Section IV - Details of Transfer Payment Programs - DPR - 2011-12

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Details of Transfer Payment Programs

Payments under the Supplementary Retirements Benefits Act

Name of Transfer Payment Program: Payments under the Supplementary Retirements Benefits Act (SRBA) [Statutory Payments]

Start Date: 1970

End Date: On-going

Description: The SRBA amount represents statutory payments to Defence Services Pension Continuation Act (DSPCA) pension recipients for inflation adjustments to their pensions.

Strategic Outcome: Care and Support to the Canadian Forces and Contribution to Canadian Society.

Results Achieved: In compliance with the legislative provisions of SRBA, to provide supplementary retirement benefits payments for certain persons in receipt of a pension pursuant to the Defence Services Pension Continuation Act (DSPCA), Chapter D-3, of the Revised Statutes of Canada 1970, as a result of having been compulsorily retired from the Regular Force by reason of any mental or physical condition rendering the person unfit to perform duties as a member of the Regular Force, as the case may be. Statutory DSPCA and SRBA payments were processed by Public Works and Government Services Canada (PWGSC).

Program Activity: Defence Team Personnel Support
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $5.006 $4.493 $5.006 $3.881 $3.881 $1.125
Total Program Activity $6.169 $5.500 $6.155 $4.763 $4.763 $1.392

Comment(s) on Variance(s): As the DSPCA/SRBA population ages and becomes smaller, the funding requirement decreases.

Audit Completed or Planned: None.

Evaluation Completed or Planned: The Canadian Forces Pension Plan Comptroller manages the SRBA payments. While no specific evaluations are planned, expenditures are subject to monitoring and fall into the financial control framework of the Canadian Forces Pension Plan.

Engagement of Applicants and Recipients: This program is a statutory, thus the engagement process was done directly through the ongoing relationship with the qualified recipients only, mostly by PWGSC. Qualified recipients maintained full access to communication and services offered by the Canadian Forces Pension Plan managers.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group / Chief Military Personnel Group

Contributions in support of the Capital Assistance Program

Name of Transfer Payment Program: Contributions in support of the Capital Assistance Program (CAP) [Voted payments]

Start Date: 1983-84

End Date: On-going

Description:The Department of National Defence uses the Capital Assistance Program to optimize its infrastructure by seeking cost-effective solutions with eligible recipients who have the mandate and capacity to operate and maintain the infrastructure and who may also benefit from joint use opportunities. Contributions are made to:

  • upgrade infrastructure (e.g. roads, sidewalks, and sewers in residential quarters; water treatment plants and water distribution systems that serve operational and non-operational requirements) after it has been transferred from DND to the eligible recipient;
  • expand and/or upgrade existing local infrastructure to better support DND requirements (e.g. water treatment plants, water distribution systems, airport runway extensions, roads); and/or
  • construct new local infrastructure, such as:
    • community-oriented facilities for shared-use by the Base/Wing and local authorities (e.g. arenas, gymnasiums, swimming pools, community centers);
    • infrastructure to support non-operational requirements such as for residential accommodation (e.g. roads, sidewalks, sewers);
    • infrastructure to support operational requirements (e.g. new access to the Base/Wing).

Strategic Outcome: Resources are acquired to Meet Government Defence Expectations.

Results Achieved:

Out of the planned projects, one was approved and is being implemented which was the transfer and upgrade of a ClementsPark infrastructure (the water and sanitary and storm systems) in Greenwood, Nova Scotia. This project met one or more of the following expected results:

Immediate expected result:

  • collaborations with local authorities to upgrade/expand/construct and own and operate public infrastructure and services that DND requires;

Intermediate expected results:

  • reduced DND non-core infrastructure;
  • cost-effective development and maintenance of infrastructure, which involves one of the following:
    • reduced operating/capital costs,
    • or cost avoidance,
    • or minimized DND liability; and
  • improved/new/maintained infrastructure for use by DND members and their families; and

Final expected results:

  • the optimization of DND infrastructure to support the evolving force structure; and
  • enhanced quality of life in the Canadian Forces.
Program Activity: Real Property and Informatics Infrastructure Acquisition and Disposal
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $0.400 $0.307 $5.450 $3.749 $2.375 $3.075
Total Program Activity $0.400 $0.307 $5.450 $3.749 $2.375 $3.075

Comment(s) on Variance(s): The variance is explained by the fact that there are several projects still awaiting approval at the municipal level.

