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Minister's Message

I am pleased to submit to Parliament and Canadians the Canadian Grain Commission’s Departmental Performance Report (DPR) for the fiscal year 2008-2009. This report details how the Canadian Grain Commission used its resources from April 1, 2008 to March 31, 2009 to regulate grain handling and establish and maintain grain standards, while protecting the interests of producers and ensuring a dependable commodity for domestic and export markets.

Canadian farmers, regardless of their sector or the region they hail from, are the very backbone of this country. As Minister, I am proud and indeed honoured to belong to a government which appreciates not only the significance of agriculture in the makeup of our nation, but also the need to put Farmers First in all of our agricultural policies.

As our country comes to grips with the global economic downturn, Canada needs an innovative and profitable agriculture sector perhaps more than ever before. So not only do Canadian farmers continue to produce safe and healthy foods for our families to enjoy, they are also playing a lead role in the country’s economy and future.

This is where the partner organizations of the Agriculture and Agri-Food (AAF) Portfolio come in. These organizations – Agriculture and Agri-Food Canada, the Canadian Food Inspection Agency, Farm Credit Canada, the Canadian Grain Commission, the Canadian Dairy Commission, the National Farm Products Council and the Canada Agricultural Review Tribunal – have different jobs to do in supporting me as Minister. What they have in common is a sense of commitment to make our sector the best it can be.

On February 23, 2009, I introduced to Parliament Bill C-13, An Act to amend the Canada Grain Act. The Bill includes reforms that are based on recommendations from the 2006 reports by COMPAS Inc. and the Standing Committee on Agriculture and Agri-Food and reflect the government’s commitment to reducing regulation and mandatory costs to the grain sector, including producers. Key components of the bill include clarifying the Canadian Grain Commission’s mandate, eliminating inward inspection and inward weighing, and eliminating security as a requirement for licensing. Bill C-13 is currently at the second reading stage of the legislative process.

As a government, we are striving to address the agriculture sector’s short-term challenges, while improving its long-term prospects for growth and success. I know I can depend on the AAF Portfolio partners to do their part to achieve a stronger and more dynamic sector to the advantage of all Canadians.

Chief Commissioner’s Message

Welcome to the Canadian Grain Commission’s 2008-2009 Departmental Performance Report (DPR). The Canadian Grain Commission is the federal agency responsible for setting standards of quality and regulating Canada’s grain handling system. Our vision is to be a leader in delivering excellence and innovation in grain quality and quantity assurance, research, and producer protection.

Canada has an excellent record for supplying domestic and world markets with safe, high quality grain. The Canadian Grain Commission’s role in providing assurance of grain quality, quantity, and safety is integral in helping Canada maintain this reputation. As a result, the Canadian Grain Commission plays a key role in achieving a “Canada Brand” for grains. The Canadian Grain Commission continues to work alongside the Minister of Agriculture and Agri-Food’s (AAF) portfolio partners and the grain industry to maintain market competitiveness and add value to Canadian producers and Canada’s grain quality assurance system (GQAS).

The 2008-2009 fiscal year has presented the Canadian Grain Commission with several challenges including: adapting to changes to Canada’s visual grading system and increased consumer concerns about grain quality and grain safety assurances. The Canadian Grain Commission continued to deliver its mandate while facing these challenges. Some of the Canadian Grain Commission highlights during the past fiscal year include:

• The removal of the kernel visual distinguishability (KVD) criterion for all western Canadian wheat classes effective August 1, 2008 and the subsequent introduction of a declaration system for western Canadian wheat.
• The introduction of Bill C-13, An Act to amend the Canada Grain Act on February 23, 2009. In December 2007, the Government introduced this amendment in the form of Bill C-39 however, Bill C-39 died on the order paper in September, 2008. While Bill C-13 is being considered by Parliament, the Canadian Grain Commission will continue to operate under the existing provisions of the current Act and Regulations.
• An extensive risk assessment of the licensing security program, triggered because of the increased transaction risk to producers stemming from high and volatile grain prices.
• Significant efforts to develop and implement the Canadian Grain Commission’s people planning priorities to ensure the Canadian Grain Commission has the human resource capacity to meet program activity requirements and strategic outcome expected results now and in the future.
• Responding to increased demands for grain safety assurances from domestic and international customers.
• Increased efforts towards communicating Canadian Grain Commission activities, promoting Canadian Grain Commission awareness, and consulting with producers and other stakeholders.

