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Section 4: Audited Accrual 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 Board of the Agency as recommended by the Audit and Evaluation 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 annual 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 and Evaluation Committee is responsible for receiving all internal audits, evaluation and review studies for information and/or approval. The Committee also receives and reviews plans and reports by the Agency's External Auditor and actively solicits her advice about the quality of the Agency's management system, and information for decision-making.

The Agency's external auditor, the Auditor General of Canada, 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.


Alan Latourelle, Chief Executive Officer

      

Andr Lger, Executive Director, Finance

Alan Latourelle
Chief Executive Officer

 

Andr Lger
Executive Director, Finance


Auditor’s Report

Auditor's Report


PARKS CANADA AGENCY
Statement of Financial Position as at March 31

(in thousands of dollars)

       2007  2006
       
 
Assets
Financial assets:        
  Cash entitlements (Note 3)        
    General operations account   60,523   62,628
    Specified purpose accounts   2,740   2,931
    New parks and historic sites account   13,902   12,422
       
 
        77,165   77,981
  Accounts receivable   8,314   10,301
       
 
        85,479   88,282
Non-Financial assets:        
  Prepaid expenses   5,450   3,516
  Inventory of consumable supplies (Note 4)   5,238   5,294
  Tangible capital assets (Note 5)   1,437,044   1,420,046
  Collections and archaeological sites (Note 6)   1   1
       
 
        1,447,733   1,428,857
       
 
        1,533,212   1,517,139
       
 
Liabilities        
Current liabilities:        
  Accounts payable and accrued liabilities        
    Federal government departments and agencies   10,781   14,248
    Others   62,462   63,552
       
 
        73,243   77,800
  Employee future benefits (Note 8)   4,507   3,953
  Deferred revenue (Note 7)   12,171   12,603
       
 
        89,921   94,356
Long-term liabilities:        
  Employee future benefits (Note 8)   49,522   45,695
  Provision for environmental clean-up (Note 9)   40,028   36,775
       
 
        179,471   176,826
       
 
Equity of Canada   1,353,741   1,340,313
       
 
        1,533,212   1,517,139
       
 

Contingencies and commitments (Notes 9 and 14)

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

Approved by:


Alan Latourelle, Chief Executive Officer

      

Andr Lger, Executive Director, Finance

Alan Latourelle
Chief Executive Officer

 

Andr Lger
Executive Director, Finance


 


PARKS CANADA AGENCY
Statement of Operations for the Year Ended March 31

(in thousands of dollars)

       2007  2006
       
 
Expenses (Note 10)
Stewardship of National Heritage Places        
  Establish Heritage Places   19,942   20,936
  Conserve Heritage Resources   214,092   210,703
  Promote Public Appreciation and Understanding   88,506   83,685
       
 
        322,540   315,324
       
 
Use and Enjoyment by Canadians
  Enhance Visitor Experience   166,446   173,833
  Townsite Management   10,770   9,792
  Throughway Management   46,513   33,648
       
 
        223,729   217,273
       
 
Amortization of tangible capital assets   83,026   82,099
       
 
Total expenses   629,295   614,696
Revenues (Note 11)   102,995   97,404
       
 
Net cost of operations (Note 12)   526,300   517,292
       
 

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

 


PARKS CANADA AGENCY
Statement of Equity of Canada for the Year Ended March 31

(in thousands of dollars)

       2007  2006
       
 
Balance at beginning of year   1,340,313   1,374,484
Adjustment to the new parks and historic sites account (Note 3c)   -   17,263
       
 
Adjusted balance at beginning of year   1,340,313   1,391,747
Net cost of operations   (526,300)   (517,292)
Services received without charge (Note 13)   43,666   45,981
Net cash provided by Government   496,878   448,575
Change in cash entitlements   (816)   (28,698)
       
 
Balance at end of year   1,353,741   1,340,313
       
 

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

 


PARKS CANADA AGENCY
Statement of Cash Flow for the Year Ended March 31

 (in thousands of dollars)

       2007  2006
     
       
 