Audit Completed or Planned: None

Evaluation Completed or Planned: The next planned evaluation will be in Fiscal Year (FY) 2014-15 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

Engagement of Applicants and Recipients: Applicants (Bases/Wings and L1s) get involved very early in the process to identify projects and potential recipients (primarily municipalities, provinces and territories). They play a key role in initially approaching recipients and obtain their buy-in into the projects. To facilitate and encourage recipients to engage early in the process, a two-step contribution agreement is now in place. This new process allows DND to transfer funds at the design stage via a first contribution agreement. Once the design and any other aspects (e.g. asset transfer, service agreements, etc.) are agreed upon, a second contribution agreement can be signed with the recipient and the project can be implemented.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group / Assistant Deputy Minister (Infrastructure and Environment) Group

Contributions in Support of the Military Training and Cooperation Program

Name of Transfer Payment Program: Contributions in Support of the Military Training and Cooperation Program (MTCP) [Voted Payments]

Start Date: 1992-93

End Date: Ongoing

Description: The MTCP builds the capacities of member countries' militaries through language training, and professional development courses including command and staff instruction, and peace support operations training.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed.

Results Achieved: The MTCP continues to support and promote Canadian interests and values through the provision of military training assistance to developing, non-NATO countries and organizations. Training over 1,000 foreign officers from 62 states, MTCP successfully supported the Department of National Defence's (DND) defence diplomacy agenda for the Fiscal Year (FY) 2011–12. The Program was successful in enhancing the ability of appropriate persons to communicate in English and/or French, improving understanding of democratic control over the armed forces, enhancing the ability for appropriate persons to function as efficient staff officers within a strategic/operational environment, and in developing capacity of member countries to undertake peace support operations. It also demonstrated "Cost-Effectiveness" in enhancing peace support operations interoperability among Canada's partners to lessen the operational burden on Canada. Finally, MTCP demonstrated relevance to DND and the Government of Canada, to other nations and to participants by expanding and reinforcing Canadian bilateral defence relations, promoting Canadian democratic principles, the rule of law, international stability and the protection of human rights in the international arena, achieving influence in areas of strategic interest to Canada and by contributing to international peace and security. MTCP remains committed to further developing language, peace operations and staff training programmes in Canada, and continue to successfully develop peace support capacity among partner countries by expanding its in-theatre initiatives.

Program Activity: International Peace, Stability and Security
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $9.396 $10.843 $11.600 $11.600 $10.767 $0.833
Total Program Activity $206.117 $244.018 $217.227 $214.752 $182.005 $32.747

Comment(s) on Variance(s): The surplus is mostly due to the fact that some positions offered to member states on MTCP courses were not filled (especially on language training). Therefore, fewer candidates than expected attended MTCP courses in FY 2011-12.

Audit Completed or Planned: None.

Evaluation Completed or Planned: The next planned evaluation will be in FY 2014-15 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

Engagement of Applicants and Recipients: The Director of Military Training and Cooperation engaged the program's recipients and applicants through the Canadian defence attachés, the foreign defence attachés posted or accredited in Ottawa, by way of questionnaires distributed to students at the end of their training, and the publication of the annual report. Feedback on the candidates' performance and the impact of the program on the recipients was also collected through questionnaires filled by Canadian defence attachés as well as instructors and directing staff assigned to MTCP courses.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group / Assistant Deputy Minister (Policy) Group

Contribution Program in Support of the Remediation of the Former Mid-Canada Line Radar Sites in Ontario

Name of Transfer Payment Program: Contribution Program in Support of the Remediation of the Former Mid-Canada Line Radar Sites in Ontario [Voted Payments]

Start Date: 2008-09

End Date: 2014-15

Description: This contribution program supports the remediation of certain contaminated sites on non-federal lands, to the extent the contamination was a direct result of federal government activities or operations, or where the contamination resulted from the Government of Canada's national security efforts. To qualify, a site must also pose a human health and/or environmental risk, and be assessed as a National Classification System Class 1 (action required) or Class 2 (action likely required) site. The Government of Canada's contribution will be used to fund specific eligible activities associated with the remediation of 11 of the 17 former Mid-Canada Line Radar Sites in Ontario.

