Details on transfer payment programs of $5 million or more - DRR 2016-17

**General information**
Name of transfer payment program	Contributions and Support to the Middle East Strategy Program
Start date	2016
End date	Ongoing
Type of transfer payment	Contribution
Type of appropriation	One-time appropriation through Supplementary Estimates (B) – 2016-17
Fiscal year for terms and conditions	2016-17
Strategic Outcome	Promoting security and stability in Iraq.
Link to Department’s Program Alignment Architecture	1.0 Defence Combat and Support Operations 1.2 International Combat Operations 1.2.1 International Operations over Extended Periods
Description	To deliver materiel and equipment to enhance the training of Kurdistan Regional Government (KRG) of Iraq security forces. Contribute to the Iraqi Forces’ capacity to enhance Iraq’s overall security and stability. Specifically, the contribution of materiel and equipment will increase KRG forces’ capabilities and interoperability with international forces.
Results achieved	Some material and equipment have been received by the Department of National Defence (DND)/Canadian Armed Forces (CAF) and are awaiting delivery to Iraq security forces.
Comments on variances	No variance.
Audits completed or planned	None completed or planned.
Evaluations completed or planned	None completed or planned.
Engagement of applicants and recipients	KRG of Iraq security forces have been directly consulted by CAF personnel deployed on Operation IMPACT to confirm the materiel and equipment intended for acquisition. CAF personnel will actively participate in the training of KRG security force members on the materiel and equipment to be contributed.

Performance information (dollars)
Type of transfer payment	2014-15 Actual spending	2015-16 Actual spending	2016-17 Planned spending	2016-17 Total authorities available for use	2016-17 Actual spending (authorities used)	Variance (2016-17 actual minus 2016-17 planned)
Total grants	0	0	0	0	0	0
Total contributions	0	0	9,500,000	9,500,000	9,500,000	0
Total other types of transfers payments	0	0	0	0	0	0
Total program	0	0	9,500,000	9,500,000	9,500,000	0

General information
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
Type of transfer payment	Contribution
Type of appropriation	Appropriated annually through the Estimates
Fiscal year for terms and conditions	2010-11
Strategic Outcome	Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values
Link to department’s Program Alignment Architecture	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 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. Activities are conducted both in Canada and internationally.
Results achieved	DND/CAF sponsored the participation of 1,628 military personnel and civilians from the ministries of Defence from the 52 MTCP 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, especially in the Human Rights and Democratic control of Armed Forces. The plan met his objectives by delivering to his membership courses that were preparing them for Peace Support operation and fostering interoperability amongst them and with CAF. MTCP activity successfully helped maintain achieve influence in the areas of interest to Canada, either by conducting training in selected countries or prioritizing training to specific member countries in accordance with the Global Engagement Strategy.
Comments on variances	The ($545,436) variance is due to: A reduction of student throughput at the Canadian Forces Language School (CFLS); and A reduction in training delivery cost.
Audits completed or planned	None
Evaluations completed or planned	Next evaluation planned for Fiscal Year (FY) 2018-19.
Engagement of applicants and recipients	Every FY the DND/CAF sends to Canadian Defence Attachés (CDA) approved country profiles for the upcoming fiscal year. These profiles outline the training and courses MTCP 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 MTCP sponsored course, a questionnaire is distributed to foreign students by the training institutions. Their feedback is captured in the MTCP Annual Assessment, a crucial tool in measuring the success of MTCP 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 MTCP courses.

Performance information (dollars)
Type of transfer payment	2014-15 Actual spending	2015-16 Actual spending	2016-17 Planned spending	2016-17 Total authorities available for use	2016-17 Actual spending (authorities used)	Variance (2016-17 actual minus 2016-17 planned)
Total grants	0	0	0	0	0	0
Total contributions	9,711,000	10,360,427	11,389,000	11,389,000	10,843,564	(545,436)
Total other types of transfers payments	0	0	0	0	0	0
Total program	9,711,000	10,360,427	11,389,000	11,389,000	10,843,564	(545,436)

