DAOD 9003-1, Non-Public Property


1. Introduction

Date of Issue: 2000-04-27

Date of Last Modification: 2016-08-25

Application: This DAOD is an order that applies to officers and non-commissioned members of the Canadian Armed Forces (CAF members).

Supersession:

  • CFAO 2-12, Canadian Forces Non-Public Funds Governance
  • CDS Approval Minute dated 16 January 2009 to 7331-0 (DGPFSS) dated 06 January 2009, Delegation of Authority – Administration of Non-Public Property
  • CDS Direction dated 31 October 2011, Governance of Non-Public Property (NPP)
  • CDS Direction dated 30 December 2012, Governance of Non-Public Property (NPP)

Approval Authority: Chief of the Defence Staff (CDS)

Enquiries: Director General Morale and Welfare Services (DGMWS)

2. Definition

non-public property (biens non publics)

Non-public property means

(a) all money and property, other than issues of materiel, received for or administered by or through messes, institutes or canteens of the Canadian Forces,
(b) all money and property contributed to or by officers, non-commissioned members, units or other elements of the Canadian Forces for the collective benefit and welfare of those officers, non-commissioned members, units or other elements,
(c) by-products and refuse and the proceeds of the sale thereof to the extent prescribed under subsection 39(2), and
(d) all money and property derived from, purchased out of the proceeds of the sale of, or received in exchange for, money and property described in paragraphs (a) to (c). (Subsection 2(1) of the National Defence Act)

3. Overview

Background

3.1 Under sections 38 to 41 of the National Defence Act (NDA), non-public property (NPP) is established as a unique type of Crown property, which vests in the commanders of units and other elements and in the CDS. NPP is to be used for the benefit of CAF members or for any other purpose approved by the CDS, including the benefit of former CAF members and the families of CAF members and former CAF members. Specific delegated authorities for the use and administration of NPP by base, wing, unit and ship commanders are set out in the Chief of the Defence Staff Delegation of Authorities for Financial Administration of Non-Public Property (NPP).

Note – In this DAOD, ‘‘families’’ refers to dependants as this term is used in subsections 38(2) and 39(1) of the NDA.

Purpose

3.2 This DAOD provides direction to CAF members and guidance to other persons in respect of the:

  1. Non-Public Property Board (NPP Board), the Canadian Forces Non-Public Funds Employees’ Pension Plan Board (Pension Board) and other standing committees;
  2. authority of the DGMWS, as the Managing Director NPP, for the overall administration and management of NPP;
  3. personnel management of the Staff of the Non-Public Funds, Canadian Forces (Staff of the NPF) by the DGMWS, as the chief executive officer (CEO) of the Staff of the NPF; and
  4. authorities and responsibilities of base, wing, unit and ship commanders relating to NPP.

4. Non-Public Property Board

Role

4.1 The NPP Board is an advisory committee that assists the CDS as the governing authority for NPP. The NPP Board provides input and advice to the CDS regarding:

  1. NPP strategic plans, policies and guidance;
  2. NPP investments; and
  3. acceptance of the externally audited annual NPP financial statements.

Strategic Oversight

4.2 The NPP Board provides strategic oversight of all NPP activities, including the following:

  1. Canadian Forces Central Fund (CFCF);
  2. Canadian Forces Exchange System (CANEX);
  3. Service Income Security Insurance Plan (SISIP) Financial;
  4. NPP activities administered by the Personnel Support Programs (PSP);
  5. base, wing, unit and ship funds, including the European Fund; and
  6. NPP assistance funds (e.g. the Support Our Troops Funds).

Composition

4.3 The CDS chairs the NPP Board, with the involvement of the chain of command through membership on the Board. The Board consists of the following members:

  1. Vice Chief of the Defence Staff (VCDS), who acts as the Chair in the absence of the CDS;
  2. Commander, Royal Canadian Navy (RCN);
  3. Commander, Canadian Army (CA);
  4. Commander, Royal Canadian Air Force (RCAF);
  5. Commander, Military Personnel Command (MILPERSCOM);
  6. Assistant Deputy Minister (Finance)/Chief Financial Officer (ADM(Fin)/CFO) as represented by a general or flag officer;
  7. Chief Reserves and Cadets (C Res and Cdts);
  8. CAF Chief Warrant Officer; and
  9. a former CAF member representative.

4.4 The following are permanent attendees at NPP Board meetings:

  1. Judge Advocate General;
  2. Assistant Deputy Minister (Infrastructure and Environment) (ADM(IE));
  3. Assistant Deputy Minister (Review Services) (ADM(RS));
  4. DGMWS as the Managing Director NPP; and
  5. command chief warrant officers/chief petty officers 1st class of the RCN, CA, RCAF, VCDS, MILPERSCOM and C Res and Cdts.