Once again, I am pleased to report that the Canadian Grain Commission received a positive audit of its annual financial position. A copy of the audited financial statements is available on the Canadian Grain Commission’s website at: http://www.grainscanada.gc.ca/cgc-ccg/cr-rm/finance/2009/fs09-ef09-eng.htm

I invite you to read this report to learn more about the Canadian Grain Commission’s challenges and accomplishments and how the organization carried out its mandate during the 2008-2009 reporting period.

Section I – Overview

1.1 Raison d’être and Responsibilities

Raison d’être

Responsibilities

Department Description

Canada is known around the world for the quality, consistency, reliability and safety of its grain¹ and grain products. The Canadian Grain Commission’s role in providing assurances of grain quality, safety and quantity helps Canada maintain this reputation and is a key factor in permitting Canadian exporters to market successfully in competitive international grain markets. The Canadian Grain Commission’s sole strategic outcome is: Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected. Information on the Canadian Grain Commission’s quality assurance, quantity assurance, grain quality research and producer protection program activities that facilitate delivery of the mandate and the strategic outcome is provided in Section II.

Responsibilities

Canada’s grain quality assurance system (GQAS) administered by the Canadian Grain Commission assures consistent and reliable grain quality and grain safety that meets the needs of international and domestic markets. An effective GQAS is a key factor in permitting Canadian exporters to market successfully in competitive international grain markets and is essential for producers in order to realize maximum value from their grain. The Canadian Grain Commission’s grain quantity assurance program assures the weight of grain loaded into or discharged from conveyances. In addition, the quantity assurance program assures the weight of grain in store at licensed terminal and transfer elevators.

The Canadian Grain Commission conducts research in support of the GQAS to address emerging issues and permit the effective marketing of Canadian grain in the interests of producers and the Canadian grain industry. In addition, the Canadian Grain Commission is mandated to serve producer interests by upholding the Canada Grain Act and as such has implemented a number of programs and safeguards to ensure the fair treatment of Canadian grain producers.

The Canadian Grain Commission reports to Parliament through the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food. The Canadian Grain Commission’s head office is located in Winnipeg, Manitoba. As of March 31, 2009, the Canadian Grain Commission employed 640 full-time equivalents (FTEs) and operated 16 offices across Canada. Funding for Canadian Grain Commission programs and activities is through a combination of revolving fund and appropriation sources.

Strategic Outcome

In order to effectively pursue its mandate, the CGC aims to achieve the following strategic outcome:  Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected. CGC operations directly support Canada’s efforts to brand Canadian agriculture as a leader in food safety and quality, science and innovation, and business risk management. The provision of CGC programs and activities results in equitable grain transactions and consistent and reliable Canadian grain shipments.

This is particularly important considering Canada exported approximately $14.81 billion in cereals, grains and oilseeds during 2008. In our role as a neutral third party regulator and arbiter, the Canadian Grain Commission works in partnership with virtually every participant in the grain industry.

Program Activity Architecture

The following chart illustrates the Canadian Grain Commission’s Program Activity Architecture (PAA). The PAA is the basic structure for the management and allocation of resources to various programs and activities to achieve intended results. The Canadian Grain Commission’s PAA has five program activities. Each program activity contributes to the success of the Canadian Grain Commission’s strategic outcome. The producer protection program consists of three program sub-activities.

