(456)
(Decrease) increase in prepaid expenses	(299)	927
Increase (decrease) in inventory of consumable supplies	433	(163)
Decrease (increase) in accounts payable and accrued liabilities	2,349	(12,606)
Decrease (increase) in deferred revenues	206	(1,614)
Decrease (increase) in employee future benefits	6,117	(10,428)
Increase in provision for environmental clean-up	(12,822)	(1,415)
Cash used in operating activities	468,583	429,304
Capital investment activities
Acquisitions and improvements to tangible capital assets	195,336	112,615
Proceeds on disposal of tangible capital assets	(925)	(433)
Cash used in operating activities	194,411	112,182
Net cash provided by Government	662,994	541,486

The accompanying notes are an integral part of the financial statements.

PARKS CANADA AGENCY

Notes to Financial Statements for the Year Ended March 31, 2010

(Tables in thousands of dollars)

1. Authority and Objectives

In December 1998, Parks Canada Agency (the Agency) was established under the Parks Canada Agency Act as a departmental corporation and acts as an agent of Her Majesty in right of Canada. The Parks Canada Agency is a separate entity listed under Schedule II of the Financial Administration Act and reports to the Minister of the Environment. The Agency is not subject to the provisions of the Income Tax Act.

The Agency's mandate is to protect and present nationally significant examples of Canada's natural and cultural heritage, and foster public understanding, appreciation and enjoyment in ways that ensure the ecological and commemorative integrity of these places for present and future generations. In carrying out its mandate, the Agency delivers the programs set out in the Agency's legislation and authorities.

The authorities for the programs for which Parks Canada is responsible are mainly derived from the Parks Canada Agency Act, the Canada National Parks Act, the Historic Sites and Monuments Act, the Canada National Marine Conservation Areas Act, the Department of Transport Act, and the Heritage Railway Stations Protection Act.

2. Significant Accounting Policies

The Agency's financial statements are prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

a) Parliamentary appropriations:

The Agency is financed mainly by the Government of Canada through Parliamentary appropriations. Appropriations provided to the Agency do not parallel financial reporting according to Canadian generally accepted accounting principles, as they are based in a large part on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 12 provides a high level reconciliation between bases of reporting.

b) Deferred revenue:

Deferred revenue includes revenues received in advance of the services to be provided and funds received from external parties for specified purposes. Deferred revenue is recognized as revenue when the services are provided.

c) Inventory of consumable supplies:

Inventories consist of consumable supplies not intended for re-sale. They are valued at cost. If they no longer have service potential, they are valued at the lower of cost or net realizable value.

d) Tangible capital assets:

(i) Tangible capital assets (excluding land):
Tangible capital assets transferred to the Agency as at April 1, 1999 are recorded at their estimated historical cost, less accumulated amortization. The estimated historical cost of the assets was established by deflating the current replacement cost to the year of acquisition or construction using factors based on changes in price indices over time. This approach also took into consideration the overall asset condition and the cost of any improvements and major repairs since the original acquisition or construction of the tangible capital assets.

Tangible capital assets acquired after April 1, 1999 are recorded at their acquisition cost. Tangible capital assets acquired at nominal cost or by donation are recorded at market value at the time of acquisition and tangible capital assets transferred from/to other government entities are recorded at their net book value (historical cost and corresponding accumulated amortization) at the time of transfer. A corresponding amount is credited directly to the Equity of Canada. The tangible capital assets acquired with financial assistance from another government are recorded at their net cost. Improvements that extend the useful life or service potential are recorded at cost.

Intangible assets are not capitalized.

Construction in progress are not amortized. The costs of construction in progress are transferred to the appropriate asset category upon completion and are amortized once in service.

