Department of National Defence - Departmental Performance Report 2011-12

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The Honourable Peter MacKay, P.C., M.P. - Minister of National Defence

The Honourable Peter MacKay, P.C., M.P. - Minister of National Defence

MINISTER'S MESSAGE

It is my pleasure to report on the achievements of the Department of National Defence and the Canadian Forces (DND/CF) for 2011-12.

Defending Canada and Canadians is the number one priority of DND/CF. On any given day, Canadian Forces personnel stand ready to conduct operations in Canada to defend and protect Canadians. This includes monitoring Canada's territory, as well as air and maritime approaches, supporting civil authorities in responding to natural disasters, and conducting search and rescue missions. In 2011-12, the CF continued to protect our vast nation, conducted domestic operations across the country, and exercised Canada's sovereignty in the North. Activities such as Operation NANOOK demonstrate the CF's increased capability to operate in the high Arctic, with boots on the ground, vessels in the water and aircraft in the sky. During NANOOK, CF personnel and their civilian counterparts were quickly diverted from training when First Air flight 6560 crashed in nearby Resolute Bay. CF personnel were among those first on the scene, extinguishing fires alongside Resolute Airport firefighters, and searching for and providing aid to the passengers and crew of the downed plane.

We have also supported civil authorities and helped Canadians in distress by responding to natural disasters such as floods in Manitoba and Quebec, and fires in Saskatchewan and Northern Ontario. The Canadian Forces, alongside our Canadian Coast guard partners, tracked thousands of incidents, sending military aircraft, ships and their crew when required to those in need. Through their heroic efforts our specially trained search and rescue teams saved the lives of hundreds of Canadians.

On the wider continent, Canada worked together with the United States, our closest ally and defence partner, in the defence of North America. We continued to cooperate with the United States through the North American Aerospace Defence Command (NORAD), conducted combined exercises and training to ensure continued interoperability of our forces, and engaged in high-level meetings and staff talks that enabled us to explore potential new areas of cooperation, such as through the Permanent Joint Board on Defence. In 2011, Canada hosted the first trilateral meeting of North American Defence Ministers with the U.S. and Mexico, where topics ranging from humanitarian assistance to trilateral cooperation were discussed. This meeting was not only an historical occasion but a significant step in strengthening Canada's domestic security through increased defence and security cooperation between our countries. Under Operation CARIBBE, Royal Canadian Navy vessels and Royal Canadian Air Force maritime patrol aircraft were regularly deployed to the Western Caribbean and Eastern Pacific, demonstrating Canada's ability to provide crucial support to interdict drug trafficking alongside our U.S. and multinational allies. Another reflection of Canada's continued commitment to assisting regional partners was Op JAGUAR, where the CF flew life-saving missions such as search and rescue and medical evacuation in support of Jamaica Defence Force operations.

Abroad, DND/CF continued to contribute to international peace and security. Over the year, the CF was active in Afghanistan, Libya, and over 10 other locations across the globe. We undertook the significant task of repairing, packaging, shipping or disposing of our equipment and materials to close out our combat operations in Afghanistan and transition to a non-combat NATO training mission there. Training the Afghan National Security Forces assists Afghans in assuming responsibility for their own security – a key component to ensuring stability in the region. The CF also demonstrated a high level of readiness to deploy elsewhere around the world and conduct a range of operations including playing a lead role in NATO operations in Libya. The rapid and effective deployment of the CF in support of the NATO-led effort to impose a UN-authorized arms embargo and no-fly zone in Libya exemplified Canada's leadership role in the global security environment. In addition, the overall NATO mission was commanded by a Canadian, Lieutenant-General Charles Bouchard. The CF not only safely evacuated Canadians and foreign nationals but were a key player in NATO's success, flying some 1500 military missions and hailing some 478 vessels. 2011 also saw the re-deployment of HMCS Charlottetown to participate in maritime security and counter-terrorism operations in the Mediterranean Sea.

But the CF can only do their important work with the support of a dedicated Defence team at home. National Defence recognizes the enormous sacrifices made by our armed forces and has continued to improve the care offered to CF personnel, veterans, and their families. At the same time, we have continued to recruit and train Canada's brightest individuals to the CF and civilian workforce.

