Future-Oriented Statement of Operations 2023-24 (Unaudited)

For the year ending March 31 (in thousands of dollars)
Expenses Forecast results
2022-23		 Planned results
2023-24
Parks Canada Programs
Heritage Places Establishment 36,687 47,438
Heritage Places Conservation 283,087 288,578
Heritage Places Promotion and Public Support 80,944 72,424
Visitor Experience 477,834 418,243
Heritage Canals, Highways and Townsites Management 178,502 203,266
Internal Services 137,377 139,087
Total expenses 1,194,431 1,169,036
Revenues
Entrance fees 70,318 71,726
Recreational fees 35,419 36,127
Rentals and concessions 33,402 34,070
Other operating revenues 15,130 15,432
Townsites revenues 4,158 4,241
Staff housing 3,685 3,758
Revenues earned on behalf of Government (109) (111)
Total revenues 162,003 165,243
Net cost of operations before government funding and transfers 1,032,428 1,003,793
The accompanying notes form an integral part of the Future-Oriented Statement of Operations.

Catherine Blanchard
Vice-President, Finance
Gatineau, Canada
Date: December 9, 2022

Notes to the Future-Oriented Statements of Operations (Unaudited)

1. Methodology and significant assumptions

The Future-Oriented Statement of Operations has been prepared based on government priorities and Parks Canada's plans as described in the Departmental Plan.

The information in the forecast results for fiscal year 2022-23 is based on actual results as at October 31, 2022 and on forecasts for the remainder of the fiscal year. Forecasts have been made for the planned results for the fiscal year 2023-24.

The main assumptions underlying the forecasts are as follows:

  1. Parks Canada's activities will remain substantially the same as in the previous year.
  2. Expenses and revenues, including the determination of amounts internal and external to the government, are based on experience. The general historical pattern is expected to continue.
  3. Amortization expenses of tangible capital assets are estimated based on the expected capital asset closing balances.
  4. A model was used to estimate Asset Retirement Obligation (ARO), it takes in consideration the year of construction, the geographic location and the square footage.

These assumptions are made as at October 31, 2022.

2. Variations and changes to the forecast financial information

Although every attempt has been made to forecast final results for the remainder of 2022-23 and for 2023-24, actual results achieved for both years are likely to differ from the forecast information presented, and this variation could be material.

In preparing this Future-Oriented Statement of Operations, Parks Canada has made estimates and assumptions about the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, and are continually evaluated.

Factors that could lead to material differences between the Future-Oriented Statement of Operations and the historical statement of operations include:

  1. the timing, the amount of acquisitions, the disposals of tangible capital assets and Asset Retirement Obligation may impact expenses, gains/losses and amortization expense;
  2. the implementation of new collective agreement;
  3. other changes to the operating budget, such as new initiatives or technical adjustments later in the fiscal year;
  4. changes within Government of Canada policies and direction or accounting standards;
  5. weather or other natural adversities or disasters.

After the Departmental Plan is tabled in Parliament, Parks Canada will not be updating the forecasts for any changes in financial resources made in ensuing supplementary estimates. Variances will be explained in the Departmental Results Report.

3. Summary of significant accounting policies

The Future-Oriented Statement of Operations has been prepared using the Government of Canada's accounting policies in effect for fiscal year 2022-23, and is based on Canadian public sector accounting standards. The presentation and results using the stated accounting policies do not result in any significant differences from Canadian public sector accounting standards.

Significant accounting policies are as follows:

a) Expenses

Expenses are recorded on the accrual basis. Expenses for Parks Canada's operations are recorded when goods are received or services are rendered, including services provided without charges provided by other government departments which are recorded as expenses at their estimated cost.

Expenses also include amortization of tangible capital assets, which are capitalized at their acquisition cost. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset.

b) Revenues recognition

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

Revenues that are non-respendable are not available to discharge Parks Canada's liabilities. While Parks Canada is expected to maintain accounting control, it has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and are therefore presented as a reduction of Parks Canada's gross revenues.

c) Measurement uncertainty

The preparation of the Future-Oriented Statement of Operations in accordance with Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Future-Oriented Statement of Operations and the reported amounts of revenues and expenses for the year. The most significant item where an estimate is used is the estimated useful life of tangible capital asset. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the Future-Oriented Statement of Operations in the year they become known.

4. Parliamentary authorities

Parks Canada receives most of its funding through annual parliamentary authorities. Items recognized in the Statement of Operations and Net Financial Position and the Statement of Financial Position in one year may be funded through parliamentary authorities in prior, current or future years. Accordingly, Parks Canada 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) Reconciliation of net cost of operations to requested authorities (in thousands of dollars)
Forecast results
2022-23		 Planned results
2023-24
Net cost of operations before government funding and transfers 1,032,428 1,003,793
Revenues received pursuant to section 20 of the Parks Canada Agency Act 162,003 165,243
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets (214,751) (220,309)
Services provided without charge by other government departments (62,574) (61,565)
Net loss on disposal of tangible capital assets including adjustments (7,527) (7,333)
Decrease in vacation pay and compensatory leave 1,414 1,850
Decrease in employee future benefits 399 399
Decrease in environmental liability 3,980 1,990
Increase in Asset retirement obligations (114,290) (5,714)
Increase in Tangible capital assets due to Asset retirement obligations 114,290 -
Refund of prior years' expenditures 2,391 2,391
Other (2,839) (2,839)
Total items affecting net cost of operations but not affecting authorities (279,507) (291,130)
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions and betterments to tangible capital assets 249,100 319,707
Salary overpayments 1,075 1,075
Increase in New Parks and Historic Sites Account 55,336 81,305
Proceeds from disposal of tangible capital assets (238) (238)
Decrease in lease obligation for tangible capital assets 351 373
Increase in inventory 1,058 1,058
Decrease in prepaid expenses (252) (252)
Other 253 253
Total items not affecting net cost of operations but affecting authorities 306,683 403,281
Requested authorities 1,221,607 1,281,187
b) Authorities requested (in thousands of dollars)
Forecast results
2022-23		 Planned results
2023-24
Authorities requested:
Vote 1 - Program expenditures 638,812 658,024
Vote 5 - Capital 250,596 319,707
Vote 10 - Payments to New Parks and Historic Sites Account 55,336 81,305
Statutory amounts:
Expenditures equivalent to revenue received pursuant to section 20 of the Parks Canada Agency Act 250,522 155,000
Contributions to employee benefit plans 65,971 67,151
Total Requested authorities 1,261,237 1,281,187
Less: Lapsed authorities and authorities available for future years (39,630) -
Current year authorities requested 1,221,607 1,281,187

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