2008-09
Departmental Performance Report

Department of Foreign Affairs and International Trade

The original version was signed by
The Honourable Stockwell Day
Minister for International Trade

The Honourable Lawrence Cannon
Minister of Foreign Aff airs

Table of Contents

• Ministers' Message
• Executive Summary

• 1.1 Overview Information
• 1.1.1 Raison d'être
• 1.1.2 Responsibilities
• 1.1.3 Strategic Outcomes
• 1.1.4 Program Activity Architecture
• 1.1.5 Operating Environment and Risk Analysis
• 1.1.6 Key Risks That Influenced the Department's Expected Results and Priorities in 2008-2009
• 1.2 Performance Summary
• 1.2.1 Performance Assessment Methodology
• 1.2.2 Resource Utilization
• 1.2.3 Performance Summary Table by Strategic Outcome
• 1.2.4 Contribution of Priorities to Strategic Outcomes Table
• 1.2.5 Expenditure Profile
• 1.2.6 Voted and Statutory Items ($ millions)
• 1.3 What's Ahead in Section 2

• 2.1 Strategic Outcome 1: Canada's International Agenda
• 2.1.1 Program Activity 1: International Policy Advice and Integration
• 2.1.2 Program Activity 2: Diplomacy and Advocacy
• 2.2 Strategic Outcome 2: International Services for Canadians
• 2.2.1 Program Activity 3: International Commerce
• 2.2.2 Program Activity 4: Consular Affairs
• 2.2.3 Program Activity 5: Passport Canada
• 2.3 Strategic Outcome 3: Canada's International Platform
• 2.3.1 Program Activity 6: Canada's International Platform: Support at Headquarters
• 2.3.2 Program Activity 7: Canada's International Platform: Support at Missions Abroad
• 2.4 Internal Services

• 3.1.1 Financial Highlights
• 3.1.2 Listing of Online Information
• 3.1.3 Contact Information

Ministers' Message

The Honourable Stockwell Day Minister for International Trade	The Honourable Lawrence Cannon Minister of Foreign Affairs

As Ministers of the Department of Foreign Affairs and International Trade (DFAIT), we are pleased to present the 2008-2009 Departmental Performance Report-a results-oriented overview of DFAIT's accomplishments over the last year.

In an interconnected world, Canada's future is highly dependent on what happens beyond our borders. From dramatic changes in geopolitical realities, to evolving issues around security, health, the environment and energy, to the ongoing pressures on Canada's business community to compete, trade and invest in a world constrained by the current economic downturn, the services DFAIT provides to Canadians, at home and abroad, are more important than ever.

In 2008-2009, DFAIT made enormous strides in its mission to serve Canadians and advance Canada's interests in the world.

Perhaps the most far-reaching challenge facing DFAIT during the year was the worldwide economic slowdown. In the face of this challenge, Canada boldly continued an aggressive strategy to open doors for Canadian businesses and investors in global markets. Under DFAIT's leadership, Canada successfully negotiated or launched a number of free trade agreements, foreign investment promotion and protection agreements, and science and technology cooperation agreements to help Canadians participate in global commerce opportunities and compete around the world. As part of ongoing efforts to implement Canada's Global Commerce Strategy, the department opened new trade offices in Brazil, China, India and Mongolia to build on commercial connections in these key markets and lay the foundation for tomorrow's jobs and prosperity.

In a volatile world, security and stability continue to be at the forefront of DFAIT's work, and Canada's ongoing participation in Afghanistan was a key priority. While serious challenges remain, Canadians can take great pride in our many military, humanitarian and diplomatic contributions to this NATO-led mission. In Africa, the department continued to support peacekeeping and peacebuilding efforts, including in Sudan, where DFAIT supported 25 projects. In the Middle East, DFAIT worked in support of peace and its assistance was directed at building the capacity of security institutions.

The department also played a leadership role in coordinating Canada's responses to economic, financial and food crises around the world, including humanitarian support and food aid in Africa, and responses to natural disasters in Burma, Haiti and China. Over the latter part of 2008-2009, DFAIT concentrated on a highly strategic, whole-of-government approach to handling these issues, starting with preparation for, and active participation in, two related G20 leaders summits.

Closer to home, the department played a central role in establishing early, constructive relationships with the incoming Obama administration. In the Americas as a whole, the department continued to advance Canada's vision for a more secure, democratic and prosperous hemisphere.

DFAIT is also leading the development of Canada's Arctic policy. As an Arctic nation and an Arctic power, Canada views the North as a central component of its past, present and future. Through our robust Arctic foreign policy we are affirming our leadership, stewardship and ownership in the region, including by opening a dedicated Canadian International Centre for the Arctic Region in Oslo, Norway, to help promote Canadian interests and influence key partners to better understand emerging issues in this critical area.

In 2008-2009, DFAIT continued to provide extensive consular services worldwide (8.5 million requests for service), while leading the Government of Canada's response to major international disasters. Meanwhile, the department expanded the scope of its consular services and emergency management, and increased the number of points of service worldwide in response to client demand.

Last fiscal year, Passport Canada met a high level of demand for travel documents, issuing more than four million passports. It also made strides to strengthen its services through greater use of state-of-the-art technology and by expanding its service network.

To support all of this work, Canada's representation abroad has increased significantly in recent years. Meanwhile, traditional diplomacy has expanded to include new methods of interaction, new and strengthened collaborations with partners and enhanced communications using new media.

This is the environment in which DFAIT operates, and it provides a great opportunity to continue putting the department's global expertise to use for the benefit of Canadians and others in the international community. There is no doubt that constant, and sometimes very sudden, change is a defining feature of the world today. But as the results described in this document clearly show, DFAIT is adapting, and adapting well, to this ever-evolving world.

We invite all Canadians to learn more about the department's work by reading this report and by exploring the department's extensive website (www.international.gc.ca/international/index.aspx?lang=eng).

Together with partners and stakeholders in Canada and abroad, DFAIT is strengthening Canada's voice in the world and providing the services that Canadians need to succeed in a challenging global environment.

Executive Summary

DFAIT is among the most complex departments in the Government of Canada, responsible for the conduct of Canada's international affairs, including global trade and commerce. The scope of its mandate and the complexity of its activities require two representatives in the federal Cabinet: Minister of Foreign Affairs Lawrence Cannon and Minister for International Trade Stockwell Day. Correspondingly, DFAIT also has two deputy ministers: Leonard J. Edwards (Foreign Affairs), and Louis Lévesque (International Trade).

DFAIT is the leader across government in shaping Canada's responses to international issues and events, managing bilateral and multilateral relationships and delivering international programs. The department supports an extensive program of activities by its ministers, as well as those of other departments, to build stronger relations with their counterparts around the world. This work allows Canada to advance its economic and political interests, to be more engaged in the international community and to assist Canadians working and living abroad.

The department manages Canada's network of missions abroad, which provides the infrastructure that enables the international work of 30 partner departments and agencies. In 2008-2009, Canada's international platform consisted of over 260 points of service worldwide, including 173 missions in 110 countries. The department had more than 10,000 employees located at headquarters in Ottawa, regional offices across Canada and missions abroad. Its activities were a blend of policy, program and services to Canadians. The variety and range of its activities in 2008-2009 are demonstrated in this report-from engaging in and concluding ground-breaking trade negotiations with various countries worldwide, to brokering a joint border management plan between Afghanistan and Pakistan, to helping to evacuate Canadians from Gaza.

The department has three strategic outcomes (i.e. Canada's International Agenda, International Services for Canadians, and Canada's International Platform).The first strategic outcome is about the practice of Canadian advocacy and diplomacy while reflecting the country's interests and values. The second outcome comprises provision of international commercial, consular and passport services to Canadians.The third refers to the department's management of missions abroad on behalf of the Government of Canada.

1. Canada's International Agenda

Pursuing economic opportunities with a focus on growing/emerging markets: Consistent with the government's overall focus on the economy, DFAIT's top priority in 2008-2009 was pursuing economic opportunities for Canadians, including development of policy responses to the economic crisis; supporting the Prime Minister's participation in G8 and G20 meetings; and sharing Canada's experiences in developing a sound and stable financial system.

DFAIT continued to implement the government's Global Commerce Strategy, pursuing an ambitious bilateral agenda to secure competitive terms of access for Canadian businesses and to attract and encourage global investment. This included tabling legislation to implement new free trade agreements (FTAs) with Peru, Colombia and the European Free Trade Association, concluding FTA negotiations with Jordan, launching FTA negotiations with Panama, announcing exploratory trade talks with India, and completing a joint economic study with the European Union to lay the foundation for the launch of negotiations on a comprehensive economic and trade agreement.

The department also worked closely with provinces, territories and municipalities as well as with American interlocutors to ensure that goods and services continued to flow freely across the Canada-United States border, notably by advocating for access for Canadian businesses affected by the «Buy American» provisions of the United States Recovery and Reinvestment Act.

With Asia Pacific economies performing well despite the economic crisis and with Asian countries increasingly critical partners in terms of trade, global financial stability, environment and health, Canada has acted to deepen economic and political contacts, notably in China and India.

Canada-United States relationship: Given the two countries' high degree of economic integration, the United States remains Canada's most important economic and security partner, with some $2 billion in goods and services crossing the border daily. The inauguration of President Obama in January 2009 created a unique opportunity for Canada to renew its engagement with the United States. His visit to Canada the next month-his first trip as president to a foreign state-reinvigorated the bilateral dialogue and set the stage for deepened discourse on economic growth and restructuring, climate change, energy security, the Arctic and international security. DFAIT planned and implemented a comprehensive strategy to engage the new administration, and provided support for some 25 visits by Canadian government ministers to the United States.

Canada's mission in Afghanistan is designed to protect the security of Canada and its allies against the threat of future terrorism. Canada is helping to lay the foundation for a strong and stable central government that can build national unity and improve the lives of the Afghan people. DFAIT worked closely with federal partners to establish benchmarks pertaining to the Government of Canada's six priorities in Afghanistan. Three of these priorities fall within the department's purview: playing a leadership role in development of the Afghan National Security Forces in Kandahar; border security and dialogue between Afghanistan and Pakistan; and political reconciliation. Regarding the first priority, the department made progress against the benchmarks established for training and mentoring of the Afghan National Army and the Afghan National Police. DFAIT disbursed over $42 million for security sector development in Afghanistan through the Global Peace and Security Fund and spent $21 million on police, corrections and justice programming. Canada also made important progress against the benchmarks established for fostering border security and dialogue between Afghanistan and Pakistan, bringing officials from those two countries together in Dubai, where they adopted a joint border management plan. Regarding benchmarks for the third priority, Canada made progress in facilitating Afghan-led efforts toward political reconciliation, including support for governance institutions. In addition, Canada's efforts contributed to adoption of NATO's political-military plan for Afghanistan.

Americas: Canada brings to the Americas a vision based on three core objectives: strengthening support for democratic governance, enhancing the prosperity of Canadians and other citizens of the Americas, and building a safe and secure hemisphere. To reinforce the Canadian values of open, democratic societies and market-based economies, DFAIT helped assert Canada's leadership role in the fifth Summit of the Americas, the Organization of American States General Assembly, and the APEC (Asia-Pacific Economic Cooperation) meeting in Peru. DFAIT's work in the Americas led to new initiatives, including the Emerging Leaders in the Americas Program (scholarships for exchanges and research) and activities related to counterterrorism and anti-crime capacity building.