Strategic Outcome: Care and Support to the Canadian Forces and Contribution to Canadian Society.

Results Achieved: To date, work at two sites has been completed. In July 2010, work began at site 500, the largest of the 11 sites. Majority of clean up at site 500 has been completed.

Program Activity: Environmental Protection and Stewardship
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $9.248 $3.457 $7.415 $7.415 $6.000 $1.415
Total Program Activity $10.748 $4.957 $8.915 $8.915 $7.500 $1.415

Comment(s) on Variance(s): During Fiscal Year (FY) 2011-12, DND completed a carry-forward to FY 2012-13 based on progress of actual work activities.

Audit Completed or Planned: None.

Evaluation Completed or Planned: An evaluation is planned in FY 2013-14 and will address the relevance and performance (effectiveness, efficiency and economy) of the contribution program.

Engagement of Applicants and Recipients: As per the Contribution Agreement, National Defence participated in regular meetings with the Ministry of Natural Resources.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group / Assistant Deputy Minister (Infrastructure and Environment) Group

NATO Military Budget (NATO Programs)

Name of Transfer Payment Program: NATO Military Budget (NATO Programs) [Voted Payments]

Start Date: 1949

End Date: Ongoing

Description: To contribute the Canadian share of the NATO Military Budget-a common-funded program to finance the operating and maintenance costs of the NATO military structure and activities, including Deployed Operations and missions.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed.

Results Achieved: Canada's financial contributions to NATO continued to ensure Canadian security and provided leverage and influence within the multi-national body. These contributions also provided access to military capabilities, which Canada itself, does not possess.

The contributions further served to help protect and strengthen the freedom and security of all NATO Members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The benefits of Canada's investment in NATO included access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability.

Program Activity: International Peace, Stability and Security
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $73.278 $138.771 $118.807 $118.807 $102.879 $15.928
Total Program Activity $206.117 $244.018 $217.227 $214.752 $182.005 $32.747

Comment(s) on Variance(s): The last call for contribution to the operations and maintenance (O&M) budget in FY 2010-11 was higher than planned. This resulted in lower calls for contribution in FY 2011-12.
Note: Since FY 2010-11, the Military budget includes the O&M budget of the NATO Airborne Early Warning and Control Programme (NAEW&C) thus reflecting the alignment of the NATO Terms and Conditions approved in October 2009.

Audit Completed or Planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries. The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation Completed or Planned: An evaluation of Defence's NATO Contribution Program was completed in FY 2011-12 by Chief Review Services.

Engagement of Applicants and Recipients: This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

NATO Security Investment Program (NATO Programs)

Name of Transfer Payment Program: NATO Security Investment Program (NATO Programs) [Voted Payments]

Start Date: 1949

End Date: Ongoing

Description: To contribute the Canadian share of the NATO Security Investment Programme (NSIP) – a common funded program that finances the capital costs for the provision of communications and information systems, installations and facilities such as radar, military headquarters, airfields, fuel pipelines and storage, harbours and navigational aids needed to support the NATO military structure and activities, including Deployed Operations and Missions.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed.

Results Achieved: NSIP continued to fund projects that meet NATO's essential purpose, which is to safeguard the freedom and security of all its members by political and military means in accordance with the North Atlantic Treaty and the principles of the United Nations Charter.

The benefits of Canada's investment in NATO include access to strategic information, intelligence, capabilities, interoperability with allied forces and an equal voice in high-level decisions affecting Euro-Atlantic security and stability. It also includes a potential return on some of Canada's eligible infrastructure projects in support of NATO operations.

Program Activity: International Peace, Stability and Security
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $57.780 $78.851 $65.675 $22.067 $12.122 $53.553
Total Program Activity $206.117 $244.018 $217.227 $214.752 $182.005 $32.747

Comment(s) on Variance(s): The NSIP variance of $53M is mainly due to a higher than planned last call for contributions in FY 2010-11, a late last call for contributions in FY 2011-12 that resulted in the payment being made in FY 2012-13, and a general slowdown in the programme implementation rate.

Audit Completed or Planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries. The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation Completed or Planned: An evaluation of Defence's NATO Contribution Program was completed in FY 2011-12 by Chief Review Services.

