Financial Report

Background & Current State

Many of the programs and initiatives included as action items in the THW action plan existed as free-standing programs within DND prior to the establishment of the Strategy. With the operationalization of the Strategy additional funds were given to 12 identified programs to support their implementation.

In 2019/2020, funding was reassigned from existing reference levels within the Department. As part of the responsibility associated and to report on any related financials, the THW ProgO has been working to establish an appropriate information gathering system to align financial spending. As the THW ProgO is not currently enabled as a multi-L1 committee-based governance body, the financial alignment of action items is an ongoing project to clarify funding and improve financial situational awareness. Working towards a solution, the THW ProgO has created an Input/output (IO) structure with instructions to be provided to all THW programs. This structure has been designed to capture expenses in a way that links directly to THWS performance measurements and Departmental Result Frameworks (DRFs). While this will improve real-time data capture and be useful for periodic reporting, it will not capture many of the nuances that will affect program finances during a given fiscal year.

Future Reporting Requirements

The THW ProgO has developed a plan to implement the proposed IO structure to improve financial reporting. Annually, financial authorities will circulate a call letter to the L1s who have THW action items asking them to provide financial reports on their programs on a semi-annual and annualized basis. These reports will allow the THW ProgO to compile information to help support programs, such as if the data indicate potential risks to action item implementation (e.g. technology, staffing, etc.).

The THW ProgO will also work with stakeholders to gradually setup financial structures such as cost centres. Additionally, recommendations will be offered to help use existing financial coding to better identify THW expenditures. This will be discussed directly with program OPIs in FY 22/23 and will allow data retrieval even where coding issues are present. As performance reporting and finance reporting are linked, the THW ProgO will gradually adjust reporting approaches and requirements to maximize simplicity and tailor measurements to ensure they are as meaningful and timely as possible. 

Current (FY21/22) Financial Data Available

Funding authorized the following:

Table 5: THWS Funding Summary

THW Total	Total for FY 2021/22 to FY 2036/37	Total for FY 2021/22 to FY 2023/24	2021/2022	2022/2023	2023/2024
Personnel
Salary	770,761,692	105,219,510	28,555,361	36,276,568	40,387,581
Allowances	28,262,139	3,890,333	1,084,561	1,333,668	1,742,104
EBP (@ 20%)	159,804,580	21,821,920	5,927,924	7,522,049	8,371,947
Total Personnel	958,828,411	130,931,763	35,567,846	45,132,285	50,231,632
Operating Expenses
Translation	1,189,468	169,472	51,459	63,540	54,473
Travel	26,586,732	3,368,676	968,563	1,066,874	1,333,239
Office Supplies	1,874,900	288,205	84,924	97,902	105,379
Contracted Support	1,513,879	312,809	127,821	131,128	53,860
Equipment	3,205,729	732,049	270,100	306,488	155,461
Training	13,735,015	1,723,244	397,413	607,048	718,783
Relocation	1,517,659	232,996	76,308	77,663	79,025
Maintenance	10,415,874	1,586,192	510,755	532,088	543,429
Licensing	185,648	20,241	2,280	7,775	10,186
NPF Salaries	88,923,370	13,290,575	4,316,103	4,427,796	4,546,676
Indirect O&M	158,107,358	23,477,605	7,616,798	7,941,517	8,019,290
Total Operating Expenses	307,255,632	45,302,064	14,422,524	15,259,739	15,619,801
Other TBS Requirements
PSPC accommodation charges (13%)	75,199,107	10,079,128	2,552,564	3,533,155	3,993,409
Total Other TBS Requirements	75,199,107	10,079,128	2,552,564	3,533,155	3,993,409
Total Incremental Cost (before tax)	1,341,283,150	186,312,955	52,542,934	63,925,179	69,844,842
HST (13%)	49,719,113	7,199,554	2,206,7616	2,442,076	2,549,717
Total Incremental Cost	1,391,002,263	193,512,509	54,749,695	66,368,255	72,394,559

Director Budget has provided information about funding distribution. While there are a few areas where it appears some funding may have been malapportioned between programs, these are generally being rectified.

Table 6: Breakdown of Funding for THWS Core Programs

Current funding levels are expected to persist for at least the next three years, though some change may be possible via the Investment and Resource Management Committee (IRMC) process for in-year/out-year funding adjustments from existing Departmental reference levels.

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