Other global challenges: Canada has been a major player in encouraging international cooperation on issues related to the Arctic. In 2008-2009, DFAIT coordinated Canadian participation in the Arctic Council foreign ministers meeting, which endorsed the Tromsø Declaration that will guide the work of the Arctic Council over the next two years. At the meeting, DFAIT announced the launch of a Canadian International Centre for the Arctic Region, to be based in Oslo, Norway.

DFAIT led development of federal responses to crises related to food and natural disasters around the world, supporting regional development banks, providing humanitarian assistance after three major international disasters (Burma, Haiti, China), and disbursing $65 million for humanitarian assistance and food aid in Africa.

The department supported Canada's diplomatic efforts in the Middle East, reaffirming Canada's position on the need for a two-state solution and Israel's right to defend itself. DFAIT actively promoted Canada's campaign for a two-year term on the United Nations Security Council, and successfully led the United Nations resolution on the human rights situation in Iran. It also worked with federal partners to improve the effectiveness of the International Assistance Envelope, and supported Canada's work in fragile states, such as Haiti and Sudan. Finally, DFAIT continued to promote freedom, democracy, human rights and the rule of law through the UN and other multilateral forums in order to address critical situations and major destabilizing events in countries like Belarus, Burma, Georgia, Iran and Zimbabwe.

2. International Services for Canadians

Passport services: Passport Canada is responsible for issuing secure travel documents to Canadians, facilitating travel and contributing to international and domestic security. There were 4,375,278 passports issued in 2008-2009. Overall, 98.7 percent of completed applications were processed within service standards.

Efforts to streamline the process and improve service delivery in 2008-2009 proved successful. The proportion of applicants using the simplified renewal process grew to 40 percent, and satisfaction with overall service increased from 89 percent in 2007-2008 to 96 percent.

Passport Canada was well prepared to meet demand flowing from U.S. implementation of passport requirements for land and water entry that took effect on June 1, 2009. During the first stage of implementation of the U.S. Western Hemisphere Travel Initiative (WHTI) in the summer of 2007, the turnaround time for passport applications by mail in Canada climbed to approximately 60 days. By comparison, the turnaround time during the second stage of WHTI implementation in June 2009 was 12 days. Efficiency gains achieved through initiatives such as the simplified passport renewal process allowed for a $29 million reinvestment in internal capacity to improve service delivery. By implementing changes in postal handling and other initiatives, Passport Canada was able to offset an additional $12 million in program management costs.

Commercial services: Given the continued dramatic growth of emerging markets around the world, DFAIT established new Trade Commissioner Service (TCS) offices in China, India, Mongolia and Brazil, as well as new regional offices in Canada. These new offices will help Canadian businesses and investors seize emerging commercial opportunities in these markets and many others around the world. In 2008-2009, the department delivered over 33,000 key services to business and partner clients. This represents a 3.5 percent increase from the previous fiscal year. The department also provided services to close to 12,000 Canadian and partner clients, an increase of 2.5 percent from 2007-2008. The department has posted more than 600 market reports on the Virtual Trade Commissioner website.

The TCS network currently lists over 43,000 Canadian companies in its business contact management system, in addition to more than 6,000 active partner organizations. The economic downturn has made attraction of investment particularly challenging, but DFAIT continued to make concerted efforts on this front. The department also developed approaches for using the Vancouver 2010 Winter Games as a platform to advance Canada's commercial outreach in priority markets in Asia, Europe and North America.

Consular services: Several factors have had significant consequences for the consular program, including the changing profile of Canadian travellers, their increased travel to remote and dangerous destinations, their pursuit of business in areas of the world that involve heightened political and economic risks, and the growing impact of natural disasters worldwide.

In 2007-2008, the most recent year for which statistics are available, Canadians took close to 50 million international trips. In addition, an estimated 2.5 million Canadians live abroad. Over the last five years, demand for consular services has increased by 32 percent. In response, the Government of Canada committed to additional investments ($18 million per year), beginning in the 2008 federal Budget, to strengthen consular services.

In 2008-2009, DFAIT expanded its consular program and added three points of consular service (bringing the total to over 260) in order to support the increased number of Canadians abroad. The department established a new Consular Services and Emergency Management Branch to better prepare Canadians for travel and to assist them abroad. During the fiscal year, more than 8.5 million consular services were accessed, through phone calls, visits to the website, correspondence and departmental publications. Some 1,600 Canadians were assisted in more than 26 crises or emergencies abroad. A good deal has been done over the past year to improve consular services, and the department will continue to focus on making improvements in the coming year, particularly through greater coordination of these services at missions abroad. Nevertheless, challenges remain in a world in which personal security is an increasingly important consideration for Canadians abroad.

3. Canada's International Platform

DFAIT is mandated to provide common services for the Government of Canada's international program. Common services consist of the infrastructure, staff and services required to enable Canada's representation abroad. The International Platform Branch, established in April 2008, manages Canada's network of missions abroad. Canada's presence abroad includes 30 federal departments, agencies, Crown corporations and provincial governments, delivering a vast array of programs. As of November 2008, Canada's network abroad was made up of 7,305 Canada-based staff and locally engaged staff employed in 173 missions in 110 countries as well as in 17 regional offices across Canada.

In addition to delivering common services abroad, the International Platform Branch specializes in identifying efficiencies to produce savings that can be reinvested in other departmental programs. In 2008-2009, the International Platform Branch's contribution to the DFAIT reallocation priority was $35.4 million. In 2009-2010, the Branch's contribution will reach $53.8 million. Examples of efficiencies achieved include streamlined governance of common services; application of the common services model (a benchmarking tool for determining appropriate common service resources at missions); development and implementation of measurable service standards; development of new space standards for chanceries; development of regional services centres for the Europe, Middle East and Africa, Asia-Pacific and Americas regions; and encouragement of greater use of e-collaboration and video-conferencing.

Transformation

In keeping with the results of its 2007 strategic review, the department continued to undergo significant transformation for the purpose of reinvigorating its structure and operations, and creating a modern, integrated foreign and trade ministry. To this end, DFAIT has streamlined its governance structure, in alignment with its Program Activity Architecture; implemented multi-year integrated planning; established the Geographic Group and the International Platform Branch to ensure greater cohesion and coherence of activities; created the office of Chief Financial Officer, the Departmental Audit Committee and the position of Chief Audit Executive to enhance accountability; established a strategic human resources plan that expands foreign-language training and introduces new approaches to spousal employment abroad; and targeted commercial strategies to priority markets and sectors, in alignment with the government's Global Commerce Strategy. The department developed a plan to increase the number of staff abroad by 400, with a target date of 2011-2012. DFAIT's internal reallocation to fund the deployment abroad includes a reduction in headquarters staff over five years. Reductions made in year one (2007-2008) and year two (2008-2009) represented 160 full-time equivalents.

Financial Summary

In 2008-2009, DFAIT spent a total of $3,193.3 million. As the table below indicates, DFAIT's budget is divided into two components: Foreign Affairs and International Trade; and Export Development Canada (EDC) (the Canada Account).

EDC is a Crown corporation in DFAIT's portfolio that provides financing and insurance solutions to Canadian companies. Under the Export Development Act, the Minister for International Trade (with the concurrence of the Minister of Finance) may authorize EDC to undertake loans that go beyond its normal risk parameters but that are deemed by the government to be in the national interest. Such loans are facilitated through the Canada Account. EDC administers the Canada Account, and DFAIT is responsible for reporting accounting transactions made between the government and EDC that affect the Canada Account. These transactions have no impact on DFAIT spending, since they are separately funded through legislated statutes.

The maximum amount available from the Canada Account was increased from $13,000 million to $20,000 million (slightly over $4,000 million in spending was cumulative up to and including fiscal year 2008-2009). On the EDC line in the table above, total authorities refer to the maximum amount available in 2008-2009 from which loans and contingent liabilities could be made from the Canada Account. On the same line, actual spending refers to loans made from the Canada Account during the fiscal year, most of which were unplanned disbursements in response to the economic downturn.

With respect to the line in the table above concerning the Foreign Affairs and International Trade component, while there was a variance between planned and actual spending, the department remained within its total authorities granted by Parliament. The variance occurred because of the following unforeseen expenditures, which are not included in the planned spending figure but are included in total authorities and actual spending:

• funding to compensate for foreign currency losses ($52.9 million);
• funding for the embassy in Kabul, Afghanistan ($33.2 million);
• net voted revenues authorized by Parliament for the department to respend revenues collected during the year ($25.3 million);
• reinvestment of revenues from the sale of real property abroad ($24.1 million); and
• numerous smaller amounts, totalling about $163.2 million.

DFAIT's 2008-2009 actual spending was allocated by strategic outcome as follows:

DFAIT Spending by Strategic Outcome

About 50 percent ($1,248.5 million) of the department's actual spending ($2,499.6 million) was related to the practice of diplomacy and advocacy in support of Canadian interests and values abroad. This included $497.2 million in assessed contributions to international organizations such as the United Nations Organization, including its peacekeeping operations, and the World Health Organization. It also included $166.5 million for the Global Peace and Security Fund as well as $115.5 million for the G8 Global Partnership Program.

About 14 percent ($353.3 million) of actual spending was related to providing international services to Canadians and to Canadian business. This included over $55 million spent on the Global Commerce Strategy, $18 million toward fulfilling the mandate of the new Consular Services and Emergency Management Branch, and over $44 million (net) spent by Passport Canada.

The remaining 36 percent ($897.8 million) was spent on support for the international platform used by DFAIT and other departments and agencies. This included $187 million spent at headquarters in support of Canada's network of missions abroad, and $415 million spent at missions abroad to cover expenditures related to common services. Expenditures related to internal services amounted to over $170 million, and were allocated against the three strategic outcomes.

Like other federal departments and agencies, the department faces budgetary constraints. Since 2004, DFAIT has made cumulative contributions to government-wide reallocation exercises of over $253.0 million ($131.0 million in 2008-2009).

Excluding the 2006-2007 one-time authorities and spending, DFAIT's spending has on average increased by 7 percent year over year. This growth in spending is mainly related to an increase in funding for the following initiatives:

• the Global Peace and Security Fund;
• the G8 Global Partnership Program;
• implementation of the Global Commerce Strategy;
• work related to the Canada-United States Softwood Lumber Agreement; and
• transfers received from federal partners in support of their staff working at Canada's missions abroad.

Conclusion

In 2008-2009, DFAIT made a constructive contribution to global affairs and advanced Canadian interests internationally, as shown by the principal accomplishments noted in this summary. It strengthened commercial ties with emerging and priority markets by establishing several new free trade and other agreements with a range of countries worldwide and by increasing commercial service delivery capacity in these markets. It established constructive relations with the new United States administration, and advanced key foreign policy and commercial objectives in the priority area of the Americas. It made progress against the government's benchmarks related to Canada's contribution to the NATO mission in Afghanistan. And it made headway in modernizing and transforming the department's overall operations.