Amortization is calculated on a straight-line method using rates over the estimated useful life of the assets as follows:

Asset	Useful life
Buildings	25–50 years
Fortifications	50–100 years
Leasehold improvements	Lesser of the remaining term of lease or estimated useful life of the improvement
Improved grounds	10–40 years
Roads	40 years
Bridges	25–50 years
Canals and marine facilities	25–80 years
Utilities	20–40 years
Vehicles and equipment	3–15 years
Exhibits	5–10 years

(ii) Land:
Acquired lands are recorded at historical cost. Crown lands acquired as a result of Confederation or the subsequent joining of a province or territory are recorded at a nominal value. Donated lands are recorded at their estimated market value at time of acquisition with a corresponding amount credited directly to the Equity of Canada.

e) Collections and archaeological sites:

Collections and archaeological sites are recorded at nominal value.

f) Employee future benefits:

(i) Severance benefits:
The Agency accrues its obligations and the related costs as the benefits accrue to employees. The Agency's liability for employee severance benefits is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole. Employee severance benefits liabilities payable on cessation of employment represent obligations of the Agency that are normally funded by future years' appropriations.

(ii) Pension benefits:
The Agency's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plans benefits and they are indexed to inflation. Both, the employees and the Agency contribute to the cost of the Plan. The contributions are expensed during the year in which the services are rendered and represent the total pension obligation of the Agency. The Agency is not required under present legislation to make contributions with respect to actuarial deficiencies of the Public Service Pension Plan.

g) Expenses:

Expenses are recorded on the accrual basis.

(i) Contributions:
Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.

(ii) Services received without charge:
Services received without charge from other Government departments are recorded as operating expenses at their estimated cost. A corresponding amount is credited directly to the Equity of Canada.

h) Provision for environmental clean-up:

The Agency records a liability for environmental clean-up in situations where the Agency is obligated or is likely to be obligated to incur costs related to the remediation and removal of contaminated material from environmentally contaminated sites, and the cost can be reasonably estimated following a detailed environmental assessment. If the likelihood of the Agency's obligation to incur these costs is not determinable, or if an amount cannot be reasonably estimated, the costs are disclosed as contingent liabilities in the notes to the financial statements.

i) Revenue recognition:

Entrance fees, recreational fees, rentals and concessions, other operating, townsites and staff housing revenues are recognized in the year in which the goods or services are provided by the Agency. Funds received for future services are recorded as deferred revenue.

j) Measurement uncertainty:

The preparation of financial statements in accordance with Canadian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the year. Employee-related liabilities, estimated useful lives of tangible capital assets, environment-related liabilities and claims are the most significant items where estimates are used. Actual results could differ significantly from those estimated.

3. Cash Entitlements

The Agency operates within the Consolidated Revenue Fund (CRF) which is administered by the Receiver General for Canada. All cash received by the Agency is deposited to the CRF and all cash disbursements made by the Agency are paid from the CRF.

Included in cash entitlements are the following:

a) General operations account:

Cash Entitlement for general operations represents the amount of cash that the Agency is entitled to draw from the Consolidated Revenue Fund of the Government, without further appropriations. As at March 31, 2010, the balance of the general operations account is $77.8 million ($80.6 million in 2009).

b) Specified purpose accounts:

Cash Entitlement for specified purpose accounts represents money received from external organizations which must be used for the purposes for which they are received. As at March 31, 2010, the Agency has a balance of $2.7 million ($3.2 million in 2009) for specified purpose accounts.

c) New parks and historic sites account:

The Government of Canada includes in its receipts and expenditures the transactions of certain consolidated accounts established for specified purposes. Parks Canada Agency Act requires that the receipts of the specified purpose account be earmarked and that the related payments and expenses be charged against such receipts. The transactions do not represent liabilities to third parties but are internally restricted for specified purposes. Funds are provided to the New parks and historic sites account by parliamentary appropriations, proceeds from the sale of lands and buildings that are surplus to operational requirements and all general donations. Furthermore, the Minister of Finance may, on the request of the Minister of the Environment, authorize the making of advances of up to $10.0 million to the New parks and historic sites account. All amounts received remain in this account until eligible expenditures are made for the purpose of establishing or developing new parks or historic sites and heritage areas, in compliance with the terms and conditions set out in the Parks Canada Agency Act and related Treasury Board directives.

