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Section 3: Supplementary Information

List of Supplementary Information Tables

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

Sources of Respendable Revenue

User Fees/External Fees

Status Report on Projects Operating with Specific Treasury Board Approval

Details on Transfer Payment Programs (TPPs)

Response to Parliamentary Committees and External Audits

Internal Audits and Evaluations

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

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

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

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

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

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

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

The Visitor Information Program

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

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

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

National Survey of Canadians

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

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

Internal Services

Governance and Management Support

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

Resource Management Services

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

Asset Management Services

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

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Section 4: Audited Financial Statements

Parks Canada Agency
Management Responsibility for Financial Statements

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

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

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

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

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

Original signed by Alan Latourelle Chief Executive Officer

Original signed by Céline Gaulin Chief Financial Officer

July 30, 2010

Auditor's Report

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

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

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

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

Original signed by

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

Ottawa, Canada
July 30, 2010

PARKS CANADA AGENCY

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

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

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

Original signed by Alan Latourelle Chief Executive Officer

Original signed by Céline Gaulin Chief Financial Officer

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

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

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

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

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

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

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

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

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

PARKS CANADA AGENCY

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

(Tables in thousands of dollars)

1. Authority and Objectives

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

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

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

2. Significant Accounting Policies

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

a) Parliamentary appropriations:

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

b) Deferred revenue:

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

c) Inventory of consumable supplies:

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

d) Tangible capital assets:

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

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

Intangible assets are not capitalized.

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

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

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

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

e) Collections and archaeological sites:

Collections and archaeological sites are recorded at nominal value.

f) Employee future benefits:

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

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

g) Expenses:

Expenses are recorded on the accrual basis.

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

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

h) Provision for environmental clean-up:

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

i) Revenue recognition:

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

j) Measurement uncertainty:

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

3. Cash Entitlements

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

Included in cash entitlements are the following:

a) General operations account:

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

b) Specified purpose accounts:

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

c) New parks and historic sites account:

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

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

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

4. Inventory of Consumable Supplies

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

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

5. Tangible Capital Assets

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

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

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

6. Collections and Archaeological Sites

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

a) Collections:

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

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

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

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

b) Archaeological sites:

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

7. Deferred Revenue

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

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

8. Employee Future Benefits

a) Severance benefits:

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

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

b) Pension benefits:

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

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

9. Contingencies

a) Claims:

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

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

b) Provision for environmental clean-up:

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

10. Summary of Expenses by Major Classification

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

11. Summary of Revenues by Major Classification

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

12. Parliamentary Appropriations

a) Appropriations provided and used:

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

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

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

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

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

13. Related Party Transactions

a) Transactions in the normal course of business:

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

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

b) Services received without charge:

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

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

14. Commitments

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

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

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

15. Transfer of assets and liabilities from other government entities

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

16. Comparative Figures

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

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End Notes

¹ Completed in fiscal year 2009/10.

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

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

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

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

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