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Section 3: Supplementary Information

Financial Highlights

Condensed Statement of Financial Position
As at March 31, 2011 (in thousands of dollars)

	% Change	2010/11	2009/10
Total Assets	11%	1,926,173	1,722,375
Total Liabilities	(11%)	192,499	216,698
Equity of Canada	15%	1,733,674	1,505,677
Total	11%	1,926,173	1,722,375

Condensed Statement of Operations
For the year ended March 31, 2011 (in thousands of dollars)

	% Change	2010/11	2009/10
Expenses
Heritage Places Establishment	(7%)	14,431	15,534
Heritage Resource Conservation	(20%)	155,012	194,857
Public Appreciation and Understanding	(5%)	55,536	58,425
Visitor Experience	9%	245,591	226,181
Townsite and Throughway Infrastructure	8%	45,596	42,131
Internal Services	4%	98,989	94,736
Amortization of Tangible Capital Assets	5%	88,749	84,206
Total expenses	2%	703,904	716,070
Total revenues	1%	112,229	111,251
Net cost of operations	(2%)	591,675	604,819

Parks Canada Agency Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2011, and all information contained in these statements rests with the management of the Parks Canada Agency. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are based on Canadian generally accepted accounting principles for the public sector and have been approved by the Executive Management Committee of the Agency as recommended by the Audit Committee of the Agency.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Agency’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and presented elsewhere in this Performance Report, is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Agency; and through conducting an annual assessment of the effectiveness of the system of internal control over financial reporting.

An assessment for the year ended March 31, 2011 was completed in accordance with the Policy on Internal Control and the results and action plans are summarized in the annex.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and to make any necessary adjustments.

The effectiveness and adequacy of the Agency’s system of internal control is reviewed by the work of internal audit staff, who conduct periodic audits of different areas of the Agency’s operations, and by the Audit Committee, which oversees management’s responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Chief Executive Officer.

The Office of the Auditor General, the independent auditor for the Government of Canada, has expressed an opinion on the fair presentation of the financial statements of the Agency which does not include an audit opinion on the annual assessment of the effectiveness of the Agency’s internal controls over financial reporting.

 

INDEPENDENT AUDITOR’S REPORT

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

I have audited the accompanying financial statements of Parks Canada Agency, which comprise the statement of financial position as at 31 March 2011, and the statement of operations, statement of equity of Canada and statement of cash flow for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

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 comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

In my opinion, the financial statements present fairly, in all material respects, the financial position of Parks Canada Agency as at 31 March 2011, and the results of its operations and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

 

Parks Canada Agency: Statement of Financial Position as at March 31
(in thousands of dollars)

	2011	2010
Assets
Financial assets
Cash entitlements (Note 3)
General operations account	85,790	77,816
Specified purpose accounts	4,639	2,695
New parks and historic sites account	17,200	20,461
	107,629	100,972
Accounts receivable	9,524	7,752
	117,153	108,724
Non-financial assets
Prepaid expenses	6,640	6,647
Inventory of consumable supplies (Note 4)	6,247	6,295
Tangible capital assets (Note 5)	1,796,132	1,600,708
Collections and archaeological sites (Note 6)	1	1
	1,809,020	1,613,651
	1,926,173	1,722,375
Liabilities and Equity of Canada
Liabilities
Accounts payable and accrued liabilities
Federal government departments and agencies	30,338	27,008
Others	63,882	59,704
	94,220	86,712
Deferred revenue (Note 7)	15,981	13,706
Employee future benefits (Note 8)	62,488	60,025
Provision for environmental clean-up (Note 9b))	19,810	56,255
	192,499	216,698
Equity of Canada	1,733,674	1,505,677
	1,926,173	1,722,375

Contingent liabilities and contractual obligations (Notes 9a) and 12)
The accompanying notes form an integral part of these financial statements.

Parks Canada Agency: Statement of Operations for the Year Ended March 31
(in thousands of dollars)

	2011	2010
Expenses
Parks Canada program activities
Heritage places establishment	14,431	15,534
Heritage resources conservation	155,012	194,857
Public appreciation and understanding	55,536	58,425
Visitor experience	245,591	226,181
Townsite and throughway infrastructure	45,596	42,131
Internal services	98,989	94,736
	615,155	631,864
Amortization of tangible capital assets	88,749	84,206
Total expenses	703,904	716,070
Revenues	112,229	111,251
Net cost of operations	591,675	604,819

Segmented information (Note 13)
The accompanying notes form an integral part of these financial statements.

 

Parks Canada Agency: Statement of Equity of Canada for the Year Ended March 31
(in thousands of dollars)

	2011	2010
Equity of Canada, beginning of year	1,505,677	1,404,271
Net cost of operations	(591,675)	(604,819)
Net cash provided by Government of Canada	765,938	662,994
Change in cash entitlements	6,657	(4,038)
Services provided without charge by other government departments (Note 11a))	47,077	45,596
Transfer of assets and liabilities from other government entities	–	1,673
Equity of Canada, end of year	1,733,674	1,505,677

The accompanying notes form an integral part of these financial statements.

 

Parks Canada Agency: Statement of Cash Flow for the Year Ended March 31
(in thousands of dollars)

	2011	2010
Operating activities
Net cost of operations	591,675	604,819
Non-cash items:
Amortization of tangible capital assets	(88,749)	(84,206)
Net loss on disposal of tangible capital assets	(1,718)	(123)
Services provided without charge by other government departments	(47,077)	(45,596)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable	1,772	(2,295)
Decrease in prepaid expenses	(7)	(299)
(Decrease) increase in inventory of consumable supplies	(48)	433
(Increase) decrease in accounts payable and accrued liabilities	(7,508)	2,349
(Increase) decrease in deferred revenue	(2,275)	206
(Increase) decrease in employee future benefits	(2,463)	6,117
Decrease (increase) in provision for environmental clean-up	36,445	(12,822)
Cash used in operating activities	480,047	468,583
Capital investing activities
Acquisitions and improvements to tangible capital assets	286,389	195,336
Proceeds on disposal of tangible capital assets	(498)	(925)
Cash used in capital investing activities	285,891	194,411
Net cash provided by Government of Canada	765,938	662,994

The accompanying notes form an integral part of these financial statements.

