Department of National Defence - Departmental Performance Report 2012-13

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MINISTER'S MESSAGE

This image is a photograph of the Honourable Robert Nicholson, P.C., Q.C., M.P., Minister of National Defence

The Honourable Rob Nicholson, P.C., Q.C., M.P. - Minister of National Defence

It is my pleasure to report to Parliament and Canadians on the achievements of the Department of National Defence and the Canadian Armed Forces (DND/CAF) 1 for 2012-13.

During the past year, DND and the CAF continued to successfully fulfill the roles and missions identified in the Canada First Defence Strategy in support of Government of Canada priorities.  We undertook these efforts with an eye to exercising prudent financial stewardship of taxpayer dollars by maintaining defence affordability in these challenging economic times.

In 2012, the Defence Team embarked upon a series of activities in an effort to find better, more effective and efficient ways to do our work, and move us into a new era of renewal.  The Defence Renewal Team (DRT) was established to lead, coordinate and oversee this process.  In addition, the Canadian Joint Operations Command was stood up to create efficiencies, remove redundancy and streamline operations for the Canadian Armed Forces.  These initiatives were launched with the aim of continuing to deliver a first-class, combat-effective, multi-role military for Canada and Canadians by enhancing operational capabilities and reducing corporate and institutional overhead.

Year in and year out, ensuring the safety and security of Canada and Canadians is the main priority for Defence, while promoting Canadian interests and values across the globe, including contributing to international peace and security.  The 2012-13 timeframe was no exception, as DND/CAF ensured operational excellence both at home and abroad.  CAF Search and Rescue teams continued to work with Whole-of-Government partners to save the lives of Canadians and others.  The CAF also stood ready to assist first responders when Canadians were in need, such as in June 2012, when the CAF, alongside intergovernmental partners, provided assistance to nearly 700 residents of Labrador who were affected by forest fires in the region. Our military personnel continued to protect our great nation, conducting domestic operations and exercising sovereignty in Canada’s Arctic region.  The sixth Operation NANOOK was held in August 2012, involving over 1,200 CAF personnel, and built on the CAF’s growing Arctic skills and capabilities, while providing an important venue for interdepartmental safety and security cooperation in the North.  The past year also saw National Defence host the inaugural meeting of the Northern Chiefs of Defence to strengthen relationships and foster discussions about common issues in the North, further demonstrating Canada’s international leadership on Arctic issues. 

On the greater continent, National Defence continued to work with our closest ally, the United States, in the defence of North America through the North American Aerospace Defence Command (NORAD), as well as numerous bilateral training opportunities and exercises which enhanced the interoperability of our forces.  Defence officials also strengthened this vital partnership and explored new possibilities for cooperation through high-level meetings and staff talks, such as through the Permanent Joint Board on Defence.  Under Operation CARIBBE, the CAF contributed to an ongoing US-led, multi-national effort aimed at countering Trans-National Criminal Organizations in the waters of the Caribbean Basin and East Pacific. 

Internationally, DND/CAF continued the important NATO training mission in Afghanistan, achieving considerable success as part of the Alliance effort in providing professional development support to that country’s national security forces. In May 2012, HMCS Charlottetown, as part of Operation ARTEMIS, joined Combined Task Force-150 2 as the CAF’s participation in maritime security and counter-terrorism operations in the Arabian Sea. Followed by HMCS Regina and HMCS Toronto, these deployments have made a significant contribution to disrupting narcotics smuggling, a recognized source of funding for terrorist organizations.  In January 2013, the Prime Minister announced that Canada would provide logistical support to assist French forces intervening in Mali to counter the terrorist threat there.  Over the course of just under three months, the CAF supported operations by providing a C-17 transport aircraft and Air Force personnel who successfully transported over 1,360,000 kilograms of equipment from France to Mali.  This support highlighted Canada’s commitment as a strong and reliable partner in combating terrorism.

DND/CAF would not have been able to successfully execute these and other missions without the right tools and capabilities to complete the task. DND continued to take significant strides in the past year in advancing the modernization of equipment, including upgrades to the Light Armoured Vehicle III, the arrival of the Leopard II tank to bases across Canada, the delivery of Canada’s 17th and final CC-130J Hercules aircraft, on budget and ahead of schedule, as well as continued progress on the National Shipbuilding Procurement Strategy.  

Of course, hardworking and dedicated people - our most important resource - are the heart of these achievements.  The highly trained and professional men and women of the Canadian Armed Forces work side-by-side with a civilian workforce that contributes significantly to all facets of Defence including supporting military readiness, operations and procurement. In 2012-13, DND/CAF’s highly integrated military-civilian team skilfully delivered modern and effective military capabilities at the best value for Canadians. 

