SECTION II:  Analysis of Program Activities by Strategic Outcome

Strategic Outcome:  Canadians’ confidence that the Department of National Defence and the Canadian Forces have relevant and credible capacity to meet defence and security commitments.

Section II A – Program Activity:  Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces

Introduction

The capacity to ensure a stable force for sovereignty and security will be reflected in the ability to strike the balance between routine and major operations such as the 2010 Winter Olympics, our ongoing role in Afghanistan and responding to crises both at home and abroad.


Program Activity Table
Generate and Sustain Relevant, Responsive and
Effective Combat-Capable Integrated Forces
Human Resources (FTEs) and Planned Spending ($ millions)
2009-2010 2010-2011 2011-2012
  FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending

Military

55,618

 

55,716

 

54,318

 

Civilian

26,030

 

27,447

 

27,503

 

Total

81,648

14,865,806

83,163

14,712,953

81,821

14,549,021

 
Program Activity Expected Results Performance Indicators Targets
  • Maintain operational units;
  • Maintain deployable operational units;
  • Recruit and train personnel;
  • Provide nationally based fixed support including infrastructure, supply, fixed command, force development, and research and development; and
  • Acquire Capital Equipment.
Net Growth: actual versus planned growth of CF Increase in Regular Force by 1,492
Civilian Workforce Size:

Planned civilian FTEs versus actual

Refer to Human Resources Table, Note 6 on page 16.
 

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

Notes:

  1. Military FTEs represent Vote 1 and Vote 5 Regular Forces and Class “C” Primary Reserve Forces. Class Caccounts for approximately 2,100 in fiscal year 2009-2010 and 1,600 in fiscal year 2010-2011. There is no Class C allocation forecasted past February 2011.
  2. Military FTEs are derived from a representative financial formula, as there is not a consistent 1:1 relationship between FTEs and program activities.
  3. Military FTEs include military members attributed to Internal Services: 1,268 in fiscal year2009-2010, 1,282 in fiscal year 2010-2011, and 1,287 in fiscal year 2011-2012.
  4. Civilian workforce is planned through a Salary Wage Envelope (SWE); therefore, FTE figures represent an equivalent dollar value.
  5. Civilian workforce planned FTEs include forecasted growth projections and are subject to final budgetary approval.
  6. Civilian FTEs include personnel attributed to Internal Services.
  7. Civilian FTEs include Communications Security Establishment Canada (CSEC), National Search and Rescue Secretariat (NSS), or the Office of the Ombudsman (OMB).
  8. Reprioritization of operational and/or management initiatives within the fiscal year may result in the reallocation of personnel to other program activities, as required.

Planned Capital Acquisition

Defence will continue to work, both internally and with partner departments, to implement the CFDS by streamlining procurement and ensuring the contracting process remains open and fair, while rebuilding the capacity to deliver a growing program of investment in defence capabilities for Canadians. A number of reforms have already been instituted that target a reduced acquisition cycle time, while striking the appropriate balance between cost, risk and the requirement. These reforms have included:

To achieve government policy objectives, the CF will require a broad range of capabilities to ensure the sovereignty and security of our country and the protection of all Canadians. The CF has to be fully integrated, flexible, multi-role and combat capable.

The CF core combat capabilities requirement represents $45 - $50 B in capital acquisitions over a twenty-year period which will be directed to the projects listed below and represents an unprecedented investment in Canada’s industry, knowledge and technology sectors. Significant progress has already been realized through a number of key initiatives, particularly in the procurement of urgently needed equipment. In addition to the acquisition of C-17 Globemaster strategic lift aircraft already in service, the Government is procuring C-130J Hercules tactical lift aircraft and has announced possible plans to acquire a Medium- to Heavy-Lift Helicopter (MHLH) capability, replenishment ships, a fleet of medium logistics trucks, Leopard 2 tanks and Arctic/Offshore Patrol Ships.