 

Parks Canada Agency: Notes to Financial Statements for the Year Ended March 31, 2011
(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, the Heritage Railway Stations Protection Act, the Heritage Lighthouse Protection Act, and the Species at Risk Act.

2. Summary of Significant Accounting Policies

These financial statements have been prepared in accordance with the Treasury Board accounting policies stated below, which are based on Canadian generally accepted accounting principles for the public sector. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian generally accepted accounting principles, except as disclosed in Note 14 – Net Debt Indicator.

a) Parliamentary authorities:

The Agency is financed by the Government of Canada through Parliamentary authorities. Financial reporting of authorities provided to the Agency do not parallel financial reporting according to Canadian generally accepted accounting principles since authorities are primarily based 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 authorities from Parliament. Note 10 provides a reconciliation between the bases of reporting.

b) Net cash provided by Government:

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. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the Government.

c) 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.

d) 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.

e) 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 federal 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.

f) Collections and archaeological sites:

Collections and archaeological sites are recorded at nominal value.

g) Employee future benefits:

(i) Severance benefits:

Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

(ii) Pension benefits:

Eligible employees participate in the Public Service Pension Plan, a multiemployer pension plan administered by the Government. The Agency’s contributions to the Plan are charged to expenses in the year incurred and represent the total obligation to the Plan. Current legislation does not require the Agency to make contributions for any actuarial deficiencies of the Plan.

h) 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, provided that the transfer is authorized and a reasonable estimate can be made.

(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.

i) Provision for environmental clean-up:

During the year, the Agency adopted section 3260 of the Canadian generally accepted accounting principles for the public sector related to liability for contaminated sites. The early adoption is effective for the Agency for 2011 fiscal year. The application of the new criteria to recognize a provision has no impact on the liability established by Parks for the current and prior years.

The Agency records a liability for environmental clean-up in situations where the following conditions are met: (1) contamination exceeds the environmental standard; (2) the Agency is directly responsible or accepts responsibility of the contamination; (3) it is expected that future economic benefits will be given up; (4) a reasonable estimate of the amount can be made following a detailed environmental assessment.

The costs will be disclosed as a contingent liability if one of the following conditions is met: (1) the occurrence of the confirming future event is likely but the amount of the liability cannot be reasonably estimated; (2) the occurrence of the confirming future event is likely and a liability has been recorded, but there is risk this liability may increase; (3) or the occurrence of the confirming future event is not determinable.

j) 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.

k) 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. Management’s estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3) Cash Entitlements

The Agency operates within the 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 authorities. As at March 31, 2011, the balance of the general operations account is $85.8 million ($77.8 million in 2010).

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, 2011, the Agency has a balance of $4.6 million ($2.7 million in 2010) 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 voted authorities, 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:

	2011	2010
Available at beginning of year	20,461	21,228
Receipts:
Parliamentary authorities	500	500
Proceeds on disposal of tangible capital assets	543	799
Donations	71	63
	1,114	1,362
Expenditures:
Capital expenditures	4,375	2,129
	4,375	2,129
Available at end of year	17,200	20,461

4) Inventory of Consumable Supplies

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

	2011	2010
Stationery, office and miscellaneous supplies	1,304	864
Top soil, sand, gravel and other crude material	1,027	1,143
Fuel and other petroleum products	864	740
Equipment, materials and supplies	777	860
Safety equipment	713	615
Fabricated wood and metal products	605	617
Printed books, publications and maps	462	822
Construction material and supplies	324	472
Uniforms and protective clothing	171	162
	6,247	6,295

5) Tangible Capital Assets

	Cost
	Opening balance	Acquisitions	Disposals and write-offs	Closing balance
Buildings, fortifications and leasehold improvements	851,737	58,968	5,419	905,286
Improved grounds	624,520	44,919	887	668,552
Roads	1,103,140	89,543	5	1,192,678
Bridges	241,444	37,501	616	278,329
Canal and marine facilities	572,015	17,249	1,380	587,884
Utilities	238,209	12,724	4,196	246,737
Vehicles and equipment	140,413	11,454	4,063	147,804
Exhibits	109,759	6,451	11,973	104,237
	3,881,237	278,809	28,539	4,131,507
Land (Note 2e (ii))
Acquired land	140,696	7,580	6	148,270
Crown land	1	–	–	1
Donated land	20,144	–	–	20,144
	160,841	7,580	6	168,415
Total	4,042,078	286,389	28,545	4,299,922

	Accumulated Amortization			Net Book Value
	Opening balance	Amortization	Disposals and write-offs	Closing balance	2011	2010
Buildings, fortifications and leasehold improvements	540,102	25,428	4,418	561,112	344,174	311,635
Improved grounds	537,575	13,047	75	550,547	118,005	86,945
Roads	663,106	22,431	157	685,380	507,298	440,034
Bridges	94,178	5,224	479	98,923	179,406	147,266
Canal and marine facilities	296,237	9,914	833	305,318	282,566	275,778
Utilities	110,604	5,217	3,020	112,801	133,936	127,605
Vehicles and equipment	104,583	6,478	4,383	106,678	41,126	35,830
Exhibits	94,985	1,010	12,964	83,031	21,206	14,774
	2,441,370	88,749	26,329	2,503,790	1,627,717	1,439,867
Land (Note 2e (ii))
Acquired land	–	–	–	–	148,270	140,696
Crown land	–	–	–	–	1	1
Donated land	–	–	–	–	20,144	20,144
	–	–	–	–	168,415	160,841
Total	2,441,370	88,749	26,329	2,503,790	1,796,132	1,600,708

The total cost of tangible capital assets includes $170.6 million ($168.2 million in 2010) 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 $7.6 million ($0.5 million in 2010) 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 10^th 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 4 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 $16 million ($13.7 million in 2010) is an amount of $11.4 million ($11 million in 2010) representing the balance, at year end, for entrance fees, recreational fees, and rentals/concessions fees collected in advance.

The remaining $4.6 million ($2.7 million in 2010) 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 eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at March 31, is as follows:

	2011	2010
Accrued benefit obligation, beginning of year	60,025	66,142
Expense for the year	7,613	(1,509)
Benefits paid during the year	(5,150)	(4,608)
Accrued benefit obligation, end of year	62,488	60,025

b) Pension benefits:

The Agency’s employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 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 2011 expense amounts to $39.5 million ($38.3 million in 2010), which represents approximately 1.9 times (1.9 times in 2010) the contributions by employees.