Starting with the 2008 Budget, the Government of Canada committed to further investments ($18 million per year) to strengthen delivery of consular services. DFAIT clients noted favourable overall levels of satisfaction in various feedback surveys during the fiscal year pertaining to consular, commercial and passport services rendered. With regard to Canada's international platform, DFAIT also received favourable responses from client surveys, including from its partners operating at missions abroad. The department generated financial efficiencies in delivery of passport services and in management of Canada's international platform, efficiencies that are being reinvested in other departmental programs.

Section 1: Departmental Overview

1.1. Overview Information

This Departmental Performance Report (DPR) provides Canadians with information on what the department achieved in 2008-2009 by comparing actual results with previously stated plans and priorities (see the 2008-2009 Report on Plans and Priorities, available at www.tbs-sct.gc.ca/rpp/2008-2009/inst/ext/ext01-eng.asp). At the same time, this report includes information about DFAIT's expected medium-term results and long-term results (see the section on Program Activity Architecture below).

1.1.1. Raison d'être

As the federal government's centre of expertise on foreign affairs and international trade, the department promotes Canada's interests, the security and prosperity of Canadians, and advances the Canadian values of freedom, democracy, human rights and the rule of law. This department provides ongoing benefits to Canadians by:

• leading a government-wide approach to formulating and implementing policies on foreign affairs and international trade, as well as related programs;
• concentrating on the department's core business in order to advance Canada's global agenda as it relates to the key issues of peace and security, trade and investment, and international law and human rights, while making full use of the department's geographic expertise worldwide;
• promoting international trade and commerce through initiatives such as negotiation of agreements to open and/or expand markets, facilitation of two-way trade and investment, and encouragement of innovation by means of international partnerships for science and technology commercialization;
• offering international commercial, consular and passport services as well as timely and practical information on international issues and travel, enabling Canadians to participate in the international community; and
• managing Canada's missions worldwide (the Government of Canada's international platform) from a government-wide perspective.

1.1.2. Responsibilities

The founding legislation is the Department of Foreign Affairs and International Trade Act, RSC 1985, c. E-22, which lists the department's legislated responsibilities (www.dfait-maeci.gc.ca/department/mandate-en.asp).

The Government of Canada has a formal presence in most of the world's independent states, providing over 260 points of service worldwide. Canada's network of 173 missions abroad integrates and coordinates the government's international activities. Mission activities include advocating Canadian policies and perspectives internationally; building and maintaining relationships to raise Canada's profile and help advance advocacy of Canadian objectives; interpreting local views and information in terms of what they mean to Canada and Canadians; managing Canada's international business development; providing consular and passport services; and supplying infrastructure and services to enable the international operations of federal and other partners working at missions abroad.

The department also serves the foreign diplomatic community accredited to Canada. At present, there are over 8,000 foreign representatives and accredited members of their families in Canada.

The department's regional offices in Canada provide international commercial services to Canadian businesses. These services include export strategies, foreign market intelligence, and information on trade fairs, missions and other events. In addition, Passport Canada has 33 passport-issuing offices across Canada. Passport service is also available at 141 Service Canada offices and 56 Canada Post outlets.

1.1.3. Strategic Outcomes

DFAIT's Program Activity Architecture (PAA) clearly identifies the department's strategic direction by listing its three complementary strategic outcomes (i.e. the long-term, enduring benefits to Canadians that the department strives to achieve). The first strategic outcome is about the practice of Canadian advocacy and diplomacy while reflecting the country's interests and values. The second is about the provision of international commercial, consular and passport services to Canadians. The third is about the department's management of missions abroad on behalf of the Government of Canada. Together, the strategic outcomes reflect the department's leadership role in formulating, coordinating and carrying out the federal government's foreign and trade policies and programs. The department's strategic outcomes provide the foundation for all its activities.

Cascading downward in a logical manner from the three strategic outcomes in the PAA are the department's seven supporting program activities.

In carrying out International Policy Advice and Integration, the department provides strategic direction, intelligence and advice on foreign policy and economic issues; researches and analyzes foreign and trade policy issues, drawing on input from across the department as well as from federal partners; develops policies and programs to address those issues; and ensures coherence, integration and coordination of foreign and trade policies and programs across government.

In undertaking Diplomacy and Advocacy, DFAIT engages Canadian stakeholders and partners as well as foreign governments and international players; raises awareness and understanding of Canada's policies, interests and values as they pertain to the government's international agenda; and delivers programs on Canada's behalf to address specific international issues.

In relation to International Commerce, the department works to expand the participation of Canadian business in world markets and to increase the interaction of Canadian entrepreneurs with global business partners; and promotes Canada as a competitive location and partner for investment, innovation and value-added production.

With respect to Consular Affairs, DFAIT provides Canadians with information and advice on safe travel to foreign countries; and helps Canadians abroad to handle trouble or emergencies.

Passport Canada-a special operating agency-focuses on management and delivery of passport services. It is responsible for the issuance, revocation, refusal, recovery and use of Canadian passports.

With respect to Canada's International Platform: Support at Headquarters, the department manages and delivers common services to all federal departments and partners with representation at Canada's missions abroad.

With regard to Canada's International Platform: Support at Missions Abroad, DFAIT ensures that common services are in place at missions and coordinates them on site to support the international operations of the entire Government of Canada as well as the operations of other partners with representation at the missions.

1.1.4. Program Activity Architecture

1.1.5. Operating Environment and Risk Analysis

The highly volatile international environment in which the department operates means that its activities and operations are constantly affected by unpredictable global trends and events. A major objective of the department's ongoing transformation process is to ensure that it can be as flexible as possible in addressing sudden changes in its priorities as a result of external challenges.

Risks may be defined as the effect of uncertainty on the achievement of an organization's objectives and outcomes. Such uncertainty can be proactively addressed by identifying potential events and estimating their likelihood and impact. However, it should be noted that mitigation, especially in dealing with externally oriented risks, is usually more complicated to achieve, particularly in the short term. The ongoing integration of risk management, planning and performance functions at DFAIT assists in addressing such challenges.

Six of the 15 strategic risks identified by the department in its 2008-2009 Report on Plans and Priorities had a more important influence on its priorities and expected results. These six risks are economic conditions, unanticipated external policy shifts, hostile actions, international instability, catastrophic disasters and human capital.

Economic conditions and unanticipated external policy shifts: Without question, the main external factor for governments in all developed countries in 2008-2009 was posed by the global economic crisis, which has resulted in a significant reorientation in priorities and programs. The department's 2008-2009 Report on Plans and Priorities referred to rising worldwide concerns about the health of the global economy, the state of financial markets and the threat of recession. In addition, the global economic downturn has generated concerns about growing protectionism in the United States (e.g. the "Buy American" requirements of the American Recovery and Reinvestment Act of 2009) and in many other countries.

Integration and coordination of the Government of Canada response to hostile actions, international instability and catastrophic disasters affecting Canadians abroad: There continues to be concern in Canada and the international community about safety and security issues, international pandemics, the environment, international crime and terrorism, and crisis or instability in global hot spots. These issues have required integrated and coordinated responses from the Government of Canada, led by this department. In addition, more and more Canadians are travelling and living abroad, which places greater demands on the department's consular, passport and emergency management services.

Human capital: The most significant internal risk to the department's activities is related to its management of human resources. DFAIT is a knowledge-based organization, and its success depends on attracting, developing and retaining a highly skilled workforce. Of DFAIT's 10,292 ¹ staff members, 4,990 are Public Service employees, governed by the Public Service Employment Act, and 5,302 are locally engaged staff who work at Canada's missions abroad, subject to local labour laws. The Public Service employees are divided into two groups: rotational and non-rotational.

The table below summarizes the key risks that influenced the department's expected results and priorities, the main mitigation strategies, and the implications for the department's performance.

¹ This number includes indeterminate and term employees only as of March 31, 2009.

1.1.6. Key Risks That Influenced the Department's Expected Results and Priorities in 2008-2009

The department will continue to identify key risks and monitor the efficacy of its mitigation strategies. DFAIT will also continue to strengthen its integrated risk management function to meet evolving risk exposures and to create tangible improvements in strategic planning, service delivery, policy making, decision making and accountability. With regard to risk management practices, the department will continue to develop guidance and tools to support a balance between accountability and the web of rules and to make sure that employees are ready to take well-informed risks.

1.2. Performance Summary

1.2.1. Performance Assessment Methodology

Each year, DFAIT ensures that its annual planning and evaluation are conducted using logical and transparent processes. First, the department's governance structure is aligned with its Program Activity Architecture (PAA) to ensure logic and coherence in its operations and in its reporting to Parliament (through the Report on Plans and Priorities and the Departmental Performance Report). This process engages all senior managers. Departmental units that report directly to the deputy ministers produce the information required for the two reports, and the governance boards, which are linked to the three strategic outcomes of the department, review the RPP and DPR. In addition, the Departmental Audit Committee, made up largely of experts from outside the department, assesses the quality and credibility of the two reports.

Second, the department conducts business planning and performance reporting in alignment with its PAA.

Third, the department's governance boards review the annual business plans from across the organization. The department uses the plans to guide preparation of performance management agreements for its senior executives and, thereafter, to generate performance agreements for the rest of its staff, in accordance with its Performance Management Program. DFAIT also uses the plans to prepare its yearly RPP.

Fourth, the department assesses its success in carrying out the business plans in its annual DPR, using input from the branches that has been approved by the assistant deputy ministers and assessed against RPP commitments, and using the department's latest Management Accountability Framework (MAF) assessment by Treasury Board Secretariat (TBS) as well as the latest draft of DFAIT's Performance Measurement Framework. The Framework, based on the PAA, specifies long-term outcomes and performance measures for each level of the PAA. (The department is now in the process of finalizing its Performance Measurement Framework in collaboration with TBS.)

The MAF is a government-wide evaluation of departmental management performance, while the Performance Measurement Framework is to be used by this department to assess the performance of its program activities. This Departmental Performance Report makes use of both the latest MAF scores and the draft Framework in describing DFAIT's 2008-2009 performance. In the department's most recent MAF assessment, its ratings improved in seven of the 21 categories rated and did not decline in any area. In fact, DFAIT has doubled its overall scores in the past year alone. The department's MAF ratings over the last three years demonstrate that this organization has improved the way it serves employees, the government as a whole and Canadians. Furthermore, DFAIT's performance compares favourably with that of other departments.

With respect to the performance indicators cited in this Departmental Performance Report, readers should note:

• When the 2008-2009 RPP was being prepared, the department's Performance Measurement Framework was still in development (i.e. not completed or approved). The performance indicators noted in the RPP were identified by DFAIT managers as the most practical and credible at the time. Since then, some indicators have been modified, based on new information from branch managers or on the latest draft of the Performance Measurement Framework.
• In keeping with TBS demands for more concise reporting to Parliament, the department has had to summarize its performance indicators for this report.

This subsection presents a snapshot of DFAIT's overall performance in 2008-2009, by comparing what the department said it would do (from the year's Report on Plans and Priorities) with what it actually did. The first table below (1.2.2) identifies planned and actual resources (human and financial) for the entire department. The second table (1.2.3) provides more detail by breaking information down by program activity, noting for each the planned and actual resources, performance indicators, targets and key accomplishments of the year. It also shows how each program activity aligns with the department's three strategic outcomes as well as with Government of Canada outcomes.

