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Internal Services do not constitute a defined program activity within the Program Activity Architecture (PAA) construct but provide a place to list the organizational entities, such as finance and information management that support and provide coherence to the three program activities in the PAA structure. The costs of Internal Services activities are distributed across the three program activities according to a pro-rated formula.

Departmental and Capital Spending - Planned (Net of Revenue in $ thousands)





Internal Services




Allocated to the following program activities:




Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces




Conduct Operations




Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interest and Values




Total Internal Services




Source: Assistant Deputy Minister (Finance and Corporate Services) Group
*Due to rounding, figures may not add up to totals shown.


  1. This is the Department's first attempt at reporting planned spending figures by the sub-activity level of the program activity architecture, therefore the numbers are subject to continued revision and refinement.

Capital Financial Resources by PAA Level (included in Departmental Spending)




Internal Services




Allocated to the following program activities:




Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces




Conduct Operations




Contribute to Canadian Government, Society and International Community in Accordance with Canadian Interest and Values




Total Capital Financial Resources - Internal Services




Source: Assistant Deputy Minister (Finance and Corporate Services) Group
*Due to rounding, figures may not add up to totals shown.


  1. The 2010-2011 planned spending figure for International Operations assumes that the Government will send the Canadian Forces on operations elsewhere in the world at a level comparable to the current operational level.

Management and Oversight Services

Results and Performance

Performance management (PM) remains a key component of the overall business planning cycle. Defence will continue its effort to align the DND/CF Performance Management Framework (PMF), the Program Activity Architecture (PAA) and the Management Accountability Framework (MAF). The PMF provides relevant information on internal, service and program results. The goal is to have a PMF with balanced and factual information to help decision-making and public reporting.

The PMF system continues to mature at DND and senior managers routinely discuss issues raised through the PMF system, in structured Balanced Scorecard discussions. The semi-annual internal performance management discussion paper and follow-on Defence Management Committee (DMC) discussion continue to be key processes for communicating and executing the Defence Strategy within the senior leadership. The PMF also allows senior management to monitor progress towards achievement of "stretch targets" in the transformation and modernization of the CF.[21]

The priority for fiscal year 2008-2009 is to continue to evolve and mature the Defence PMF to ensure the right sets of performance indicators, measures and targets are in place for the Defence Balanced Scorecard and Strategy Map to accurately monitor the progress towards the development of a modern, first-class military. The Vice-Chief of the Defence Staff organization will continue to provide focus to the Defence Performance Management Action Teams and closely monitor the evolution of the Defence PMF.

Integrated Risk Management

Integrated risk management (IRM) is making progress in the Department. The Corporate Risk Profile (CRP) is still being developed to enable Defence to assess its operating environment and capacity to deal with high-level risks associated with strategic objectives. Part one of the CRP, which sets out the background, the strategic context, the methodology for Defence risk assessment, the areas of strategic risk, etc., has now been completed. Part two of the CRP is scheduled for completion in February 2008. It will give a snapshot of strategic risks in Defence and will identify the key high-level risks that must be managed at the corporate level. These risks will be analysed and response strategies will be developed.

Having released a departmental IRM Implementation Plan with target dates, risk management principles will be integrated to an increasing extent into strategic and business planning, in decision-making processes and in reporting. Application of the Implementation Plan will also enable the integration of the practice of IRM across Defence, and will ensure the continuous learning in the risk management field.

Defence is increasingly integrating IRM into the Performance Management Framework, the main portal for reporting risk information. Further efforts to integrate IRM into other strategic processes at Defence will continue throughout fiscal year 2008-2009 in accordance with the IRM Implementation Plan. These efforts will include long-term work to develop and implement an effective IRM framework across all Defence Materiel Acquisition and Support activities.

Defence will continue to apply risk management techniques that reflect its historical funding trends. Continued application of a prudent risk management strategy that incorporates reasonable levels of over-programming in combination with identified risky investments is essential to success in achieving the Defence mission.