DND/ CAF have maintained, strengthened and supported this vibrant workforce and recognize the need to address the sacrifices made by CAF personnel.  The enhanced support to our military ill and injured and their families, in addition to ensuring CAF personnel receive the highest standard of health care, is a top priority of the Government. The CAF’s 24 Integrated Personnel Support Centres, satellites and regional elements located across the country, provide one-stop service delivery with integrated and individual-centric support to our ill and injured servicemen and women, as well as their families, to ensure the coordination and facilitation of their personal and administrative support during all phases of recovery, rehabilitation and reintegration. The CAF also ensures that its members can access treatment for a variety of mental illnesses, including for Post-Traumatic Stress Disorder (PTSD), through its Operational Trauma and Stress Support Centres.  As our understanding of this disorder continues to grow, the CAF is committed to overcoming the stigma surrounding PTSD and helping its members through this challenging illness.

Canada’s Defence Team should be rightly proud of its efforts; it is second to none in the world.  It is my privilege to present to you, Parliamentarians and Canadians, the achievements of this remarkable institution. I am honoured to serve as Minister of National Defence.

The original version was signed by:

The Honourable Rob Nicholson, P.C., Q.C., M.P.
Minister of National Defence

SECTION I: ORGANIZATIONAL OVERVIEW

The fundamental goal of the Department of National Defence and the Canadian Armed Forces is to
protect Canada, and Canadian interests and values, while contributing to international peace and security.

Raison d'être

On behalf of the people of Canada, the Canadian Armed Forces (CAF) 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.

Responsibilities

The Defence Team committed to achieving success in a number of priority areas over the course of fiscal year (FY) 2012-13. The Department and the CAF continued to focus on ensuring sustainable operational excellence both at home and abroad, reconstituting and aligning the CAF post-combat operations in Afghanistan, and strengthening the Defence Team, all the while making a concerted effort at defence renewal with a strong focus on sound financial management.

Our core responsibility is to succeed in operations within an affordable program, while preparing for future operational challenges and caring for our military members and their families.

The focus of Defence activities over the 2012-13 reporting period, as highlighted in the 2012-13 Report on Plans and Priorities 3, were as follows

  • Conduct training activities in Afghanistan within the construct of NATO/International Security Assistance Force (ISAF) in order to enhance Afghan security;
  • Continue to deliver on Defence Priorities while supporting the Government of Canada’s domestic and international goals; and
  • Execute the Defence mission while soundly managing the Department’s resources

In 2012-13, Defence successfully accomplished these tasks, proving capable of sustaining a flexible world-class force; one which is able to effectively protect Canadians at home, while remaining a strong and reliable partner on the continent, and making a valuable contribution to international security.

The Defence mandate was carried out with the support of a group of related organizations and agencies within the portfolio of the Minister of National Defence (MND), including by the Deputy Minister (DM) and Chief of the Defence Staff (CDS), and the civilians and military members who support them.  The DM is appointed by Cabinet on the advice of the Prime Minister and is the MND’s most senior civilian advisor, authorized under the law to carry out, on the Minister’s behalf, many aspects of the management and direction of the Department.  He is responsible for policy advice, departmental management, interdepartmental coordination, international defence relations, public service renewal, federal-provincial relations, and portfolio management.  He is also an Accounting Officer under the Financial Administration Act and is accountable before Parliamentary Committees to provide explanations on matters for which he is responsible.  The CDS has the direct responsibility for the control and administration of the CAF, and exercises command to give effect to the decisions and carry out the direction of the MND or Government in accordance with the National Defence Act.  The CDS is accountable for the conduct of CAF activities, as well as the readiness of the Forces and their ability to fulfill the military commitments and obligations of the Government.  The CDS is charged with advising the MND on matters relating to the CAF, including military requirements, capabilities, options, and the possible consequences of undertaking or failing to undertake various military activities.  Whenever required, the CDS advises the Prime Minister and Cabinet directly on major military developments.

For further details on selected Defence Portfolio organizations, please refer to Section IV: Other Items of Interest 4 - Selected Defence Portfolio HR and Financial Resources. For further information on the legislative framework within which Defence operates, see Section IV: Other Items of Interest 5 - Legislative Environment.

Canada First Defence Strategy

Released in 2008, the Canada First Defence Strategy 6 (CFDS) sets a detailed roadmap for the modernization of the Canadian Armed Forces into a first-class military that can deliver excellence at home, be a strong and reliable partner in the defence of North America, and project leadership abroad by contributing meaningfully to global security.  

3 roles of the Canada First Defence Strategy

Click on the image to see the text description that is available on a separate page

Within these three roles, the CFDS commits National Defence to the execution of six core missions:

  • Conduct daily domestic and continental operations including in the Arctic and through the North American Aerospace Defence Command (NORAD);
  • Support a major international event in Canada;
  • Respond to a terrorist attack;
  • Support civil authorities during a crisis;
  • Lead and/or conduct a major international operation for an extended period; and
  • Respond to crises elsewhere in the world for a shorter period

The Strategy is supported by 20-year long-term funding framework that guides balanced investments across the four pillars of military capability - personnel, equipment, readiness and infrastructure.