The CF would not be able to undertake their important missions without the right tools and equipment. DND/CF made demonstrable progress in advancing the modernization of equipment, including upgrades to the Light Armoured Vehicle, delivery of new Hercules tactical lift aircraft, and modernization of the navy's frigates, as well as the National Shipbuilding Procurement Strategy, a multi-department initiative which is responsible for building, in part, Canada's future warships. This transparent procurement process is great news for Canadian industry and workers as it represents the largest procurement sourcing arrangement in Canadian history.

While modernizing the CF and its capabilities, National Defence has emphasized the responsible management of resources. In this era of fiscal restraint, DND/CF have worked hard to contribute to the Government's deficit reduction efforts while remaining a responsive, agile and flexible military, capable of meeting the needs of Canadians and addressing the challenges of the 21st century. DND continued to review its business processes, effecting several fundamental changes to modernize the Department's procurement process and supply chain.

By any considered weight or measure Canada's Defence Team is amongst the best in the world. It is an honour to serve as Minister of National Defence and present the achievements of this great Canadian institution to Parliament and Canadians.

The original version was signed by:

The Honourable Peter MacKay, P.C., M.P.
Minister of National Defence

 

SECTION I: ORGANIZATIONAL OVERVIEW

Raison d'être

On behalf of the people of Canada, the Canadian Forces (CF) and the Department of National Defence (DND) stand ready to perform three key roles:

  • Defend Canada – by delivering excellence at home;
  • Defend North America – by being a strong and reliable partner with the United States in the defence of the continent; and
  • Contribute to International Peace and Security – by projecting leadership abroad.

The National Defence ActFootnote 1 establishes DND and the CF as separate entities, operating within an integrated National Defence Headquarters, as they pursue their primary responsibility of providing defence for Canada and Canadians.

DefenceFootnote 2 continued to adapt to an evolving international security environment that remained volatile and complex, characterized by a wide array of challenges and threats, both asymmetrical and traditional. In addition to the global financial situation, these factors will continue to occupy the international agenda and challenge Canada's security and prosperity.

Responsibilities

The Defence Team's core responsibility remains success in operations while ensuring affordability of the Defence program, preparing for future operational challenges and caring for our military members and their families. In 2011-12, Defence once again showed itself as a first-class, multi-purpose, combat-effective military with the ability to protect and excel at home, while remaining a strong and reliable defence partner in North America, and making a meaningful contribution to security abroad.

The following recurring themes and challenges are highlighted within the report and outline the focus areas of our activities during the 2011-12 reporting period:

  • Transitioned to a non-combat role in Afghanistan as part of the Government of Canada's commitment to the North Atlantic Treaty Organization (NATO) Training Mission Afghanistan (NTM-A). As the second largest contributor nation, we continued to advance security, promote the rule of law and human rights, and support the delivery of humanitarian assistance to the Afghan people;
  • Continued to deliver on our Defence Priorities, as outlined in the Canada First Defence Strategy, in support of the Government of Canada's national and international priorities; and
  • Successfully carried out the defence mission while working to ensure that the Department's resources were deftly managed, in an open and transparent manner, given the current global financial situation.

In 2011-12, the international security environment remained dangerous and unpredictable, characterized by diverse threats and challenges, including terrorism, proliferation of weapons of mass destruction and conventional weapons, insurgencies and cyber attacks, piracy, the enduring threat of regional conflicts, and popular uprisings for democratic reform. These issues faced Canada, the Defence Team and the global community during a fiscally challenging time for the world economy.

Strategic Outcomes and Program Activity Architecture

Within Treasury Board's Policy on Management, Resources and Results StructuresFootnote 3 (MRRS) for planning, management and reporting, the Program Activity ArchitectureFootnote 4 (PAA) establishes Defence's four Strategic Outcomes.

Each Strategic Outcome is supported by a group of program activities, which, in turn, are aligned to relevant Defence Priorities, Corporate Risks, and a Government of Canada Outcome Area. For further information, please refer to Section IV: Other Items of InterestFootnote 5Departmental Link to Government of Canada Outcome Areas.