1.2.2. Resource Utilization

1.2.3. Performance Summary Table by Strategic Outcome

In the following table (1.2.4), readers will find the department's 2008-2009 priorities presented slightly differently from the manner in which they are shown in the year's Report on Plans and Priorities. The RPP identifies the priorities related to Afghanistan, North America and the hemisphere, growing/emerging markets and DFAIT's transformation agenda as the year's key priorities (i.e. those that correspond directly to government-wide priorities, particularly those noted in the October 2007 Speech from the Throne). The other priorities in the table below were identified in the RPP as ongoing priorities (i.e. those that reflect important year-over-year work), based on the department's mandate. All priorities identified in the RPP and repeated below link to the three strategic outcomes listed in the department's Program Activity Architecture.

It should also be noted that the 2008-2009 RPP cautioned that, since unforeseen developments at home and abroad can require adjustments to the best-laid plans, the department was prepared to respond and make changes rapidly, as required. The onset of the global economic downturn in late 2008 represented such a development. As a result, this Departmental Performance Report also highlights work done to address that significant issue.

² Excluding revenues credited to the vote.

³ Excluding revenues credited to the vote.

⁴ Total authorities include an amount of $9,715.2 million that is available from previous years for loans administered by EDC through The Canada Account.

⁵ Excluding revenues credited to the vote.

1.2.4. Contribution of Priorities to Strategic Outcomes Table

⁶ Strategic Outcomes (SO), Program Activities (PA) and Type of Priority (new or ongoing).

⁷ See Section 2 of this report for the lessons learned related to information presented in this table.

⁸ www.international.gc.ca/trade-agreements-accords-commerciaux/assets/pdfs/EU-CanadaJointStudy-en.pdf

1.2.5. Expenditure Profile

Actual spending for 2008-2009 was $3,193.3 million. Of this amount, $693.8 million represents actual spending for the Crown corporation Export Development Canada (EDC) and its Canada Account.⁹ EDC's Canada Account transactions are not considered budgetary expenditures within the context of the DFAIT budget. Therefore, the EDC amounts have been excluded from the chart below.

Total DFAIT (Excluding EDC)

The rate of 2008-2009 actual spending remained in line with the department's total authorities. Three DFAIT program activities accounted for a significant portion of expenditures, as follows:

• $1,098.3 million for Diplomacy and Advocacy;
• $580.2 million for Canada's International Platform: Support at Missions Abroad; and
• $317.6 million for Canada's International Platform: Support at Headquarters.

In the chart above, the two lines at the top of the block showing financial information for 2006-2007 represent one-time authorities and spending, which accounted for the significant increase in planned spending that year compared with the other fiscal years presented. These one-time authorities and spending were due to:

• $502.0 million for payments to meet Canada's obligations under the Softwood Lumber Products Export Charge Act, 2006;¹⁰ and
• $126.9 million for debt forgiveness for six developing countries.

Excluding the 2006-2007 one-time authorities and spending, the department's spending has on average increased by 7 percent year over year. This growth in spending is mainly related to an increase in funding for the following initiatives:

• the Global Peace and Security Fund;
• the G8 Global Partnership Program;
• implementation of the Global Commerce Strategy;
• the Canada-United States Softwood Lumber Agreement; and
• transfers received from federal partners in support of their staff working at Canada's missions abroad.

Like other federal departments and agencies, the department faces budgetary constraints. As a result of government-wide reallocation exercises that began in 2004, the department has made cumulative contributions to these reallocation exercises of over $253.0 million ($131.0 million in 2008-2009).

⁹ DFAIT is responsible for the Canada Account, which is administered by Export Development Canada, pursuant to section 23 of the Export Development Act. The Budget Implementation Act, 2009, expanded EDC's mandate for two years to include the support and development of domestic trade, in addition to its traditional mandate related to export trade. The Canada Account supports transactions that, although within the scope of EDC's authority, are considered to be outside its risk parameters. Such transactions may be conducted under the Canada Account if deemed to be in Canada's national interest by the Minister for International Trade and the Minister of Finance.

¹⁰ http://laws.justice.gc.ca/en/showdoc/cs/S-12.55/20090731/en?command=HOME&caller=SI&fragment=softwood&search_type=all-&day=31&month=7&year=2009&search_domain=cs&showall=L&statuteyear=all-&lengthannual=50&length=50

1.2.6. Voted and Statutory Items ($ millions)

¹¹ Includes assessed contributions for Canada's membership in international organizations and non-assessed grants and contributions.

¹² Originally reported in 2008-2009 Main Estimates as "Minister of International Trade and Minister for the Pacific Gateway and the Vancouver Whistler Olympics-Salary and motor car allowance."

1.3. What's Ahead in Section 2

Readers should be aware that there is some deliberate inconsistency in the way program activity results, including those related to internal services, are presented in Section 2. That is because not all program activities have the same range of focus or operation. For example, "International Policy Advice and Integration" and "Diplomacy and Advocacy" have a very broad range of operations and, therefore, link to nearly all of the RPP priorities. Other program activities such as "International Commerce" and "Canada's International Platform: Support at Headquarters" have a narrower focus of operations and, as a result, correspond to only a small number of RPP priorities. To avoid repetition, to provide the information as clearly and succinctly as possible, and to ensure compliance with concise reporting requirements, the department has used slightly different formats throughout Section 2.

However, the information in Section 2 is broken down in a consistent manner. Each program activity subsection begins by explaining the operating context and the benefits generated for Canadians. Next, a table identifies planned and actual resources (human and financial). Then the program activity's performance highlights for the fiscal year are presented, followed by a summary of lessons learned during the period.

Section 2: Analysis of Program Activities by Strategic Outcome

2.1. Strategic Outcome 1: Canada's International Agenda

2.1.1. Program Activity 1: International Policy Advice and Integration

Context: This program activity provides strategic direction, intelligence and advice. It enables the department to plan and strategically coordinate its international activities, with a view to integrating Canada's foreign and international economic policies. This includes development and use of strategies that are targeted to specific countries and multilateral organizations and that are used to inform Canada's bilateral and regional relations. Policies and programs are developed for issues related to Canada's international agenda, such as trade and investment, human rights, democracy, environmental stewardship and international security. The department uses this program activity to shape the international agenda to Canada's benefit and advantage, in accordance with Canadian interests and values.

The complexity of the global environment in which DFAIT operates requires highly targeted policy development to ensure the advancement of objectives. But it also demands a very flexible policy capacity to enable the department to refocus rapidly and effectively on changing priorities and new challenges, such as the global economic downturn that began in late 2008. Another major development in global affairs-the coming into office of the Obama administration-also generated re-evaluation of foreign and trade policies in many countries. Meanwhile, many ongoing policy issues, including the NATO-led Afghan mission, the Canada-United States border, climate change, the Arctic, and the slow pace of the Doha Round of World Trade Organization (WTO) talks, continued to require close attention. Finally, the growing number of horizontal files (cutting across the mandates and operations of more than one player) were addressed through intensified consultation and collaboration with DFAIT's federal partners and other stakeholders.

Benefits to Canadians: This program activity ensures Canada's international policy coherence through planning, integration and coordination across the federal government. With respect to Canada's global commerce policies, this program activity develops country-specific and multilateral strategies to deliver Canada's bilateral and regional trade agenda. This includes strategic research and analysis of issues of interest to the domestic and international communities, and involves collecting, evaluating and disseminating intelligence to the Government of Canada.

The following table lists significant accomplishments that the department achieved under this program activity in relation to the expected results in the 2008-2009 Report on Plans and Priorities.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: The work of this program activity is central to the department's ability to serve as the government's centre of expertise on foreign policy and international commerce for the simple reason that all activities-and all results-flow from clear and decisive policies that advance Canada's interests and priorities.

A primary focus in the latter part of 2008-2009 was on policy development and coordination related to addressing the global economic downturn. For instance, the department led development of whole-of-government policy responses to the economic, financial and food crises, which included preparation for two G20 leaders summits focused on the international economic and financial crisis (November 2008 in Washington and April 2009 in London), support for the regional development banks and their response to the crises, and additional funds for humanitarian assistance and food aid in Africa, as well as untying food aid. An inventory of infrastructure spending in stimulus packages around the world was published for Canadian businesses so that they would be better placed to capitalize on new opportunities.

The department achieved important results in relation to the relevant key priorities (in italics below) identified in the 2008-2009 Report on Plans and Priorities, as follows:

Afghanistan: DFAIT spearheaded whole-of-government policy priorities as well as related programming, communications, advocacy and benchmarking approaches for Canadian engagement in the NATO-led mission in Afghanistan. In addition to policy development, DFAIT developed programs on Afghan security, including judicial sector reform and border initiatives. DFAIT played a lead role in ensuring whole-of-government policy integration, coordination and coherence for the Government of Canada's engagement in Afghanistan.

North America and the hemisphere: Canada promoted North American collaboration and policy coherence in many ways, including through the Security and Prosperity Partnership, on key issues such as pandemic influenza, regulatory cooperation, intellectual property protection, cooperation in energy, science and technology, and smart/secure borders.

Canada's engagement in the Americas is centred on advancing three key interrelated and mutually reinforcing objectives: enhancing the prosperity of Canadians and other citizens of the region; building a safe and secure hemisphere; and strengthening support for democratic governance. Accordingly, DFAIT led whole-of-government efforts and worked closely with key hemispheric partners and regional multilateral institutions such as the OAS and the Inter-American Development Bank to search for joint solutions to hemispheric challenges, notably in the areas of economic integration and trade liberalization; science and technology and innovation agreements; scholarships and youth mobility agreements; support to democratic practices and institutions, civil society, elections monitoring and free media; and capacity building in the area of security and justice. In the Caribbean, DFAIT continued to work toward disaster risk reduction and building partnerships to support security and democracy in Haiti. In addition, DFAIT engaged and consulted with key stakeholders, experts and civil society to discuss policy options and opportunities for Canadian leadership in the Americas, and coordinated the production of a whole-of government suite of communications products on the priorities and progress of Canada's engagement in the Americas http://www.international.gc.ca/americas-ameriques/priorities_progress-priorites_progres.aspx?lang=eng.

Growing/emerging markets, with a focus on China and India: As part of the Global Commerce Strategy, 13 market plans have been established (for the United States, Mexico, China, India, Brazil, Latin America and the Caribbean, Europe, Russia, Japan, South Korea, Australia/New Zealand, the Association of Southeast Asian Nations and the Gulf Cooperation Council). The emphasis is on helping Canadian business explore new opportunities in global markets that have the greatest importance and potential.

Lessons Learned

What worked well: Chairing cross-cutting working groups on environment- and energy-related policy areas has proven to be a successful model for coordinating Government of Canada policies on environmental stewardship, and has informed other policy discussions of priority interest to DFAIT, including trade and security.

What could be improved and what we are doing about it: DFAIT improved its coordination with federal partners involved in Canada's emergency planning, enabling a quicker and more efficient response to international incidents. DFAIT also broadened its Consular function, creating the new Emergency Management Bureau in September 2008 to enhance the government's ability to plan, prepare for and respond to emergency crises affecting Canadians and the international community.