The Agency’s responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan’s sponsor.

9) Contingent Liabilities

a) Claims and litigation:

Claims have been made against the Agency in the normal course of operations. These claims include items with pleading amounts and other for which no amount is specified. Based on the Agency’s assessment, legal proceedings for claims estimated at $6.6 million ($8 million in 2010) were pending at March 31, 2011. 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.

b) Provision for environmental clean-up:

The Agency has identified 455 sites that are known or suspected of contamination. Based on the information available and detailed environmental assessments conducted thus far on 433 of these sites, the Agency has estimated liability and contingent liability amounts. The estimated amounts are adjusted to reflect inflation and will be paid from future authorities.

The Agency has estimated and recorded a liability of $19.8 million ($56.3 million in 2010). The Agency has estimated additional clean-up costs of $121.9 million ($139.8 million in 2010) that are not recorded as a liability as the Agency is not able to determine if these costs will be incurred. 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 contingent liabilities will be recorded as liabilities by the Agency in the year in which they become reasonably estimable and the occurrence of the confirming future event is determinable.

10) Parliamentary Authorities

The Agency receives most of its funding through annual Parliamentary authorities. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through Parliamentary authorities in prior, current or future years. Accordingly, the Agency has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

a) Authorities provided and used:

	2011	2010
Authorities voted:
Vote 25 – Program expenditures	767,405	654,973
Vote 30 – New parks and historic sites account	500	500
Statutory amounts:
Revenue received pursuant to section 20 of the Parks Canada Agency Act	113,416	115,875
Contributions to employee benefits plan	56,249	56,103
Total authorities	937,570	827,451
Less:
Authorities available for future years	46,260	49,657
Lapsed: Operating	7,416	–
Current year authorities used	883,894	777,794

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

	2011	2010
Net cost of operations	591,675	604,819
Revenue received pursuant to section 20 of the Parks Canada Agency Act	113,416	115,875
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets	(88,749)	(84,206)
Services provided without charge by other government departments (Note 11a)	(47,077)	(45,596)
Net loss on disposal of tangible capital assets	(1,718)	(123)
	(137,544)	(129,925)
Variation in accounts affecting net cost of operations but not affecting authorities:
Vacation pay included in the accounts payable and accrued liabilities	(210)	(426)
Employee future benefits	(2,463)	6,117
Provision for environmental clean-up	36,445	(12,822)
	33,772	(7,131)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and improvements to tangible capital assets	286,389	195,336
Proceeds on disposal of tangible capital assets	(498)	(925)
Change in prepaid expenses	(7)	(299)
Change in inventory of consumable supplies	(48)	433
Change in New parks and historic sites account	(3,261)	(767)
Other	–	378
	282,575	194,156
Current year authorities used	883,894	777,794

11) Related Party Transactions

The Agency is related as a result of common ownership to all Government departments, agencies, and Crown Corporations. The Agency enters into transactions with these entities in the normal course of business and on normal trade terms.

a) Services provided without charge by other government departments:

During the year the Agency received services without charge from certain common service organizations, related to accommodation, legal services, the employer’s contribution to the health and dental insurance plans and workers’ compensation coverage. These services provided without charge have been recorded in the Agency’s Statement of Operations as follows:

	2011	2010
Contributions covering employer’s share of employees’ insurance premiums and costs paid by Treasury Board Secretariat	28,098	27,186
Accommodation provided by Public Works and Government Services Canada	16,617	15,991
Salary and associated costs of legal services provided by Justice Canada	1,571	1,552
Other services received without charge	791	867
	47,077	45,596

The Government has centralized some of its administrative activities for efficiency, cost-effectiveness purposes and economic delivery of programs to the public. As a result, the Government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada are not included in the Agency’s Statement of Operations.

b) Other transactions with related parties:

The Agency incurred capital and operating expenses with related parties for a total of $197.1 million ($147.8 million in 2010) for services provided by Government departments, including an amount of $188.2 million ($139.2 million in 2010) with Public Works and Government Services Canada mostly related to architectural, engineering and environmental services of $105.4 million ($86.2 million in 2010), construction services of $27 million ($16.3 million in 2010), repairs and maintenance $21.1 million ($7.2 million in 2010) and payments in lieu of taxes of $12.9 million ($12.6 million in 2010). Revenues generated from related parties amounted to $1.9 million ($1.6 million in 2010).

12) Contractual obligations

a) The Agency has entered into agreements for operating leases of equipment and accommodations for a total of $8.9 million ($8.9 million in 2010). The agreements show different termination dates, with the majority ending within the next twelve years. Minimum annual payments under these agreements for the next five years and beyond are approximately as follows:

b) The Agency has entered into contracts for operating and capital expenditures for approximately $157.9 million ($169 million in 2010). The majority of payments under these contracts are expected to be made over the next three years.

13) Segmented information

Presentation by segment is based on the Agency’s program activity architecture. The presentation by segment is based on the same accounting policies as described in the Summary of significant accounting policies in note 2. The following table presents the expenses incurred and revenues generated for the main program activities, by major object of expenses and by major type of revenues. The segment results for the period are as follows:

	Heritage places establishment	Heritage resources conservation	Public appreciation and understanding	Visitor experience	Townsite and throughway infrastructure	Internal services	2011 Total	2010 Total
Salaries and employee benefits	7,434	110,804	39,018	166,491	20,279	65,423	409,449	388,266
Operating expenses
Professional and special services	2,837	13,872	4,019	20,081	6,928	12,414	60,151	57,113
Utilities, materials and supplies	331	10,980	1,657	25,274	9,200	4,727	52,169	53,523
Transportation and communication	1,078	6,555	2,470	7,073	987	7,452	25,615	27,279
Accommodation received without charge (Note 11)	672	2,745	1,412	6,361	1,925	3,502	16,617	15,991
Repairs and maintenance	14	1,974	108	6,374	3,800	926	13,196	11,413
Rentals	242	7,037	592	4,098	271	842	13,082	15,833
Payments in lieu of taxes	393	4,114	557	4,893	1,985	923	12,865	12,540
Information	299	515	2,498	3,981	21	688	8,002	14,389
Miscellaneous expenses	5	5,582	17	(473)	95	374	5,600	158
Net loss on disposal of tangible capital assets	–	–	–	–	–	1,718	1,718	123
Environmental clean–up	–	(20,186)	–	–	–	–	(20,186)	22,926
Total operating expenses	5,871	33,188	13,330	77,662	25,212	33,566	188,829	231,288
Grants and contributions	1,126	11,020	3,188	1,438	105	–	16,877	12,310
Total expenses (excluding amortization)	14,431	155,012	55,536	245,591	45,596	98,989	615,155	631,864
Amortization							88,749	84,206
Total expenses							703,904	716,070
Entrance fees	–	10	–	55,298	–	–	55,308	56,631
Recreational fees	–	17	–	23,170	10	237	23,434	24,121
Rentals and concessions	41	9	4	19,814	906	187	20,961	18,594
Other operating revenues	8	846	5	1,765	954	2,869	6,447	6,033
Staff housing	–	38	–	18	–	3,008	3,064	2,990
Townsites revenues	–	–	–	–	3,015	–	3,015	2,882
Total revenues	49	920	9	100,065	4,885	6,301	112,229	111,251
Net cost from continuing operations							591,675	604,819