Strategic Outcomes and Program Alignment Architecture

The Government of Canada’s, Policy on Management Resources and Results Structure 7 (MRRS) is the foundation of a government-wide effort aimed at strengthening public sector management and accountability by providing a standard basis for reporting to citizens and Parliament on the alignment of resources, programs and results.  The Program Alignment Architecture (PAA) is a key element of the MRRS policy that depicts the inventory of departmental programs, arranged in a hierarchical manner to demonstrate the logical relationship between each program and their contribution to the Department’s Strategic Outcomes. Internal Services is a stand alone program which defines activities and resources that support multiple programs in the PAA, as well as corporate obligations.

In concert with Treasury Board, the Department began the redesign of the Defence PAA to incorporate a more functional view that expresses the integrated means by which our outputs and outcomes are achieved, thus better reflecting the business of defence.  The redesigned PAA will enhance the Department’s ability to plan, manage and report by the PAA, facilitate business process renewal initiatives and support the development of Business Architecture within Defence. The redesigned PAA implementation is anticipated for fiscal year 2014-15.

Department of National Defence Program Alignment Architecture

STRATEGIC OUTCOME 1: RESOURCES ARE DELIVERED TO MEET GOVERNMENT DEFENCE EXPECTATIONS

STRATEGIC OUTCOME 2: NATIONAL DEFENCE IS READY TO MEET GOVERNMENT DEFENCE EXPECTATIONS

STRATEGIC OUTCOME 3: DEFENCE OPERATIONS IMPROVE PEACE, STABILITY AND SECURITY WHEREVER DEPLOYED

STRATEGIC OUTCOME 4: CARE AND SUPPORT TO THE CANADIAN ARMED FORCES AND CONTRIBUTION TO CANADIAN SOCIETY

For descriptions of Defence Strategic Outcomes and associated Programs, please refer to Section II: Analysis of Programs by Strategic Outcome.

Risk Analysis

Three key Corporate Risks were highlighted as having a Defence-wide impact in fiscal year 2012-13:

RiskRisk Response StrategyLink to Program Alignment ArchitectureLink to Organizational Priorities

Canadian Armed Forces Reconstitution

There is a risk that the Canadian Armed Forces (CAF), after several years of high tempo operations centered on Afghanistan, will have difficulty attaining the balance in readiness levels necessary to maintain its leadership role and responsiveness in accordance with the CFDS.

To mitigate this risk identified in National Defence’s 2012–13 Report on Plans and Priorities 11 (RPP), a directive was issued for future CAF Posture and Defence Readiness.  This provided a clear and viable plan to develop and maintain the capabilities and readiness levels necessary to meet the requirements of the CFDS. This directive will be reviewed every year to adjust the necessary tasks based on lessons learned or from an updated understanding of possible threats to Canada.

National Defence is Ready to Meet Government Defence Expectations:

Internal Services:

Reconstituting and Aligning the CAF Post-Afghanistan:

  • Plan and develop post-2011 readiness initiatives;
  • Implement post-2011 readiness initiatives; and
  • Plan and develop the capability to meet reconstitution and readiness initiatives

Defence Team Capacity

There is a risk that Defence will not have a sufficient number of personnel who are trained and developed, with the required knowledge and experience, capable of fulfilling current or future Government of Canada Defence expectations.

To mitigate this risk identified in the 2012-13 RPP, Defence is nearing completion of the first phase of a strategic-level plan to improve the view of the military and civilian workforce to better support proactive planning. As well, Defence continued to strengthen leadership capacity, succession planning, continuous learning and professional development. Defence continued to implement the Public Service Renewal action plan aligned with the Clerk's priorities and continued to advance CAF Transformation. These initiatives were supplemented with a directive on recruitment and staffing, and succession planning for civilian staff. All Groups and Commands within National Defence have begun using these directives in their annual business plans. Furthermore, additional focus was placed on improving programme delivery, in which Defence continued to promote the professional development of its project management workforce.

Resources are delivered to Meet Government of Defence Expectations:

Internal Services:

Strengthening the Defence Team

  • Provide enhanced support to the ill and the injured and to the families of CAF members;
  • Advance a comprehensive plan to align and optimize the military and civilian workforce;
  • Recruit, develop, and sustain under-strength military and civilian occupations;
  • Maximize military and civilian potential by continuing to strengthen leadership capacity, succession planning, continuous learning and professional development;
  • Implement the Public Service Renewal Action Plan, aligned with the Clerk’s priorities; and
  • Advance CAF Transformation

Investment Plan Flexibility

There is a risk that Defence will be unable to maintain an affordable and sustainable Investment Plan that delivers on the CFDS commitments primarily due to the potential for cost increase and funding requirements for new and expanded capabilities.