4.5 On the recommendation of the Managing Director NPP, the CDS selects the former CAF member representative. The representative normally serves a term of three years.

4.6 The CDS may appoint additional permanent or non-permanent members to the NPP Board, including members from non-DND and non-CAF organizations.

Terms of Reference

4.7 The NPP Board assists the CDS in the:

  1. establishment and maintenance of the vision and mission of NPP;
  2. provision of strategic direction and exercise of oversight for all NPP activities, including shared NPP and public activities;
  3. approval of major policies related to NPP;
  4. provision of strategic direction and exercise of oversight in the management of NPP investment assets of the CFCF and the SISIP Segregated Fund;
  5. approval of corporate risk management and performance management frameworks for NPP; and
  6. establishment and maintenance of a forward planning agenda to ensure that key responsibilities are addressed annually.

Meetings

4.8 The NPP Board normally meets three times per year. Notice of meetings must be given at least 14 days before a meeting. A member of the Board may not be represented by an individual acting on their behalf, except when the member is absent on temporary duty, deployment or leave, and the individual has been assigned acting responsibilities.

Administrative Support

4.9 The Managing Director NPP provides administrative support to the NPP Board and its committees, including secretarial services, preparation of the agenda and record of decisions (ROD), and management of the forward planning agenda.

Approval of RODs

4.10 The RODs of the NPP Board are recommended by the Managing Director NPP and approved by the CDS. Routine and non-controversial items may be processed secretarially. Board members must normally be provided at least 10 working days for the consideration of secretarial items. A non-response is considered as a positive recommendation. Secretarial approvals must be read into the ROD of the following NPP Board meeting.

5. Pension Board and Other Standing Committees

Pension Board

5.1 The Pension Board ensures the long-term sustainability of the Canadian Forces Non-Public Funds Employees’ Pension Plan (Pension Plan). The Associate DGMWS chairs this Board, which reports to the DGMWS as the CEO of the Staff of the NPF. The Board must meet at the call of the Chair, normally four times per year. RODs of the Board must be forwarded to the DGMWS. The Chair must present an annual report to the NPP Board.

Other Standing Committees

5.2 NPP standing committees must consist of at least three permanent members and may include non-permanent members as appointed by the Managing Director NPP. Committees may include senior management of the Staff of the NPF and external members appointed by the Managing Director NPP.

Investment Committee

5.3 The role of the NPP Investment Committee is to effectively manage and monitor the investment assets of the CFCF and the SISIP Segregated Fund. The Associate DGMWS chairs the Investment Committee, which reports to the NPP Board.

NPP Audit Committee

5.4 The role of the NPP Audit Committee is to provide independent, objective assessment and assurance of the adequacy of risk management, control and accountability in respect of NPP. The Chair of the Audit Committee is appointed by and reports directly to the CDS. The ADM(RS) and the Managing Director NPP are ex officio members of the NPP Audit Committee. The Audit Committee must meet at the call of the Chair, but normally not less than two times per year. RODs must be forwarded to the CDS.

6. Managing Director Non-Public Property

Authority

6.1 The CDS authorizes the Managing Director NPP to ensure the overall administration and management of NPP on behalf of the CDS, including the:

  1. operation of the NPP accountability framework, in accordance with the strategic direction of the NPP Board, in order to safeguard and efficiently use NPP;
  2. implementation of strategic plans to achieve the approved strategy of the NPP Board;
  3. approval of NPP capital projects, and operations and maintenance, in accordance with the Chief of the Defence Staff Delegation of Authorities for Financial Administration of Non-Public Property (NPP);
  4. alienation of NPP real property, immovables and tangible property up to the limits specified in the Chief of the Defence Staff Delegation of Authorities for Financial Administration of Non-Public Property (NPP), with such alienations being reported to the CDS at the end of each fiscal year;
  5. proposal of amendments to the CDS in respect of the Chief of the Defence Staff Delegation of Authorities for Financial Administration of Non-Public Property (NPP); and
  6. establishment of standing and ad hoc committees as required.

NPP Annual Report

6.2 The Managing Director NPP must prepare and submit an NPP annual report to the CDS and table the report at the NPP Board.