¹³ www.international.gc.ca/trade-agreements-accords-commerciaux/assets/pdfs/EU-CanadaJointStudy-en.pdf

2.1.2. Program Activity 2: Diplomacy and Advocacy

Context: This program activity ensures the delivery of domestic and international programs and diplomacy, engaging Canadian stakeholders and partners as well as foreign governments and international players. Within Canada, this program activity engages provincial, territorial and other stakeholders to inform foreign and international trade policy. This involves raising awareness and understanding of Canada's policies, interests and values as they pertain to the government's international agenda. It also includes delivering programs on Canada's behalf to address specific international issues and paying Canada's annual contributions associated with its membership in international organizations.

Given the pre-eminence of the United States in world affairs and Canada's close relationship with that country, it is critical for Canada to maximize bilateral collaboration on diplomatic, military and economic issues. This required particular attention at the time of the change in U.S. administration in January 2009. Another key focus of this program activity, especially in the latter part of the fiscal year, was the global economic downturn, which overshadowed most other international issues and which will continue to be, at least in the short term, the lens through which many other issues are viewed.

Against this background, DFAIT remains keenly aware of the complexity of maintaining and extending diplomatic influence in a world of multiple and shifting centres of power.

Benefits to Canadians: This program activity connects Canada and Canadians to the world by managing Canada's bilateral and multilateral relations and by delivering programs that advance this country's international interests and values. It also raises international awareness of Canada, its policies, interests and values, while engaging Canadians inside and outside the country on key global issues.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: The work of this program activity is an essential component of efforts to advance Canada's international agenda because it carries out purposeful dialogue and interaction with domestic stakeholders and international players on issues of importance to this country.

Given the high profile of global actions to address the economic downturn in late 2008-2009, the department made considerable efforts to ensure that Canadian economic and development priorities were reflected in the final documents released at the two G20 leaders summits (November 2008 in Washington and April 2009 in London). DFAIT also expanded Export Development Canada's mandate to include support to Canadian business in the domestic market and worked with federal partners to provide EDC with the capacity and flexibility to respond to the credit needs of Canadian business. New financial tools were also designed for Canadian companies' international marketing initiatives and direct investments abroad.

The department achieved important results in relation to the relevant key priorities (in italics below) identified in the 2008-2009 Report on Plans and Priorities:

Afghanistan: Canada engaged in bilateral and multilateral diplomacy and advocacy to advance Canada's Afghanistan-related priorities and support for the UN-mandated, NATO-led mission in that country. DFAIT's programs delivered significant results on governance and institutional development, human rights and the rule of law, including with respect to advancing police, corrections and justice sector reform. DFAIT disbursed over $42 million through more than 50 Global Peace and Security Fund projects, seeking to reinforce the Government of Afghanistan's ability to establish a more secure environment for its citizens, where their rights will be respected. Critical in this regard has been DFAIT's support for the UN Development Programme's Law and Order Trust Fund for Afghanistan, the main instrument for paying Afghan police and prison officers' salaries. In addition, to foster peace and cooperation in the wider region, DFAIT brought together Afghan and Pakistani officials in Dubai, where they adopted a joint border management plan. It is hoped these measures will lead to greater cooperation and confidence between these two important neighbours, with benefits both to their people and to Canadians. Canada and the United States collaborated on Afghan security issues, including through joint deployments of civilian police in mentoring programs, embedding of Canadian and U.S. officials in their respective national command structures, and close cooperation on Afghanistan-Pakistan border initiatives. Through negotiation at the United Nations, Canada secured better terms and conditions for UN staff in Afghanistan, which will improve recruitment and retention in support of allied efforts.

North America and the hemisphere: The 50th anniversary of NORAD in May 2008 demonstrated the strength and endurance of the Canada-U.S. relationship and enhanced Canada's image as the United States' closest and longest-standing ally. The department cemented relationships with the Obama administration, Congressional leaders, new legislators and key governors-links that are crucial to advancing Canadian interests in that country. It also built alliances with American stakeholders who support Canadian positions and rely on an efficient border between the two countries. With respect to Canada-Mexico relations, the department renewed cooperation on human rights, indigenous issues, security and governance, while expanding the bilateral program that enables increased dialogue and visits between Canadian and Mexican parliamentarians.

Canada enhanced regional stability and security in the Americas by addressing drugs, organized crime, health pandemics and natural disasters, working with the UN Office on Drugs and Crime and the OAS Inter-American Drug Abuse Control Commission, as well as through anti-crime initiatives, the Global Peace and Security Fund, humanitarian relief efforts after natural disasters, and health initiatives. Part of this broad engagement strategy included advancing mutually supportive North American positions in the G20. Canada also promoted its approach to democracy support in the Americas through interventions at the 2009 Summit of the Americas and resolutions adopted at the 39th OAS General Assembly, and supported several democracy promotion initiatives and activities within the Americas, including preparation for a new regional democracy centre in Lima, Peru.

In support of security and the rule of law, the Stabilization and Reconstruction Task Force (START) advanced the development of a regional small-arms control agreement in the Caribbean, and led efforts to establish an international roster for justice rapid response, a mechanism to identify, collect and preserve information concerning allegations of genocide, war crimes and crimes against humanity. In related work, the Global Peace and Security Fund contribution for the promotion of victims' rights and the strengthening of institutions of truth, justice and reconciliation has enabled Colombia to consolidate its peace and security gains. Canada's support to the OAS Mission to Support the Peace Process in Colombia contributed to the demobilization of 35,000 United Self-Defence Forces of Colombia (AUC) paramilitaries in accordance with the rules established by the peace process.

Growing/emerging markets, with a focus on China and India: Through the government's Global Commerce Strategy, DFAIT continued to pursue an ambitious bilateral agenda to secure competitive terms of access for Canadian businesses, attract and encourage global investment and expand Canada's international commercial network. In 2008-2009, Canada concluded FTA negotiations with Jordan, and tabled legislation to implement FTAs with the European Free Trade Association (Iceland, Liechtenstein, Norway and Switzerland), Peru and Colombia. Following a detailed exploratory process, FTA negotiations were launched with Panama. A joint study and joint report were completed with the European Union, which led to the launch of negotiations toward a comprehensive economic and trade agreement, and exploratory discussions were announced with India and Morocco. Negotiators continued efforts to advance FTA negotiations with South Korea, Singapore, the Central American Four (Guatemala, Honduras, Nicaragua and El Salvador), the Caribbean Community and the Dominican Republic, and made efforts and progress toward modernizing existing FTAs with Chile and Costa Rica. Canada also concluded foreign investment promotion and protection agreements with Kuwait and Madagascar, and concluded seven air service agreements, including an agreement covering the 27 countries of the European Union. The department implemented market plans for the United States, Mexico, China, India, Brazil, Latin America and the Caribbean, Europe, Russia, Japan, South Korea, Australia/New Zealand, the Association of Southeast Asian Nations and the Gulf Cooperation Council.

Pursuing expanded market access, Canada (DFAIT and partner departments) coordinated with other WTO members in negotiations toward the conclusion of the WTO Doha Round of multilateral trade negotiations, and DFAIT represented Canada's interests in 13 ongoing disputes at the WTO. These included resolution of a European Communities case against Canada on excise taxes and successful settlement of the dispute initiated by Canada against China on treatment of financial information service suppliers in that country.

Lessons Learned

What worked well: The department continued to develop a more active web presence with more pages and features, such as highlights and videos on the main website and that of the Trade Commissioner Service, as well as more videos and podcasts posted on sites such as YouTube. The objective is to deliver an innovative and targeted message in the most cost-effective way possible.

What could be improved and what we are doing about it: The department recognized that international youth and education programming could be improved through increased collaboration with federal partners and more effective use of resources. DFAIT undertook several initiatives to raise the profile of this type of programming, in alignment with government priorities. Another significant lesson learned was that the department's program delivery would benefit from greater consolidation of program management and delivery.

Strategic Outcome 2: International Services for Canadians

2.2.1. Program Activity 3: International Commerce

Context: This program activity works to achieve the objectives of the government's Global Commerce Strategy, which are:

• to expand the participation of Canadian entrepreneurs in world markets;
• to increase their interaction with global business partners; and
• to promote Canada as a competitive location and partner for investment, innovation and value-added production.

The downturn in the global economy in the second half of the fiscal year had a negative impact on global trade and investment flows, including investment into Canada. The WTO noted that global trade increased by only 2 percent in 2008 (compared with a 6 percent rise in 2007), while forecasting a 9 percent drop in 2009 (www.wto.org/english/news_e/pres09_e/pr554_e.htm). Meanwhile, UNCTAD reported that foreign direct investment (FDI) worldwide fell sharply in the last quarter of 2008. This decline continued in the first quarter of 2009, when global FDI inflows dropped by 54 percent compared with the same period the year before (www.unctad.org/Templates/Webflyer.asp?docID=11666&intItemID=1528&lang=1).

Benefits to Canadians: The Trade Commissioner Service (TCS), with staff located in more than 150 cities worldwide, at regional offices in Canada and at the department's headquarters, helps Canadian businesses prepare for international markets, assess market potential, identify qualified contacts and solve problems. TCS investment officers posted at Canada's missions in key markets abroad collaborate with partner organizations in Canada to promote this country as a preferred destination for FDI (http://investincanada.gc.ca/). The International Commerce program activity is also delivered online, through the Virtual Trade Commissioner (www.infoexport.gc.ca) and the Export and Import Controls Bureau (www.international.gc.ca/controls-controles/index.aspx) websites. This program activity also monitors and authorizes trade in certain goods, ensuring the security of Canada and its allies by restricting trade in certain military and strategic goods and in other materials such as arms, ammunition, and nuclear materials and equipment.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: The following key accomplishments of this program activity in 2008-2009 correspond to three departmental priorities listed in the year's Report on Plans and Priorities: growing/emerging markets with a focus on China and India; greater economic competitiveness for Canada through enhanced commercial engagement, secure market access and targeted support for Canadian business; and launching the department's transformation process, including meeting the challenge of strengthening Canada's global mission network.

In 2008-2009, the department made real progress in its ongoing implementation of the government's Global Commerce Strategy. For instance, in response to the strategy's identification of 13 priority markets worldwide for Canadian business, the department opened new TCS offices in China, India, Mongolia and Brazil. It also opened new regional offices in Victoria, Windsor, Kitchener and Ottawa and increased staff at existing TCS offices.

As a key element of the Global Commerce Strategy, the department has prepared and is continuing to implement targeted and sector-based plans for the 13 priority markets (www.international.gc.ca/commerce/strategy-strategie/r.aspx). In nine of these priority markets, the number of clients served went up compared with the previous year. The opening of new offices contributed to an increase in the number of clients served in all five countries noted in the preceding paragraph (percentage increase in clients, year over year: Brazil 69 percent; China 5 percent; India 64 percent; Mexico 23 percent; and Mongolia 157 percent). The number of clients served by domestic offices grew by over 40 percent.

There was rising demand for TCS services throughout 2008-2009. The number of Canadian clients increased by 2.5 percent over the previous year (from 11,653 to 11,943). Total service transactions increased by 3.5 percent (from 32,470 to 33,623). In the midst of deteriorating conditions in the global economy, the number of clients obtaining TCS services was considerably higher in the final quarter of 2008-2009 than in any other quarter during the previous 24 months.