To mitigate this risk identified in the 2012-13 RPP, Defence implemented the Chief Financial Officer (CFO) model and developed an update to the Investment Plan (IP).  These two initiatives will allow Defence to improve investment decision-making and financial planning in order to more effectively manage the changes to the IP, ensure long-term affordability and balance investments across the four pillars of CFDS and the Department’s priorities.

Resources are delivered to Meet Government of Defence Expectations

Internal Services:

Maintaining Defence Affordability

  • Improve management of the Investment Plan to balance CFDS requirements

Defence is influenced by a wide range of external and internal factors, both domestic and international, that have an impact on how we carry out our mandate. These factors present us with both risks and opportunities, which are taken into account as we deliver on our roles and responsibilities. By continuously monitoring emerging issues, developments and trends, we can anticipate and respond to challenges and the risks associated with them.

For FY 2012-13, three key Corporate Risks having a Defence-wide impact were highlighted. To fulfill the Government of Canada's expectations, Defence will continue to manage these Corporate Risks in an effective manner.  For details, see the links to the Programs and to the organizational priorities related to these risks in the above table.

To adapt to the changing context in the world, the “Canadian Armed Forces Reconstitution” risk was renamed to “Defence Readiness”  in order to remain risk-informed when making decisions and to ensure the right balance of readiness is maintained to face both current and emerging threats to Canada, while remaining flexible to address unexpected events. A variety of missions and exercises were conducted which played an important role to continually measure and obtain lessons for both domestic and international readiness.

In response to the Defence Team Capacity risk, Defence has improved its strategic level human resources plans and continued to: strengthen leadership capacity, succession planning, continuous learning and professional development; implement the Public Service Renewal action plan aligned with the Clerk’s priorities; and support leaders and managers in efforts within the context of CAF Transformation. To improve programme delivery, the Project Management Competency Development (PMCD) initiative completed the validation of a Project Manager workforce qualification framework en route to departmental institutionalization.

To mitigate the Investment Plan flexibility risk, Defence advanced the implementation of the Chief Financial Officer (CFO) model resulting in:

  • enhanced control, more frequent monitoring and reporting on the Investment Plan (IP);
  • better information for investment decision-making and long-term affordability through improving data integrity of financial planning data; and
  • improved reporting capability on planned investments.

The Department renewed the process by which it prioritizes and approves resource allocation to achieve the Defence mission. Through a refocus and operationalization of the Defence Capabilities Board, the Deputy Minister and the Chief of the Defence Staff accountabilities are fully represented by a rigorous capability, affordability and challenge/validation function in a repeatable and traceable manner. This challenge function, coupled with rigorous analysis, has resulted in the highest level of decision support and situational awareness to Defence senior leadership for the development and implementation of the long term Defence plan.

Organizational Priorities

Organizational priorities express the key areas of focus for Defence to accomplish its mission.  In 2012-13, Defence focused on four organizational priorities presented below. The original plans identified in the 2012-13 Report on Plans and Priorities 16 are listed in the table below with links to key accomplishments discussed in the 2012-13 Departmental Performance Report.

PriorityType1Strategic Outcome(s)
Ensuring Sustainable Operational Excellence both at Home and Abroad Previously committed to
Summary of Progress

Original plans and links to key accomplishments:

  1. Type is defined as follows: previously committed to-committed to in the first or second fiscal year prior to the subject year of the report; ongoing-committed to at least three fiscal years prior to the subject year of the report; and new-newly committed to in the reporting year of the Report on Plans and Priorities or the Departmental Performance Report.
PriorityTypeStrategic Outcome(s)
Reconstituting and Aligning the CAF Post-Afghanistan Previously committed to
Summary of Progress

Original plans and links to key accomplishments:

PriorityTypeStrategic Outcome(s)
Strengthening the Defence Team Previously committed to
Summary of Progress

Original plans and links to key accomplishments:

PriorityTypeStrategic Outcome(s)
Maintaining Defence Affordability Previously committed
to
Summary of Progress

Original plans and links to key accomplishments:

Summary of Performance

Domestic Security for Canada and Canadians

In line with the Canada First Defence Strategy (CFDS), in FY 2012-13, the CAF 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 CAF stood ready to assist first responders when Canadians were in need, such as in June 2012, when the CAF, alongside intergovernmental partners, provided assistance to nearly 700 residents of Newfoundland and Labrador who were affected by forest fires in the Labrador region.  All year long, the CAF continued to provide surveillance of Canada’s air and maritime approaches, and Search and Rescue coordinators and crews worked with partners at all levels of government to save the lives of Canadians at risk.

