Transparency

Parks Canada Financial Statements

Annex to the Statement of Management Responsibility including Internal Control over Financial Reporting

Fiscal Year 2015-16

Table of contents

1. Introduction

This document provides summary information on the measures taken by Parks Canada to maintain an effective system of internal control over financial reporting (ICFR) including information on internal control management, assessment results and related action plans.

Detailed information on Parks Canada’s authority, mandate and programs can be found in the attached Departmental Performance Report and Report on Plans and Priorities.

2. Parks Canada's System of Internal Control Over Financial Reporting (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 Internal control management

Parks Canada has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. An internal control framework, approved by the Chief Executive Officer and Chief Financial Officer, is in place and includes:

  • Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities which span from senior managers across to PCA employees in their areas of responsibility for control management;
  • Internal control structure and management approach, which depicts the overall approach for internal control identification, documentation and evaluation;
  • Values and ethics; Parks Canada has updated the Values and Ethics Code. Parks Canada also has an Ombudsman whose mission is to promote and intervene in favour of an organizational culture based on the fundamental values of the Agency. The Ombudsman is also the Senior Integrity Officer for internal disclosure and wrongdoing;
  • Ongoing communication and training on statutory requirements, policies and procedures for sound financial management and control; and
  • Monitoring and regular updates on internal control management, as well as the provision of related assessment results and action plans to the Chief Executive Officer and the Audit Committee (AC).

The AC provides advice to the Chief Executive Officer on the adequacy and functioning of Parks Canada’s risk management, control and governance frameworks and processes.

2.2 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:

Common Arrangements:

  • Public Services and Procurement 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 to the Agency.
  • Shared Services Canada (SSC) provides IT infrastructure services to the Agency in the areas of acquisition and provision of hardware and software, data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between SSC and the Agency

Specific Arrangement:

  • Parks Canada’s financial system related functional services are shared with Canadian Heritage. The services are administered through an MOU whereby Parks Canada shares equally the expenses (incl. maintenance, training, user support, etc.) as well as the responsibilities and risks in relation to the financial system. The financial system’s Information Technology (IT) related services are provided by Agriculture Canada to both Parks Canada and Canadian Heritage through a separate MOU.

3. Parks Canada's Assessment Results During Fiscal Year 2015-16

The key findings and significant adjustments required from the current year’s assessment activities are summarized below.

3.1 New or significantly amended key controls

In the current year, there were no new or significantly amended key controls in existing processes which required a reassessment.

3.2 On-going monitoring of key controls

As part of its ongoing monitoring plan, Parks Canada completed its assessment of Accounts Payable, Capital Assets, Environmental Liabilities and Financial Reporting in 2015-16.

Key controls tested as part of Parks Canada’s ongoing risk-based monitoring plan in 2015-16 were found to be operating effectively with no significant deficiencies identified. However, opportunities for improvement in the following areas were identified:

  • Accounts Payable – Review and communicate standardized procedures, documentation and monitoring plan related to interdepartmental settlements.
  • Manage Capital Assets – Implement a risk based monitoring approach.

4. Parks Canada Action Plan

4.1 Progress during fiscal year 2015-16

Parks Canada continued to conduct its ongoing monitoring according to the previous fiscal year’s rotational plan as shown in the following table:

Element in previous year’s action planStatus

Accounts Payables

Ongoing monitoring testing completed. Corrective measures identified and currently being addressed.

Capital Assets

Ongoing monitoring testing completed. Corrective measures identified and currently being addressed.

Environmental Liabilities 

Ongoing monitoring testing completed. No remediation required.

Financial Reporting

Ongoing monitoring testing completed. No remediation required.

Pay Administration

Postponed due to delays to the Government of Canada Transformation of Pay Administration Initiative.

4.2 Status and action plan for the next fiscal year and subsequent years

The Agency’s rotational ongoing monitoring plan over the next three years, based on an annual validation of the high-risk processes and controls and related adjustments to the ongoing monitoring plan as required, is shown in the following table:

Key Control AreasFiscal Year
2016-2017		Fiscal Year
2017-2018		Fiscal Year
2018-2019
Entity Level Controls
Governance & Accountability
X
IT General Controls under Departmental Management
IT General Controls
X
Parks Canada Reservation Service (PCRS)
X
Shared Travel Services (STS)
X
Business Processes Controls
Chart of Accounts
X
Accounts Payable
X
X
X
Revenue Management
X
X
Capital Assets
X
X
X
Environmental Liabilities
X
Financial Reporting
X
X
X
Pay Administration*  
X
X

*Based on Risk Assessment and Government of Canada Transformation of Pay Administration Initiative

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