The department provided information and advice to the Minister on 6 transactions under the Canada Account in 2008-2009 in support of the automotive sector, exports to Cuba and a strategic Canadian shipyard. The high volume of transactions under the Canada Account, which is used to support transactions that are beyond the risk capacity of Export Development Canada but in the national interest, arose out of the severe tightening of credit available to Canadian business during the financial crisis.

To further encourage international trade and commerce, the department organized several important trade missions last year involving Canadian business delegates. Destinations included established and developing markets: Argentina, Uruguay, Chile, China (in collaboration with Transport Canada), Libya and South Africa. There was also a European Union mission, with events in Great Britain, Denmark and Italy.

The TCS maintains an inventory of over 600 market sector reports, which are available online (www.tradecommissioner.gc.ca/eng/market-report-access.jsp). During 2008-2009, the department produced, translated and published 96 new market sector reports and updated 97 existing reports pertaining to over 30 industry sectors in key overseas markets. The annual target was 200 new and updated reports. These reports were downloaded over 25,800 times during the most recent annual cycle and clients ranked the reports favourably (four out of a possible five points, on average) in terms of overall quality, utility and relevance. Improvements to the interface of the market report website, as well as direct mail, direct email and advertising contributed to public awareness of these important sources of market information.

DFAIT provided 681 referrals of potential foreign investors (729 in the previous year) to its domestic partners, primarily provinces, territories and municipalities. The department tracked 97 actual foreign direct investments in Canada that its investment network facilitated, compared with 148 the previous year. The decline in numbers was a result of the reduced ability and willingness of international business to make foreign investments during the global economic downturn.

To attract foreign investors to Canada, DFAIT developed an online benchmarking program for 15 sectors in which Canada has a comparative advantage. The new interactive tool was used in advising potential investors and creating 14 sector-specific value propositions (promotional products showcasing Canada's competitiveness vis-à-vis other locations around the world).

In addition, the department promoted use of Canada's Asia-Pacific Gateway and Corridor to 42 of the world's largest shipping firms, through a collaboration between the public and private sectors. Of the shippers contacted after the promotion, 20 percent had begun to use Canadian west coast ports. The Gateway's market share of container traffic shipped from Asia to the west coast of North America increased by 8.9 percent between April 2008 and March 2009. This change in market share will be used as a benchmark to assess performance in future years. Other key marketing activities included worldwide distribution of 26,000 copies, in eight languages, of the 2008-2009 Invest in Canada (Go for Gold) report (http://investincanada.gc.ca/download/760.pdf) to prospective investors; and provision of speakers and networking champions at 34 events, under the Investment Champions program. It should be noted that visits to the investincanada.gc.ca website, which is available in nine languages, increased from 6,000 per month in 2002 to 41,000 per month in 2007 and to 50,000 per month in 2008.

Canada signed a memorandum of understanding on science and technology (S&T) cooperation with Chile in June 2008 and an S&T treaty with Brazil in October 2008. Further S&T collaborations were formalized under the International Science and Technology Partnership Program (ISTPP), resulting in 20 Canada-China projects worth $11 million, eight Canada-India projects worth more than $17 million, and eight new initiatives with Israel valued at over $2 million. Overall, the amount of partner contributions leveraged from ISTPP funding was in the order of 400 percent, double the ratio of last year, and the total value of projects funded increased from $4 million to $30 million. In addition, the Canada-California Strategic Innovation Partnership initiative announced a large-scale research and development collaboration to fight cancer through the Cancer Stem Cell Research Consortium (made up of international researchers, funding agencies, non-governmental organizations and private sector partners).

Canada continued to have a strong presence under the European Research Area and Canada (ERA-Can) program to increase the quantity, quality and impact of science and technology cooperation between Europe and Canada. Approximately 280 proposals involving Canadian researchers were submitted by mid-April 2009, 69 of which were selected for funding. The projects cover several fields of research, including information and communications technology, food, agriculture, biotechnology, health, nanotechnologies, transportation and space.

In DFAIT's ongoing efforts-as part of its transformation process-to improve client services, the department upgraded its online export and import permit application systems and published an export controls handbook, intended for use by exporters as the main reference tool on the subject. The Export and Import Controls Bureau website provides timely information to Canadian businesses and other stakeholders. For example, the posting of softwood lumber export data now occurs three times a day, and the website is kept up-to-date to reflect current policies. In addition, the Trade Controls Policy Division and the Softwood Lumber Division implemented a new risk management tool, which strengthened softwood lumber companies' compliance with the Export and Import Permits Act.

The TCS made client service improvements to support Canadian businesses along each of the routes they take in expanding internationally-through exports, two-way investment and innovation-as follows:

• In March 2009, the government announced its new Corporate Social Responsibility (CSR) Strategy for the Canadian international extractive sector. The strategy will improve the competitive advantage of Canadian extractive sector companies operating abroad by enhancing their ability to manage social and environmental risks. A portion of the TCS Client Service Fund was dedicated, beginning in 2008-2009, to supporting CSR-related projects. As an example of the 25 initiatives supported during the year, a mining toolkit was used in Ecuador and Colombia to engage community stakeholders and increase awareness of Canadian CSR policies and programs. A CSR centre of excellence was to have opened during the year, but is still under development.
• DFAIT's collaboration with federal partners on service delivery makes it easier for Canadian clients to access international commerce services. This service model brings together timely delivery of market leads on commercial opportunities with Canadian government guarantees and the financial tools clients need to win contracts abroad. A pilot project with the Canadian Commercial Corporation and Export Development Canada on public infrastructure opportunities, targeting high-value projects in Central and South America, has so far yielded one memorandum of understanding and six business leads for Canadian clients.
• Client feedback has consistently highlighted the need for the TCS to employ more in-depth industry sector knowledge in its programs and services. In its second year of operation, the life sciences pilot project drew on input from private sector advisers to develop business plans tailored to priority international markets. It also updated an investment attraction target list, and helped restructure the TCS Client Service Fund to prioritize the projects undertaken at TCS offices in support of clients in the sector. This pilot project, which uses a new model for delivering service to Canadian business, is led by an industry expert and brings together departmental expertise in investment, innovation, international markets and the industry to coordinate programs, services and strategies for clients. The department worked during the year toward establishing sector practices for other industries.
• The Global Commerce Support Program (GCSP) was established in December 2008 to provide a consolidated approach for Canadians to access international commerce funding from the department. The GCSP groups three previous contribution programs under one umbrella mechanism. The three programs are Invest Canada-Community Initiatives (formerly the Community Investment Support Program) for communities; Going Global-Innovation (formerly the Going Global Science & Technology Program) for companies and researchers; and Global Opportunities for Associations (formerly the Program for Export Market Development-Associations) for national associations. GCSP terms and conditions were developed in order to align with government priorities in the Global Commerce Strategy: to attract, retain and expand foreign direct investment, to increase Canadian innovation and commercialization opportunities, and to increase Canadian business success in foreign markets.

An appraisal of the department's 2008-2009 performance in international commerce-related activities would be incomplete without noting views from outside the country:

• According to the World Bank report entitled Global Investment Promotion Benchmarking 2009 (www.ifc.org/ifcext/fias.nsf/Content/GIPB2009), DFAIT's Invest in Canada activities ranked fourth out of 181 national investment promotion agencies in providing information and services to potential investors.
• Canada ranked 14th, up from 21st in 2005, according to the 2007 A.T. Kearney FDI Confidence Index (www.atkearney.com/images/global/pdf/FDICI_2007.pdf).
• Canada ranked fourth behind Singapore, Finland and Denmark in the Economist Intelligence Unit's April 2008 Business Environment Rankings for 2008-2012, up from fifth place for 2003-2007 (www.eiuresources.com/mediadir/default.asp?PR=2008042102).
• Canada fell from seventh to eighth position in the World Bank's Ease of Doing Business ranking, covering April 2007 to June 2008 (www.doingbusiness.org/EconomyRankings/).
• Canada fell from sixth to eighth place in the 2007 A.T. Kearney/Foreign Policy Globalization Index (www.atkearney.com/index.php/Publications/globalization-index.html).

Lessons Learned

What worked well: The department's market sector reports published online were downloaded over 25,800 times during the most recent annual cycle, and clients ranked the reports favourably (4 out of 5 points on average) in terms of overall quality, utility and relevance.

Improved guidance to exporters related to policies and procedures through outreach seminars and regular updates to the Export and Import Controls Bureau website promoted better compliance by exporters.

What could be improved and what are we doing about it: Terms and conditions of the Global Commerce Support Program take into account recommendations contained in recent evaluations of the three contribution programs it replaced. The creation of a consolidated approach for processing contribution requests is expected to achieve administrative cost savings over the long term. In addition, the new program complies with DFAIT's enhanced management of grants and contribution programs, provides for a consistent risk and results-based management framework, and streamlines administrative processes. Furthermore, it provides flexibility to reallocate a part of the annual allocation from one part of the program to another to meet recipient demands.

In response to the decline in interest among foreign investors in pursuing new projects during the economic downturn, the department has stepped up efforts to build domestic capacity in investment attraction, by offering more courses to domestic partners, expanding the online content available to partners, and disbursing more money through the Community Investment Support Program (supporting 170 projects with a total value of $3.28 million, compared with 151 projects for a total of $2.6 million in 2007-2008).

The department is also undertaking assertive marketing activities related to trade and investment, such as leveraging the Vancouver 2010 Olympic Games to advance Canada's commercial outreach in priority markets in Asia, Europe and North America. This included the launch of the 2010 Reasons to Do Business in Canada campaign and development of a suite of 15 marketing tools and products for use by missions in priority markets.

¹⁴ This performance summary uses a concise, high-level set of results statements and performance indicators that the department developed in 2008-2009 for the International Commerce program activity. Given the unavailability of quantitative data, the department assessed its performance based on the qualitative evidence provided in summary in the performance highlights. The department judges that it met or exceeded most of the expected results presented in its 2008-2009 Report on Plans and Priorities for this program activity, with the following exceptions:

• DFAIT only partially met its target for the number of foreign direct investments in Canada that it facilitated. It does not have the systems required to adequately track the value of FDI that it facilitates.
• To assess results pertaining to client satisfaction, attainment of service standards, and commercial activity undertaken by TCS clients, the department requires information to be obtained from a survey of 2008-2009 TCS clients, which will be conducted in the fall of 2009. Results of the client survey will be published on the TCS website (www.tradecommissioner.gc.ca/clientsurvey2009) and will be used to make further service improvements.

¹⁵ This figure comes from the department's Performance Measurement Framework.

¹⁶ The reference to a baseline refers to the process of establishing the department's current performance level in an effort to ascertain an appropriate and realistic target for future performance.

2.2.2. Program Activity 4: Consular Affairs

Context: This program activity manages and delivers consular services and advice to Canadians. This work is done through consular agents and officers at missions abroad and in Canada, and through the use of the website www.voyage.gc.ca. The main target groups are Canadians outside Canada and Canadians planning to travel or live abroad. Consular services are delivered through a network of over 260 points of service in approximately 150 countries.

Benefits to Canadians: This program activity prepares Canadians for international travel by informing them about safe travel habits and providing them with credible and timely information and advice to enable them to make responsible decisions about travel to foreign countries.