Engagement of Applicants and Recipients: This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

NATO Airborne Early Warning and Control Programme Management Agency (NATO Major Activities)

Name of Transfer Payment Program: NATO Airborne Early Warning and Control Programme Management Agency (NATO Major Activities) [Voted Payments]

Start Date: 1979

End Date: Ongoing

Description: The NATO Airborne Early Warning Force (NAEWF) is based on a Boeing 707 aircraft modified for military use that provides NATO with early warning and control capability - allowing NATO to detect and track enemy aircraft operating at low altitudes over all terrain. The surveillance capability of the Airborne Warning and Control System (AWACS) allow NATO forces to transmit data directly from the aircraft to command and control centres on land, sea or in the air. The military characteristics of the AWACS aircraft enable it to be deployed rapidly in support of operations and make it less vulnerable to attack than ground-based radar.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed.

Results Achieved: Development was performed to continue to provide a state-of-the-art operating system that collects and disseminates, in real-time, data received from several on-board sensors.

Program Activity: International Peace, Stability and Security
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $60.327 $9.176 $8.476 $8.476 $2.899 $5.577
Total Program Activity $206.117 $244.018 $217.227 $214.752 $182.005 $32.747

Comment(s) on Variance(s): Canada is withdrawing from the programme effective 01 Sep 2012. As the financial terms of the withdrawal are currently under negotiations, Canada has not made any payment against the last call for contributions for FY 2011-12. A final withdrawal payment will be made in FY 2012-13.
Note: Since FY 2010-11, the Military budget includes the operations and maintenance (O&M) budget of the NATO Airborne Early Warning and Control Programme (NAEW&C) thus reflecting the alignment of the NATO Terms and Conditions approved in October 2009.

Audit Completed or Planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries. The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation Completed or Planned: An evaluation of Defence's NATO Contribution Program was completed in FY 2011-12 by Chief Review Services.

Engagement of Applicants and Recipients: This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

NATO Alliance Ground Surveillance System (NATO Major Activities)

Name of Transfer Payment Program: NATO Alliance Ground Surveillance (AGS) System (NATO Major Activities) [Voted Payments]

Start Date: 2009-10

End Date: 2038-39

Description: The Alliance Ground Surveillance Programme came into being with the signatures of the 15 participating NATO nations in September 2009. It is based upon eight, high altitude, long endurance, Global Hawk Unmanned Aerial Vehicle (UAV) platforms equipped with the Multi-Platform Radar Technology Insertion Program (MP-RTIP) ground surveillance sensor which interface with several ground stations in various deployable configurations to support Command, Control, Intelligence, Surveillance and Reconnaissance in operations.

Operations, training and support will be conducted from a single Main Operating Base, but with the ability to further launch and recover the platforms from forward operating bases.

Strategic Outcome: Defence Operations will Improve Peace, Stability and Security Wherever Deployed.

Results Achieved: Provision of a NATO owned and operated airborne ground surveillance system was initiated. The AGS is to provide command authorities with near real-time, continuous, intelligence, surveillance and reconnaissance capabilities in all weather conditions, to support timely decision making at the strategic, operational and tactical levels of command.

Program Activity: International Peace, Stability and Security
($ millions)
2009-10
Actual
Spending
2010-11
Actual
Spending
2011-12
Planned
Spending
2011-12
Total
Authorities
2011-12
Actual
Spending
Variance(s)
Total Contributions $0.549 $4.183 $10.000 $51.133 $51.133 $(41.133)
Total Program Activity(ies) $206.117 $244.018 $217.227 $214.752 $182.005 $32.747

Comment(s) on Variance(s): Canada has withdrawn from the NATO AGS Programme. To be discharged from any further financial responsibility for AGS, Canada negotiated and made a final withdrawal payment of $50.7M in March 2012.

Audit Completed or Planned: At the end of the year, the annual financial statements were presented for verification by the International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC). The IBAN is composed of government officials from national audit institution in member countries. The IBAN conducts financial audits on all accounts commonly-funded by NATO members. Designated committees in NATO, where Canada is well represented, analyzed all the IBAN reports and made recommendations to the relevant NATO entities to comply with IBAN findings.

Evaluation Completed or Planned: An evaluation of Defence's NATO Contribution Program was completed in FY 2011-12 by Chief Review Services.

Engagement of Applicants and Recipients: This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

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