Details on transfer payment programs of $5 million or more

General Information

Name of transfer payment program	Contributions in support of the Capital Assistance Program (CAP) - Voted Payments
Start date	1983-84
End date	Ongoing
Type of transfer payment	Contribution
Type of appropriation	Appropriated annually through the Estimates
Fiscal year for terms and conditions	2011-12
Link to the department’s Program Inventory	6.1 - Defence Infrastructure Program Management
Description	The Department of National Defence (DND) uses the CAP 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); and Infrastructure to support operational requirements (e.g. new access to the Base/Wing).
Results Achieved	Results achieved include: Collaborating with local authorities to upgrade/expand/construct and own and operate public infrastructure and services that DND requires; Reducing DND non-core infrastructure, minimizing DND liability and reducing future operating and capital costs by transferring the responsibility of municipal infrastructure to local municipalities; Improved/new/maintained infrastructure for use by DND members and their families; Supporting DND’s operational requirements by contributing to the optimization of municipal infrastructure in use by DND’s evolving force structure; and Enhancing the quality of life in the Canadian Armed Forces.
Findings of audits completed in 2019–20	There was no audit completed in 2019-20.
Findings of evaluations completed in 2019–20	There was no evaluation completed in 2019-20. The Treasury Board Secretariat (TBS) Policy on Results exempts ongoing programs of grants and contributions that have five-year average actual expenditures of less than $5M per year from the five-year reviews required under section 42.1 of the Financial Administration Act.
Engagement of applicants and recipients in 2019–20	A two-step contribution agreement to facilitate and encourage recipients to engage early in the process as DND can now transfer funds at the design stage via a first contribution agreement. Once the design and any other aspects (e.g. asset transfer) are agreed upon, a second contribution agreement can be signed with the recipient and the project can be implemented.

Financial Information (dollars)

Type of transfer payment	2017–18 Actual spending	2018–19 Actual spending	2019–20 Planned spending	2019–20 Total authorities available for use	2019-20 Actual Spending (authorities used)	Variance (2019 - 20 actual minus 2019 - 20 planned)
Total grants	0	0	0	0	0	0
Total contributions	587,789	3,275,966	5,450,000	5,442,571	5,442,571	(7,429)
Total other types of transfer payments	0	0	0	0	0	0
Total program	587,789	3,275,966	5,450,000	5,442,571	5,442,571	(7,429)
Explaination of variances	The variance is a nominal amount. The budget is considered fully expended.

General Information

Name of transfer payment program	Contributions in support of the Military Training and Cooperation Program (MTCP) – Voted payments
Start date	1992-1993
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 Defence (DND) and the Canadian Armed Forces (CAF) sponsored the participation of 1,716 military personnel and civilians from the ministries of Defence from the 58 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 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 and with 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.
Findings of audits completed in 2019–20	There was no audit completed in 2019-20.
Findings of evaluations completed in 2019–20	There was no evaluation completed in 2019-20.
Engagement of applicants and recipients in 2019–20	Every FY the DND/CAF sends a list of approved country profiles for the upcoming fiscal year, to the Canadian Defence Attachés (CDA). These profiles outline the training and courses the 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 used in measuring how successful the MTCP is 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.

Financial Information (dollars)

Type of transfer payment	2017–18 Actual spending	2018–19 Actual spending	2019–20 Planned spending	2019–20 Total authorities available for use	2019-20 Actual Spending (authorities used)	Variance (2019 - 20 actual minus 2019 - 20 planned)
Total grants	0	0	0	0	0	0
Total contributions	10,511,857	10,452,593	11,389,000	11,387,676	11,387,676	(1,324)
Total other types of transfer payments	0	0	0	0	0	0
Total program	10,511,857	10,452,593	11,389,000	11,387,676	11,387,676	(1,324)
Explaination of variances	The variance is a nominal amount. The budget is considered fully expended.

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.
Findings of audits completed in 2019–20	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 including one Canadian. 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.
Findings of evaluations completed in 2019–20	An evaluation of the program by the Department of National Defence was completed during 2016. No further evaluations are required per TBS Policy on Results.
Engagement of applicants and recipients in 2019–20	This program has only one recipient, thus the engagement process was managed directly through the ongoing relationship.

Financial Information (dollars)

Type of transfer payment	2017–18 Actual spending	2018–19 Actual spending	2019–20 Planned spending	2019–20 Total authorities available for use	2019-20 Actual Spending (authorities used)	Variance (2019 - 20 actual minus 2019 - 20 planned)
Total grants	0	0	0	0	0	0
Total contributions	96,480,064	130,198,316	107,198,316	130,162,170	130,162,170	22,963,854
Total other types of transfer payments	0	0	0	0	0	0
Total program	96,480,064	130,198,316	107,198,316	130,162,170	130,162,170	22,963,854
Explaination of variances	The $22,963,854 variance vs planning figures is due to: Canada rejoining the Airborne Warning Control System (AWACS) program; Committing to the NATO Command Structure Adaptation; and NATO Mission in Iraq.

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 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; and 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.
Findings of audits completed in 2019–20	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.
Findings of evaluations completed in 2019–20	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 2019–20	This program has only one recipient, thus the engagement process is done directly through the ongoing relationship.

Financial Information (dollars)

Type of transfer payment	2017–18 Actual spending	2018–19 Actual spending	2019–20 Planned spending	2019–20 Total authorities available for use	2019-20 Actual Spending (authorities used)	Variance (2019 - 20 actual minus 2019 - 20 planned)
Total grants	0	0	0	0	0	0
Total contributions	36,481,238	54,001,402	36,481,238	62,393,321	62,393,321	25,912,083
Total other types of transfer payments	0	0	0	0	0	0
Total program	36,481,238	54,001,402	36,481,238	62,393,321	62,393,321	25,912,083
Explaination of variances	The $25,912,083 variance vs planning figures is due to: Host nations having delivered eligible capabilities (i.e. airfields) which were pre-financed; Capital costs associated with the NATO Command Structure; and Communication and information system costs associated with the NATO Mission in Iraq.