The Treasury Board Secretariat (TBS) intends for the Management Accountability Framework (MAF) to continue its maturation as a definitive assessment of departmental management capacity. From a Defence perspective, the MAF will evolve into an instrument for the continuous improvement of management processes. Although previous DND assessment results have been acceptable, TBS has suggested that senior management should focus its attention on the following:

  • better integration of Risk Management in departmental management processes and, in particular, development of a Corporate Risk Profile. Defence has responded by launching risk management initiatives to meet TBS requirements by the end of 2009;
  • expedited development and deployment of the Management Results and Reporting Structure (MRRS). Defence is on target to meet full MRRS implementation by 2009; and
  • submission of an approved investment plan to TBS by Fall 2008.

Defence management is becoming increasingly engaged with the MAF and aware of its growing importance as an instrument of compliance with central agency directives. In particular, senior managers recognize the degree of autonomy assigned to Defence will be directly dependent on MAF assessment results. Therefore, Defence intends to use the MAF throughout the whole year to improve management practices. This will have the added benefit of facilitating analyses of results and, in those instances where targets are either missed or exceeded, determine whether the results were attributable to management capacity or other factors. More information on the MAF is available on the following TBS webpage: < x_e.asp>.

Governance and Strategic Direction

In June 2007, the Chief of the Defence Staff and the Deputy Minister approved an implementation directive for a revised strategic governance model in the DND/CF. The new governance structure was fine tuned in September 2007 to support the evolution of CF transformation and Defence institutional alignment. The governance structure and processes will continue evolving to provide strategic direction and strengthen accountability. Over the next year, the new governance structure will better support the development and further implementation of the Canada First Defence Strategy, the investment plan, business plans, and project approval and oversight.

Stewardship and Comptrollership

Defence has a strong financial compliance control framework to ensure that it meets the requirements of the Financial Administration Act. The size of the organization necessitates constant fine-tuning of the framework as new resource managers assume their responsibilities and new procurement projects are launched. Also, in response to internal and external audits, the Department must strengthen areas of the framework through structured risk based analysis. This is an ongoing activity made more challenging by the multitude of disparate systems that feed data into the financial system. Medium and long-term departmental plans to consolidate these corporate systems will ensure the repeatability of compliance controls throughout the organization and strengthen the stewardship of financial resources. The key to this consolidation is DND/CF's Audited Financial Statements Project. To position itself for a controls-reliant audit of its financial statements, Defence is formalizing the documentation of all financial processes and controls, identifying opportunities to improve controls and re-engineering processes to improve the control framework. This work will prepare the Department for the Auditor General of Canada's audit of its financial statements while also codifying and strengthening the horizontal controls required to consolidate the various financial information systems.

Corporate Submission Process

The Department has recently revamped the DND Corporate Submissions Process into an integrated, comprehensive end-to-end process that combines the Project Approval Process and the Corporate Submissions Process. This includes capital submissions (for equipment and construction), regulatory and all other types of submissions seeking Ministerial and Treasury Board approvals.

The streamlined process fosters a culture dedicated to a seamless, shared commitment to processes and behaviours that result in tangible improvements and efficiencies in the flow of submissions, from identifying a need to approving expenditure for the implementation of projects. The process brings a disciplined and standardized approach to submissions development, including a consistent look and feel, quality standards, comprehensive strategic analysis as well as the challenge and validation function necessary to the exercise of due diligence, ensure that all levels of review and approvals are completed. This process meets the requirements of the Department, TBS policies and recent guidelines, and in particular, the standards dictated by the MAF.

This major renewal effort undertaken by the Director Strategic Corporate Services necessitates the combined efforts of various organizations and requires detailed changes to processes, procedures and systems throughout the Department. It has already shortened the work by three months. The Department will fully implement the DND Corporate Submissions Process in fiscal year 2008-2009.