Department of National Defence Program Activity Architecture
Strategic OutcomesProgram Activities
(Click title to go directly to Outcome or Activity)
Defence operations will improve Peace, Stability and Security wherever deployed International Peace, Stability and Security
Situational Awareness
Canadian Peace, Stability and Security
Continental Peace, Stability and Security
National Defence is ready to meet Government Defence Expectations Land Readiness
Joint and Common Readiness
Maritime Readiness
Aerospace Readiness
Resources are acquired to meet Government Defence Expectations Equipment Acquisition and Disposal
Recruiting of Personnel and Initial Training
Real Property and Informatics Infrastructure Acquisition and Disposal
Defence Science and Technology
Care and support to the Canadian Forces and Contribution to Canadian Society Defence Team Personnel Support
Canadian Identity
Environment Protection and Stewardship
Non-Security Support
  Internal Services

For a full illustration of the Defence PAA, please refer to Section IV: Other Items of InterestFootnote 6 – Defence Program Activity Architecture. For descriptions of Defence Strategic Outcomes and associated Program Activities, please refer to Section II: Analysis of Program Activities by Strategic Outcome.

The Canada First Defence Strategy

To help Defence carry out its roles and responsibilities, the Canada First Defence StrategyFootnote 7 (CFDS), released in May 2008, outlines what is required to ensure a first-class, modern military that is well-trained, well-equipped and ready to take on the challenges of the 21st century.

To accomplish this, the CFDS provides a 20-year roadmap, which is periodically reviewed, to modernize the CF with stable and predictable funding that permits long-term planning and investment in four Defence capability areas or pillars:

3 Roles

  • Personnel: In accordance with Budget 2012, the CF Regular and Reserve Force Strength will be maintained at 68,000 and 27,000 respectively to preserve the balance across the four pillars of CFDS;
  • Equipment: Renew the CF's core equipment platforms;
  • Readiness: Maximize personnel training and equipment availability; and
  • Infrastructure: Replace or refurbish approximately 25 per cent of DND infrastructure holdings within 10 years, with approximately 50 per cent being replaced or refurbished over 20 years to meet Canada's future defence and security requirements.

The CFDS articulates the broad strategic vision for Defence aligned with the level of ambition identified by the Government of Canada and outlines six core CF missions in domestic, continental and international contexts:

  • Conduct daily domestic and continental operations, including in the Arctic and through the North American Aerospace Defense Command (NORAD);
  • Support a major international event in Canada such as the G8, G20 and North American Leaders' Summits;
  • Respond to a major terrorist attack;
  • Support civilian authorities during a crisis in Canada such as a natural disaster;
  • Lead and/or conduct a major international operation for an extended period; and
  • Deploy forces in response to crises elsewhere in the world for shorter periods.

Risk Analysis

A core facet of Defence planning and conduct of operations is the identification and mitigation of risk. The challenging transition of the mission in Afghanistan and other foreign missions, along with the substantial domestic commitments in the Arctic, continued to test the Department's capacity. Defence's exemplary achievement of these tasks underscored the Department's flexibility and determination to succeed in the face of limited operational resources.

Considerable effort has been expended to develop and document the plans and measures to mitigate the key challenges that impact Defence's ability to fulfill its core responsibilities. The following three areas of risk, which were also highlighted in the 2011-14 Defence Priorities, reflect the critical areas of focus for Defence during 2011-12:

Key Corporate Risks
RiskAction
Canadian Forces Reconstitution Plans were executed to end the combat mission in Afghanistan in 2011, including the Government of Canada's commitment to train the Afghan National Army after the end of the combat mission, and to manage and maintain CF readiness post-2011.
Defence Team Capacity Priority is being placed on achieving the right balance and composition of the Defence workforce, with a strong focus on ensuring the framework is in place to effectively manage personnel.
Investment Plan Flexibility Efforts continue to ensure there is sufficient flexibility in the Investment Plan to respond to emerging operational requirements and CF capability requirements of the future, as outlined in the CFDS.

Source: Vice-Chief of the Defence Staff Group

In FY 2011-12, Defence continued to develop and implement a strong risk management framework that is being aligned with departmental resource planning and business management processes. Coupled with performance measurement, the concepts of risk and opportunity are being embedded as key inputs to senior leadership decision making.