As well as responding to routine requests for services, this program activity assists Canadians outside Canada (24 hours a day, seven days a week) in handling individual cases of distress and, in cooperation with partners at missions, it also provides a coordinated Government of Canada response to emergencies abroad.

In 2008-2009, the Consular Services and Emergency Management Branch underwent significant changes that resulted in a more comprehensive approach to protecting and assisting Canadians at home and abroad. The creation of the Branch's Emergency Management Bureau in September 2008 strengthened the government's ability to plan, prepare for and respond to emergency crises affecting Canadians. The department provided assistance to some 1,600 Canadians in over 26 separate crisis or emergency situations, including the terrorist attacks in Mumbai, the airport closures in Bangkok and the evacuation of some 80 Canadians from Gaza.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: Consular Affairs aligns itself with the departmental priority strengthened services to Canadians, including consular, passport and global commercial activities.

Several complex cases were successfully resolved, including the return to Canada of five abandoned minors and of a woman forced into a marriage overseas. A number of high-profile and sensitive kidnapping cases were successfully resolved. The department also developed a post-release assistance plan to ensure that Canadian kidnapping victims receive appropriate consular services and follow-up care. With the growing number of cases involving Canadians abroad affected by illness, the department spearheaded an initiative for improved coordination with provincial authorities to ensure that Canadians receive appropriate hospitalization and support upon their repatriation to Canada.

The department opened more than 250,000 new consular cases in 2009-2009. The number of routine and distress-related cases increased 12 percent from the previous year. The consular website introduced a new feature this year, enabling clients to complete the feedback form online. A total of 4,672 feedback forms were received, up from 2,708 the previous year. Of the Canadians who responded, 93 percent said they were satisfied or very satisfied with the services they received.

Given the complexity of consular cases, the department strengthened its policy capacity and increased its consultations on key consular issues, both at home and abroad. A number of consultations took place to exchange best practices and ideas with like-minded countries (United States, United Kingdom, Australia and New Zealand).

Lessons Learned

What worked well: Through capacity building, DFAIT further improved aspects of emergency management, particularly those involving sustained and complex situations. There was also a coordinated effort to synchronize the resources of partner departments to enable a quicker and more efficient response overall.

What could be improved and what we are doing about it: Effective public communications is key during a large-scale crisis. Planning, policy development and programming are under way to improve this aspect of consular work. For instance, the online Crisis Portal will consolidate information and lessen redundancy while improving efficiency. To increase public awareness of consular services and the safe-travel program, the department will explore the possibility of implementing a public awareness campaign to reach different target audiences.

2.2.3. Program Activity 5: Passport Canada

Context: This program activity manages and delivers passport services through use of the Passport Canada Revolving Fund. Operations are financed primarily through user fees. This program activity enables the issuance of secure travel documents to Canadians, facilitating travel outside Canada and contributing to international and domestic security. The work is done through authentication of the identity and entitlement of applicants. The main target group is Canadian citizens travelling abroad.

Benefits to Canadians: This program activity provides Canadians with secure travel documents through an extensive domestic network of 33 regional offices, 141 Service Canada locations, 56 Canada Post outlets and the central operations. Abroad, passport services are offered through the network of Canada's missions abroad.

Thanks to modernization projects, infrastructure development and contingency planning, passport applicants did not experience long wait times in over-the-counter or mail services in 2008-2009 (www.passport.gc.ca/publications/index.aspx?lang=eng#reports). This was a significant accomplishment given the volume of passport applications, mostly due to the United States' Western Hemisphere Travel Initiative.

Canada's secure travel documents have advanced anti-fraud protection measures embedded in them. Provision of increasingly secure travel documents has facilitated travel and contributed to domestic and international security.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: The Passport Canada program activity aligns itself with the departmental priority strengthened services to Canadians, including consular, passport and global commercial activities.

• Forty new receiving agent locations were opened in Canada in response to client demand.
• Clients reported a satisfaction rate of 96 percent when rating agency services in surveys. Of these, 44 percent were very satisfied.
• The first electronic passport was issued on January 12, 2009, and a total of 4,000 diplomatic and special ePassports were issued over the course of the year. The ePassport will be made available to all Canadians in 2011.
• Despite a high volume of passport applications, mostly due to the WHTI, applicants experienced no long wait times, as demonstrated by internal tracking of achievement of service standards.
• A total of 40 percent of adult passport applications were renewals. All service standards were met in their processing.
• The first phase of facial recognition technology was developed, involving manual importation of all photographs saved to the central electronic database.

For more performance information, see www.passport.gc.ca and www.oag-bvg.gc.ca/internet/English/parl_oag_200903_e_32304.html.

Lessons Learned

What worked well: Process improvements and infrastructure modifications facilitated the agency's ability to deal with increased volumes without negatively affecting client service.

What could be improved and what the agency is doing about it: The agency's executive committee focused its work on priority projects to ensure the greatest possible progress. Funding flexibility and capacity remain a challenge due to the governance and funding structure of the agency. However, efforts are being made to find reinvestment opportunities through productivity and technological improvements. Forecasting passport application demand is a challenge in a constantly shifting environment, but the forecast is reviewed and revised when operating conditions change.

Retention and recruitment of staff remains a priority issue for the agency. During this fiscal year, 629 employees were hired.

Strategic Outcome 3: Canada's International Platform

2.3.1. Program Activity 6: Canada's International Platform: Support at Headquarters

Context: This program activity manages and delivers services and infrastructure at headquarters to enable Canada's representation abroad. The work is done by coordinating with various departmental units and 30 federal and other partners who have operations at Canada's missions abroad. ¹⁷

Benefits to Canadians: Using a single-window approach, this program activity provides infrastructure and related services to 173 missions in 110 countries. As a result of the department's 2007 strategic review, various functions related to the delivery of common services were consolidated under a single assistant deputy minister. To build an effective and equitable network, the international platform's governance structure has brought DFAIT's partners to the decision-making table, resulting in a more agile system for providing services and infrastructure abroad.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: This program activity and with Program Activity 7 make possible the international operations of the entire Government of Canada and of its partners who also have operations at Canada's missions abroad. The 2008-2009 achievements of this program activity correspond to the following priorities identified in the year's Report on Plans and Priorities: strengthened stewardship of the department's resources (human, financial, physical and technological) and of Canada's international representation generally, reflecting alignment with Government of Canada priorities; and launching of DFAIT's transformation process, including meeting the challenge of strengthening Canada's global mission network. Governance, service standards, planning and performance measurement were further integrated, and resources were strategically deployed to improve efficiency.

The mandate of common services delivery was consolidated under one assistant deputy minister to efficiently manage human and financial resources, services and infrastructure. A global review of the management of LES was initiated. An integrated human resources plan for the International Platform Branch was developed, and HR planning tools were provided to missions, in support of Canada's representation abroad. Monitoring of mission budgets was improved by separating common services from program funding. Security and infrastructure management was improved, in accordance with national and international standards and government priorities.

The department achieved its objective of measuring client satisfaction with the delivery of common services. Results of a pilot client survey were used to develop a baseline measure and to set targets for future performance. The number of client complaints was cut in half in 2008-2009. All clients participated in renegotiating the service agreement (part of the Memorandum of Understanding on Common Services). As a result of organizational alignment, integrated planning and client engagement, all client demands as well as common services and infrastructure objectives were met, and services were delivered on time.

Lessons Learned

What worked well: Establishment of the International Platform Branch improved service efficiency through realignment and integration of resources as well as improved monitoring and governance. Mission budgets were divided into common services and program budgets to ensure better monitoring. Development of a departmental project priority list ensured alignment of departmental objectives with those of the government as a whole. Objectives of the department's transformation process were met through organizational realignment, and growing service demands were successfully handled in a timely manner.

What could be improved and what we are doing about it: Performance measurement needed to be strengthened by setting a target for client satisfaction. Service standards needed to be better defined and communicated. The department has set a target of 75 percent for client satisfaction, and is establishing, communicating and monitoring service standards identified in the Memorandum of Understanding on Common Services.

¹⁷ These include Crown corporations, such as Export Development Canada, as well as provincial governments.

¹⁸ Based on a 2008-2009 client survey distributed to 160 employees (88 CBS and 72 LES) at 29 missions. There were 68 respondents (30 CBS and 38 LES)-a 42% participation rate.

¹⁹ As the Government of Canada continues to expand its presence abroad, particularly to increasingly complex, higher-threat environments, the department is assessing systems to address evolving security risks.

2.3.2. Program Activity 7: Canada's International Platform: Support at Missions Abroad

Context: This program activity manages and delivers services and infrastructure at Canada's 173 missions in 110 countries, enabling the international operations of the entire Government of Canada and its partners at missions abroad. This work is done by coordinating with various departmental units and 30 federal government and other partners working out of Canada's missions. This program activity ensures that services such as human resources, financial management, asset and materiel management, comptrollership, mail and diplomatic courier services, and bandwidth acquisition are in place at missions to support Canada's international policy objectives and program delivery.

Benefits to Canadians: This program activity provides support to key Government of Canada programs delivered through Canadian missions, such as consular and commercial services, the Political/Economic Reporting and Public Affairs (PERPA) program, immigration services, international aid and development assistance, border security and national defence. According to the Annual Report on Representation Abroad, there were over 260 points of service as of June 30, 2009. To better support these programs, five new missions were opened in 2008: at Hyderabad and Kolkata in India; Ulaanbaatar in Mongolia; Karachi in Pakistan; and Astana in Kazakhstan. No mission closures were carried out this year.

In the interests of concise reporting, the expected results for each program activity have not been taken directly from the 2008-2009 Report on Plans and Priorities. Instead, they have been consolidated into higher-level results that more accurately relate to the program activity level of the department's Program Activity Architecture. Performance indicators have been derived from three sources: the 2008-2009 RPP, information provided by DFAIT branches, and the department's draft Performance Measurement Framework.

Performance Highlights: This program activity and Program Activity 6 make possible the international operations of the entire Government of Canada and its partners who also have operations at Canada's missions abroad. The 2008-2009 achievements of this program activity correspond to the following priorities identified in the year's Report on Plans and Priorities: strengthened stewardship of the department's resources (human, financial, physical and technological) and of Canada's international representation generally, reflecting alignment with Government of Canada priorities; and launching of DFAIT's transformation process, including meeting the challenge of strengthening Canada's global mission network.

The department met its objective to improve the management and cost-effectiveness of administrative services at missions. This work will be advanced further by implementation of the new Regional Service Centre model in the fall of 2009, which will guide efforts to rationalize the management of resources, functions and authorities at missions.

The department maintained a secure and reliable IM/IT infrastructure as well as an IT service kit for crisis response. The updated classified network was acclaimed by clients as fast, useful and productive.

The department's timely and successful completion of annual consultations on changes to positions abroad and related reallocation services exceeded expectations. The department handled approximately 20 percent more requests for changes and relocations in 2008-2009 and was able to complete them on schedule. Clients expressed a high level of satisfaction with these and other services and infrastructure.

The aim of the department to support Canada's objectives in Afghanistan was also exceeded. The department's most significant achievements in this regard were to support the coordination of Canada's mission in Afghanistan through the embassy in Kabul and to advance negotiations for a permanent site for the embassy in Kabul.

Lessons Learned

What worked well: The department's aim was to enable program managers to focus on their core mandates. Through consultations with missions and partners, the international platform that DFAIT provides is evolving to become more responsive to the needs of heads of missions, program staff and partners.