In accordance with the CFDS, the planned acquisitions highlighted below will provide a solid foundation for the renewal of the CF’s core equipment platforms. The CF will thus be enabled to conduct operations more effectively and safely, both at home and abroad. Planned acquisitionsinclude:

For details on planned cash expenditures and accrual expenses for major projects, please see Section III: Supplementary Information – Table 13.

Readiness

Readiness consists of two components; first, operational capability, which is the actual capability to perform the mission for which it is developed and funded; and second, response time. Readiness will guide the management of the CF to ensure we are able to deploy more quickly and effectively while defence planning continues to evolve with the implementation of the Canada First Defence Strategy. This approach will ensure our ability to fulfill our mandate, other strategic objectives and orders, and the Department’s business planning process which underlies all Defence planning.

Implementing the CFDS will further enhance the readiness of the CF. Planned, rather than ad-hoc, investments will improve, and additional funding will ensure that personnel are trained to required levels and that more equipment is available for both training and operations.

Sustainment

Sustainment is the capacity of a military force to maintain its capabilities during operations at home and abroad in the short-term while continuing to develop and introduce new capabilities for continued success over the long-term. From a short-term perspective, recent funding increases to sustainment-focused activities have significantly helped to return equipment to a more acceptable level of readiness. Using a longer-term perspective, it can take years to conceive and acquire new major equipment; from encompassing the human capital and skills needed to employ the equipment to the development of training systems and doctrine to put it in operation.

Growth and Renewal

Current strength levels are approximately 65,000 Regular Force and 26,000 Reserve Force personnel (average paid strength). As part of the CFDS, Defence will expand the size of the CF to 70,000 Regular Force and 30,000 average paid strength Reserve Force personnel.

CF Expansion will allow the military to strengthen key joint and enabling capabilities, through increased strength of medical personnel, maintenance technicians, surveillance, reconnaissance and intelligence specialists, and special operational forces. As depicted in the graphs below, the Department plans to achieve this growth by fiscal year 2027-2028. The estimated Regular Force expansion for fiscal year 2009-2010 is 67,742 at an estimated cost of $340.5 M. This funding includes salaries and the operating costs associated with personnel growth.

Progress of Regular Force expansion in fiscal year 2009-2010 will be measured by comparing March 2010 personnel strength to that of March 2009. It is significant to note that the rate of growth depicted below cannot be assured, as strategies to address recruiting and retention challenges are not yet mature enough to guarantee success. In the interim, given future uncertainties, it is assessed that the expectations for growth should be prudent. Ultimately, the priority for Defence will be to sustain current human resources capabilities and then grow to meet military expansion targets established in the CFDS.

Figure 1:  Regular Force Expansion Growth Profile
Figure 1:  Regular Force Expansion Growth Profile

Figure 2:  Reserve Force Expansion (Paid Strength) Growth Profile
Figure 2:  Reserve Force Expansion (Paid Strength) Growth Profile

A review of the Defence force structure is expected to be initiated in 2009. One goal of that review will be to better balance the personnel envelope within the defence programme to meet CFDS capability goals.

Canadian Ranger Expansion:  In addition to expansion of the Primary Reserve, planning is underway to increase the Canadian Ranger strength to 5,000 by fiscal year 2011-2012.

Figure 3:  Ranger Expansion (Total Strength) Growth Profile
Figure 3:  Ranger Expansion (Total Strength) Growth Profile

Military Personnel Recruitment

Recruiting the best to reflect Canada’s diversity is a difficult challenge. CF recruiters compete in an increasingly global labour market characterised by a declining pool of young Canadians and a growing demand for technicians and professionals. The recruitment of CF technical occupations, ranging from Naval Electronic Technician to Land Communications Information System Technician, is proving to be particularly challenging.

To successfully meet fiscal year 2009-2010 recruiting targets, therefore, requires not only achieving overall CF recruiting targets, but also meeting annual recruiting targets for each occupation and particularly those that are critically under strength. To do so, recruiting activities will focus on increasing Canadians’ awareness of CF employment opportunities including occupations of critical concern. Those activities will include:

Additional information on CF Recruiting and employment opportunities is available at www.forces.gc.ca.