Operating activities
Net cost of operations   526,300   517,292
Items which do not involve cash:    
  Amortization of tangible capital assets   (83,026)   (82,099)
  Net (loss) gain on disposal of tangible capital assets   (1,126)   18
  Services received without charge   (43,666)   (45,981)
  Variations in Statement of Financial Position
    (Decrease) increase in accounts receivable   (1,987)   1,340
    Increase in prepaid expenses   1,934   3,516
    Decrease in inventory of consumable supplies   (56)   (217)
    Decrease in accounts payable and accrued liabilities   4,557   17,032
    Decrease (increase) in deferred revenues   432   (647)
    Increase in employee future benefits   (4,381)   (6,748)
    Increase in provision for environmental clean-up   (3,253)   (14,381)
       
 
Cash used in operating activities   395,728   389,125
       
 
Capital investment activities        
  Acquisitions and improvements to tangible capital assets   101,678   61,632
  Proceeds on disposal of tangible capital assets   (528)   (2,182)
       
 
Cash used in capital investment activities   101,150   59,450
       
 
Net cash provided by Government   496,878   448,575
       
 

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

 


PARKS CANADA AGENCY
Notes to Financial Statements for the Year Ended March 31 2007

(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 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, 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 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:
Tangible capital assets, excluding land, transferred to the Agency as at April 1, 1999, are recorded at their estimated historical cost, less accumulated amortization. Construction in progress are not amortized. When projects are substantially completed the costs are transferred to the appropriate asset category and amortization is initiated. 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, excluding land, acquired after April 1, 1999, are recorded at cost. Tangible capital assets, excluding land, acquired at nominal cost or by donation, are recorded at market value at the time of acquisition and 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.

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



Asset     Useful life

Buildings   25-50 years
Fortifications   50-100 years
Leasehold improvements   2-10 years
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


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 Governement 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 administered by the Government of Canada. 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) Services received without charge:
Services received without charge from other Government departments are recorded as operating expenses at their estimated fair value. 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, cost of tangible capital assets transferred to the Agency as at April 1,1999, 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). The CRF 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, 2007, the balance of the general operations account is $60.5 million ($62.6 million in 2006).

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, 2007, the Agency has a balance of $2.7 million ($2.9 million in 2006) for specified purpose accounts.

c) New parks and historic sites account:
Since 2001-2002, the account was presented in the notes to the financial statements. In 2006-2007, the Agency reviewed the accounting treatment of the New parks and historic sites account. As per the Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, this account represents an asset for the Agency and a consolidated specified purpose account that should be recorded as Equity. Consequently, the comparative financial statements presented for the year ended March 31, 2006 have been adjusted. The effect of this adjustment is presented in the table below.

2005 - 2006



     As previously
stated
   Effect of the
adjustment
   Adjusted
amounts

Statement of Financial Position      
Cash entitlements            
    Specified purpose accounts   3,394   (463)   2,931
  New parks and historic sites account     12,422   12,422
Defered Revenue   13,066   (463)   12,603
Statement of Equity of Canada      
Balance at beginning of year   1,374,484   17,263   1,391,747
Change in cash entitlements   (23,857)   4,841)   (28,698)
Balance at end of year   1,327,891   12,422   1,340,313


The Government of Canada includes in its receipts and expenditures the transactions of certain consolidated accounts established for specified purposes. Legislation 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:



  2007    2006
 
 
Available at beginning of year 12,422   17,263
Less:      
Reclassification of donated funds   (2,500)
 
 
  12,422   14,763
Receipts:      
   Parliamentary appropriation 3,000   1,800
  Proceeds on disposal of tangible capital assets 505   1,914
  Donations 18   8
 
 
  3,523   3,722
 
 
Expenditures:      
  Capital expenditures 2,043   5,617
  Contributions   446
 
 
  2,043   6,063
 
 
Available at end of year 13,902   12,422


4. Inventory of Consumable Supplies

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



     2007    2006
   
 
Top soil, sand, gravel and other crude material   983   1,154
Stationery, office and miscellaneous supplies   863   515
Equipment, materials and supplies   755   822
Fuel and other petroleum products   695   723
Construction material and supplies   615   563
Printed books, publications and maps   584   534
Fabricated wood and metal products   404   393
Safety equipment   190   398
Uniforms and protective clothing   149   192
   
 
    5,238   5,294


5. Tangible capital assets:


  Closing
historical
cost as at
March 31, 2006
Net additions(1)
for the year
ended
March 31, 2007
Closing
historical
cost as at
March 31, 2007
Accumulated
amortization
as at
March 31, 2007
Net book
value as at
March 31, 2007
Net book
value as at
March 31, 2006