What could be improved and what we are doing about it: More can be accomplished in establishing and explaining measurable and verifiable performance indicators, such as those related to requests for mission openings/closings and for position changes. Targets of 95 percent have been set for timely completion of approved requests for mission openings/closings and position changes. Evaluation of common service delivery is expected to take place every five years.

²⁰ Service Delivery Standards: Client Satisfaction Survey 2008-2009. The results will be published in the annual report on Canada's representation abroad.

²¹ FSD Service and Policy Bureau, client service questionnaire, 2008.

2.4. Internal Services

Context: Internal Services are activities that make possible all of the department's operations. Without Internal Services, the department could not carry out its mandated functions or advance its strategic outcomes.

Benefits to Canadians: Internal Services enable the delivery of program activities 1 through 7, described earlier in this report. The department has reviewed its processes and activities in order to improve their quality as well as alignment of resources (human, financial, physical and technological) with international policy objectives and program delivery. Departmental performance for Internal Services includes lessons learned from internal and external reports as well as from the department's Management Accountability Framework (MAF) assessments.

Lessons Learned

What worked well: The department undertook ambitious work to strengthen its accountability and renew its human resources as part of the departmental transformation process. This work was mostly very successful, as indicated by the MAF scores with respect to 12 Areas of Management related to Internal Services. For five out of the 12, the department improved its scores from the previous assessment. Four AoMs were maintained as "strong," two AoMs were unchanged at "acceptable," and one was unchanged at "opportunity for improvement."

What could be improved and what we are doing about it: The 2009-2010 Report on Plans and Priorities (www.tbs-sct.gc.ca/rpp/2009-2010/index-eng.asp?acr=1375) outlined in detail the initiatives and policies that will be assessed to measure progress in strengthening the department's management and oversight. One area in particular need of improvement is AoM 18 (Effectiveness of the Internal Audit Function), where the department's MAF score remained at "opportunity for improvement," the same as in its previous MAF assessment. Change has already taken place. The Departmental Audit Committee, created the previous year, provides much-needed oversight, which should improve the AoM 18 score in the future.

Section 3: Supplementary Information

3.1.1. Financial Highlights

The purpose of this section is to explain the department's financial highlights during the 2008-2009 fiscal year, based on the department's consolidated financial statements. The charts below illustrate the ending balances, as of March 31, for each major financial statement grouping, along with the corresponding change from the previous fiscal year. In summary, between 2007-2008 and 2008-2009, the department's expenses increased by 26 percent and its assets increased by 21 percent. Below the chart are explanations for the variances in each major grouping based on the most significant factors that affected each grouping during the fiscal year.

The year-over-year increase of $848 million or 21 percent in total assets is primarily attributable to a $350 million increase in DFAIT's investment in Export Development Canada (total Crown Corporation investment was $1,341 million in 2008-2009, compared with $991 million in 2007-2008); a $350 million increase in Canada Account loans, mainly due to foreign exchange revaluations; an increase in accounts receivable and advances of $94 million; and an increase in DFAIT's prepaid expenses of $38 million. In addition, tangible capital assets had a net increase of $8 million (gross value increased by $90 million). Various non-capital assets accounted for the remaining year-over-year increase.

The year-over-year increase of $30 million or 6 percent in total liabilities was mainly due to a $21 million increase in accounts payable and accrued liabilities, caused by an increase in transaction volume, increased year-end workload and an increase in payables related to legal and travel expenditures and a $9 million increase in employee severance benefits, mostly due to an increase in the percentage rate provided by Treasury Board and the Office of the Comptroller General, which is used to calculate the liability.

The year-over-year increase of $818 million or 23 percent in departmental equity to $4,349 million in 2008-2009 from $3,531 million in 2007-2008 is calculated by subtracting the net change in operations of $1,921 million from the opening balance and by adding the net cash provided of $2,646 million plus the $93 million in services provided without charge by other government departments. For more information, refer to the Financial Statement's Statement of Equity and Note 3 Parliamentary Appropriations.

The year-over-year increase of $655 million or 26 percent in total expenses was attributable to a $620 million change in the provision for loans and guarantees related to the Canada Account; a $161 million increase in salaries and employee benefits, which was mainly due to the addition of FTEs; a $71 million increase in bad debt expense, mainly related to the Canada Account; a $54 million increase in professional and special services; a $34 million increase in transfer payments; a $25 million increase in rental expenses, mainly related to lands and buildings abroad; a $18 million increase in transportation and telecommunications; a $12 million increase in information expenses; a $5 million increase in the cost of utilities, materials and supplies; and a $344 million decrease in foreign exchange loss (the department recorded a net gain in 2008-2009).

The year-over-year increase of $361 million or 43 percent in total revenues was primarily attributable to a $603 million increase in gains on foreign exchange revaluations at year end, which stemmed from the revaluation of EDC's Canada Account loans at that time. Interest on non-tax revenues increased by $65 million, mainly due to increased revenues related to Canada Account loans; a $250 million decrease in dividend revenue from EDC; a $33 million decrease in gains on the sale of real property sold abroad; and a $23 million drop in the sale of goods and services, due to a decline in the number of passports issued by Passport Canada.

Additional Analysis

Assets

The department's total assets were $4,874 million in 2008-2009 compared with $4,026 million in 2007-08, an increase of 21 percent or $848 million. The department's total financial assets were $3,636 million or 75 percent of total assets, while the total non-financial assets were $1,238 million or 25 percent of total assets. Total assets consisted primarily of $2,067 million or 42 percent in Canada Account loans; investments in Crown corporations of $1,341 million or 28 percent; tangible capital assets of $1,177 million or 24 percent; accounts receivable and advances of $219 million or 5 percent; and prepaid expenses of $54 million or 1 percent.

Liabilities

Total liabilities were $525 million in 2008-2009 compared with $495 million in 2007-2008, an increase of $30 million or 6 percent. Accounts payable and accrued liabilities accounted for $360 million or 68 percent; employee severance benefits amounted to $120 million or 23 percent; and vacation pay and compensatory leave totaled $45 million or 9 percent.

Expenses

The department's expenses in 2008-2009 were $3,129 million compared with $2,474 million in 2007-2008, which represents an increase of $655 million or 26 percent. In 2008-2009, salaries and benefits accounted for $1,085 million or 34 percent of DFAIT's total operating expenditures. Transfer payments accounted for $775 million or 25 percent of the department's total expenses. This included $399 million in payments to the United Nations and related organizations; $366 million in payments to other non-profit organizations; $91 million in payments to national non-profit organizations; and $19 million in other payments. The remainder of total operating expenses was accounted for by for loans and guarantees of $287 million or 9 percent; professional and special services expenses of $249 million or 8 percent; rentals expenses of $207 million or 7 percent; transportation and telecommunications expenses of $195 million or 6 percent; and other miscellaneous operating expenses of $331 million, or 11 percent.

Revenues

The department's total revenues were $1,208 million in 2008-2009, compared with $847 million in 2007-2008, which represents an increase of $361 million or 43 percent. Foreign exchange gains accounted for $603 million or 49 percent of total revenues. These gains primarily arose from the revaluation of Canada Account loans in foreign currencies (71% of the portfolio). Sales of goods and services accounted for $409 million or 34 percent, chiefly of passport sales of $263 million and consular fees of $93 million. Interest on non-tax revenues accounted for $142 million or 12 percent, while other miscellaneous revenue accounted for the remainder $54 million or 5 percent.

Financial Statements

www.international.gc.ca/finance/

3.1.2. Listing of Online Information

Listing of Information to Be Placed Online

Please note that the following tables are not published in the print version of the Departmental Performance Report for 2008-2009. They can be viewed on the Treasury Board Secretariat's website at www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp.

Table 1: Sources of Respendable and Non-Respendable Revenue

Table 2: User Fees/External Fees

• Table 2.1-A: User Fees Act-Access to Information
• Table 2.1-B: Policy on Service Standards for External Fees-Access to Information
• Table 2.2-A: User Fees Act-International Youth Program
• Table 2.2-B: Policy on Service Standards for External Fees-International Youth Program
• Table 2.3-A: User Fees Act-Export/Import Fees
• Table 2.3-B: Policy on Service Standards for External Fees-Export/Import Fees
• Table 2.4-A: User Fees Act-Consular Service
• Table 2.4-B: Policy on Service Standards for External Fees-Consular Service
• Table 2.5-A: User Fees Act-Specialized Consular Service
• Table 2.5-B: Policy on Service Standards for External Fees-Specialized Consular Service
• Table 2.6-A: User Fees Act-Passport Canada
• Table 2.6-B: Policy on Service Standards for External Fees-Passport Canada Revolving Fund

Table 3: Details on Transfer Payment Programs

Program Activity: Diplomacy and Advocacy

• Table 3.1: An Act to Authorize the Minister of Finance to Make Certain Payments, 2005 and Budget Implementation Act, 2007
• Table 3.2: Commonwealth Secretariat
• Table 3.3: Food and Agriculture Organization of the United Nations (FAO)
• Table 3.4: Global Peace and Security Fund (GPSF)
• Table 3.5: Grants in Aid of Academic Relations
• Table 3.6: Initiatives Related to the Destruction, Disposition and Securing of Weapons of Mass Destruction
• Table 3.7: International Atomic Energy Agency (IAEA)
• Table 3.8: International Criminal Court (ICC)
• Table 3.9: International Labour Organisation (ILO)
• Table 3.10: International Organization of the Francophonie (OIF)
• Table 3.11: North Atlantic Treaty Organization (NATO) Civil Administration
• Table 3.12: Organisation for Economic Co-operation and Development (OECD)
• Table 3.13: Organization for Security and Co-operation in Europe (OSCE)
• Table 3.14: Organization of American States (OAS)
• Table 3.15: Payments in Lieu of Taxes on Diplomatic, Consular and International Organizations' Property in Canada
• Table 3.16: Projects and Development Activities Resulting from Francophonie Summits
• Table 3.17: United Nations Educational, Scientific and Cultural Organization (UNESCO)
• Table 3.18: United Nations Organization (UN)
• Table 3.19: United Nations Peacekeeping Operations
• Table 3.20: World Health Organization (WHO)
• Table 3.21: World Trade Organization (WTO)

Table 4: Up-Front Multi-Year Funding (formerly the Foundations [Conditional Grants] table)

Program Activity: Diplomacy and Advocacy

• Table 4.1: Asia Pacific Foundation of Canada
• Table 4.2: Centre for International Governance Innovation (CIGI)
• Table 4.3: Forum of Federations

Table 5: Horizontal Initiative - Global Peace and Security Fund (GPSF)

Table 6: Sustainable Development Strategy (SDS)

Table 7: Green Procurement

Table 8: Responses to Parliamentary Committees, External Audits and the Auditor General

• Table 8.1: Responses to Parliamentary Committees
• Table 8.2: External Audits
• Table 8.3: Responses to the Auditor General

Table 9: Internal Audits, Evaluations and Mission Inspections

• Table 9.1: Internal Audits
• Table 9.2: Evaluations
• Table 9.3: Mission Inspections

3.1.3. Contact Information

Department of Foreign Affairs and International Trade

Organizations Related to the Department