Military Retention Initiatives and Strategy

Increased military operational tempo, CF transformation and recruiting and training challenges are placing significant stress on CF trained personnel. In addition to the foregoing challenges, the CF has experienced higher than expected attrition over the past few years and, as depicted in the following graph, higher than normal attrition is projected to continue for the next few years. Given the current economic slowdown, the attrition estimated for the next two years will be reviewed. Most people who leave the CF do so voluntarily and not due to medical release or reaching compulsory retirement age. Studies indicate that voluntary attrition occurs at two points; first, before the end of the first year of service, and second, when personnel are eligible for a pension. Research indicates that the main reasons for personnel leaving the CF during the first few years of service include physical fitness, personal and family issues, a poor fit with the chosen occupation upon enrolment, or with military life. Regarding longer term attrition, the CF is experiencing a "bubble" of baby boomers who will become entitled to retirement benefits. This has created a spike in releases at approximately 20 years of service.

Under a detailed and far-ranging retention strategy, the CF is examining ways of promoting a "retention culture" throughout the entire organization. This will ensure that new recruits enter the CF with more realistic early-career expectations, experience a smooth transition into the military lifestyle during basic training and address physical fitness training requirements. For personnel with more years of service, the strategy will examine means of improving career-life balance, personnel career management and support to military families as well as other quality of life issues. 

Historical and Forecast Attrition Rates, CF RegF

Care of the Injured and Family Support

The Afghanistan experience has underscored the responsibility that the Department and the CF have to military personnel, supported by civilian members of the Defence Team, as well as their families. This responsibility covers the period leading up to, during, and after, operational deployments. Families are recognized as being the ‘Strength behind the Uniform’ and it is acknowledged that the welfare of the family is a critical component in a military member’s readiness to deploy. Knowing their families are cared for while they are away, and that care will continue upon their return, should it be required, provides military personnel the peace of mind they need to focus on the mission at hand.

Among our many ongoing efforts, we are exploring initiatives to advance existing care for the injured and family support deficiencies. This includes ways to provide standardized, consistent care, service and support to military personnel during the period of reintegration into military or civilian life and employment.

Additional information on military family resource services can be found on the CF Family Resource website at http://www.forces.gc.ca/site/fam/index-eng.asp.

Reserve Force

The Primary Reserve Component of the CF will also expand by some 4,000 personnel during this period of growth and renewal. The Reserve Force provides a significant contribution to the deployed forces averaging 20 percent of each rotation into Afghanistan. Here at home, Reservists will form the core elements in any domestic contingency operation. An integrated military relies upon Reservists to augment and contribute to all operations, including Afghanistan, the 2010 Winter Olympics and Arctic Sovereignty.

Civilian Human Resource and Public Service Renewal

To support Public Service Renewal, we will continue to align our business and human resources needs, improve our human resource business processes and practices, increase the effectiveness and efficiency with which staffing services are delivered and strengthen our retention programs. We have put in place a multi-year action plan designed to achieve a 20 percent reduction to the overall staffing burden. We recently introduced new technology to improve monitoring and workload management. This new tool will help measure progress on our major Public Service Renewal improvement initiative, namely Reducing the Departmental Staffing Burden by 20%.

Civilian Recruitment

Efforts will continue on our aggressive recruitment campaign to attract and hire new employees with special attention to our identified shortage areas: purchasing, computer science, financial management, ship repair, ships officers and general labour and trades. Recruitment strategies and departmental investments will continue to be aligned for each of these areas and increased emphasis placed on training, leadership development and second language training. The new Apprentice and Operational Development Program, along with the Financial Officer Recruitment Development and Policy Intern Recruitment Programs, for example, are key to providing Defence with needed capabilities, as well as ensuring that Defence can renew its workforce over time. Having a solid talent pool to draw from, both for new recruits and experienced personnel, is another factor that will contribute to the overall success of our efforts to reduce the staffing burden.