Buildings, fortifications and leasehold improvements 763,068 17,726 780,794 475,150 305,644 307,052
Improved grounds 582,713 8,296 591,009 493,274 97,735 110,630
Roads 955,499 43,878 999,377 607,715 391,662 365,059
Bridges 152,410 2,274 154,684 83,218 71,466 71,801
Canal and marine facilities 542,437 4,368 546,805 266,671 280,134 284,397
Utilities 175,176 6,947 182,123 96,142 85,981 83,311
Vehicles and equipment 124,102 5,901 130,003 97,966 32,037 29,433
Exhibits 101,213 3,640 104,853 89,223 15,630 14,314

  3,396,618 93,030 3,489,648 2,209,359 1,280,289 1,265,997
Land (Note 2d)            
    - Acquired land 134,156 2,706 136,862 136,862 134,156
  - Crown land 1 1 1 1
  - Donated land 19,892 19,892 19,892 19,892

  154,049 2,706 156,755 156,755 154,049

Total tangible capital assets 3,550,667 95,736 3,646,403 2,209,359 1,437,044 1,420,046


(1) includes all acquisitions, dispositions and write-offs in the year.

The Agency owns over 27 million hectares of land, the majority of which comprise the 42 national parks and national park reserves representing 28 of the 39 natural regions of Canada. During the year, the Agency spent $2.7 million ($2.7 million in 2006) on the acquisition of land. The total cost of tangible capital assets includes $98.6 million ($67.5 million in 2006) of construction in progress.

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 157 national historic sites, 42 national parks, and 2 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 $12.2 million ($12.6 million in 2006) is an amount of $9.5 million ($9.7 million in 2006) representing the balance, at year end, for entrance fees, recreational fees, and rentals/concessions fees collected in advance.

The remaining $2.7 million ($2.9 million in 2006) 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:



     2007    2006
   
 
Accrued benefit obligation, beginning of year   49,648   42,900
Cost for the year   8,093   10,156
Benefits paid during the year   (3,712)   (3,408)
   
 
Accrued benefit obligation, end of year   54,029   49,648
   
 
Short-term portion   4,507   3,953
Long-term portion   49,522   45,695
   
 
    54,029   49,648


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:



     2007    2006
   
 
Agency's contributions   30,459   32,840
Employees' contributions   12,691   13,638


9. Contingencies

a) Claims:
In the normal course of business, claims have been made against the Agency. The current best estimate of the amount likely to be paid in respect of these claims and potential claims has been recorded. The total contingent liabilty amount related to these claims has been estimated at $14.2 million ($9.2 million in 2006), excluding interest, for alleged damages and other matters. In the opinion of management, the position of the Agency in all of these actions is defensible.

b) Provision for environmental clean-up:
The Agency has identified 365 sites that are known or suspected of contamination. Based on the information available and detailed studies conducted thus far on 341 of these sites, the Agency has estimated and recorded a liability of $40 million ($36.8 million in 2006). The Agency has estimated additional clean-up costs of $135.2 million ($137.6 million in 2006) that are not accrued, 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.

c) Classification Review:
In 1999, the Agency initiated a national classification review which has as its objective to correct inconsistencies in how positions are being classified and compensated when employees are performing similar duties. This initiative is still underway and currently the Agency cannot assess with certainty the full impact of this initiative on its operations. At this time, management has recorded a liability based on its best estimate. Actual results may differ significantly from the current estimates and any impact of these changes or additional amounts will be reflected in the period it is known and determinable.

10. Summary of Expenses by Major Classification


     2007    2006
   
 
Salaries and employee benefits   335,522   322,103
Amortization   83,026   82,099
Professional and special services   57,735   55,339
Utilities, materials and supplies   50,209   42,704
Transportation and communication   29,559   27,875
Accommodation received without charge (Note 13)   15,494   15,528
Rentals   13,548   10,397
Grants and contributions   12,273   11,223
Payments in lieu of taxes   11,295   11,296
Repairs and maintenance   8,400   9,251
Information   6,289   6,317
Environmental clean-up   4,439   15,966
Net loss on disposal of tangible capital assets   1,126  
Miscellaneous expenses   380   4,598
   
 
    629,295   614,696


11. Summary of Revenues by Major Classification


     2007    2006
   
 
         
