Annex to the statement of management responsibility including internal control over financial reporting — Fiscal year 2022-23

1. Introduction

This document provides summary information on the measures taken by Parks Canada Agency (PC) 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 PC’s authority, mandate and programs can be found in the attached Departmental Results Report and Departmental Plan.

2. Parks Canada's system of internal control over financial reporting (ICFR)

2.1 Internal control management

PC 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 Vice-President Finance, 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 PC employees in their areas of responsibility for control management;
  • Parks Canada has a Values and Ethics Code, an Ombud whose mission is to promote and intervene to maintain and create respectful and healthy workplaces throughout PC, and a Senior Director for Values, Ethics, Diversity and Inclusion (VEDI). The Senior Director of VEDI 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 President and Chief Executive Officer (PCEO) and senior management and, as applicable, the Audit Committee (AC).

The AC is an independent advisory committee to the PCEO. It is responsible to provide advice to the PCEO on the adequacy and functioning of PC’s risk management, control and governance frameworks and processes.

2.2 Service arrangements relevant to the financial statements

PC 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 (PSPC) 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 PC with information used to calculate various accruals and allowances, such as the accrued severance liability;
  • The Department of Justice provides legal services to PC; and
  • Shared Services Canada (SSC) provides information technology (IT) infrastructure services to PC 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 PC.

Readers of this annex may refer to the annexes to the Statement of Management Responsibility including Internal Control over Financial Reporting of the above-noted departments for a greater understanding of the systems of internal control over financial reporting related to these specific services.

Specific arrangement:

  • PC’s financial system related functional services are shared with Canadian Heritage. The services are administered through a Memorandum of Understanding (MOU) whereby PC shares 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 PC’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 PC.

3. Parks Canada's assessment results during fiscal year 2022-23

3.1 New or significantly amended key controls

There were no other new or significantly amended key controls in existing processes which required a reassessment in the current fiscal year.

3.2 On-going monitoring of key controls

The following table summarizes the status of the ongoing monitoring activities according to the previous fiscal year’s rotational monitoring plan.

Progress during fiscal year 2022-23
Element in previous year’s action planStatus
IT General ControlsCompleted as planned. Corrective measures identified and being addressed.
RevenuesOperating effectiveness testing has been completed and corrective measures identified are currently under discussion with the business owner.
TravelDocumentation and design testing have been completed and operating effectiveness testing will be completed in fiscal 2023-24.
Chief Financial Officer AttestationCompleted as planned. Corrective measures identified and being addressed.
Budgeting and ForecastingCompleted as planned. Corrective measures identified and being addressed.

4. Parks Canada's action plan

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

The Parks Canada’s rotational ongoing monitoring plan over the next fiscal years, based on our internal control framework, is shown in the following table:

Key control areasFiscal year 2023-2024Fiscal year 2024-2025Fiscal year 2025-2026Fiscal year 2026 and up
Entity Level ControlsX
Information Technology General Controls ( ITGC )XXX
Business processes
Operating expenses and accounts payable1XXX
Capital assets and assets under constructionXX
Investment planningX
Budgeting and forecastingX
Chief Financial Officer AttestationX
Employment conditions1XXX
Financial close and reportingXX
Grant and contribution agreementsXX
Environmental liabilitiesXX
1 The assessment of these processes will be spread over two fiscal years.

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