Civilian Employee Development

Defence’s workforce is geographically dispersed across Canada with over half reporting directly or indirectly to CF members. Defence is committed to providing all employees with the training and tools they need to do their jobs and to support them with career-long learning and development opportunities. As we move forward to our goal of personal learning plans for 100 percent of employees, we will continue to strengthen our new and dynamic mentoring program and place a greater emphasis on knowledge transfer and succession management.

Strategic Outcome:  Success in assigned missions in contributing to domestic and international peace, security and stability

Section IIB – Program Activity:  Conduct Operations


Program Activity Table
Conduct Operations
Human Resources (FTEs) and Planned Spending ($ millions)
2009-2010 2010-2011 2011-2012
  FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending

Military

10,736

 

10,857

 

10,900

 

Civilian

2,776

 

2,941

 

2,997

 

Total

13,512

3,702,818

13,798

3,651,741

13,897

2,897,446

 
Program Activity Expected Results Performance Indicators Targets
  • Maintain and conduct intelligence, surveillance and reconnaissance (ISR) operations;
  • Maintain ISR support;
  • Employ forces to conduct contingency operations in response to domestic, continental, and international requirements;
  • Employ High-Readiness forces to conduct operations in response to domestic, continental, and international requirements; and
  • Provide ongoing specified services in accordance with Government of Canada and other government department agreements and demand from other levels of government.
Relative number of people deployed on operational missions in the past year No target yet established
Average response time for Search and Rescue (SAR) requests 30 minutes for working hours and 120 minutes for weekends/evenings
 

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

Notes:

  1. Military FTEs represent Vote 1 and Vote 5 Regular Forces and do not include Class “C” Primary Reserve Forces.
  2. Military FTEs include personnel deployed in domestic, continental and international operations and non-deployed personnel engaged in support roles to operations.
  3. Military FTEs are derived from a representative financial formula, as there is not a consistent 1:1 relationship between FTEs and program activities.
  4. Surges in operations within the fiscal year (e.g. rotations) will create fluctuations in the number of personnel involved in the conduct of operations. FTEs represent an estimated personnel average attributed to this program activity during the fiscal year.
  5. The planned FTE figures assume that the Government will send the Canadian Forces on operations elsewhere in the world at a level comparable to the current operational level.
  6. Civilian workforce is planned through a Salary Wage Envelope (SWE); therefore, FTE figures represent an equivalent dollar value.
  7. Civilian workforce planned FTEs include forecasted growth projections and are subject to final budgetary approval.
  8. Civilian FTEs include personnel attributed to Internal Services.
  9. Civilian FTEs include Communications Security Establishment Canada (CSEC), National Search and Rescue Secretariat (NSS), or the Office of the Ombudsman (OMB).
  10. Reprioritization of operational and/or management initiatives within the fiscal year may result in the reallocation of personnel to other program activities, as required.

Introduction – Domestic and Continental Operations

The CF will continue to deliver excellence at home by providing surveillance of Canadian territory and air and maritime approaches, conducting sovereignty operations, maintaining search and rescue capabilities and working with civil authorities to respond to incidents ranging from natural disasters to terrorist attacks. To fulfill this aim, the CF will remain fully engaged with other government departments to ensure a whole-of-government approach in their planning efforts and participation in exercises and training events, as well as planning for contingency operations such as support to Canadian civil authorities in the event of a natural disaster.

On the continental front, Canada will remain a reliable partner in the defence of North America in co-operation with the United States. The CF will continue to work closely with its American counterparts through existing bilateral and bi-national institutions, such as NORAD. The CF will also continue to conduct training and exercises with the United States to ensure a high level of interoperability for the defence of North America.

Vancouver 2010

The CF’s major domestic operational focus during the planning period will be to support the Royal Canadian Mounted Police for the security of the Vancouver 2010 Winter Olympic and Paralympic Games. The CF will also work closely with the RCMP to plan for the security aspects of the G8 Summit and the North American Leaders’ Summit to be held later that same year.

Although security for the 2010 Winter Olympics will remain a national operation under the leadership of the RCMP, the CF will be a major partner for Games security and will provide unique capabilities. Those capabilities include operational and exercise planning and research, infrastructure and logistical air support, air, land and maritime surveillance, support to chemical, biological radiological and-or nuclear incidents, intelligence, and explosives disposal and other technical expertise.