Details of activities for the year ended March 31 are highlighted in the following analysis:

	2010	2009
Available at beginning of year	21,228	11,177
Receipts:
Parliamentary appropriation	500	12,500
Proceeds on disposal of tangible capital assets	799	424
Donations	63	65
	1,362	12,989
Expenditures:
Capital expenditures	2,129	2,938
	2,129	2,938
Available at end of year	20,461	21,228

4. Inventory of Consumable Supplies

The inventory of consumable supplies as at March 31 consists of the following:

	2010	2009
Top soil, sand, gravel and other crude material	1,143	1,061
Stationery, office and miscellaneous supplies	864	893
Equipment, materials and supplies	860	883
Printed books, publications and maps	822	662
Fuel and other petroleum products	740	756
Fabricated wood and metal products	617	522
Safety equipment	615	542
Construction material and supplies	472	423
Uniforms and protective clothing	162	120
	6,295	5,862

5. Tangible Capital Assets

	Closing historical cost as at March 31, 2009	Net additions(1) for the year ended March 31, 2010	Closing historical cost as at March 31, 2010	Accumulated amortization as at March 31, 2010	Net book value as at March 31, 2010	Net book value as at March 31, 2009
Buildings, fortifications and leasehold improvements	832,834	18,903	851,737	540,102	311,635	314,049
Improved grounds	600,344	24,176	624,520	537,575	86,945	74,069
Roads	1,032,469	70,671	1,103,140	663,106	440,034	389,449
Bridges	215,491	25,953	241,444	94,178	147,266	125,780
Canal and marine facilities	557,657	14,358	572,015	296,237	275,778	273,317
Utilities	208,276	29,933	238,209	110,604	127,605	103,323
Vehicles and equipment	136,056	4,357	140,413	104,583	35,830	34,379
Exhibits	106,660	3,099	109,759	94,985	14,774	13,771
	3,689,787	191,450	3,881,237	2,441,370	1,439,867	1,328,137
Land (Note 2d (ii))
-Acquired land	140,923	(227)	140,696	-	140,696	140,923
-Crown land	1	-	1	-	1	1
-Donated land	19,892	252	20,144	-	20,144	19,892
	160,816	25	160,841	-	160,841	160,816
Total tangible capital assets	3,850,603	191,475	4,042,078	2,441,370	1,600,708	1,488,953

(1) includes all acquisitions, dispositions, write-offs and transfer from other government entities in the year.

The total cost of tangible capital assets includes $168.2 million ($98.9 million in 2009) of construction in progress disclosed with their respective asset category. The Agency owns land, which comprise national parks and national park reserves, national marine conservation areas and national historic sites. During the year, the Agency spent $0.5 million ($1.9 million in 2009) on the acquisition of land.

6. Collections and Archaeological Sites

Core to the Agency's mandate to protect and present nationally significant examples of our cultural heritage is the management of collections and archaeological sites. Although not capitalized like other cultural assets such as buildings or fortifications, these treasures have inestimable cultural value.

a) Collections:

The Agency manages collections that are made up of archaeological and historical objects.

The collection of archaeological objects includes specimens and records that represent a cross-section of human habitation and activities. These holdings consist of a range of functional groups of artifacts that represent domestic activities to industrial processes and includes tools, ships' fittings, as well as soil and botanical samples.

The collection of historic objects dates from the 10th century to the present day. They encompass ethnographic material, civilian, military and fur trade items, furniture and furnishings, tools and documents.

In addition, the Agency manages a collection of reproductions including period costumes, tools and furniture that have been copied from original objects or made based on historical data.

b) Archaeological sites:

An archaeological site encompasses surface, subsurface, or submerged remains of human activity. Archaeologists define a site by identifying the different activities that were conducted within an area. There are many archaeological sites identified within Canada's 167 national historic sites, 42 national parks, and 3 marine conservation areas. The types of sites vary greatly, from Aboriginal villages, hunting camps, observation areas, and animal processing areas, to European fur trade and military posts, battlefields, shipwrecks, homesteads, and transportation and industrial sites.

7. Deferred Revenue

Included in the deferred revenue total of $13.7 million ($13.9 million in 2009) is an amount of $11 million ($10.7 million in 2009) representing the balance, at year end, for entrance fees, recreational fees, and rentals/ concessions fees collected in advance.

The remaining $2.7 million ($3.2 million in 2009) of deferred revenue, represents monies received from other organizations which must be used for specified purposes.