1.2 Summary of Performance

2008-09 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
$87,178	$89,178	$73,664

2008-09 Human Resources (FTEs)

Planned	Actual	Difference
664	640	24

Financial resource amounts reflect total spending for the Canadian Grain Commission, including total Appropriation and Revolving Fund respendable revenue. Respendable revenue consists of funds generated through fees and contracts for services rendered by the Canadian Grain Commission. This revenue accounts for approximately 50 percent of total spending and is used to offset a portion of the costs of providing these services. Total respendable revenue for 2008-09 was approximately $37.8 million.

The difference between planned spending and total authorities is $2 million which reflects allocations from Treasury Board for severance pay and collective agreements. In addition to Main and Supplementary Estimates, the Canadian Grain Commission was authorized to use $14.2 million of operating surplus. This amount is included in planned spending and total authorities.

The difference between planned spending, total authorities, and actual spending is due to the Canadian Grain Commission’s revolving fund surplus as well as 24 fewer FTEs than planned. The revolving fund surplus is a result of actual grain volumes that were higher than volumes originally forecast when appropriation amounts were approved. This is an expected variation. The difference between actual and planned FTEs is due to staff departures and delays in the hiring process.

Further information on Canadian Grain Commission funding is available in the Expenditure Profile Section.

Strategic Outcome 1: Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected

Performance Indicators	Targets	2008-09 Performance
Number of instances where buyers are dissatisfied with Canadian Grain Commission standards, methods or procedures used to ensure a dependable commodity for domestic and export markets	Zero instances	Successfully met the target:  The Canadian Grain Commission responded to all known instances where buyers were dissatisfied with Canadian Grain Commission standards, methods or procedures. The Western and Eastern Standards Committees met several times throughout the year to ensure the concerns and issues of the grain sector at large are reflected in the continuous evolution of the Canadian grading system. http://www.grainscanada.gc.ca/gscommittee-comiteng/gscm-mcng-eng.htm
Level of producer satisfaction with Canadian Grain Commission producer protection services	Zero unresolved or unaddressed complaints	Successfully met the target:  The Canadian Grain Commission responded to all producer inquiries and complaints during 2008-09.

($ thousands)

Program Activity¹	2007-08 Actual Spending	2008-09				Alignment to Government of Canada Outcomes²
		Main Estimates4	Planned Spending5	Total Authorities5	Actual Spending5
¹ Program activity descriptions are available on the Treasury Board Secretariat Main Estimates website at: http://www.tbs-sct.gc.ca/est-pre/20092010/p2-eng.asp
² Further information on the Whole of Government Framework and the Government of Canada Outcomes is available at:  http://www.tbs-sct.gc.ca/pubs_pol/dcgpubs/mrrsp-psgrr/wgf-cp-eng.asp
³ Further information on the Canadian Grain Commission’s link to the Government of Canada Outcome areas is available at:  http://www.grainscanada.gc.ca/cgc-ccg/cr-rm/goco-rogoc-eng.htm
4 The 2008-09 main estimates values appear low because they do not include appropriations of $14.2 million (Operating Surplus) and $26.5 million (“Sunsetter” funding). These amounts were not approved at the time of the Canadian Grain Commission’s Annual Reference Level Update (ARLU) report. Planned spending and total authorities for 2008-09 includes these amounts.
5 The difference between planned spending, total authorities, and actual spending is due to the Canadian Grain Commission’s revolving fund surplus as well as 24 fewer FTEs than planned. The revolving fund surplus is a result of actual grain volumes that were higher than volumes originally forecast when appropriation amounts were approved. The difference between actual and planned FTEs is due to staff departures and delays in the hiring process.
1. Quality Assurance Program	46,257	29,0064	53,306	54,686	44,1655	An innovative and knowledge-based economy³
2. Quantity Assurance Program	13,830	11,6354	17,659	18,040	13,2605	An innovative and knowledge-based economy³
3. Grain Quality Research Program	10,511	4,5424	11,350	11,801	11,484	An innovative and knowledge-based economy³
4. Producer Protection Program	3,940	1,2354	4,863	4,651	4,755	A fair and secure marketplace³
Total	74,538	46,4784	87,178	89,178	73,6645