Additionally, the CF will provide unique military capabilities when Canada hosts the 2010 G8 Summit in Huntsville, Ontario, and the North American Leaders’ Summit. In preparation for these events, the CF will participate in a robust whole-of-government and bi-national integrated exercise and training program, which aims to improve the readiness of security partners and their ability to respond jointly to emergencies in the context of each of these activities.

Arctic Sovereignty

Arctic sovereignty and security is a key government priority that is being advanced. The implementation of the Northern Strategy is intended to meet those objectives in Canada’s North. This ongoing project has four pillars:  Strengthening Canada’s Sovereignty, Promoting Economic and Social Development, Protecting our Environmental Heritage and Improving and Devolving Governance. The CF have a key role to play in the Arctic which will contribute primarily to the first pillar of the Strategy by ensuring security and demonstrating sovereignty through surveillance and control operations, and establishing a higher profile presence.

To address the challenges related to increased activity in this vast region, the Government is making significant investments in the CF’s capabilities for the Arctic. Over the coming years, Defence will continue to move forward on key projects, including the acquisition of Arctic-Offshore Patrol ships (expected to begin operations in 2013) and the establishment of a deep-water berthing and refueling facility in Nanisivik at the entrance to the Northwest Passage (planning to begin in fiscal year 2009-2010 and actual construction scheduled to commence in 2010). This new installation will allow the new patrol ships and Canadian Coast Guard vessels to maintain a federal presence throughout the navigable season. A multi-purpose Arctic Training Centre in Resolute Bay will continue to offer courses which will augment the CF’s expertise in Northern operations and enhance their ability to operate in the high Arctic. Furthermore, the expansion and modernization of the Canadian Rangers will provide a stronger, more effective military presence in remote regions of the North. Finally, Defence Research and Development Canada will pursue its Northern Watch technology demonstration project, which seeks to determine the best combination of sensors for comprehensive, cost-effective situational awareness in the Arctic.

Joint Task Force (North) continues to plan and conduct routine and contingency operations in Canada’s North, including three annual exercises. These operations will involve multiple whole-of-government partners such as the RCMP, the Canadian Coast Guard, Public Safety and the territorial governments.

When operating in the Arctic, the CF will continue to ensure that operations conform to Canadian environmental regulations and remain committed to remediating past actions.  The CF also stand ready to offer assistance should an environmental incident occur in the region.

International Operations

Recognizing the unpredictable nature of the future global security situation, the CF will continue to work with other government departments towards the goal of international peace, stability and security. A whole-of-government approach to operations involving Defence and, among others, the Department of Foreign Affairs and International Trade, the Canadian International Development Agency and Public Safety Canada, will be the keystone for the CF and its operations overseas.

Operation ATHENA, Canada’s commitment to the NATO-led International Security Assistance Force (ISAF) in Afghanistan will continue to be the CF main overseas commitment and exemplifies our involvement in Canada’s whole-of-government approach with other key departments.  Focused in Kandahar Province, Joint Task Force Afghanistan (JTF-Afg) is comprised of approximately 2,800 personnel employed in an Infantry Battle Group, Provincial Reconstruction Team, Operational Mentor Liaison Teams, National Support Element, Theatre Support Element, and a Headquarters.  Canadian military personnel will also occupy staff positions in Combined Security Transition Command-Afghanistan (CSTC-A) and the ISAF Headquarters located in Kabul, and under Operation ACCIUS military advisors to the United Nations Assistance Mission in Afghanistan (UNAMA).

Significant efforts have resulted in the on-going fulfillment of key Manley Report recommendations; namely, the integration of an American Task Force under the Operational Control of JTF-Afg and the on-going deployment of enhanced aviation capabilities and enablers. Efforts will continue to focus on training of the Afghan National Army, the provision of increased security for reconstruction and development efforts in Kandahar, and continued responsibility for the Kandahar Provincial Reconstruction Team.

