Annex to the statement of management responsibility including internal control over financial reporting
Fiscal year 2018-19
- Parks Canada's system of internal control over financial reporting (ICFR)
- Parks Canada's assessment results during fiscal year 2018-19
- Parks Canada's action plan
This document provides summary information on the measures taken by Parks Canada Agency (PCA) to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.
2. Parks Canada's system of internal control over financial reporting (ICFR)
PCA 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. PCA’s focus is to ensure that risks are well managed through a responsive and risk-based control environment that enables continuous improvement and innovation.
PCA 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 (CEO) 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;
- Parks Canada has a Values and Ethics Code, and 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 CEO and senior management and the Audit Committee (AC).
The AC provides advice to the CEO on the adequacy and functioning of PCA’s risk management, control and governance frameworks and processes.
PCA 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 (TBS) provides the Agency with contributions covering the employer’s share of employees’ medical and dental insurance premiums.
- TBS 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 PCA.
- Shared Services Canada (SSC) provides information technology (IT) infrastructure services to PCA 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 PCA.
- Specific arrangement:
- PCA’s financial system related functional services are shared with Canadian Heritage. The services are administered through an MOU whereby PCA shares equally the expenses (including maintenance, training, user support, etc.) as well as the responsibilities and risks in relation to the financial system. The financial system’s IT related services are provided by Agriculture Canada to both Parks Canada and Canadian Heritage through a separate MOU.
- Parks Campground Reservation System (PCRS) is PCA’s on-line campground reservation system and auxiliary revenue system. PCRS has been developed and contracted by a service provider (CAMIS) based on the business rules and requirements established by PCA.
3. Parks Canada's assessment results during fiscal year 2018-19
There were no other new or significantly amended key controls in existing processes which required a reassessment in the current fiscal year.
The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year’s rotational on-going monitoring plan.
|Element in previous year’s action plan||Status|
|Entity level controls||Postponed due to multiple and on-going changes to the executive management of the Agency.|
|Pay administration||Completed as planned. Corrective measures identified and currently being addressed.|
|Revenue management||Completed as planned. Corrective measures identified and currently being addressed.|
|Environmental liabilities||Completed as planned. Corrective measures identified and currently being addressed.|
|Financial Reporting||Completed as planned. Corrective measures identified and currently being addressed.|
4. Parks Canada's action plan
The Agency’s rotational ongoing monitoring plan over the next five years, based on an environmental scan, is shown in the following table:
|Key Control Areas||Fiscal Year 2019-2020||Fiscal Year 2020-2021||Fiscal Year 2021-2022||Fiscal Year 2022-2023||Fiscal Year 2023-2024|
|Entity level controls||x|
|IT general controls||x||x||x||x|
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