Contribution of Priorities to the Strategic Outcome

The Canadian Grain Commission identified several priorities in its 2008-09 Report on Plans and Priorities that were the focus of Canadian Grain Commission attention and resources during the reporting period. The following table summarizes the status and the progress made towards each of the priorities. Each priority contributes to the Canadian Grain Commission’s sole strategic outcome.

Contribution of Operational Priorities to Strategic Outcome

Operational Priorities	Type¹	Status	Links to Strategic Outcome
¹ Type is defined as follows: previously committed to—committed to in the first or second fiscal year before 2008-09; ongoing—committed to at least three fiscal years prior to 2008-09; and new—newly committed to in 2008-09.
Ongoing delivery of the Canadian Grain Commission mandate under the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences	Ongoing	Successfully met expectations The Canadian Grain Commission continued to provide consistent daily delivery of programs and services in support of the Canadian Grain Commission’s mandate. This included inspection, weighing, testing, monitoring and grain sanitation programs to ensure Canadian grain exports are uniform and consistent with regard to intrinsic quality and grain safety assurance, research and development on grain quality and grain safety to support and enhance the GQAS, and producer protection programs to ensure fair grain transactions.	This priority contributes directly to the achievement of the Canadian Grain Commission’s strategic outcome and all of the Canadian Grain Commission’s program activities. Future opportunities/efforts Continue to monitor and refine people planning initiatives to ensure the right people are in place to deliver Canadian Grain Commission programs and services in support of the Canadian Grain Commission’s mandate. Increase communication efforts related to Canadian Grain Commission activities, promoting Canadian Grain Commission awareness, and consulting with producers and other stakeholders. Further information on the programs and services that contribute to this priority is available at:  http://grainscanada.gc.ca/
Positioning the GQAS to remain relevant and to support the continued competitiveness of Canadian grains in both domestic and international markets The Canadian Grain Commission continued efforts to develop and implement programs, initiatives, and new research methods and processes aimed at maintaining and strengthening the Canadian GQAS. This priority is necessary to ensure that Canada’s reputation for consistent grain quality and grain safety is maintained.	Ongoing	Mostly met expectations Removal of KVD requirements for all classes of wheat effective August 1, 2008. The Canadian Grain Commission is a member of the ‘Industry Committee on the Removal of KVD’. This Committee developed and continues to refine the key elements needed in a post-KVD environment The Canadian Grain Commission undertook a significant public awareness campaign to communicate new industry requirements and variety de-registration issues. http://www.grainscanada.gc.ca/wheat-ble/ds-sd/dsm-msd-eng.htm Process Verification Continued to develop two new voluntary HACCP-based (Hazard Analysis Critical Control Points) grain safety assurance systems in partnership with the grain industry and provincial governments of Manitoba and Ontario. In the final stages of receiving pre-export approval to recognize Canada's Ochratoxin A (OTA) sampling and testing protocols and demonstrate Canada’s ongoing commitment to EU customers, consumers, and regulators. Grain Safety Continued efforts to develop new testing methodologies for mycotoxins and pesticide residues. Research and Objective Testing Validated genetically modified (GM) organism detection, identification and quantification methods for canola.	