Business Continuity Planning

Under the Government Security Policy (GSP), all departments must establish a Business Continuity Planning (BCP) Program to provide for the continued availability of services and associated assets that are critical to the health, safety, security and economic well-being of Canadians, or the effective functioning of government. As outlined in the Deputy Minister and the Chief of the Defence Staff (DM/CDS) BCP Directive distributed in January 2007, establishing a DND/CF-wide BCP Program and developing a comprehensive departmental Business Continuity Plan are high priorities of the DM and the CDS. Significant progress has been achieved during the past year. The DND/CF BCP Action Team, co-chaired by Strategic Joint Staff DG Plans and ADM(Fin CS) Director General Corporate and Shared Services (DGCSS), with Director-level representation from all Level One groups and commands, has served to raise the priority of Business Continuity Planning within DND/CF.

It should be noted that often BCP-type plans already exist to provide for the continued availability of services and associated assets that are critical to the health, safety, security and economic well-being of Canadians, or the effective functioning of government. The DND/CF BCP will catalogue and harmonize these existing plans and arrangements, as well as identify and prioritize areas requiring additional plans and resources. Working collaboratively, and with the support of all Level One organizations and commands, the Action Team co-chairs hope to produce the first draft of the DND/CF BCP in early 2008, followed by the distribution of Level One BCPs in mid-2008.

Access to Information

The number of requests received by National Defence under the Access to Information Act has quickly outpaced the available resources causing a backlog and delays for applicants. The complexity and sensitivity of the subject material being requested, such as information on operations in Afghanistan, has made it difficult to provide a quick response. Another aggravating factor is the fact that the pool of experienced Access to Information and Privacy (ATIP) employees is limited and there are numerous departments competing for them. Extra staff has been hired and organizational changes have been implemented in the past year, but this has not helped to keep up with demand. Defence is committed to regaining its position as a leader in the ATIP community by addressing current shortfalls through short-term and long-term strategies, such as hiring additional experienced ATIP personnel and creating and implementing a Professional Development Program for entry-level employees. The Department is also committed to acquiring a new software system and new hardware for processing ATIP requests. The exploration and implementation of new strategies continues but substantial improvement to response times and backlog reduction will take a number of years.

Financial Management Services

Financial Management Services in Defence are built upon a solid foundation of stewardship and comptrollership activities grounded in a strong financial compliance control framework. A solid business planning process will be bolstered over the short term by the development and application of a risk-based performance management regime at all levels within the Department. This activity will occur in conjunction with the planned development and rollout of a Department-wide decision support tool that will simplify the process of providing management with the appropriate and timely financial and non-financial information. This will aid decision-making and assure the most prudent use of public resources to deliver the key program outputs of the Department.

Accrual Accounting

Departmental appropriations are provided on the modified cash basis used for reporting and accountability to Parliament. However, the 2005 and 2006 federal budgets instituted a second subordinate basis of control over appropriated funds, called the accrual basis. In this second system, control is achieved by using an expense ceiling based on accrual expenses rather than cash expenditures.[22] Capital projects funded from either Budget 2005 and Budget 2006 resources are subject to both the cash appropriation control and the accrual control.

In keeping with modified cash and accrual fiscal control and reporting, this report will present information on planned and actual spending for fiscal year 2008-2009 in Section III.

During the reporting period, the Department will continue the process of expanding the accrual budgeting to other sectors of the Defence budget beginning with the capital construction program. This expansion is the first step in the conversion of the National Defence funding base to full accrual status.

Financial Decision Support System - Way Ahead

The Department is continuing to develop and test elements of the Financial Decision Support (FDS) module of the Defence Information Service Broker project. Once fully tested and delivered to users, the elements will provide up-to-date daily Financial Situation Reports to senior management, as well as Trial Balances in accordance with the Department's PAA structure. Full rollout of these elements is expected by early fiscal year 2008-2009. Once the capability is fully proven, more modules of the FDS will be developed to, among other things, allow restructuring of the Capability Investment Database and permit reporting of activity results and performance under the Department's PAA structure.