Organizational Priorities

The organizational priorities for the Department of National Defence and the Canadian Forces were reported as Defence Priorities in the Report on Plans and Priorities (RPP) 2011-12. Informed by key corporate risks, these organizational priorities represent focus areas where Defence directed efforts and resources. Doing so enabled Defence to mitigate risks, address gaps in capability or capacity, support the activities essential to achieve excellence in operations and management, and effectively act on Government of Canada direction.

Detailed performance information in Section II of this report, measures the progress achieved for each strategic outcome and associated program activity. This facilitates a meaningful assessment of Defence's efforts to address organizational priorities during the 2011-12 fiscal year.

Summary of Progress Against Priorities
PriorityType1Strategic Outcome(s)
Ensuring Sustainable Operational Excellence both at Home and Abroad New
  • National Defence is ready to meet Government Defence Expectations
  • Defence operations improve peace, stability and security wherever deployed
  • Abroad, Defence continued to make a significant contribution to security in Afghanistan. In October 2011, stand up of the new training mission in Kabul was completed.
  • FY 2011-12 also saw the re-deployment of HMCS Charlottetown to participate in maritime security and counter-terrorism operations in the Mediterranean Sea as part of NATO's Operation ACTIVE ENDEAVOUR.
  • In West Africa, the Defence played an important role in deterring illegal smuggling of human beings.
  • Reflecting Canada's continued commitment to assisting regional partners, under Operation JAGUAR, the CF flew life-saving missions such as search and rescue and medical evacuation in support of Jamaica Defence Force operations.
  • Defence successfully conducted a range of missions at home in the defence of Canada and Canadians in collaboration with our whole-of-government and international partners.
  • Defence helped those affected by flooding in Quebec and Manitoba, and was quick to assist with emergency evacuations when forest fires threatened Canadians in Saskatchewan and Ontario.
  • Through NORAD, Defence successfully monitored Canadian airspace and approaches, and routinely exercised Operation NOBLE EAGLE, to practice dealing with an air security issue within Canadian airspace.
Reconstituting and Aligning the CF Post-Afghanistan New
  • Resources are acquired to meet Government Defence Expectations
  • National Defence is ready to meet Government Defence Expectations
  • Defence operations improve peace, stability and security wherever deployed
  • Critical timelines for reconstitution have been met during FY 2011-12:
    • Defence successfully transitioned out of the combat mission in Kandahar into the new training mission in support of NATO Training Mission Afghanistan. Concurrently the Mission Transition Task Force completed its highly successful close out mission in Kandahar in December 2011;
    • The reconstitution plan developed in order to meet readiness levels required by the CFDS and has now gone into the implementation phase; and
    • The CF Force Posture and Readiness 2012 Directive was released in December 2011. This Directive specifically addresses readiness requirements for the CF in a rolling three year time span and acts as the initial step in the development of a broader CF Force Posture and Readiness System.
Maintaining Defence Affordability New
  • Resources are acquired to meet Government Defence Expectations
  • National Defence is ready to meet Government Defence Expectations
  • Care and Support to the Canadian Forces and Contribution to Canadian Society
  • The National Shipbuilding Procurement Strategy (NSPS) represents an important step in the Canadian government's commitment to rebuild the Royal Canadian Navy. The NSPS shipyard selection was completed in FY 2011-12 with an umbrella agreement negotiated with lead projects assigned to selected shipyards.
  • Defence implemented a number of initiatives this past fiscal year which will significantly enhance the controls upon which the reliability of information is premised. Examples include: The National Stocktaking Initiative, Implementing Auditable Financial Statements/Policy on Internal Controls and The Supply Chain integration project.
  • The DND Critical Technology List was developed and provided to Industry Canada which they implemented as part of their Industrial and Regional Benefits (IRB) Program. This list has been provided to industry for potential investment under the IRB Program.
Strengthening the Defence Team Previously committed
to
  • Resources are acquired to meet Government Defence Expectations
  • National Defence is ready to meet Government Defence Expectations
  • Care and Support to the Canadian Forces and Contribution to Canadian Society
  • Defence advanced several initiatives to nurture an experienced, balanced and effective team in order to enhance the achievement of departmental outcomes:
    • Defence completed phase 1 of the Defence Learning Network expansion;
    • Successful recruiting and component transfers from the Primary Reserve into the Regular Force, combined with continued historically low attrition, resulted in most distressed, or "red", occupations achieving their recruiting targets. Overall there was a 52% decrease in the number of distressed occupations; and
    • The CF strategy, "Caring for Our Own: A comprehensive approach for the care of CF ill and injured members and their families" was published in FY 2011-12 and provides a framework that integrates programs, services and benefits available to its ill and injured and their families in one document.