Progress towards this ongoing priority contributed directly to the achievement of the Canadian Grain Commission’s strategic outcome of ensuring Canada’s grain is safe, reliable and marketable. Future opportunities/efforts KVD The full extent of operating in a non-KVD environment is yet to be determined. In collaboration with the ‘Industry Committee on the Removal of KVD’, evaluation and process adjustments will be essential to maintain the integrity of the wheat quality assurance system. Development of rapid affordable variety identification (VID) technology Rapid economical VID technology remains a high priority in a non-KVD environment to mitigate quality risks in wheat shipments. Grain Safety The Canadian Grain Commission is the only government organization positioned to deal with grain safety issues in the Canadian grain handling system. As food safety awareness has increased, buyers and national food inspection authorities have increased demands for grain safety assurances. The Canadian Grain Commission plans to invest additional resources in this area to meet these demands. Grading System Factors - Incorporating Rapid Viscosity Analysis (RVA™) into the Canadian grading system An elevated and unacceptable number of equipment failures has delayed plans to incorporate RVA™ into the Canadian grading system. Adjustments have been made to the equipment and the technology will be further evaluated in 2009-10. Canadian Grain Commission Service Delivery The Canadian Grain Commission announced plans to transition away from on-site inspection services at prairie facilities. This will result in the closure of Canadian Grain Commission service centres in Brandon, MB and Melville and Moose Jaw, SK in fiscal year 2009-10. Service centre closure will not reduce services available to producers, nor impair the Canadian Grain Commission’s ability to carry out its mandate.
Regulatory compliance The Canadian Grain Commission promotes, maintains and enforces compliance with the Canada Grain Act (CGA) and the Canada Grain Regulations (CGR). Enforcing compliance results in shipments of grain that consistently meet specifications for quality, safety and quantity. In addition, the Canadian Grain Commission regulates the grain industry to protect producers’ rights and ensure the integrity of grain transactions.	Ongoing	Successfully met expectations Implemented redefined sampling, monitoring, testing and notification procedures and protocols at all points in the grain handling system for all wheat shipments in a non-KVD environment. Successfully reduced administrative requirements and information obligations by more than twenty percent as required by the Canadian Government’s Paperwork Burden Reduction Initiative. This required an amendment to the CGR. Continued to enforce licensing and security compliance in accordance with the current CGA and CGR.	Enforcing compliance with the Canada Grain Act and the Canada Grain Regulations directly aligns the Canadian Grain Commission with its legislative obligations and its strategic outcome. Future opportunities/efforts The Canadian Grain Commission remains committed to a sound regulatory framework that is effective, responsive, cost-efficient and accountable. The Canadian Grain Commission conducted consultations and subsequently announced plans to eliminate all official inspection and weighing requirements for grain destined to the United States. Regulatory amendments will be proposed.