The CAF also continued to play a role in helping to exercise Canada's sovereignty, including in the Arctic.  Operation NANOOK 2012 enabled the CAF to demonstrate the ability to operate in the challenging environment of this region, while enhancing the skills of soldiers, sailors and airmen and women, as well as improving interoperability with Canadian interdepartmental, intergovernmental and international partners in the North.  National Defence established the Northern Chiefs of Defence meeting as a venue for fruitful discussions between Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden, and the United States, on multilateral cooperation in the region in such areas as emergency response and support to civilian authorities. In hosting the inaugural meeting of this forum in April 2012, National Defence further helped to demonstrate Canada’s international leadership on Arctic and Northern issues.

Continued Operational Success

Abroad, the CAF continued to make a significant contribution to security in Afghanistan through the NATO training mission, with approximately 950 personnel deployed as part of the Canadian Contribution Training Mission Afghanistan (CCTM-A) under Op ATTENTION.  Thanks in part to these efforts, the Afghan National Security Forces (ANSF) continued to expand and increasingly train and operate independently of NATO forces, demonstrating a growing capability and capacity to be fully responsible for Afghanistan’s own security.

The CAF 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 support to French operations in Mali.  On 14 January 2013, following a request from the French Government, the Canadian Government committed one Royal Canadian Air Force (RCAF) CC-177 transport aircraft, in a non-combat role, to transport equipment into the Malian capital of Bamako. French forces were in Mali to stabilize the security situation in response to UNSC Resolution 2085, aimed at reducing Islamic extremism linked to Al-Qaida.  Canada continued to provide this vital support until 15 March 2013.

Furthering Canada’s role as a credible ally, the CAF continued their participation in maritime security and counter-terrorism operations in the Arabian Sea through Operation ARTEMIS.  In April 2012, HMCS Charlottetown deployed to the Arabian Sea with the task to detect, deter and protect against terrorist activity, followed by HMCS Regina and HMCS Toronto.  This presence also gave Canada the flexibility and capability to respond quickly to emerging crises in the region. 

In addition, since 2006, the CAF has been participating in Operation CARIBBE, working alongside US and multinational allies to address illegal trafficking of drugs in the Caribbean basin.  In 2012 alone, the Royal Canadian Navy (RCN) contributed five ships to counter-narcotic operations in the Caribbean region.  The Royal Canadian Air Force has also contributed to this mission with the ship-borne CH-124 Sea King helicopter and long-range patrol aircraft.

In March 2013, after 13 years in Sierra Leone as part of the British-led International Military Advisory and Training Team, the CAF successfully brought Operation SCULPTURE to a close.  The responsibilities of the Canadian Task Force in Freetown included: providing military advisory and training support to the Sierra Leone Ministry of Defence, Joint Force Command, and the Republic of Sierra Leone Armed Forces (RSLAF); providing technical infantry expertise, training and education advice; supporting the development of the RSLAF Maritime Wing; sponsoring literacy and numeracy training for RSLAF members; supporting the preparation of an RSLAF task force for deployment with the Africa Union Mission in Somalia; and carrying out civil-military co-operation projects. The closure of Op SCULPTURE means that the RSLAF will now assume responsibility for their own military affairs.

Delivering Defence Capabilities

National Defence continued to deliver on its CFDS commitments to modernize and upgrade CAF equipment capabilities in 2012-13, equipping the soldiers, sailors, and airmen and women for success, while generating economic opportunities for Canadian business.   In 2012-13, the Government continued to follow through on its commitment to build ships in Canada through the National Shipbuilding Procurement Strategy (NSPS) announcing a number of contracts for vessels such as the Arctic Offshore Patrol Ships. The NSPS will mean long-term jobs and economic growth for the country, stability for the industry, and vital equipment for the men and women in the RCN.

The recent experiences of the Canadian Armed Forces and our allies in Afghanistan and other operational theatres continue to demonstrate the ongoing requirement for a highly protected, yet highly mobile Light-Armoured Vehicle (LAV III).  On January 24, 2013, the Government of Canada announced the on-schedule delivery of Canada's first upgraded LAV III’s, in London, Ontario.   The same month, the Government announced a number of contracts to Canadian industry for continued modernization of this fleet.  In 2012, Defence saw the arrival of the first of Canada’s new Leopard II tanks, a key component in the training of tank crews and the combined arms team, as well as the delivery of Canada’s 17th and final CC-130J Hercules aircraft, on budget and ahead of schedule.

Renewing and Transforming the Business of Defence

To ensure Defence is as efficient and effective as possible, and that it delivers the best military capabilities at the best value for Canadians, Defence has made it a priority to comprehensively transform its major business processes to be more lean and efficient.  This initiative is central to meeting the Government’s direction to reduce inefficiencies and overhead, and reinvest resources in modern operational capabilities.  In 2012-13, DND/CAF established an internal, joint civilian-military Defence Renewal Team (DRT) to coordinate and guide Defence’s change and renewal efforts.  The DRT will provide a central point of leadership, coordination and oversight in implementing Defence’s long-term renewal vision.