Source: Vice-Chief of the Defence Staff Group

1 Type is defined as follows: "previously committed to"-committed to in the first or second fiscal year before the subject year of the report; "ongoing"-committed to at least three fiscal years before the subject year of the report; and "new"-newly committed to in the reporting year of the RPP or DPR.

Defence Planning and Performance Reporting Framework

The following diagram illustrates the alignment of Defence's PAA, Key Corporate Risks and Priorities to the CFDS. This framework forms the basis for communicating Defence's performance story throughout this report.

two

Defence Planning and Performance Reporting Framework

one

Summary of Performance

Protecting Canadians at Home

Keeping in line with the roles outlined in the Canada First Defence Strategy, in FY 2011-12, the Canadian Forces (CF) successfully conducted a range of missions at home and abroad in the defence of Canada and Canadians, in collaboration with our whole-of-government and international partners. The CF helped keep Canadians safe at home, lending a helping hand to those affected by flooding in Quebec and Manitoba, and were quick to assist with emergency evacuations when forest fires threatened Canadians in Saskatchewan and Ontario. As Canada has one of the most effective search and rescue systems in the world, the CF, through their specially trained search and rescue crews, was also there when needed to directly assist more than 1,000 individuals in life-threatening situations.

Continued Operational Success

Abroad, the CF continued to make a significant contribution to security in Afghanistan. In October 2011, Canada completed the stand up of the new training mission in Kabul, supporting Afghan National Security Forces training through a contribution of up to 950 CF personnel – the second largest contribution to this NATO training mission after the United States (U.S.). The CF also demonstrated a high level of readiness to deploy elsewhere around the world and conduct a range of operations at the request of the Government of Canada as evidenced by our participation in the NATO-led response to the crisis in Libya. Within days of the Government deciding to evacuate Canadian citizens, the CF had aircraft on the ground, safely evacuating 61 Canadians and 130 other foreign nationals. In addition, the overall NATO mission was commanded by a Canadian, Lieutenant-General Charles Bouchard. CF personnel helped enforce UN Security Council Resolutions which established an arms embargo and no-fly zone to protect civilians and civilian-populated areas. The CF was instrumental in NATO's success, flying approximately 1500 military missions and hailing some 478 vessels at sea.

Furthering Canada's role as a credible ally, 2011 also saw the re-deployment of HMCS Charlottetown to participate in maritime security and counter-terrorism operations in the Mediterranean Sea as part of NATO's Operation ACTIVE ENDEAVOUR. In West Africa, the CF played an important role in deterring illegal smuggling of human beings. Reflecting Canada's continued commitment to assisting regional partners, under Operation JAGUAR the CF flew life-saving missions such as search and rescue and medical evacuation in support of Jamaica Defence Force operations.

Ongoing Re-orientation and Transition

In July 2011, consistent with the parliamentary motion of 2008, Canada ended its combat mission in Afghanistan. From July to December 2011, Mission Transition Task Force personnel undertook the significant task of repairing, packaging, shipping or disposing of all of our equipment and materials to close out the mission in Kandahar. Furthermore, the team ensured that over 250 Canadian structures and sites at Kandahar airfield were either dismantled or transferred to other users in safe and usable condition. This close out of the combat mission is considered one of the largest logistical undertakings in the history of the Canadian Forces. While in progress at the time of reporting, close out activities were on schedule and under budget.