General information
Name of transfer payment program	NATO Security Investment Program (NATO Programs) - [Voted Payments]
Start date	1949
End date	Ongoing
Type of transfer payment	Contribution
Type of appropriation	Appropriated annually through the Estimates
Fiscal year for terms and conditions	2010-11
Strategic Outcome	Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values.
Link to Department’s Program Alignment Architecture	1.0 Defence Combat and Support Operations 1.3 Ongoing Centralized Operations and Operational Enablement 1.3.4 Military Diplomacy and Global Engagement.
Description	To contribute the Canadian share of the NATO Security Investment Programme (NSIP) – a common funded program that finances the capital costs of projects supporting deployable or expeditionary capabilities, on Command, Control, Communications, Computing, Intelligence, Surveillance and Reconnaissance (C4ISR) capabilities, and on capabilities directly supporting Alliance Operations and Missions as well as on fixed defensive infrastructure projects in member countries, which is needed to support the NATO military structure and activities, including Deployed Operations and Missions.
Results achieved	The 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 ($11,789,231) variance is due to: requirements were less than anticipated due to credits from previous years and project slippage; a reduced project implementation rate by host nations (or entities); a lower than forecasted contribution rate; payment schedules different than predicted; and favourable exchange rates.
Audits completed or planned	NSIP projects are to be submitted by the host nation for audit by the International Board of Auditors for NATO (IBAN) which is an independent entity reporting directly to the North Atlantic Council (NAC), within six months of completion of the Joint Final Acceptance and Inspection report. In 2015, the IBAN performed a performance audit of the NSIP entitled Special Report to Council on the Need to Reform Governance of the NATO Security Investment Programme (NSIP) and is available on the NATO website. This report noted that there were €5.1 Billion of NSIP completed projects that IBAN has not yet certified and that NATO members have committed to reducing that backlog to zero in 2016 although the IBAN noted Nations will not meet their commitments unless they greatly increase the rate at which they submit projects for inspection and audit. The IBAN is led by officials from 6 national audit institutions in member countries. The IBAN conducts financial audits on closed NSIP projects when they are presented by the host nation and has conducted performance audits on NSIP governance. 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) was completed during the reporting year.
Engagement of applicants and recipients	This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

Performance information (dollars)
Type of transfer payment	2014-15 Actual spending	2015-16 Actual spending	2016-17 Planned spending	2016-17 Total authorities available for use	2016-17 Actual spending (authorities used)	Variance (2016-17 actual minus 2016-17 planned)
Total grants	0	0	0	0	0	0
Total contributions	34,306,000	45,922,989	45,755,000	34,655,000	33,965,769	(11,789,231)
Total other types of transfer payments	0	0	0	0	0	0
Total program	34,306,000	45,922,989	45,755,000	34,655,000	33,965,769	(11,789,231)

General information
Name of transfer payment program	NATO Military Budget (NATO Programs) – Voted Payments
Start date	1949
End date	Ongoing
Type of transfer payment	Contribution
Type of appropriation	Appropriated annually through the Estimates
Fiscal year for terms and conditions	2010-11
Strategic Outcome	Defence Operations and Services Improve Stability and Security and Promote Canadian Interests and Values
Link to Department’s Program Alignment Architecture	1.0 Defence Combat and Support Operations 1.3 Ongoing Centralized Operations and Operational Enablement 1.3.4 Military Diplomacy and Global Engagement.
Description	To contribute the Canadian share of the NATO Military Budget—a common-funded program to finance the civilian personnel costs and 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 influence within the multi-national body. These contributions also provided access to military capabilities, which Canada can leverage. 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 ($7,896,162) variance is due to: A greater amount of funds, from prior years, returned to nations than forecasted; Some risks in Alliance Operations and Missions did not materialize; and Negotiations between NATO allies resulted in a Budget Ceiling lower than forecasted.
Audits completed or planned	After the end of the year, the annual financial statements were presented for audit 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 led by officials from six national audit institutions in member countries. The IBAN conducts audits on all Military Budget ccounts 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) was completed during the reporting year.
Engagement of applicants and recipients	This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Performance information (dollars)
Type of transfer payment	2014-15 Actual spending	2015-16 Actual spending	2016-17 Planned spending	2016-17 Total authorities available for use	2016-17 Actual spending (authorities used)	Variance (2016-17 actual minus 2016-17 planned)
Total grants	0	0	0	0	0	0
Total contributions	72,122,000	82,591,502	92,495,731	92,495,731	84,599,569	(7,896,162)
Total other types of transfer payments	0	0	0	0	0	0
Total program	72,122,000	82,591,502	92,495,731	92,495,731	84,599,569	(7,896,162)

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Date modified:: 2018-12-13