Contribution of Management Priorities to Strategic Outcome

Management Priorities	Type¹	Status	Links to Strategic Outcome
¹ Type is defined as follows: previously committed to—committed to in the first or second fiscal year before 2008-09; ongoing—committed to at least three fiscal years prior to 2008-09; and new—newly committed to in 2008-09.
Sustainable Canadian Grain Commission funding mechanism A sustainable funding mechanism is imperative for the Canadian Grain Commission to carry out its legislated responsibilities and maintain its capacity to create value for producers, the grain industry, and the Canadian public.	Ongoing	Somewhat met Initiated a review of alternative funding mechanisms and continued efforts to determine an optimal funding arrangement. Continued the ongoing process of cost containment and internal re-allocation of resources to new and emerging priorities.	A sustainable funding mechanism is necessary for the long term stability of the Canadian Grain Commission. This impacts the Canadian Grain Commission’s strategic outcome as well as all of the program activities. Future opportunities/efforts The Canadian Grain Commission will continue to work in consultation with AAF Portfolio and Government of Canada Central Agencies to determine an optimal long term funding arrangement.
Certification to meet International Organization for Standardization (ISO) Standards ISO certification throughout the Canadian Grain Commission will improve efficiencies and give customers increased confidences in the processes and testing methods that support Canada’s GQAS.	Previously committed to	Somewhat met The Canadian Grain Commission's main operating division, Industry Services, continues to be ISO 9001:2000 certified. The Canadian Grain Commission hired a full time GRL ISO coordinator. A GRL ISO Accreditation Working Team has been established to address the ISO 17025:2005 Standard management and technical requirements in the GRL.	ISO certification supports the Canadian Grain Commission’s sole strategic outcome. Maintaining ISO certification in Industry Services directly supports Canadian Grain Commission program activity #1 and program activity #2. ISO/IEC accreditation in the GRL will support program activity #1 and program activity #3. Future opportunities/efforts The Canadian Grain Commission plans to focus on accrediting methods in the Grain Safety area of the GRL (e.g. mycotoxins, pesticide residues, trace elements and varietal identification).
Other management priorities Several management priorities were identified in the Canadian Grain Commission’s 2008-09 Report on Plans and Priorities. These priorities were focused on improving management practices, controls, or infrastructure within the organization in such areas as human resources, risk management, real property management and corporate services.	New	Successfully met expectations Management Accountability Framework (MAF) The Canadian Grain Commission’s MAF (Round V 2007-08) audit results were used to identify management priorities for the 2009-2010 planning period. Business Planning and People Planning Integration People Plans were developed for 2008-09 and 2009-10. Detailed assessment and consultation occurred to enhance the people planning process. A tracking and monitoring process was implemented. Performance Development and Achievement (PDAP) Approximately 80% of Canadian Grain Commission employees attended PDAP training and information sessions.	Progress made towards meeting these management priorities supports the organization in achieving its strategic outcome and all of its program activities. Future opportunities/efforts The hiring process for a Chief Audit Executive (CAE) is nearing completion and an appointment is planned in fiscal year 2009-10. The CAE will be responsible for planning and conducting internal audits and evaluations. Review and evaluation of the People Management Framework was deferred until 2009-10 as a result of potential legislative and organizational change and the work associated with it. Efforts will continue to assess the feasibility of integrating Industry Services inspection and weighing employees into one classification group. The Canadian Grain Commission will continue efforts to integrate people and business planning.
Bill C-39, An Act to Amend the Canada Grain Act (CGA) The CGA has not been substantially changed for more than three decades. Bill C-39, An Act to Amend the Canada Grain Act (CGA), was tabled in December, 2007.	New	Not met Bill C-39 died on the order paper when Parliament was dissolved in September 2008. Consequently, on February 23, 2009, Bill C-13, An Act to Amend the Canada Grain Act (CGA), was introduced in Parliament. Bill C-13 re-introduced the same amendments to the CGA as Bill C-39. Bill C-13 is at second reading stage of the legislative process. Further information is available at: http://www.grainscanada.gc.ca/legislation-legislation/bill-projetloi/c13m-mc13-eng.htm	Amendments to the CGA are directly linked to delivery of the Canadian Grain Commission’s strategic outcome and program activities. The Canadian Grain Commission continues to operate under the provisions of the current CGA while the Bill is being considered by Parliament. Future opportunities/efforts The Canadian Grain Commission is committed to working in consultation with grain sector stakeholders with a goal to modernizing regulation and reducing mandatory costs to the grain sector, including producers.

Risk Analysis

The Canadian Grain Commission’s strategic outcome is directly focused on and committed to ensuring safe, reliable and marketable Canadian grain as well as providing producer protection services to ensure fair grain transactions. The Canadian grain industry and the GQAS delivered by the Canadian Grain Commission operate in a climate of constant change. The Canadian Grain Commission must be able to adapt to this change to assure consistent and reliable grain quality and grain safety that meets the needs of international and domestic markets.

Risk assessment and risk management is carried out by all Canadian Grain Commission divisions and units as an integrated part of their policy, priority setting, planning, resourcing, program delivery, and reporting activities. Feedback from producers and grain handlers, domestic and international processors, and other government organizations often provides early indication of potential risk. Effective management of risks associated with assuring accurate quality and quantity assessment and certification of Canadian grain is fundamental to the Canadian Grain Commission’s mandate and strategic outcome and often results in opportunities for improvement to Canadian Grain Commission operations and the GQAS. From the Canadian Grain Commission’s inception, its programs and practices have been built on sound risk management principles.

