Details on Transfer Payment Programs of $5 Million or more - DPR 2015-16

Table of Contents

• Contributions in Support of the Military Training Assistance Program
• NATO Contribution Program: NATO Military Budget (NATO Programs)
• NATO Contribution Program: NATO Security Investment Program (NATO Programs)

Contributions in Support of the Military Training Assistance Program

Name of transfer payment program

Contributions in Support of the Military Training Assistance Program (MTAP) - [Voted payments]

Start date

1992-93

End date

Ongoing

Fiscal year for terms and conditions

2010-11

Strategic Outcome

Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values.

Program, Sub-Program and Sub-Sub-Program

• 1.0: Defence Combat and Support Operations;
• 1.3: Ongoing Centralized Operations and Operational Enablement;
• 1.3.4: Military Diplomacy and Global Engagement.

Description

The MTAP builds the capacities of member countries’ militaries through language training, and professional development courses including command and staff instruction, and peace support operations training. Activities are conducted both in Canada and internationally.

Results achieved

DND/CAF sponsored the participation of 1,507 military personnel and civilians from the ministries of Defence from the 58 MTAP member countries in cooperative training and military professional development projects. These activities allowed Canada’s Defence Attachés, diplomats, as well as senior departmental and military representatives to establish and maintain bilateral relations in support of Canadian Armed Forces (CAF) operations, and other departmental and government of Canada defence diplomacy priorities. Of note, this figured does not account unsponsored students taking part in one-day, large group, symposia deployed following the wrap-up of full-length training workshops. These symposia are designed to increase MTAP’ s visibility and the training output being provided to member countries hosting MTAP-sponsored courses by leveraging the presence of training staff that are already in-country. During this last reporting period, approximately 1,100 individuals participated in such activities.

Comments on variances

The $1.029M variance is due to:

• a program slippage in Malaysia ($800k);
• a reduction of student throughput at the Canadian Forces language School (CFLS) ($200k); and
• a reduction training delivery cost.

Audits completed or planned

Next audit is planned for fiscal year 2017-18

Evaluations completed or planned

None

Engagement of applicants and recipients

Every fiscal year the DND/CAF sends to Canadian Defence Attachés (CDA) approved country profiles for the upcoming fiscal year. These profiles outline the training and courses MTAP intends to make available for each respective country. These profiles are issued as preliminary planning guidance. The invitation to participate in a particular course is confirmed by the receipt of a course-loading message three months in advance of training. All necessary information covering pre-requisites, selection process and arrival requirements are provided at this time. At the completion of an MTAP sponsored course, a questionnaire is distributed to foreign students by the training institutions. Their feedback is captured in the MTAP Annual Assessment, a crucial tool in measuring the success of MTAP at meeting its objectives, as well as in the reallocation of training resources to improve overall effectiveness. Feedback on the performance of candidates and the impact of the program on the recipient countries is also collected through questionnaires completed by CDAs as well as by instructors and directing staff assigned to MTAP courses.

NATO Contribution Program: NATO Military Budget (NATO Programs)

Name of transfer payment program

NATO Military Budget (NATO Programs) - [Voted Payments]

Start date

1949

End date

Ongoing

Fiscal year for terms and conditions

2010-11

Strategic Outcome

Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values.

Program, Sub-Program and Sub-Sub-Program

• 1.0: Defence Combat and Support Operations;
• 1.2 International Combat Operations;
• 1.2.3 Ongoing Defence Operations through Standing NATO Commitments.

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.

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.

Comments on variances

The $3.752M variance is due to:

• a 5% growth at NATO Command, Entities and Programs since last year;
• a reduction of Alliance Operations and Missions;
• Canada’s cost share increase from 6.0915% in 2015 to 6.6092% in 2016; and
• higher than forecasted exchange rates.

Audits 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 institutions 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.

Evaluations completed or planned

An evaluation of the program by Assistant Deputy Minister (Review Services) is scheduled for fiscal year 2016-17.

Engagement of applicants and recipients

This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

NATO Contribution Program: 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

Fiscal year for terms and conditions

2010-11

Strategic Outcome

Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values.

Program, Sub-Program and Sub-Sub-Program

• 1.0: Defence Combat and Support Operations;
• 1.2 International Combat Operations;
• 1.2.3 Ongoing Defence Operations through Standing NATO Commitments.

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.

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.

Comments on variances

The $12.056M variance is due to:

• a reduced project implementation rate by host nations (or entities);
• a lower than forecasted contribution rate;
• payment schedules different than predicted; and
• exchange rates.

Audits 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 institutions 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.

Evaluations completed or planned

An evaluation of the program by Assistant Deputy Minister (Review Services) is scheduled for fiscal year 2016-17.

Engagements of applicants and recipients

This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.