International Financial Linkages

Canada hosted the first Defence Senior Financial Officer (SFO) Colloquium in late 2006. ADM(Fin CS) will continue to pursue contacts with his SFO counterparts in the UK, the US, Australia and New Zealand. These discussions will concentrate on lessons learned in the accrual accounting environment, comptrollership, shared services and risk management. The lessons learned are still being developed and individual contacts with each country are being developed to transfer individual lessons learned. Contacts with NATO will continue at various levels ranging from participation in NATO-Russia Council activities, focusing on accountability and risk management, to SFO level meetings, where attention is devoted to strategic issues including funding and overall program management.

Facilities/Asset Management Services

Realty Assets

The Defence realty asset portfolio is in many respects the largest and most complex in the Government of Canada, it includes owned and leased properties of all types and ages. By area, Defence occupies about 33 percent of federal buildings and 7 percent of federal land, with 25 main installations distributed across Canada and realty assets in every province and territory, located in 309 municipalities. The total realty replacement cost of Defence-owned buildings and works, including housing, is estimated at $22 billion.[23] The responsibility associated with managing such a vast realty asset portfolio, which includes several designated heritage sites, places a significant demand on the sustainment capability of Defence.

Defence realty assets are generally considered to be in fair condition, but that status has declined over the past five years due to inadequate funding; investment levels have remained below recognized industry standards for a decade. Over the 2000 - 2006 period, there was a general decline of 15 percent in the condition of works assets, and a decline of 6 percent in the condition of non-residential buildings. If this trend were to persist, the overall condition could be expected to move from fair to poor over the next ten years (fiscal year 2015-2016). The following initiatives will be put in place to rectify the situation:

  • a realty asset National Portfolio Management Framework and Plan is being developed to ensure a holistic approach to planning, development and priorities;
  • the continued development of Master Realty Asset Development Plans for each base and wing to improve realty asset planning and investment decisions and ensure alignment with departmental priorities;
  • increased funding for maintenance and repair of realty assets to halt the decline in their condition and minimize the impact of deferred maintenance will be provided;
  • establishment of proactive preventive maintenance functions is being encouraged; and
  • more reliable integrated record-keeping is being developed to improve realty asset decisions.

The Canada First Defence Strategy and CF transformation initiatives such as the introduction of new equipment, new and expanded capabilities, the increase in the number of CF personnel, Arctic initiatives and the stand-up of rapid reaction forces are driving the requirement for significant new Defence infrastructure. Over the next five years, the capital investment in infrastructure could double while these new capabilities are put in place. The funding for these new capabilities is being considered as part of the Defence Investment Plan under development within the Department. The delivery of this infrastructure in a timely fashion will be a major undertaking and challenge.

To maximize the efficiency of the realty asset portfolio and to ensure that it supports and enables Defence operations and programs, in fiscal year 2008-2009, DND will:

  • implement a realty asset strategy to focus and guide realty asset activities towards a common goal;
  • adopt a portfolio management approach to ensure common, integrated and efficient investment decisions;
  • incorporate infrastructure planning early in the force development process through an integrated approach to the development of the Defence Investment Plan, which will consider both new capability development as well as the life-cycle sustainment of that capability, of which infrastructure is a key part; and
  • develop and implement a strategic realty asset investment program as identified in the departmental investment plan to address pan CF, higher risk and high expense realty asset pressures.

For additional information on the Capital Construction Program see Section III, Table 7.

Information Management Services

IM/IT transformation priorities for fiscal year 2008-2009 will rationalize IM applications and IT infrastructure. It will also include pursuing an improved service model for the delivery of IM/IT services. Improvements will be achieved by continuing to consolidate resources to improve the effectiveness and efficiencies of internal support services and by facilitating rationalization efforts along business lines. Efficiencies realized will contribute to other Defence priorities.