During 2008-09, the Canadian Grain Commission began the process of formalizing its corporate risk profile and integrated risk management framework (IRMF) by identifying key strategic risks and the associated integrated risk mitigation strategies. The following table summarizes the main challenges faced by the Canadian Grain Commission and the key ongoing risk mitigation strategies used to achieve results and successfully deliver upon the organization’s strategic outcome. Successful risk assessment and risk management throughout the organization is evidenced by the Canadian Grain Commission’s continued capacity to deliver successfully upon its strategic outcome and all of its program activities. Risks and challenges associated with each program activity and strategies to address these challenges are further discussed in Section II.

Ongoing challenges and risk mitigation strategies

Key Ongoing Challenge/Link to Program Activity	Ongoing Risk Mitigation Strategies
Ensure relevance and value of grain standards in facilitating the segregation, movement, and transfer of ownership of grain Program Activity #1 Program Activity #3	A broad spectrum of producers and grain industry representatives met several times throughout the year, through the Western Standards Committee and the Eastern Standards Committee and commodity-specific subcommittees, to study and review grain standards. Wide representation on the Standards Committees ensures that the views of all principals (producers, marketers, buyers and processors) are considered before changes are made to the Canadian grading system. Information on the Western and Eastern Standards Committee members and the 2008-09 recommendations can be found at: http://www.grainscanada.gc.ca/gscommittee-comiteng/egsc-cnge-eng.htm http://www.grainscanada.gc.ca/gscommittee-comiteng/wgsc-cngo-eng.htm
Ensure continued relevancy of the Canadian Grain Commission’s quality and quantity assurance program activities Program Activity #1 Program Activity #2	The Canadian Grain Commission received ongoing feedback on the GQAS directly from producers, grain handlers, domestic and overseas buyers and processors, and the Western and Eastern Standards Committees. This feedback was used to build upon and strengthen the existing GQAS to ensure continued relevancy. Adherence to ISO Quality Management System (QMS) procedures includes regular review of quality and quantity assurance processes allowing the Canadian Grain Commission to adjust service procedures and identify and/or adjust training as necessary.
Science and technology capacity must keep pace with the needs of domestic and international markets in order to ensure Canada’s grain is safe, reliable and marketable Program Activity #1 Program Activity #3	Feedback received by Canadian Grain Commission personnel from overseas and/or domestic buyers, processors, producers, grain handlers, and the Western and Eastern Standards Committees was used to identify research priorities to build upon and strengthen the existing GQAS to ensure continued relevancy. Projects undertaken in the GRL are tracked through the Canadian Grain Commission’s established Project Management System. This system includes the identification of risk management and contingency strategies for the management of identified risks.
Producer protection programs must align with and be able to adapt to the evolving needs of producers and the grain industry to ensure that producers are compensated fairly for the quality and quantity of grain delivered and shipped Program Activity #4	The Canadian Grain Commission investigated all producer concerns/complaints and consulted with and evaluated feedback from producers on the activities and services provided under the producer protection program activity. During 2008-09, the Canadian Grain Commission completed an extensive risk assessment of the licensing security program, triggered because of the increased transaction risk to grain producers stemming from high and volatile grain prices. Strategies were implemented to address the higher risk.
Ensure human resources capacity and capabilities align with the organizational needs All program activities	The Canadian Grain Commission has implemented an integrated people and business planning (IPBP) process. Risk assessment and risk management is embedded in the IPBP process to ensure the workforce and work environments align with the current and future needs of the Canadian Grain Commission.