Delivering Essential Equipment

Even during a high operational tempo and a period of fiscal constraint, Defence has continued the modernization of the CF by advancing numerous key projects while seeking new efficiencies and benefits for Canadian industry. In October 2011, an announcement was made awarding a $1.064B contract to General Dynamics Land Systems of London, Ontario for the Light Armoured Vehicle III upgrade. This project will help to sustain an estimated 2200 jobs in the local economy. In January 2012, DND, along with other departments, announced the National Shipbuilding Procurement Strategy (NSPS), the result of extensive consultations with industry and government personnel. It represents the largest procurement sourcing arrangement in Canadian history and it is estimated it will provide thousands of high-value jobs to Canadians over the next 20 to 30 years. The NSPS represents an important step in the Canadian Government's commitment to rebuild the Royal Canadian Navy and the Canadian Coast Guard fleets. In addition, the CF received the majority of the 17 new Hercules tactical lift aircraft on schedule in 2011-12. Finally, the Halifax Class Modernization/Frigate Life Extension (HCM/FELEX) project was in its implementation phase in 2011-12, with three ships in mid-life refit as of the end of year. The project is currently within budget and on schedule to achieve full operational capability by January 2018.

Sound Fiscal Management

DND continued to perform strongly in managing its budget - considered the largest capital and operating budget in Federal government, with 19% of government direct program spending. As part of the government-wide spending review, DND is increasing the efficiency and effectiveness of its programs and operations ensuring value for money for Canadians. In 2011-12, DND's residual/unplanned lapse was only $36.3 million, or 0.2% of its revised spending authorities. This amount is well within DND's residual lapses over the past 8 years which have averaged 1.1%.

From its 2011-12 reported Public Accounts lapse of $1,499.4 million, DND was able, through the use of available fiscal management mechanisms, to re-profile and carry forward to future years $1,348.3 million in spending authorities to support approved initiatives and projects. Finally, exercising responsible and transparent financial management, DND returned $76 million in unspent funds allocated to support Canada's international security operations in Afghanistan.

2011-12 Financial Resources ($ thousands)
Planned SpendingTotal AuthoritiesActual Spending
21,299,079 21,718,125 20,218,758

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

2011-12 Human Resources (Full-Time Equivalents – FTEs)
 PlannedActualDifference3
Military 68,791 68,760 (31)
Civilian1 26,5672 26,752 175
TOTAL 95,358 95,512 144

Sources: Vice Chief of the Defence Staff Group, Chief Military Personnel Group, Assistant Deputy Minister (Human Resources – Civilian) Group

Notes:

  1. Communication Security Establishment Canada (CSEC) human resources (HR) figures are no longer included in the DND/CF HR figures.
  2. In the 2011-12 Report on Plans and Priorities, Defence planned 26,490 FTEs for Departmental civilians. To provide an accurate comparison between planned and actual figures, the planned figure has been modified to include FTEs for the following organizations that report directly to the Minister of National Defence:
    • 54 FTEs for National Search and Rescue Secretariat
    • 23 FTEs for the National Defence and Canadian Forces Ombudsman
  3. The Difference indicates variance between Planned and Actual figures; this is not an indication of growth or reduction. To determine growth or reduction, a comparison between Actuals is required. For example, a comparison of the Actuals between the Departmental Performance Report (DPR) 2010-11 and the current DPR indicate a reduction of 80 civilian FTEs.

Summary of Performance Tables

Progress Toward Strategic Outcome

Strategic Outcome: National Defence is ready to meet Government Defence Expectations
Performance IndicatorsTargets2011-12 Performance
% Readiness level for Land, Joint and Common, Maritime, and Aerospace combined 98-100%1 87.6%2

Notes:

  1. Represents an aggregate of the individual targets for Land, Joint and Common, Maritime and Aerospace readiness plans.
  2. For details, please refer to Section II, Strategic Outcome: National Defence is ready to meet Government Defence Expectations.

Performance Summary

Program Activity2010-11
Actual
Spending
2011-12Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Land Readiness 3,350,735 3,630,264 3,630,264 3,786,438 3,626,299 A safe and secure world through international engagementFootnote 8
Joint and Common Readiness 2,187,920 2,237,251 2,237,251 2,324,943 2,337,399 A safe and secure world through international engagement
Maritime Readiness 2,164,323 2,188,533 2,188,533 2,289,716 2,297,720 A safe and secure world through international engagement
Aerospace Readiness 1,781,696 1,883,626 1,883,626 1,975,943 1,908,491 A safe and secure world through international engagement
Total 9,484,674 9,939,674 9,939,674 10,377,040 10,169,909  