14) Net Debt indicator

The presentation of the net debt indicator and a statement of change in net debt is required under Canadian generally accepted accounting principles.

Net debt is the difference between a government’s liabilities and its financial assets and is meant to provide a measure of the future revenues required to pay for past transactions and events. A statement of change in net debt would show changes during the period in components such as tangible capital assets, prepaid expenses and inventory of consumable supplies. The Agency is financed by the Government of Canada through Parliamentary authorities and operates within the 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 by the CRF. Under this government business model, assets reflected on the Agency financial statements, with the exception of the cash entitlement, are not available to use for the purpose of discharging the existing liabilities of the Agency. Future Parliamentary authorities and any respendable revenues generated by the Agency’s operations would be used to discharge existing liabilities.

	2011	2010
Liabilities:
Accounts payable and accrued liabilities	94,220	86,712
Deferred revenue (Note 7)	15,981	13,706
Employee future benefits (Note 8)	62,488	60,025
Provision for environmental clean-up (Note 9b)	19,810	56,255
Total liabilities	192,499	216,698
Financial Assets:
Cash entitlements (Note 3)	107,629	100,972
Accounts receivable	9,524	7,752
Total financial assets	117,153	108,724
Net debt indicator	75,346	107,974

15) Adoption of revised Treasury Board accounting standard

During the year, the Agency adopted the revised Treasury Board accounting standard (TBAS) 1.2 – Departmental and Agency Financial Statements which is effective for the Agency for 2011 fiscal year.

The adoption of the revised standard had no impact on the Agency’s net cost of operations or Statement of Financial Position for the current or prior year. No changes were made to the Agency’s significant accounting policies. The major change to the financial statements of the Agency was the presentation of segmented information in Note 13.

16) Comparative Figures

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

Parks Canada Agency: Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting Fiscal Year 2010/11

Note to the Reader

With the new Treasury Board Policy on Internal Control, effective April 1, 2009, organizations are now required to demonstrate the measures they are taking to maintain effective system of internal control over financial reporting (ICFR).

As part of this policy, organizations are expected to conduct annual assessments of their system of ICFR, establish action plan(s) to address any necessary adjustments, and to attach to their Statement of Management Responsibility in their annual financial statements a summary of their assessment results and action plan.

Effective systems of ICFR aim to achieve reliable financial statements and to provide assurances that:

• Transactions are appropriately authorized
• Financial records are properly maintained
• Assets are safeguarded from risks such as waste, abuse, loss, fraud and mismanagement
• Applicable laws, regulations and policies are followed

It is important to note that the system of ICFR is not designed to eliminate all risks, rather to mitigate risk to a reasonable level with controls that are balanced with and proportionate to the risks they aim to mitigate.

The system of ICFR is designed to mitigate risks to a reasonable level based on an on-going process to identify key risks, to assess effectiveness of associated key controls, and adjust as required, as well as to monitor its performance in support of continuous improvement. As a result, the scope, pace and status of those organizational assessments of the effectiveness of their system of ICFR reporting will vary from one organization to the other based on risks and taking into account their unique circumstances.

This annex is unaudited.

1 Introduction

This unaudited document is attached to Parks Canada’s Statement of Management Responsibility Including Internal Control Over Financial Reporting for the fiscal-year 2010/11. As required by the new Treasury Board Policy on Internal Control, effective April 1, 2009, for the first time, this document provides summary information on the measures taken by Parks Canada to maintain an effective system of internal control over financial reporting (ICFR). In particular, it provides summary information on the assessments conducted by Parks Canada as at March 31, 2011, including progress, results and related action plans along with some financial highlights pertinent to understanding the control environment unique to the agency.

1.1 Authority, Mandate and Program Activities

Detailed information on Parks Canada’s authority, mandate and program activities can be found in Section 1 of this Performance Report or in the Report on Plans and Priorities http://www.tbs-sct.gc.ca/rpp/2011-2012/inst/cap/cap00-eng.asp.

1.2 Financial Highlights

The listing below provides key financial information for fiscal year 2010/11. More information can be found in the attached Parks Canada’s audited financial statements.

• Total revenues were $112,229,000. Entrance fees were the largest revenue source, accounting for 49% or $55,308,000.
• Total expenses were $703,904,000. Excluding Salaries, Professional and Special Services and Amortization were the largest expenses, accounting for 9% or $ 60,151,000 and 13% or $88,749,000 respectively.
• Financial assets and non-financial assets each comprise about $117,153,000 and $1,809,020,000 (6% and 94% respectively). Of the organization’s total asset account, which stand at $1,926,173,000, Tangible Capital Assets comprise the majority of the account (93%).
• Total liabilities were $192,499,000. Accounts payable and accrued liabilities represent the majority of liabilities (49%), followed by Employee future benefits (32%).
• Net cash provided by the Government of Canada totalled $765,938,000.

1.3 Audited Financial Statements

The Office of the Auditor General conducts an annual audit of the Agency’s financial statements. For the past ten years, the Agency has received a clean opinion.