Expenditure Profile

The Canadian Grain Commission is funded by a combination of an ongoing appropriation, special appropriation, authority to re-spend fees collected, and a revolving line of credit of $2 million. The revolving line of credit has been frozen since 2003-2004. Annually, the Canadian Grain Commission receives ongoing voted appropriation of $5.2 million to cover the costs associated with Assistant Commissioners and to fund a portion of the Grain Research Laboratory. The last Assistant Commissioner term ended in June 2008 and no new appointments have been made. As such, Assistant Commissioner functions have been assumed by the Commissioners, the Licensing Unit, and Communications. The remainder of the organization’s programming is intended to be cost recovered via Revolving Fund (RF) fee revenues, collected primarily from inspection and weighing services.

The Canadian Grain Commission has fixed costs related to its statutory mandate which cannot be eliminated or reduced as revenue declines. In order to meet evolving grain industry needs, labour contract settlements, and general increases in the costs of goods and services, the Canadian Grain Commission maintains an ongoing process of cost containment and reallocates internal resources to meet new and emerging priorities.

The Canadian Grain Commission’s overall cost recovery level has decreased since the mid-nineties from approximately 90% to between 50-60%. As the organization has been unable to raise its fees since 1999, Parliament has provided the organization with special adhoc appropriations to cover the remainder of its operating costs. The adhoc nature of this funding is problematic from an operational perspective. The Canadian Grain Commission has developed and is pursuing a permanent sustainable funding arrangement involving a combination of ongoing appropriations and fee revenues.

Departmental Spending

Fiscal Year	Planned Spending ($ million)	Total Authorities ($ million)	Actual Grain Volumes (million tonnes)	Actual Spending ($ million)
2004-05	$63.436	$63.472	44.9	$63.285
2005-06	$68.188	$69.500	49.9	$70.144
2006-07	$76.738	$77.959	55.8	$67.204
2007-08	$75.997	$84.236	54.8	$74.538
2008-09	$87.178	$89.178	52.5	$73.664

Note: Actual Spending for 2007-08 and previous years is based on the Audited Financial Statements of the Canadian Grain Commission Revolving Fund. These amounts are based on the accrual basis of accounting. Actual Spending for 2008-09 is based on Public Accounts (as instructed by Treasury Board) which is based on the modified cash basis of accounting. Planned spending for 2007-08 does not include $7 million in supplementary estimates received after amounts were published in the Canadian Grain Commission’s 2007-08 RPP.

The development of Canadian Grain Commission revenue and expenditure projections is required 18 months in advance of a crop being harvested. As a result, planned and actual Canadian Grain Commission revenues and expenditures are dependent on annual grain volumes and crop quality which can fluctuate considerably from year to year potentially resulting in significant variances. The difference between planned spending, total authorities, and actual spending is due to the Canadian Grain Commission’s revolving fund surplus resulting from actual grain volumes that were higher than volumes originally forecast when appropriation amounts were approved.

Voted and Statutory Items
($ thousands)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2006-07 Actual Spending	2007-08 Actual Spending	2008-2009
				Main Estimates	Actual Spending	Total Authorities	Actual
¹ The Canadian Grain Commission received authority to access $26.5 million special “Sunsetter” appropriation previously approved in the fiscal framework. This amount was received by the department through the Supplementary Estimates process instead of through Main Estimates.
² The Canadian Grain Commission was given the authority to utilize $14.2 million in Operating Surplus for fiscal year 2008-2009.
40	Operating expenditures	24,666	30,940¹	4,756	4,756	4,756	4,756¹
40a	Program expenditures	1,221	7,600¹	-	-	28,379	27,980¹
(S)	Canadian Grain Commission Revolving Fund	(127)	(127)	(120)	(120)	(120)	(120)
(S)	Contributions to Employee Benefit Plans	10,683	3,919	577	577	577	577
Total		36,443	42,332²	5,213	5,213	33,592	33,193²

The summary of voted Appropriations represents the amount of funding received by the Canadian Grain Commission through the approved votes. It compares main estimates, planned spending, and total authorities to what the Canadian Grain Commission actually spent.

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