At the same time, the CAF also began a process of examining the way in which it conducts operations.  The new Canadian Joint Operations Command (CJOC), stood up in 2012, is part of this transformation.  The intent of the CJOC is to streamline operations, create efficiencies and eliminate redundancies, as part of the process of reconstituting and realigning the CAF post-Afghanistan.

Prudent Fiscal Stewardship

In 2012-13, Defence began or continued implementation of a number of Government-wide spending reviews, including the 2010 Strategic Review and the Budget 2012 Spending Review.  These initiatives are aimed at contributing to the return to a balanced federal budget in the medium-term.  As a result, DND has increased efficiency and effectiveness and has focused on core roles while meeting the priorities of Canadians. The formation of the Defence Renewal Team is an important step in this direction.  Defence has made and will continue to make every effort to ensure sound financial management of taxpayer dollars.

2012-13 Human Resources (Full-Time Equivalents - FTE) 17
PlannedActualDifference2
95,1801 93,327 1,853

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

Notes:

  1. The figure published in the 2012-13 Report on Plans and Priorities 18 for planned FTEs was 95,100 FTEs. This figure included Primary Reserve (Class C) FTEs. The Primary Reserve (Class C) planned FTEs for FY 2012-13 were incorrectly identified as 600 vice 680 FTEs. The planned FTEs are adjusted accordingly in this table.
  2. The difference indicates variance between planned and actual figures; this is not an indication of growth or reduction.
  3. In comparison with the 2011-12 Departmental Performance Report (DPR) actual figures, FTEs decreased by 2,185.

For further information on Human Resources and Reserve Force Personnel, please refer to Section IV: Other Items of Interest 19.

2012-13 Financial Resources ($ thousands)
Total Budgetary
Expenditures
(Main Estimates) 
Planned SpendingTotal Authorities
(available for use)
Actual Spending(authorities used)Difference
(Planned vs. Actual Spending)
19,799,128 20,110,453 21,428,484 19,978,190 132,263

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

Financial Resources Analysis

The difference between planned and actual spending authorities is summarized as follows: 

Explanation of Change($ thousands)Change($)
Net adjustments to the spending profile of major capital equipment and
infrastructure projects to align financial resources with project acquisition timeliness
-901,992
Reduction of funding under the 2010 Strategic Review and savings identified as
part of the Budget 2012 Spending Review
-301,182
Operating Budget Carry-Forward -70,088
Requirements to support Canada’s international security operations in Afghanistan -41,952
Grants and Contributions -37,455
Spending of proceeds from the disposal of surplus crown assets -27,669
Total decreases -1,380,338
Manuge v. Her Majesty the Queen Class Action Lawsuit 424,660
Employee Benefit Plan Adjustments 282,312
Canada First Defence Strategy 234,881
Military Severance 203,552
Other Miscellaneous 102,670
Total increases 1,248,075
Net change -132,263

 

Expenditure Profile

Departmental Spending ($ thousands)
2010–11
Actual Spending
2011-12
Actual
Spending
2012-13
Main
Estimates
Planned
Spending
Total
Authorities
Actual
Spending
20,298,257 20,218,758 19,799,128 20,110,453 21,428,484 19,978,190

In FY 2012-13, the Main Estimates were increased through Supplementary Estimates and allotments from Treasury Board by $1,629.4 million to $21,428.5 million.

The differences between total authorities and actual spending of $1,450.3 million consist of:

  • $1,135.9 million in authorities that will be available to the Department in future years related primarily to:
    • $506.6 million for implementation of the Federal Court's approved settlement of the Manuge v. Her Majesty the Queen class action lawsuit concerning the Pension Act offset provision contained in the Canadian Forces Service Income Security Insurance Plan - Long Term Disability Policy;
    • $355.0 million in the operating budget carry forward that will be available to the Department in 2013-14;
    • $246.6 million for revised cash flow schedules for major capital equipment and infrastructure projects; and
    • $27.7 million in proceeds from the disposal of surplus Crown assets which will be returned to the Department in 2013-14.
  • $276.9 million related primarily to:
    • $210.3 million for the planned return of funding related the strategic and operating review;
    • $61.4 million in year-end adjustments related to the transfer of spending authorities from operating costs to personnel. The transfer was mainly required for the termination of military severance; and
  • $37.5 million in residual lapses related primarily to lower than planned contribution payments.

The total spending difference of $240.6 million between fiscal years 2011-12 and 2012-13 is attributed mainly to a decrease in expenditures related to deployed operations.

Departmental Spending for Fiscal Year 2012-13 by Program

Source: Assistant Deputy Minister (Finance and Corporate Services) Group
Note: Due to rounding, figures may not add up to 100 percent.

"See the text description of this pie chart that is available on a separate page."

 

Financial Spending Trend

Financial Spending Trend

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

Notes:

  • Actual Spending represents the final spending on a cash basis, as provided in the Public Accounts.
  • Planned Spending provides an update of the Main Estimates information on additional funding approved after the finalization of the Main Estimates as provided in the 2013-14 Reports on Plans and Priorities 20.