1.4 Service Arrangements Relevant to the Financial Statements

Parks Canada relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows:

• Public Works and Government Services Canada centrally administers the payments of salaries through its payroll system, the procurement of goods and services and the provision of accommodation.
• The Treasury Board Secretariat provides the Agency with contributions covering the employer’s share of employees’ medical and dental insurance premiums.
• The Treasury Board Secretariat provides the Agency with information used to calculate various accruals and allowances, such as the accrued severance liability.
• The Department of Justice provides legal services.
• Parks Canada’s financial system related functional services are provided by Canadian Heritage. The services are delivered through an MOU whereby Parks Canada’s share of the expenses during 2010/11 totalled $1,559,539. The financial system’s IT related services are provided by Agriculture Canada to both Parks Canada and Canadian Hertiage through a separate MOU.

1.5 Material Changes in Fiscal Year 2010/11

The following significant departmental changes, relevant to the financial statements occurred during 2010/11.

• Following a Cabinet shuffle on January 4, 2011, Peter Kent became the minister responsible for Parks Canada.
• The Chief Financial Officer (CFO) role was separated from that of the Chief Administration Officer. A new CFO directorate was created with no other program responsibilities, in line with the Policy for Financial Management Governance. Following the CFO Branch reorganization, a new Chief Financial Officer, Ms Maria Stevens, was appointed in November 2010.
• During the year the Finance Committee and the HR Committee were replaced by a new Operations Committee.

2 Control Environment of Parks Canada Relative to ICFR

Parks Canada recognizes the importance of setting the tone from the top to help ensure that staff at all levels understand their roles in maintaining effective systems of ICFR and is well equipped to exercise these responsibilities effectively. Parks Canada’s focus is to ensure that risks are well managed through a responsive and risk-based control environment that enables continuous improvement and innovation.

2.1 Key Positions, Roles and Responsibilities

Below are Parks Canada’s key positions and committees with responsibilities for maintaining and reviewing the effectiveness of its system of ICFR.

Chief Executive Officer (CEO) – The CEO, as Accounting Officer, assumes overall responsibility and leadership for the measures taken to maintain an effective system of internal control. The Deputy Head chairs the Executive Management Committee.

Chief Financial Officer (CFO) – Parks Canada’s CFO reports directly to the CEO and provides leadership for the coordination, coherence and focus on the design and maintenance of an effective and integrated system of ICFR, including its annual assessment.

Senior Managers – Parks Canada’s senior managers in charge of program delivery are responsible for maintaing and reviewing effectiveness of their system of ICFR falling within their mandate.

Chief Audit Executive (CAE) – Parks Canada’s CAE reports directly to the CEO and provides assurance through periodic internal audits which are instrumental to the maintenance of an effective system of ICFR.

Audit Committee – The Audit Committee is an audit committee that provides objective views on Parks Canada’s risk management, control and governance frameworks. It is comprised of 3 external members and was established in 2008/09.

Executive Management Committee (EMC) – As Parks Canada’s central decision-making body, the EMC reveiws, approves and monitors the Corporate Risk Profile and the departmental system of internal control, including the assessment and action plans relating to the system of ICFR.

Operations Committee – Parks Canada’s Operations Committee is considered to be the recommending committee. They review, evaluate, recommend, coordinate and monitor implementation of initiatives and decisions that have significant operational and financial impacts.

2.2 Key Measures taken by Parks Canada

Parks Canada’s control environment also includes a series of measures to equip its staff to manage risks well through raising awareness, providing appropriate knowledge and tools as well as developing skills. Key measures include:

• The Agency’s Code of Ethics is a cornerstone of the Agency’s organizational character. It enhances working conditions, employer/employee relations, interpersonal relationships and decision making at Parks Canada.
• An Ombudsman under the CEO whose mission is to promote and intervene in favour of an organizational culture based on the fundamental values of the Agency, as specified in the Agency’s Code of Ethics. The Ombudsman is also the Agency’s Senior Integrity Officer for internal disclosure and wrongdoing.
• A dedicated division under the CFO on internal controls with the mandate to implement the Policy on Internal Control and Common Business Processes across the Agency.
• Annual performance agreements for all Executives with clearly set out financial management responsibilities;
• Training program and communications in core areas of financial management;
• Link to TBS financial policies, along with Financial directives, guides and tools tailored to the Agency business and environmental requirements;
• Regularly updated delegated authorities matrix;
• IT processing systems to achieve greater security, data integrity, efficiency and effectiveness.
• An annual risk based audit plan which is instrumental to the assessment of ICFR.
• Implementation of Resolver as a repository and database tool to manage the Agency’s information regarding internal controls and risk information;
• A Corporate Risk Profile, updated regularly to identify, assess and manage key areas of risk, including financial management.
• An annual audit of the Agency’s financial statements by the Office of the Auditor General;
• A detailed and independently reviewed HR framework, policies and staffing rules reflecting the Agency’s status as a separate employer within the Government of Canada;
• A strategic and operating forum for all PCXs, held at least annually, to discuss strategic, management and operations issues, promoting the community of management within the organization; and
• A focal point of expertise for Risk Management within the organization including experts in subject matter.
  

3 Assessment of the Parks Canada’s System of ICFR

3.1 Assessment Baseline as of March 31, 2011

Financial Statements of Parks Canada have been audited, as required by statute, by the Office of the Auditor General for over ten years. In parallel, senior management has been providing increased focus on formalising its approach to the management and on-going maintenance of its system of ICFR with the objective to support continuous improvement.

As a further step, and consistent with the Treasury Board Policy on Internal Control, Parks Canada has commenced in 2010/11 to implement a more systematic risk-based and multi-year assessment plan of the design and operating effectiveness of its system of ICFR.

Through design effectiveness, Parks Canada will ensure that key controls relevant to ICFR have been properly identified, documented, in place and that they are aligned with the risks they aim to mitigate and that any remediation is addressed appropriately and in a timely manner. This includes ensuring appropriate mapping of key processes and IT systems to the
main financial statement accounts or class of transactions.

Through operating effectiveness, the Agency will ensure that the application of key controls over financial reporting has been tested over a defined period, they are working as intended and that any required remediation is addressed appropriately and in a timely manner.

Such testing covers all Agency level controls which include corporate or entity, general computer and business process controls.

Testing of the design and operating effectiveness of the key controls over financial reporting will lead to ensuring the on-going monitoring and continuous improvement of the departmental system of ICFR.

3.2 Scope of Agency Assessment as of March 31, 2011

Parks Canada has adopted an eight step process to facilitate a common and objective view of the robustness of controls across the organization, based on guidance provided by the Office of the Comptroller General to organizations implementing the Policy on Internal Control.