The CF is engaged in an ambitious activity to converge and enhance the myriad of secret Command and Control (C2) systems as a key element to achieve the vision of a transformed CF and rationalize services and systems. The resulting, integrated solution of an Integrated Command and Control (IC2) capability will allow the seamless exchange of, and access to, secret information within the DND/CF and external sharing with other government departments, agencies and key allies. This will be pursued through a combination of in-service support initiatives, capital projects, and business transformation activities all aimed at improving access to information by operational commanders and departmental decision-makers. Similar convergence and enhancements will also be undertaken for intelligence systems.

Efforts will focus on the implementation of shared services for web and security in fiscal year 2008-2009. The Assistant Deputy Minister, Information Management (ADM (IM)) Group will, in addition, continue to develop and implement a record and document management capability, and the development of a content management plan.

Defence will continue to consolidate and strengthen the human resources management information systems. Focus will be given in fiscal year 2008-2009 to improve the systems supporting military personnel policies, processes and organizational changes. ADM(IM) is working in partnership with the military personnel functional authority, Chief of Military Personnel (CMP), to develop a strategy and detailed plan to deliver a more effective human resources management system for the CF.

The foregoing proposed approach will be comprehensive and will address the requirements of the entire military process. It will be refined during fiscal year 2008-2009 and a recommended way forward will be developed.

Legal Services

Since an efficient and responsive military justice system is central to the effective exercise of operational command, the Office of the Judge Advocate General (JAG) will also work with other military justice stakeholders to reduce the time it takes for the disposition of a matter by court martial.

During fiscal year 2008-2009, the Office of the JAG will continue to focus its efforts on support to operations. Besides providing forward-thinking legal advice on operational and international law, legal officers employed in the newly established Canadian Forces Military Law Centre (CFMLC), a section within the Canadian Defence Academy (CDA) Headquarters, will develop effective new methods for the delivery of operationally focused military legal education, training and doctrine for the CF. The Office of the JAG is reacting to spiral two of CF transformation by reviewing its legal support to the operational headquarters, and by examining the entire JAG establishment to determine whether the current structure meets the demands imposed by deployed operations.

The Office of the Department of National Defence/Canadian Forces Legal Advisor (DND/CF LA) provides a full range of legal advisory, drafting and litigation support services on all matters pertaining to the DND/CF, other than military law and military justice, specifically assigned by the National Defence Act, to the JAG. The DND/CF LA will focus on the following in fiscal year 2008-2009:

  • continued organizational transformation to seek higher efficiencies and thus enhance its ability to fulfill its mission in a strategic and timely manner; and
  • continued coordination efforts with the JAG to ensure seamless and integrated delivery of legal services to DND/CF clients.

Public Affairs / Communications Services

The Department of National Defence and the Canadian Forces operate in an environment that requires coherent and coordinated government messaging. As such, ADM(PA) plays a key role in communicating defence priorities.

As the recognized functional authority for Public Affairs, ADM(PA) supports all DND/CF activities and operations by managing the departmental communications function. In addition to delivering key services such as strategic planning, marketing and advertising, creative services and issues management, the organization will continue to provide advice to the commands/environments/units to ensure that their own PA plans and activities are consistent with overarching corporate policies, messaging and objectives.

In fiscal year 2008-2009, Public Affairs will continue to provide strategic direction and guidance for DND/CF communications by providing support to DND/CF announcements, coordinating media operations and PA activities, implementing a new Strategic Communications Plan and ensuring communications planning for corporate documents and memorandum to Cabinet. Furthermore, the organization will continue its support to CF recruitment through the on-going recruitment advertising campaign.

Furthermore, Public Affairs will focus on improving its management practices with a view to maximizing resource use. Management frameworks will be implemented that will allow for better resource allocation, more efficient delivery of service and better benchmarking.