 "See the text description of this graph that is available on a separate page."

  • Planned spending in FY 2013-14 is lower than actual spending in FY 2012-13. Major factors contributing to the net change include:
    • The expiry of budgetary spending authorities for the Canada First Defence Strategy (CFDS) which were approved for a three year period between 2010-11 and 2012-13. For 2013-14 and onwards, the Department will seek renewed budgetary spending authorities for the CFDS through the supplementary estimates process;
    • Decreases in departmental funding under the 2010 Strategic Review and savings identified as part of the Budget 2012 spending review; and
    • Payments in FY 2012-13 related to the implementation of the Federal Court's approved settlement of the Manuge v. Her Majesty the Queen class action lawsuit concerning the Pension Act offset provision contained in the Canadian Forces Service Income Security Insurance Plan - Long Term Disability Policy.
  • Planned spending in FY 2014-15 is higher than FY 2013-14. The major factor contributing to the net increase is revised cash flows schedules for major capital equipment and infrastructure projects.

Estimates by Vote

For information on Defence's organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2013 (Volume II) 21. An electronic version of the Public Accounts 2013 is available on the Public Works and Government Services Canada’s website 22.

Performance Summary Tables for Strategic Outcomes and Programs

($ thousands)

Please see the Financial Resources Analysis for a summary explanation of the difference between planned and actual authorities.

Strategic Outcome 1 – Resources Are Delivered To Meet Government Defence Expectations
ProgramTotal
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending (authorities used)Alignment to Government
of Canada
Outcomes
2012-132013-142014-152012-1322011-122010-11
1.1: Defence
Science and
Technology
296,821 296,821 278,337 267,097 332,063 370,062 399,825 384,947 An innovative and knowledgebased
economy
 23
1.2: Recruiting
of Personnel
and Initial
Training
1,184,910 1,184,910 1,029,592 1,051,274 1,306,761 1,138,620 1,071,324 1,117,863 A safe and secure
world through international
cooperation
 24
1.3: Equipment
Acquisition
and Disposal
2,928,374 3,030,240 2,930,652 3,956,467 2,210,676 2,254,696 2,381,604 2,779,775 A safe and secure
world through international
cooperation
 25
1.4: Real Property
and Informatics Infrastructure Acquisition and
Disposal
523,829 559,986 534,590 511,381 530,727 588,552 481,572 414,945 In support of
Strong economic
growth
 26
Strategic
Outcome 1
SubTotal
4,933,9345,071,9584,773,1705,786,2204,380,2274,351,9314,334,3254,697,531 

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

2 In order to align with departmental authorities by Program, as presented in Vol. II of the Public Accounts, services provided without charge amounts for employer’s contribution to employee insurance plans, such as the Public Service Health Care Plan and the Public Service Dental Plan provided by the Treasury Board of Canada Secretariat,  accommodations provided by Public Works and Government Services Canada, Workers’ compensation provided by Human Resources and Skills Development Canada and legal services provided by the Department of Justice are not to be included in this figure.  This information is presented in Departmental Financial Statements only.

Strategic Outcome 2 – National Defence Is Ready To Meet Government Defence Expectations
ProgramTotal
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending (authorities used)Alignment to
Government
of Canada
Outcomes
2012-132013-142014-152012-1332011-122010-11
2.1: Maritime
Readiness
2,290,638 2,290,638 2,048,617 2,060,833 2,433,602 2,380,705 2,297,720 2,164,323 A safe and secure
world through
international
cooperation
 27
2.2: Land
Readiness
3,599,768 3,599,768 3,353,034 3,352,219 3,837,936 3,624,786 3,626,299 3,350,735 A safe and secure
world through
international
cooperation
 28
2.3: Aerospace
Readiness
1,911,012 1,911,012 1,726,717 1,742,630 2,060,784 1,938,240 1,908,491 1,781,696 A safe and secure
world through
international
cooperation
 29
2.4: Joint and
Common
Readiness
2,347,012 2,339,309 2,175,664 2,201,670 2,562,345 2,325,390 2,337,399 2,187,920 A safe and secure
world through
international
cooperation
 30
Strategic
Outcome 2
SubTotal
10,148,43010,140,7279,304,0329,357,35210,894,66610,269,12010,169,9099,484,674 

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

3 In order to align with departmental authorities by Program, as presented in Vol. II of the Public Accounts, services provided without charge amounts for employer’s contribution to employee insurance plans, such as the Public Service Health Care Plan and the Public Service Dental Plan provided by the Treasury Board of Canada Secretariat,  accommodations provided by Public Works and Government Services Canada, Workers’ compensation provided by Human Resources and Skills Development Canada and legal services provided by the Department of Justice are not to be included in this figure.  This information is presented in Departmental Financial Statements only.