[text version]

Based on the intial risk assessment and scoping step, Parks Canada will undertake measures to assess its system of ICFR, with a focus on the following control levels:

Control Level	Scope
Entity Level Controls	Governance & Accountability Chart of Accounts
Information Technology General Controls	Parks Canada’s financial system related functional services are provided by Canadian Heritage. Parks Canada will place reliance on Canadian Heritage’s assessment of ITGCs.
Business Processes Controls	Accounts Payable Revenue Management Capital Assets Environmental Liabilities Financial Reporting

For each control level and significant business process, Parks Canada will next undertake the following steps:

• Gather information pertaining to processes, risks and controls relevant to ICFR, including appropriate policies and procedures;
• Document the key processes with the identification and documentation of key risk and control points;
• Perform design testing, e.g. conduct a walk-through of the documented processes and assess the alignment of controls to risks;
• Perform operational testing on the documented processes based upon the information gleaned from documentation and design testing;
• Implement remediation plans as required; and
• Develop and implement a monitoring approach and methodology.

4 Parks Canada’s Assessment Results as of March 31, 2011

The following summarizes the key assessment results from the documentation, design and operating effectiveness testing completed as of March 31, 2011.

4.1 Documentation of Control Activities

In fiscal year 2010/11, Parks Canada completed a detailed Planning and Scoping stage by conducting a financial decomposition and performing a risk assessment to identify key risks and key accounts to assess as part of implementing the Policy on Internal Control.

The Agency is in the process of assessing existing documentation as it relates to Entity Level Controls and Business Process Controls.

Control Level	Documentation Status
Entity Level Controls	In progress
IT General Controls	Documentation of the financial system IT General Controls completed by Canadian Heritage.
Business Process Controls	In progress

4.2 Design Effectiveness of Key Controls

Parks Canada is committed to undertaking the design effectiveness of control activities to identify and strengthen key controls after completion of its documentation review. When completing design effectiveness testing, Parks Canada intends to ensure that key controls to ICFR are properly identified, documented, implemented and that they are aligned with the risks that they aim to mitigate and that any remediaton is addressed appropriately and in a timely manner. The assessment activities will include identification of key risks and the internal controls implementated to mitigate these risks, and a walk through to assess the design effectiveness of the internal controls.

Control Level	Design Effectiveness Testing Status
Entity Level Controls	Not commenced
IT General Controls	Financial system IT General Controls design effectiveness testing completed by Canadian Heritage. No significant remediation required.
Business Process Controls	Not commenced

4.3 Operating Effectiveness of Key Controls

Parks Canada is committed to undertaking operating effectiveness testing of control activities after the completion of design effectiveness testing. When conducting operating effectiveness testing of key controls, Parks Canada will implement a risk-based testing approach and methodology that will identify key controls to be tested over a defined period of time, including the selection of a sample, the test period and the method and frequency of testing. Operating effectiveness for Entity Level Controls, and Business Process Controls will not commence until the associated remediation of design effectiveness have been implemented and a sufficient time has passed to allow the controls to function for a period of the financial year.

Control Level	Operating Effectiveness Status
Entity Level Controls	Not commenced
IT General Controls	Financial system IT General Controls operating effectiveness testing completed by Canadian Heritage. No significant remediation required.
Business Process Controls	Not commenced

5 Parks Canada’s Action Plan

5.1 Progress as of March 31, 2011

During 2010/2011, Parks Canada began to plan, document and assess its system of ICFR. Below is a summary of the main progress made by the organization as of March 31, 2011:

• Established and resourced a team to implement the Policy on Internal Control and to provide ongoing assessment, monitoring and reporting;
• Gathered information pertaining to processes, risks and controls relevant to ICFR within the Agency; including appropriate policies and procedures, recent audits, evaluations, results from the completion of the Corporate Risk Profile and MAF assessments.
• Established a risk assessment process for ICFR and a control framework for the organization.
• Implemented the Resolver software program which acts as a repository library and database tool to manage PCA’s information regarding internal controls and risk management.
• In the process of assessing the documentation of entity level controls and key business processes.
• Canadian Heritage provides the Agency with its financial system IT functionality and services. Canadian Heritage has conducted its documentation, design and operational effectiveness testing of its financial system IT General Controls.
• Completed a risk assessment of the Agency’s financial statements to identify significant accounts and high risk business processes; and
• Developed and implemented a three year assessment action plan based on the risk based decomposition of the financial statements.

5.2 Action Plan for the Next Fiscal Year and Subsequent Years

Beginning in 2011/12, the action plan below highlights the progress that Parks Canada will be making in completing the assessment of its key controls. The work plan was developed based on an assessment of the highest risks to financial reporting and aligned with Parks Canada and the Government of Canada financial management initiatives.

The Agency’s System of Internal Controls Assessment Action Plan

	2011/12				2012/13				2013/14
	Documentation	Design Effectiveness	Operating Effectiveness	Ongoing Monitoring	Documentation	Design Effectiveness	Operating Effectiveness	Ongoing Monitoring	Documentation	Design Effectiveness	Operating Effectiveness	Ongoing Monitoring
Entity Level Controls
Governance & Accountability	•				•	•					•	•
Chart of Accounts	•				•	•					•	•
IT General Controls
Parks Canada will rely on Canadian Heritage’s assessment of ITGCs. Canadian Heritage has completed its documentation, design and operating effectiveness testing.
Business Processes Controls
Accounts Payable	•				•	•					•	•
Revenue Management	•	•					•	•			•	•
Capital Assets	•				•	•					•	•
Environmental Liabilities	•	•					•	•				•
Financial Reporting	•					•					•	•

[text version]

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2010/11 Performance Report can be found on the Treasury Board of Canada’s website at: http://www.tbs-sct.gc.ca/dpr-rmr/2010-2011/index-eng.asp.

Details on Transfer Payment Programs (TPPs)
Green Procurement
Internal Audits and Evaluations
Response to Parliamentary Committees and External Audits
Sources of Respendable and Non-Respendable Revenue
Status Report on Projects Operating with Specific Treasury Board Approval
User Fees Reporting

Internal Services

Financial Management Services

The implementation of the Government’s new Financial Management Framework, which places increased expectations on reporting and stewardship, is currently underway within Parks Canada. To respond to the Government’s new reporting standards, the Agency included future-oriented financial statements in its 2011/12 Corporate Plan. Parks Canada is also prepared to produce its first series of Quarterly Financial Reports in September 2011 and to report annually on its travel, hospitality and conference spending beginning in November 2011.