National Defence will continue to actively participate in the maintenance of international peace, stability and security by continuing its contributions to the United Nations (UN), the North Atlantic Treaty Organization (NATO) and the Organization for Security and Co-operation in Europe (OSCE). Furthermore, Defence will continue to support the Government’s Americas Strategy by strengthening partnerships with key hemispheric nations and institutions, such as the Organization of American States.

The CF will continue to engage in the Multi-National Force and Observers mission in support of the implementation of security provisions of the Peace Treaty between Egypt and Israel as well as NATO missions and other missions as deemed appropriate by the Government. International obligations range from the Americas to Europe, Africa, the Middle East and Southwest Asia, with approximately 5,000 CF members deployed on a continuous basis.

As directed by the Government of Canada, the CF will conduct fully integrated global operations across the spectrum - from humanitarian assistance to combat - in concert with national and international partners to achieve timely and decisive strategic effects in support of Canada’s national interests.

The combined effect of Afghanistan and the Winter Olympics are central to the Government’s national and international objectives. From fall 2009 to fall 2011, the CF will ensure its priorities remain oriented to meet these tasks while managing the impact on CF personnel.

Strategic Outcome:  Good Governance, Canadian Identity and Influence in a Global Community

Section IIC – Program Activity: Contribute to Canadian government, society and the international community in accordance with Canadian interests and values


Program Activity:
Contribute to Canadian Government, Society and the International Community
in Accordance with Canadian Interests and Values
Human Resources (FTEs) and Planned Spending ($ millions)
2009-2010 2010-2011 2011-2012
  FTEs Planned Spending FTEs Planned Spending FTEs Planned Spending

Military

2,738

 

2,769

 

2,782

 

Civilian

3,381

 

3,539

 

3,595

 

Total

6,119

1,037,130

6,308

828,581

6,377

849,605

 
Program Activity Expected Results Performance Indicators Targets
  • Provide military advice to the Government of Canada;
  • Provide support to Government of Canada programs;
  • Contribute to Canadian economy and innovation;
  • Contribute to Canadian identity;
  • Contribute to youth and education;
  • Meet commitments to international organizations and exchange programs; and
  • Provide advisory and training support to other nations.
CF Cadets : number of youth involved with the Cadet Program No target established; trend analysis being developed
Number of military personnel who have participated in Military Training Assistance Program (MTAP) activities over past twelve months No target established
 

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

Notes:

  1. Military FTEs represent Vote 1 and Vote 5 Regular Forces and do not include Class “C” Primary Reserve Forces.
  2. Military FTEs are derived from a representative financial formula, as there is not a consistent 1:1 relationship between FTEs and program activities.
  3. Civilian workforce is planned through a Salary Wage Envelope (SWE); therefore, FTE figures represent an equivalent dollar value.
  4. Civilian workforce planned FTEs include forecasted growth projections and are subject to final budgetary approval.
  5. Civilian FTEs include personnel attributed to Internal Services.
  6. Civilian FTEs include Communications Security Establishment Canada (CSEC), National Search and Rescue Secretariat (NSS), or the Office of the Ombudsman (OMB).
  7. Reprioritization of operational and/or management initiatives within the fiscal year may result in the reallocation of personnel to other program activities, as required.

Industrial Co-operation and Benefits

The Investment Plan (IP) details Canada First Defence Strategy’s procurement priorities and the timing of capital projects over the 20-year period and will allow Canadian industry to better plan and position itself for future contract opportunities and make sound research and investment decisions.

The IP also allows government to engage with Canadian industry early in the procurement process in a more comprehensive way. Through dialogue, government can better assess what industry is able to provide, determine the potential for synergies with other projects and ascertain how Defence, and industry science and technology, can be aligned to better position Canadian suppliers for future procurements. This will enable Canadian industry to position itself for success while helping Defence build a stable force for sovereignty and security, renew relationships with research and development organizations across the country, and compete on the world stage.

Establishing the necessary conditions to achieve this linkage between defence expenditure and economic wealth generation is being pursued, in part through the development of a Defence Economic Framework. This framework will help us better achieve CFDS initiatives by enhancing cooperation in areas such as information sharing, and the cooperative management and exploitation of key technologies to enhance both Canadian business and Defence.