Entrance fees   51,877   45,801
Recreational fees   21,676   20,877
Rentals and concessions   17,822   16,186
Other operating revenues   6,502   9,221
Townsites revenues   2,710   2,909
Staff housing   2,408   2,392
Net gain on disposal of tangible capital assets     18
   
 
    102,995   97,404


12. Parliamentary Appropriations

a) Appropriations used:



     2007    2006
   
 
Appropriations voted:        
   Vote 30 - Program expenditures   500,115   429,394
  Vote 35 - New parks and historic sites account   3,000   1,800
Statutory appropriations:        
  Revenue received pursuant to section 20 of the Parks Canada Agency Act   107,496   100,417
  Contributions to employee benefits plan   44,735   45,914
   
 
Total appropriations   655,346   577,525
Less:        
  Amount available in future year   53,580   53,413
   
 
Current year appropriations used   601,766   524,112


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



     2007    2006
   
 
Net cost of operations   526,300   517,292
Revenue received pursuant to section 20 of the Parks Canada Agency Act   107,496   100,417
Adjustments for items affecting net cost of operations but not affecting appropriations:        
   Amortization of tangible capital assets   (83,026)   (82,099)
  Services received without charge (Note 13)   (43,666)   (45,981)
  Net (loss) gain on disposal of tangible capital assets   (1,126)   18
   
 
    (127,818)   (128,062)
Changes in accounts affecting net cost of operations but not affecting appropriations:        
  Vacation pay included in the accounts payable and accrued liabilities   (523)   (608)
  GST included in the accounts payable and accrued liabilities   (563)   (1,831)
  Employee future benefits   (4,381)   (6,748)
  Provision for environmental clean-up   (3,253)   (14,381)
   
 
    (8,720)   (23,568)
Adjustments for items not affecting net cost of operations but affecting appropriations:        
  Acquisitions and improvements to tangible capital assets   101,678   61,632
  Proceeds on disposal of tangible capital assets   (528)   (2,182)
  Change in prepaid expenses   1,934   3,516
  Change in inventory of consumable supplies   (56)   (217)
  Change in New Parks and Historic Sites Account   1,480   (4,716)
   
 
    104,508   58,033
   
 
Current year appropriations used   601,766   524,112


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



     2007    2006
   
 
Net cash provided by government   496,878   448,575
Revenue received pursuant to section 20 of the Parks Canada Agency Act   107,496   100,417
Changes in accounts not affecting net cash provided by government but affecting appropriations:        
  Accounts receivable   1,987   (1,340)
  Accounts payable and accrued liabilities   (4,557)   (17,032)
      Less : Vacation pay included in the accounts payable and accrued liabilities   (523)   (608)
    Less : GST included in the accounts payable and accrued liabilities   (563)   (1,831)
  Deferred revenue   (432)   647
  New Parks and Historic Sites Account   1,480   (4,716)
   
 
    (2,608)   (24,880)
Current year appropriations used   601,766   524,112


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 entered into transactions with related parties for a total of $100.1 million ($62.1million in 2006) for services provided by Government departments, including an amount of $94.9 million ($57.4 million in 2006) with Public Works and Government Services Canada mostly related to architectural and engineering services for $67.3 million ($32.6 million in 2006) and Payment in lieu of taxes for $11.3 million ($11.3 million in 2006).

b) Services received without charge
During the year, the Agency received services without charge which are recorded at fair value in the financial statements as follows:



     2007    2006
   
 
Contributions covering employer's share of employees' insurance premiums and costs paid by Treasury Board Secretariat   21,122   20,046
Accommodation provided by Public Works and Government Services Canada   15,494   15,528
Services provided by the Department of Canadian Heritage for information management, information technology, finance, human resources and administrative support   3,864   7,510
Salary and associated costs of legal services provided by Justice Canada   2,366   2,255
Other services provided without charge   820   642
   
 
    43,666   45,981


14. Commitments

a) The Agency has entered into agreements for leases of equipment and operating leases for accommodations for a total of $9.8 million ($10.3 million in 2006). 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:



2007-08    1,317
2008-09   731
2009-10   658
2010-11   598
2011-12   548
2012-13 and beyond   5,940


b) The Agency has entered into contracts for operating and capital expenditures for approximately $102.9 million ($81.1 million in 2006). The majority of payments under these contracts are expected to be made over the next two years.

15. Comparative Figures

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