7. Staff of the Non-Public Funds, Canadian Forces

Governance Structure

7.1 The Staff of the NPF has an independent governance structure from that of NPP. The Staff of the NPF is established as a separate agency in the federal public administration and is included in Schedule V to the Financial Administration Act (FAA). The Non-Public Funds Staff Exclusion Approval Order excludes all positions and employees of the Staff of the NPF from the operation of the Public Service Employment Act. Employees of the Staff of the NPF are paid with NPP funds and may only be employed in positions and assigned duties that are directly related to NPP.

7.2 In accordance with Order in Council P.C. 1978-2495 dated 9 August 1978, the Minister of National Defence (MND) is the responsible minister who is authorized to exercise and perform, in such manner and subject to such terms and conditions as the Treasury Board directs, all the powers and functions of the Treasury Board in relation to the personnel management of the Staff of the NPF. The Ministerial Order of 27 October 2004 under the FAA provides that the CDS, and any officer or person who may be designated by the CDS, may exercise and perform any of the powers or functions vested in the MND under Order in Council P.C. 1978-2495 in relation to the personnel management of the Staff of the NPF.

Designation of the DGMWS

7.3 Pursuant to the Ministerial Order of 27 October 2004, the CDS designates the person appointed to the position of DGMWS or, if the position is vacant, the person who is performing the duties and functions of the DGMWS, to act as the CEO of the Staff of the NPF and exercise or perform the powers or functions that are vested in the MND by Order in Council P.C. 1978-2495 in relation to the personnel management of the Staff of the NPF. These powers and functions include:

  1. appointing such persons to the Staff of the NPF as deemed proper;
  2. establishing rates of compensation and conditions of employment;
  3. undertaking collective bargaining, negotiating and approving collective agreements with accredited bargaining agents;
  4. establishing and operating the employees’ pension plan;
  5. establishing and operating the employees’ benefits plan;
  6. approving and implementing organization structures and position management;
  7. approving job descriptions and job evaluations;
  8. establishing and operating disciplinary, grievance, harassment prevention and ethics processes;
  9. ensuring compliance with official languages legislation;
  10. ensuring the Canada Labour Code, Part II, is applied with regard to health and safety; and
  11. ensuring compliance with employment equity legislation.

7.4 As the DGMWS is the CEO of the Staff of the NPF, the DGMWS is a deputy head given the definition of “deputy head” in subsection 11(1) of the FAA and therefore has the powers of a deputy head under the FAA in respect of the human resources management of the Staff of the NPF.

8. Base, Wing, Unit and Ship Commanders

Financial Authorities and Accountabilities

8.1 The delegation of financial authorities in respect of NPP for base, wing, unit and ship commanders, including the National Military Representative for CAF members in Europe, is set out in the Chief of the Defence Staff Delegation of Authorities for Financial Administration of Non-Public Property (NPP). Under subsection 38(1) of the NDA, the NPP of a unit or other element vests in the commander of that unit or other element and shall be used for the benefit of officers and non-commissioned members or for any other purpose approved by the CDS in the manner and to the extent authorized by the CDS.

8.2 Base, wing, unit and ship commanders are accountable for the NPP of their respective organizations. They must successfully complete the Fundamentals of NPP Financial Certification in order to be delegated signing authority for the financial administration of NPP.

Fund Committees

8.3 Base, wing, unit and ship commanders must establish, and normally chair, their respective base, wing, unit or ship fund committee.

Fund Constitution

8.4 Each fund must have a constitution signed by the current commander. The constitution should identify:

  1. the Chair of the committee;
  2. voting members of the committee;
  3. frequency of committee meetings;
  4. the quorum requirements for meetings; and
  5. the process for administration of the agenda, minutes and RODs.

Committee Responsibilities

8.5 As a minimum, the base, wing, unit or ship fund committee is responsible for the:

  1. approval of their fund business plan and annual operating budget;
  2. expenditure of NPP funds on behalf of their respective base, wing, unit or ship commander;
  3. administration and control of all NPP funds;
  4. control of property when similar items are held on both public and NPP distribution accounts in the same facility;
  5. maintenance of a minute book to record the proceedings of all committee meetings;
  6. approval by the applicable commander of the minutes for each committee meeting;
  7. conduct of correspondence; and
  8. in the case of a base or wing fund committee, provision of oversight of unit funds at their base or wing.

Ex Officio Members

8.6 The base or wing Senior Manager PSP and the NPP accounting manager are ex officio members of a base or wing fund committee.

9. Consequences

Consequences of Non-Compliance

9.1 Non-compliance with this DAOD may have consequences for the CAF as an institution and for CAF members as individuals. Suspected non-compliance may be investigated. The nature and severity of the consequences resulting from actual non-compliance will be commensurate with the circumstances of the non-compliance.

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