8. Employee Future Benefits

a) Severance benefits:

The Agency provides severance benefits to its employees based on years of service and final salary. This benefit plan is not pre-funded and thus has no assets, resulting in a plan deficit equal to the accrued benefit obligation. Benefits will be paid from future appropriations. Information about the plan, measured as at the Statement of Financial Position date, is as follows:

	2010	2009
Accrued benefit obligation, beginning of year	66,142	55,714
Expense for the year	(1,509)	15,495
Benefits paid during the year	(4,608)	(5,067)
Accrued benefit obligation, end of year	60,025	66,142
Short-term portion	5,898	6,358
Long-term portion	54,127	59,784
	60,025	66,142

b) Pension benefits:

The Agency and all eligible employees contribute to the Public Service Pension Plan. This pension plan provides benefits based on years of service and average earnings at retirement. The Agency's and employees' contributions to the Public Service Pension Plan for the year were as follows:

	2010	2009
Agency's contributions	38,326	35,894
Employees' contributions	20,172	14,956

9. Contingencies

a) Claims:

In the normal course of business, claims have been made against the Agency. Legal proceedings for claims totalling approximately $8.0 million ($7.9 million in 2009) were still pending at March 31, 2010. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the Financial Statements. The details of cases and extent of claims are not disclosed for sensitive reasons.

An amount of $0.7 million was recorded as a liability in the Agency's Financial Statements for the fiscal year ended March 31, 2010 ($0.6 million in 2009).

b) Provision for environmental clean-up:

The Agency has identified 442 sites that are known or suspected of contamination. Based on the information available and detailed studies conducted thus far on 393 of these sites, the Agency has estimated and recorded a liability of $56.3 million ($43.4 million in 2009). The Agency has estimated additional clean-up costs of $139.8 million ($148.6 million in 2009) that are not recorded as a liability, as these are not considered likely to be incurred at this time. The Agency's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued in the year in which they become known.

10. Summary of Expenses by Major Classification

	2010	2009
Salaries and employee benefits	388,266	383,555
Amortization	84,206	80,359
Professional and special services	57,113	58,427
Utilities, materials and supplies	53,523	51,820
Transportation and communication	27,279	33,326
Environmental clean-up	22,926	3,231
Accommodation received without charge (Note 13)	15,991	15,574
Rentals	15,833	14,341
Information	14,389	6,285
Payments in lieu of taxes	12,540	12,051
Grants and contributions	12,310	18,870
Repairs and maintenance	11,413	11,969
Miscellaneous expenses	158	34
Net loss on disposal of tangible capital assets	123	2,276
	716,070	692,118

11. Summary of Revenues by Major Classification

	2010	2009
Entrance fees	56,631	56,167
Recreational fees	24,121	22,866
Rentals and concessions	18,594	17,288
Other operating revenues	6,033	7,914
Staff housing	2,990	2,751
Townsites revenues	2,882	2,940
	111,251	109,926

12. Parliamentary Appropriations

a) Appropriations provided and used:

	2010	2009
Appropriations voted:
Vote 25 – Program expenditures	654,973	537,507
Vote 30 – New parks and historic sites account	500	12,500
Statutory amounts:
Revenue received pursuant to section 20 of the Parks Canada Agency Act	115,875	114,236
Contributions to employee benefits plan	56,103	48,170
Total appropriations	827,451	712,413
Less:
Amount available in future years	49,657	32,389
Current year appropriations used	777,794	680,024

b) Reconciliation of net cost of operations to current year appropriations used:

	2010	2009
Net cost of operations	604,819	582,192
Revenue received pursuant to section 20 of the Parks Canada Agency Act	115,875	114,236
Adjustments for items affecting net cost of operations but not affecting appropriations:
Amortization of tangible capital assets	(84,206)	(80,359)
Services received without charge (Note 13)	(45,596)	(44,498)
Net loss on disposal of tangible capital assets	(123)	(2,276)
	(129,925)	(127,133)
Changes in accounts affecting net cost of operations but not affecting appropriations:
Vacation pay included in the accounts payable and accrued liabilities	(426)	(607)
GST included in the accounts payable and accrued liabilities	378	182
Employee future benefits	6,117	(10,428)
Provision for environmental clean-up	(12,822)	(1,415)
	(6,753)	(12,268)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Acquisitions and improvements to tangible capital assets	195,336	112,615
Proceeds on disposal of tangible capital assets	(925)	(433)
Change in prepaid expenses	(299)	927
Change in inventory of consumable supplies	433	(163)
Change in New parks and historic sites account	(767)	10,051
	193,778	122,997
Current year appropriations used	777,794	680,024

c) Reconciliation of net cash provided by government to current year appropriations used:

	2010	2009
Net cash provided by government	662,994	541,486
Revenue received pursuant to section 20 of the Parks Canada Agency Act	115,875	114,236
Changes in accounts not affecting net cash provided by government but affecting appropriations :
Accounts receivable	2,295	456
Accounts payable and accrued liabilities	(2,349)	12,606
Less : Vacation pay included in the accounts payable and accrued liabilities	(426)	(607)
Less : GST included in the accounts payable and accrued liabilities	378	182
Deferred revenue	(206)	1,614
New parks and historic sites account	(767)	10,051
	(1,075)	24,302
Current year appropriations used	777,794	680,024

13. Related Party Transactions

a) Transactions in the normal course of business:

The Agency is related in terms of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms that would apply to all individuals and enterprises.

The Agency incurred capital and operating expenses with related parties for a total of $147.8 million ($109.2 million in 2009) for services provided by Government departments, including an amount of $139.2 million ($100.9 million in 2009) with Public Works and Government Services Canada mostly related to architectural, engineering and environmental services of $86.2 million ($66.1 million in 2009), construction services of $16.3 million ($5.3 million in 2009) and payments in lieu of taxes of $12.6 million ($12 million in 2009). Revenues generated from related parties amounted to $1.6 million ($1.7 million in 2009).

b) Services received without charge:

During the year, the Agency received services without charge which are recorded at their estimated cost in the financial statements as follows:

	2010	2009
Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat	27,186	23,821
Accommodation provided by Public Works and Government Services Canada	15,991	15,574
Services provided by the Department of Canadian Heritage for information management, information technology, finance, human resources and administrative support	-	3,431
Salary and associated costs of legal services provided by Justice Canada	1,552	834
Other services received without charge	867	838
	45,596	44,498

14. Commitments

a) The Agency has entered into agreements for operating leases of equipment and accommodations for a total of $8.9 million ($9.2 million in 2009). The agreements show different termination dates, with the majority ending within the next twenty years. Minimum annual payments under these agreements for the next five years and beyond are approximately as follows:

2010–11	1,179
2011–12	1,082
2012–13	766
2013–14	708
2014–15	618
2015–16 and beyond	4,508

b) The Agency has entered into contracts for operating and capital expenditures for approximately $169 million ($111.1 million in 2009). The majority of payments under these contracts are expected to be made over the next three years.

15. Transfer of assets and liabilities from other government entities

Effective November 2, 2009, the Agency was transferred the responsibility for a parcel of land and two locks at the Lachine Canal National Historic Site of Canada (net book value, $1.7 million). In accordance with a Treasury Board decision, the transfer involved three parties; the Agency, Public Works and Government Services Canada and the Old Port of Montreal Corporation. Accordingly, the Agency received the stewardship responsibility for these assets.

16. Comparative Figures

Some of the previous year's comparative figures have been reclassified to conform to the current year's presentation.

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End Notes

¹ Completed in fiscal year 2009/10.

² Average commemorative integrity is calculated by adding the commemorative integrity numerical value for all national historic sites as determined through baseline evaluation and poor rating reassessments and dividing it by the total number of sites that have had commemorative integrity evaluations (133 in total).

³ Listing an ecological integrity condition but not a trend indicates that an evaluation has taken place at the national park to determine the condition but that there are not enough years of data to provide a trend.

⁴ An evaluation of highways was carried out in 2009 and produced more accurate numbers that had been available previously. The total length of through highways reported in the Parks Canada Agency Performance Report for the period ending March 31, 2009 should have read 1,049 kilometres instead of 1,026 kilometres.

⁵ Hick, 2007; Hoglund, 2004; Statistics Canada, 2003; Blueprint for the Future, http://www.naaf.ca/program/1.