Parks Canada continued to improve its financial management governance framework by furthering the implementation of the Chief Financial Officer Model. To ensure a degree of independence and objectivity, the Agency created a separate Chief Financial Officer Directorate with no other program responsibilities. The Chief Financial Officer reports directly to the Chief Executive Officer and is a member of the Executive Management Committee.

In response to the Treasury Board of Canada’s Policy on Internal Control, Parks Canada developed an action plan that forms part of the Statement of Management Responsibility including Internal Controls over Financial Reporting included in this Performance Report.

Parks Canada continues to actively participate in interdepartmental working groups led by the Office of the Comptroller General of Canada to develop common financial management business processes. The Agency also approved a series of automated tools, including a travel management system, a direct deposit functionality, a point-of-sale system and electronic specimen signature cards, to harmonize financial management business processes within the Agency. Implementation of these tools will be ongoing throughout 2011/12.

Management and Oversight Services

Parks Canada continued to increase its evaluation coverage of direct program spending through streamlining the evaluation planning, execution and report-writing phases of the work. The current evaluation plan projects 88 percent coverage between April 2011 and March 2016, with the remaining 12 percent of spending not covered in the plan attributed to one program, through highway management, which was covered in 2010/11.

Communications Services

Parks Canada launched its new vision internally within the Agency in January 2009 and has been working since that time to ensure that all employees understand and align their work towards achieving this vision for the future. During the past year, the vision was integrated into every aspect of the Agency’s operations and programs. For example, the business planning process was realigned to ensure the work and priorities for each business unit were aligned with the vision. The words and intent of the vision are also used and repeated frequently in speeches and communications from senior leaders and in Agency external communications products and activities.

Human Resources Management Services

Parks Canada made progress in positioning itself as an employer of choice and becoming more representative of Canadian diversity. In June 2010, the Agency launched Canada’s Greatest Summer Job to engage 32 highly motivated and skilled young Canadians to help connect them to their natural and cultural heritage, and provided them with an opportunity to gain valuable working experience at some of Canada’s national parks, national historic sites and national marine conservation areas. With respect to employment equity, the Agency maintained its high representation of Aboriginal peoples and increased its representation of visible minorities, persons with disabilities and women, resulting in narrowing the gap with their labour market availability. Parks Canada also launched an electronic employment equity self-identification form as part of its commitment to an inclusive workplace.

Parks Canada vigorously promotes a culture of competence across the Agency and actively supports employees in their career. The Agency developed standardized statements of qualifications to support the Resource Conservation Renewal Initiative, ensuring the recruitment and development of qualified personnel. Parks Canada enhanced its performance management process for middle managers by incorporating leadership attributes in the employee assessment and linking performance objectives to the Agency’s outcomes. To date, managers and supervisors have achieved a 65 percent completion rate for mandatory management training courses. Parks Canada aims to reach 90 percent completion by March 2012. The Agency also renewed the mandatory New Employee Orientation Program to reflect current priorities and incorporated new modules on career development. In addition, the Agency delivered Quality Visitor Experience training to approximately 4,000 employees to help them provide meaningful experiences to visitors. Lastly, Parks Canada continues to provide developmental opportunities to employees through the Aboriginal Leadership Development Program and the Parks Victoria Exchange Program.

In 2010/11, Parks Canada continued the implementation of its Hazard Prevention Program and developed national, generic Safe Work Practices to support the program. Currently, these practices are being implemented at Parks Canada offices across the country. In collaboration with the Public Service Labour Relations Board and the Public Service Alliance of Canada, the Agency established a formal, expedited grievance resolution process to address grievances resulting from the National Classification Review process. The Agency also implemented a revised Instrument of Delegation of Human Resources Authorities, clarifying roles and responsibilities in line with contractual obligations and human resources policies.

Asset Management

In January 2011, the Agency conducted a workshop with asset management specialists to prioritize recommendations from the 2009 Evaluation of Parks Canada’s Asset Management Program, giving consideration to the current economic and fiscal pressures faced by the Agency and by the government as a whole. The workshop showed that Parks Canada should concentrate its efforts on actions that will yield the most value for Canadians. To this end, Parks Canada’s focus in the coming years will be the development of a path forward for the Agency. This plan will address the evaluation recommendations over the next five years and will outline what actions Parks Canada will employ to achieve a sustainable asset base that serves the highest government and Agency needs, so that Canadians can continue to connect with our parks, historic sites and marine conservation areas for many years to come.

Parks Canada initiated the development of new governance systems, internal policies, standards and procedures to comply with the new Treasury Board Policies on Investment Planning – Assets and Acquired Services and the Management of Projects. This will lead to the development of the Parks Canada Agency Investment Plan and of a new Agency Project Management Standard by the end of 2011/12. Further to this, in early 2011, Parks Canada conducted a review of all Real Property directives, the first step in updating and implementing a real property policy suite that complies with the Treasury Board Policies on Investment Planning – Assets and Acquired Services and the Management of Projects. Modification of these directives will be addressed on a priority-basis. Next steps include developing and communicating an asset management framework that will define what policy instruments are essential for meeting the needs of the Agency.

 

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Section 4: Other Items of Interest

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 2010/11, 19 locations conducted the survey during the peak survey period of June to September 2010. Respondents were invited to participate on-site and were provided with the paper survey to complete and return.

Over the last 11 years, the average return rates for national heritage places have been above 65 percent, with national historic sites (75 percent) having higher average return rates than national parks (45 percent). The average return rate for heritage places surveyed in 2010/11 was 59 percent, meaning that six of every 10 visitors who took a survey questionnaire returned it completed to Parks Canada. In 2010/11, the survey instrument was re-designed to be more user-friendly.

National Survey of Canadians

Parks Canada measures its Strategic Outcome and its performance related to Program Activity 3, Public Appreciation and Understanding, using the National Survey of Canadians (NSC). The NSC is 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. The survey was last conducted in March 2009 and 3,779 respondents completed the survey, resulting in a response rate of eight percent – the industry standard for telephone surveys today. The results of the survey are considered accurate 19 times out of 20 (95% level of confidence). The next NSC is planned for 2011/12.

