Details on transfer payment programs of $5 million or more

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
Link to the department’s Program Inventory	1.4 - 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 out of Canada.
Results Achieved	The Department of National Defense (DND) and the Canadian Armed Forces (CAF) sponsored the participation of 1,533 military personnel and civilians from the ministries of Defence from the 57 MTCP member countries in cooperative training and military professional development projects. These activities allowed Canada’s Defence Attachés and diplomats as well as senior departmental and military representatives to establish and maintain bilateral relations in support of CAF operations, and other departmental and Government of Canada defence diplomacy priorities, especially in the Human Rights and Democratic control of Armed Forces. The Program met its objectives by delivering to its membership courses that were preparing them for Peace Support operation and fostering interoperability amongst them with the CAF. MTCP activity successfully helped to maintain or 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.
Finding of audits completed in 2018-19	There was no audit completed in Fiscal Year (FY) 2018-19.
Finding of evaluations completed in 2018-19	There was an evaluation completed in November, 2018. The findings are as follows: There is a continuing need for the activities offered by the MTCP. The objectives of the MTCP are aligned with governmental and departmental priorities. MTCP training contributes to enhancing the skills and abilities of course participants, but there is no consistent follow-up mechanism to track graduates’ progress. MTCP is effective in expanding and reinforcing Canada’s bilateral relations with member countries. MTCP training promotes Canadian democratic principles among its course participants and raises their awareness of gender, peace and security issues. MTCP achieves regional influence in areas of strategic interest to Canada by establishing relations with select targeted countries in these regions. MTCP membership structure is appropriate and efficient, and the program’s activities and country prioritization are aligned with Canada’s strategic priorities. MTCP lacks a graduation mechanism beyond joining NATO and the program’s membership criteria require updating. MTCP governance structure is clearly defined and there is effective communication between Directorate Military Training and Cooperation (DMTC) and key program stakeholders but there is a need to clarify roles and responsibilities for capacity building efforts in DND. MTCP provides good value for money. The MTCP lacks a comprehensive performance measurement strategy and needs to improve its data collection and data management processes.
Engagement of applicants and recipients in 2018–19	Every FY the DND/CAF sends to Canadian Defence Attachés (CDA) approved country profiles for the upcoming FY. 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.

Planning Information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018-19 Actual Spending (authorities used)	Variance (2018 - 19 actual minus 2018 - 19 planned)
Total grants	0	0	0	0	0	0
Total contributions	10,843,564	10,511,857	11,389,000	10,452,593	10,452,592	(936,408)
Total other types of transfer payments	0	0	0	0	0	0
Total program	10,843,564	10,511,857	11,389,000	10,452,593	10,452,592	(936,408)
Explaination of variances	The ($936,408) variance is due to: Participant allocations were not filled completely, especially in Q3 and Q4. Member countries provided this information too late and therefore it was not possible to reprioritize funds elsewhere within the Directorate Military Training and Cooperation (DMTC) approved Activity Plan. A reduction in training cost. In some cases, excess budget was set aside for training. For example, quotes provided by a contractor for training delivery services were above actuals, leading to the return of funds which were not reported through Canadian Army Simulation Centre (CASC) until actual costs were known, and therefore not allowing sufficient time to reprioritize funds elsewhere within the approved activity Plan. A course (Inter-Agency Operational Planning Course) with a planned allocation of 32 participants at NAVCAN was cancelled in Q4. Oversight in airfare booking by Canadian Defence Academy Offices.

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
Link to the department’s Program Inventory	1.4 - Global Engagement
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 the Alliance continue to ensure Canadian security and provide leverage 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 Alliance 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.
Finding of audits completed in 2018-19	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 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.
Finding of evaluations completed in 2018-19	An evaluation of the program by the Department of National Defence was completed during 2016. No further evaluations are required per the Treasury Board Secretariat (TBS) Policy on Results.
Engagement of applicants and recipients in 2018–19	This program has only one recipient; thus the engagement process was managed directly through the ongoing relationship.

Planning Information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018-19 Actual Spending (authorities used)	Variance (2018 - 19 actual minus 2018 - 19 planned)
Total grants	0	0	0	0	0	0
Total contributions	84,599,569	96,480,064	104,907,000	130,200,000	130,198,316	25,291,316
Total other types of transfer payments	0	0	0	0	0	0
Total program	84,599,569	96,480,064	104,907,000	130,200,000	130,198,316	25,291,316
Explaination of variances	The $25,291,316 variance is due to the Government of Canada’s announcement to rejoin Airborne Warning and Control System (AWACS).

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
Link to the department’s Program Inventory	1.4 - Global Engagement
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 physical and information technology infrastructure that enables NATO to: Conduct/sustain Alliance operations and missions Provide deployable forces Provide logistic support and sustainment capabilities for deploying forces Provide training/exercise/education in support of operations and deployable forces Provide Research and Development for NATO transformation Provide NATO-wide C3 capabilities Maintain NATO Command Structure Develop Cooperation initiatives Maintain nuclear deterrent posture
Results Achieved	NSIP continued to fund capital investments 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.
Finding of audits completed in 2018-19	The International Board of Auditors for NATO (IBAN), which is an independent entity reporting directly to the North Atlantic Council (NAC), audits projects once they are completed and submitted for audit by the host nations. 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 and capability delivery. 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. There is currently a new governance model for common-funded capability delivery being developed to address problems identified in previous audits of NSIP governance and capability delivery.
Finding of evaluations completed in 2018-19	An evaluation of the program by National Defence was completed during 2016. No further evaluations are required per TBS Policy on Results.
Engagement of applicants and recipients in 2018–19	This program has only one recipient; thus the engagement process is done directly through the ongoing relationship.

Financial Information (dollars)

Type of transfer payment	2016–17 Actual spending	2017–18 Actual spending	2018–19 Planned spending	2018–19 Total authorities available for use	2018-19 Actual Spending (authorities used)	Variance (2018 - 19 actual minus 2018 - 19 planned)
Total grants	0	0	0	0	0	0
Total contributions	33,965,769	36,481,238	32,580,408	54,054,000	54,001,402	21,420,994
Total other types of transfer payments	0	0	0	0	0	0
Total program	33,965,769	36,481,238	32,580,408	54,054,000	54,001,402	21,420,994
Explaination of variances	The $21,420,994 variance is due to increased number of pre-financed projects that came to completion and required reimbursement. Pre-financing is a term for projects that a Host Nation decides to proceed with at its own financial risk, in the expectation that, if the project is later included in an approved Capability Package , they can seek reimbursement of the NATO portion.

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Date modified:: 2020-02-26