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Note: Due to rounding, figures may not add up to total shown

Progress Toward Strategic Outcome

Strategic Outcome: Resources are acquired to meet Government Defence Expectations
Performance IndicatorsTargets2011-12 Performance
Performance against CFDS as measured by Investment Plan and Business Plans 95-100% 93%

Performance Summary

Program Activity2010-11
Actual
Spending
2011-12Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Equipment Acquisition and Disposal1 2,779,775 3,498,227 3,498,227 3,209,570 2,381,604 A safe and secure world through international engagement
Recruiting of Personnel and Initial Training2 1,117,863 1,416,719 1,416,719 1,477,903 1,071,324 A safe and secure world through international engagement
Real Property and Informatics Infrastructure Acquisition and Disposal3 414,945 665,501 665,501 652,319 481,572 Strong economic growthFootnote 9
Defence Science and Technology 384,947 327,069 327,069 333,652 399,825 An innovative and knowledge-based economyFootnote 10
Total 4,697,531 5,907,516 5,907,516 5,673,443 4,334,325  

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Notes: Due to rounding, figures may not add up to total shown

  1. The variance between actual spending and total authorities is primarily related to adjustments in the spending profile of major capital equipment projects to align financial resources with project acquisition timelines. Approved program funding slippage was reprofiled to future years to support approved projects and programs.
  2. The variance between actual spending and total authorities is primarily due to: (1) a decrease in the number of Regular Force Personnel attributed to Recruiting of Personnel and Initial training, and, (2) an increase in planned spending related to the Canada First Defence Strategy.
  3. The variance between actual spending and total authorities is primarily related to adjustments to the spending profile of major infrastructure projects to align financial resources with project acquisition timelines. Most of the year end variance will be reprofiled to future years to support approved infrastructure projects.

Progress Toward Strategic Outcome

Strategic Outcome: Defence operations improve peace, stability and security wherever deployed
Performance IndicatorsTargets2011-12 Performance
% Effects Achieved (aggregate for all commands) 80-100% 93%

Performance Summary

Program Activity2010-11
Actual
Spending
2011-12Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
International Peace, Stability and Security1 2,312,846 2,027,838 2,027,838 2,222,147 1,980,673 A safe and secure world through international engagement
Situational Awareness 775,516 637,363 638,303 517,796 599,459 A safe and secure world through international engagement
Canadian Peace, Stability and Security 318,492 282,628 282,628 299,260 336,917 A safe and secure CanadaFootnote 11
Continental Peace, Stability and Security 190,987 197,907 197,907 210,619 202,580 A strong and mutually beneficial North American partnershipFootnote 12
Total 3,597,841 3,145,736 3,146,676 3,249,823 3,119,629  

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Note: Due to rounding, figures may not add up to total shown

  1. The variance between actual spending and total authorities is mainly related to delays in the return of material from the termination of Canada's combat mission in Afghanistan and lower than forecasted expenditures in the new training mission.

Progress Toward Strategic Outcome

Strategic Outcome: Care and Support to the Canadian Forces and Contribution to Canadian Society
Performance IndicatorsTargets2011-12 Performance
% Public support for the Canadian Forces 85-100% 87%

Performance Summary

Program Activity2010-11
Actual
Spending
2011-12Alignment to Government of Canada Outcomes
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Defence Team Personnel Support1 906,016 760,708 762,395 808,006 1,002,923 A safe and secure world through international engagement
Canadian Identity 353,602 354,351 354,351 372,111 369,853 A vibrant Canadian culture and heritageFootnote 13
Environment Protection and Stewardship 122,478 134,365 134,365 196,577 126,246 A clean and healthy environmentFootnote 14
Non-Security Support 6,479 7,165 7,165 8,324 17,317 A transparent, accountable and responsive federal governmentFootnote 15
Total 1,388,575 1,256,589 1,258,275 1,385,018 1,516,338  

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Note: Due to rounding, figures may not add up to total shown

  1. The variance between actual spending and total authorities is primarily due to an increase in the number of Regular Force Personnel pay amount attributed to Defence Team Personnel Support program activity and does not reflect an increase in the number of Regular Force personnel assigned to the program activity.
Performance Summary for Internal Services
Program Activity2010-11
Actual
Spending
2011-12
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
Internal Services 1,129,637 1,043,815 1,046,937 1,032,800 1,078,558

Sources: Vice-Chief of the Defence Staff Group / Assistant Deputy Minister (Finance and Corporate Services) Group

Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy (FSDS) outlines the Government of Canada's commitment to improving the transparency of environmental decision making by articulating its key strategic environmental goals and targets. Defence ensures that consideration of these outcomes is an integral part of its decision-making processes. Defence contributes to the following FSDS theme as denoted by the visual identifier below.