Stakeholder and Partner Engagement Survey

Parks Canada measures its performance related to Stakeholder and Partner Engagement using the Stakeholder and Partner Engagement Survey (SPES). Stakeholder and Partner Engagement is one of the sub-activities of Program Activity 3, Public Appreciation and Understanding. The SPES is designed to assess Parks Canada’s performance in the eyes of its stakeholders and partners; in particular, the quality and relevance of its public engagement practices, the extent to which stakeholders and partners support the Agency’s activities, and how well Parks Canada provides opportunities for their involvement.

The SPES is an online survey of a representative sample of Parks Canada’s stakeholders and partners. The survey was last administered in November 2009. In total, 2,538 stakeholders and partners were invited to participate in the study, 781 of whom completed the survey, representing a response rate of 31 percent. The results of the survey are considered accurate 19 times out of 20 (95% level of confidence). The next SPES is planned for 2011/2012.

Métis Reconciliation and Aboriginal Rights

The Government of Canada is committed to building strong, effective and mutually beneficial working relationships with Métis and other Aboriginal groups. As part of a multidepartmental strategy to implement programs related to the reconciliation and management of Métis Aboriginal rights, Parks Canada received $4.25 million in 2010/11 to invest over five years.

This funding will allow Parks Canada to work with Métis communities and organizations to carry out approximately 18 projects that celebrate Métis history and culture while building on ongoing relationships with Métis communities. These projects will also help preserve Métis history and culture and increase Canadians’ awareness of this important aspect of Canadian heritage through public education programs at national parks and national historic sites in western and northern Canada.

The strategy is led by Aboriginal Affairs and Northern Development Canada (AANDC), formerly Indian and Northern Affairs Canada, and also involves Environment Canada and the Royal Canadian Mounted Police.

During the first year of the initiative, Parks Canada increased its capacity for building relationships with the Métis so that the Agency can initiate these projects in 2011/12.

Contact Information

General Inquiries:
Parks Canada National Office
25-7-N Eddy Street
Gatineau, Quebec
Canada K1A 0M5

General Inquiries:
888-773-8888

General Inquiries (International):
613-860-1251

Teletypewriter (TTY):
866-787-6221

 

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End Notes

i. Type is defined as follows: Previously committed to—committed to in the first or second year prior to the subject year of the Parks Canada Agency Corporate Plan; Ongoing—committed to at least three fiscal years prior to the subject year of the Corporate Plan; and New—newly committed to in the year of the Corporate Plan.

ii. Commencing in the 2009/10 Estimates cycle, the resources for Program Activity: Internal Services are displayed separately from other program activities; they are no longer distributed among the remaining program activities, as was the case in previous Main Estimates. This has affected the comparability of spending and FTE information by Program Activity between fiscal years.

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

iv.Commemorative integrity scores for two of the 20 national historic sites re-evaluated in 2010/11 were calculated in draft by the site in a previous year and finalized in 2010/11. The commemorative integrity evaluation exercise was conducted in 2008/09 at Carleton Martello Tower and in 2009/10 at Port-la-Joye-Fort Amherst. Six re-evaluations occurred in April 2011, measuring the impact of work completed in 2010/11: Fisgard Lighthouse, Fort Langley, Fort McNab, Fort Rodd Hill, Jasper House and Jasper Park Information Centre.

v. Commemorative integrity ratings and scoring

Score	Degree of Impairment Ratings
10	No impairment means that all three CI elements were rated as good
9	Minor impairment means that at least one CI element was rated less than good but no aspect of CI was rated as poor
8	Minor impairment means that at least one CI element was rated less than good but no aspect of CI was rated as poor
7	Minor impairment means that at least one CI element was rated less than good but no aspect of CI was rated as poor
6	Significant impairment means that one CI element was rated as poor
5	Significant impairment means that one CI element was rated as poor
4	Significant impairment means that one CI element was rated as poor
3	Major impairment means that two CI elements were rated as poor
2	Major impairment means that two CI elements were rated as poor
1	Severe impairment means that all three CI elements were rated as poor

vi. While the number of sites remains 133 for 2010/11, the composition is different from 2008/09 and 2009/10. Cathcart Tower was counted in 2008/09 and 2009/10 but excluded in 2010/11 as it was previously found to be only a component of a larger national historic site (Kingston Fortifications), and the rating for Canso Islands / Grassy Island Fort was split to recognize that these are two overlapping but distinct sites. The 2008/09 and 2009/10 data have been adjusted and restated here.

vii. 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).

viii 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).

ix. 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.

x. Five assets not previously reported in Field townsite in 2009/10 were identified and reported as Field townsite assets in 2010/11.

xi. Eight assets previously reported as Lake Louise townsite assets in 2009/10 were identified and reported as not being Lake Louise townsite assets in 2010/11. In addition, three assets not previously reported in Lake Louise townsite in 2009/10 were identified and reported as Lake Louise townsite assets in 2010/11.

xii. Four assets not previously reported in Wasagaming townsite in 2009/10 were identified and reported as Wasagaming townsite assets in 2010/11.

xiii. Twenty-two assets previously reported as Waskesiu townsite assets in 2009/10 were identified and reported as not being Waskesiu townsite assets in 2010/11. In addition, 16 assets not previously reported in Waskesiu townsite in 2009/10 were identified and reported as Waskesiu townsite assets in 2010/11.

xiv. Five assets previously reported as Waterton townsite assets in 2009/10 were identified and reported as not being Waterton townsite assets in 2010/11. In addition, 13 assets not previously reported in Waterton townsite in 2009/10 were identified and reported as Waterton townsite assets in 2010/11.

xv. In 2009/10, the number of bridges was reported to be 116, but one of those bridges was a temporary fixture, and has since been removed. The baseline number of waterway bridges is 115.

xvi. After the completion of the preliminary classification of the dams in the Quebec region, it was determined that two dams situated close to each other were actually considered one dam and the number of dams was subsequently adjusted, leading to the decrease of one dam from the 2009/10 reporting year. The situation applies as well to the Trent-Severn Waterway.

xvii. All completed in 2010/11.

xviii. This figure was reported in the Parks Canada Agency Performance Report 2009/10 as 1,058 kilometres. It has since been corrected to 1,056 kilometres in the Evaluation of Parks Canada’s Through Highway Management, published in November 2010.

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