Strategic Outcome 3 – Defence Operations Improve Peace, Stability and Security Wherever Deployed
ProgramTotal
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending (authorities used)Alignment to
Government
of Canada
Outcomes
2012-132013-142014-152012-1342011-122010-11
3.1: Situational
Awareness
396,047 396,047 381,850 384,860 381,592 435,588 599,459 775,516 A safe and secure
world through
international
cooperation
 31
3.2: Canadian
Peace, Stability
and Security
295,703 295,703 299,507 302,261 321,796 351,048 336,917 318,492 A safe and
secure Canada
 32
3,3: Continental
Peace, Stability
and Security
184,687 184,687 180,551 186,035 196,316 234,637 202,580 190,987 A strong and
mutually beneficial
North American
partnership
 33
3.4: International
Peace, Stability
and Security
1,538,876 1,719,881 1,327,691 1,272,644 1,909,581 1,199,828 1,980,673 2,312,846 A safe and secure
world through
international
cooperation
 34
Strategic
Outcome 3
SubTotal
2,415,3132,596,3182,189,5992,145,8002,809,2862,221,1013,119,6293,597,841 

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

4 In order to align with departmental authorities by Program, as presented in Vol. II of the Public Accounts, services provided without charge amounts for employer’s contribution to employee insurance plans, such as the Public Service Health Care Plan and the Public Service Dental Plan provided by the Treasury Board of Canada Secretariat,  accommodations provided by Public Works and Government Services Canada, Workers’ compensation provided by Human Resources and Skills Development Canada and legal services provided by the Department of Justice are not to be included in this figure.  This information is presented in Departmental Financial Statements only.

Strategic Outcome 4 – Care and Support to the Canadian Armed Forces and Contribution to Canadian Society
ProgramTotal
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending (authorities used)Alignment to Government
of Canada Outcomes
2012-132013-142014-152012-1352011-122010-11
4.1: Defence Team
Personnel
Support
707,135 707,135 690,425 682,374 1,689,358 1,656,690 1,002,923 906,016 A safe and secure
world through
international
cooperation
 35
4.2: Canadian
Identity
349,478 349,478 328,001 328,654 360,300 359,555 369,853 353,602 A safe and
secure Canada
 36
4.3: Environmental
Protection and Stewardship
128,955 128,955 108,669 44,177 132,527 108,006 126,246 122,478 A strong and
mutually
beneficial
North American
partnership
 37
4.4: Non-Security
Support
5,628 5,628 2,310 2,117 5,792 2,159 17,317 6,479 A safe and secure
world through
international
cooperation
 38
Strategic
Outcome 4
SubTotal
1,191,1961,191,1961,129,4051,057,3222,187,9762,126,4091,516,3381,388,575 

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.
  • The difference between FY 2012-13 planned and actual spending for Program 4.1: Defence Team Personnel Support is primarily associated with payments related to the Manuge v. Her Majesty the Queen class action lawsuit ($424.6M) and for payments related to the termination of military severance ($203.5M).

5 In order to align with departmental authorities by Program, as presented in Vol. II of the Public Accounts, services provided without charge amounts for employer’s contribution to employee insurance plans, such as the Public Service Health Care Plan and the Public Service Dental Plan provided by the Treasury Board of Canada Secretariat,  accommodations provided by Public Works and Government Services Canada, Workers’ compensation provided by Human Resources and Skills Development Canada and legal services provided by the Department of Justice are not to be included in this figure.  This information is presented in Departmental Financial Statements only.

Performance Summary Table for Internal Services ($ thousands)
Program 5.1:
Internal
Services
Total
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending
(authorities used)
2012-132013-142014-152012-132011-122010-11
Sub-Total 1,110,256 1,110,256 916,362 874,021 1,156,329 1,009,628 1,078,558 1,129,637

 

Total Performance Summary Tables ($ thousands)
Strategic
Outcomes and
Internal
Services
Total
Budgetary
Expenditures
(Main
Estimates
2012-13)
Planned SpendingTotal
Authorities
(available
for use)
2012-13
Actual Spending
(authorities used)
2012-132013-142014-152012-132011-122010-11
Total 19,799,128 20,110,453 18,312,568 19,220,715 21,428,484 19,978,190 20,218,758 20,298,257

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 Theme IV – Shrinking the Environmental Footprint – Beginning with Government, as denoted by the visual identifier below.

These contributions are components of the following Programs and are further explained in Section II: Analysis of Programs by Strategic Outcome:

Theme IV Shrinking the Environmental Footprint – Beginning with Government

 

 

 


During 2012-13, Defence considered the environmental effects of initiatives subject to the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals 39. Further information on the results of strategic environmental assessments is available in Section IV: Other Items of Interest 40 – Strategic Environmental Assessment.

For additional details on Defence's activities to support sustainable development and SEA, please see Section II of this report. For complete details on the FSDS, please visit the Environment Canada website 41.