 

During 2011-12, Defence considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program ProposalsFootnote 16.

For further information on Defence's activities to support sustainable development and strategic environmental assessments please see Section III: Supplementary InformationFootnote 17 – Greening Government Operations and Section IV: Other Items of InterestFootnote 18 – Sustainable Development and Strategic Environmental Assessment.

For complete information on the FSDS, please visit the Environment Canada websiteFootnote 19.

Expenditure Profile

Departmental Spending ($ thousands)
2009–10
Actual Spending
2010-11
Actual
Spending
2011-12
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
19,855,670 20,298,257 21,293,330 21,299,079 21,718,125 20,218,758

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

In FY 2011-12, the Main Estimates were increased through Supplementary Estimates and allotments from Treasury Board by $424.8 million. The differences between total authorities and actual spending of $1,499.4 million consist of:

  • $1,348.3 million in authorities that will be available to the Department in future years related primarily to:
    • $1,027.5 million for revised cash flow schedules for major capital equipment and infrastructure projects;
    • $303.7 million in the operating budget carry forward that will be available to the Department in 2012-13; and
    • $16.7 million in proceeds from the disposal of surplus Crown assets which will be returned to the Department in 2012-13.

  • $114.8 million related primarily to:
    • $76 million for the return of unspent funds for the support of Canada's international security operations in Afghanistan; and
    • $38 million in year end adjustments related to the transfer of spending authorities from operating costs to personnel. The transfer was required mainly for settlement of civilian severance resulting from the ratification of collective agreements.
    • $36.3 million in residual lapses related primarily to $34.4 million in lower than planned contribution payments as a result of reduction in NATO programs and the withdrawal of Canada from the Alliance Ground Surveillance System.

The total spending difference of $79.5 million between fiscal years 2010-11 and 2011-12 is attributed mainly to an increase in expenditures of:

  • $360.7 million for military and civilian pay and allowances due mainly to payments for the termination of civilian severance and payments to fund the deficit in the Canadian Forces – Regular Force Pension Fund Account;
  • $223.3 million for rental of equipment mainly due to licence and maintenance fees for application software and aircraft rental for missions;
  • $350.0 million for professional services in the areas of telecommunications, engineering support for the North Warning System and the Victoria In-Service Support Project, and architectural services and engineering support for real property projects; and
  • $57.8 million net increase across other categories of departmental expenditures such as construction, utilities, materials and supplies.

These increases are offset by the decrease in expenditures of:

  • $1,027.3 million in acquisition of machinery and equipment due primarily to internal and external factors which resulted in changes in the timing of capital projects;
  • $24.4 million in repairs of equipment; and
  • $19.6 million in travel, transportation, and telecom expenditure.

Departmental Spending for Fiscal Year 2011-12 by Program Activity

 

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Note: Due to rounding, figures may not add up to 100 percent.

Financial Spending Trend

Source: Assistant Deputy Minister (Finance and Corporate Services) Group

Notes:

  1. The "Main Estimates" figure is submitted in December, prior to the start of a new fiscal year. It includes the known approved level of funding for the department as of October.
  2. "Planned Spending" provides an update of the Main Estimates information on additional funding approved between October and February, as well as additional spending plans included in the Budget, which is finalized after the Main Estimates.
  3. "Total Authorities" represent the final authority as shown in the Public Accounts. This figure represents the final level of spending approved by Parliament.
  4. "Actual Spending", also found in the Public Accounts, represents the final spending on a cash basis.

Estimates by Vote

For information on the Department of National Defence's organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2011 (Volume II). An electronic version of the Public Accounts 2011 is available on the Public Works and Government Services Canada websiteFootnote 20.