Evaluation Services / Internal Audit Services

Program Evaluation

In addition to providing evaluation services increasingly focused on operational issues, program evaluation during fiscal year 2008-2009 will focus on strengthening the DND evaluation function and ensuring its ability to effectively respond to an expected new evaluation policy. This encompasses a Federal Accountability Act requirement to evaluate the relevance and effectiveness of all DND/CF grants and contributions programs over a five-year cycle. It also includes an anticipated future requirement to ensure that 100 percent of direct DND/CF program spending is evaluated over a five-year cycle. Thus, the main priority of the evaluation function during fiscal year 2008-2009 will be to develop an implementation plan for the expected new evaluation policy.

Key outputs to be achieved during fiscal year 2008-2009 will be a five-year evaluation plan and a clear description of how the evaluation function will achieve the results required by the new policy. Any potential restructuring will become an integral part of the overall Chief Review Services (CRS) organizational changes that are currently underway. These efforts aim to increase the availability and quality of information to the Minister, the Department, and central agencies to facilitate informed management, expenditure and policy decision-making. A complete list of evaluation work to be completed during fiscal year 2008-2009, as well as a tentative list of planned work, is outlined at Section III, Table 10: Evaluations.


During fiscal year 2008-2009, a key priority of the DND/CF internal audit function will be to implement the requirements associated with the 2006 Treasury Board internal audit policy, which must be fully implemented by 1 April 2009. The audit function will be restructured and expanded to fulfill the policy requirements, as well as to continue to deliver high-impact audit services of relevance to DND/CF senior leaders. This restructuring and expansion, which is part of an overall Chief Review Services organizational realignment, will also be the primary focus for internal audit during fiscal year 2008-2009.

Specific audit work will be undertaken to enable the provision of a holistic assessment, by the Chief Review Services, of the effectiveness and adequacy of risk management, control, and governance processes within the DND/CF. Much audit work will continue to take place in areas such as capital acquisition and contract management, financial management, human resources and security.

A complete list of audit work to be completed during fiscal year 2008-2009, as well as a tentative list of planned work, is outlined in Section III, Table 12: Internal Audits.

Other Support Services

Safety Programs

General Safety

The General Safety Program, available online at <> is the Departmental occupational health and safety program. In conjunction with ten specialist health and safety programs (i.e., flight, laser, radio frequency, fire, mobile support equipment, explosives, submarine, diving, nuclear, CF occupational health) and bound by an overarching governance structure, the DND/CF safety community is mandated to comply with the relevant regulatory frameworks to identify and mitigate hazards, and prevent and reduce dangerous events. These programs and their relevant authorities are detailed in Defence Administrative Orders and Directives (DAOD) 2007-0 - Safety, available online at: <http://www.admfincs.forces.>.

Priorities of the General Safety Program in the fiscal year 2008-2009 will include:

  • improving workplace hazard identification and mitigation techniques;
  • continuing reduction in the hazardous occurrence rates; and
  • improving inter-program synergies through merging policies and procedures.

Nuclear Safety

The Minister of National Defence is responsible for establishing and maintaining requirements for the control and safe use of ionizing radiation sources across Defence. The Director General Nuclear Safety implements a Risk-Based Control Regime authorizing DND/CF nuclear activities in consideration of risk balanced against the requirements for health, safety, security and protection of the environment.

For more information on nuclear safety at Defence, see the Report on the Management of Nuclear-Related Activities.

CF Grievance System

Defence remains committed to sustaining a CF Grievance System (CFGS) that can support the global lifecycle of all CF grievances.[24] The CFGS will continue to promote the effective resolution of complaints throughout the CF, from the early stages of a complaint to the final grievance decision.

Priorities of the CFGS in fiscal year 2008-2009 will be:

  • working with other complaint agencies to develop a comprehensive CF complaint system;
  • establishing a web-based CFGS that will be multi-capable and responsive for all users and include a case management communication reporting network; and
  • continuing an outreach program aimed at providing instruction on the developing CFGS through seminars and training sessions to Defence.

More information on the Canadian Forces Grievance Authority is available online at: <> and information about the Canadian Forces Grievance Board is available online at: <>.