The CFDS provides Defence with an unprecedented opportunity to play a leadership role to better link Defence’s investments with the economic objectives of Canada, while at the same time satisfying military capability requirements. This will benefit the Canadian economy through the development of world class Canadian technology and will also provide the Canadian military with state-of-the-art, sustainable capabilities.

NATO Programs

Canada, a founding member of NATO, is committed to contribute to its common-funded budgets; our participation is directly linked to Canadian foreign policy and support to operations and activities of the Alliance to promote security, defence and peace in the world. The NATO Military Budget covers the operation and maintenance costs of NATO Military headquarters and other Alliance facilities and capabilities, including operations in Afghanistan.

The NATO Security Investment Programme (NSIP) finances the provision of various installations, facilities and capabilities which are needed to support the roles of the NATO Strategic Commands recognized as exceeding the national defence requirements of individual member countries, as well as some facilities in support of NATO operations in Afghanistan. The NATO Airborne Early Warning and Control Force (NAEW&CF) provides the surveillance capability to allow NATO to detect and track enemy aircraft operating at low altitudes over all terrain and for NATO forces to transmit data directly from the aircraft to command and control centres on land, sea or in the air.

The planned Canadian contribution to these three common-funded programmes in 2009-10 is $185.7 million.  Canada actively participates in the decision-making of these programmes to improve control, accountability and effective delivery of capability.

Contribute to Youth – Cadets and Junior Rangers

Canadian Cadet Program – The Canadian Cadet Program is a federally sponsored national training program for youth between the ages of 12 and 18. Defence conducts the Program in collaboration with the Navy Cadet League, the Army Cadet League and the Air Cadet League. Approximately 54,000 young Canadians will benefit from cadet training at local units of which approximately 23,000 cadets will be selected to attend national activities such as biathlon or marksmanship or one of the 24 Cadet Summer Training Centres located across the country.

Junior Canadian Rangers – The Junior Canadian Rangers Program is for youth between the ages of 12 and 18 years of age in aboriginal communities and run in collaboration with local adult committees. The CF provides uniforms, training, financial and administrative support to the Cadet Program and Regular Force and Primary Reserve personnel assist in the delivery and evaluation during regular visits and field training exercises.  Ranger patrols are located in 111 communities. The Program provides structured youth activities promoting traditional cultures and lifestyles in remote and isolated Canadian communities. Some 3,300 Junior Canadian Rangers will benefit from training in their local communities, of which 600 will participate in enhanced summer training sessions in 2009.

Strategic Outcome:  Extraneous to PAA Strategic Outcomes

Allocations contribute across all Defence Program Activities:

(Generate and Sustain Relevant, Responsive and Effective Combat-Capable Integrated Forces Conduct Operations, Contribute to Canadian government, society and the international community in accordance with Canadian interests and Values)

Section IID – Program Activity:  Internal Services


Financial Resources
($Thousands)
  Fiscal Year
2009-2010
Fiscal Year
2010-2011
Fiscal Year
2011-2012
Departmental Spending

1,387,247

1,398,289

1,401,180

Capital Spending
(included in Departmental Spending)

103,563

109,287

110,078


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

* Due to rounding, figures may not add up to totals shown

Note:

  1. This is the Department’s second 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.

Human Resources 

Internal Services, within the current Program Activity Architecture (PAA) construct, provides a place for the organizational entities,such as financial and information management responsibilities, which support and provide coherence to Defence’s three Strategic Outcomes. In fiscal year 2009-2010, Defence is planning to implement an approved and updated PAA. Under that new PAA construct, Internal Services will be designated as a Program Activity. This will permit Defence to accurately identify human resource planning figures in future reports.

Program Activity Summary and Planning Highlights

The following groups of related activities support the Defence Internal Services program and corporate obligations. The groups included in this section are Management and Oversight Services, Financial Management Services, Information Management Services, Information Technology Services and Real Property Services.

Management and Oversight Services

Building Excellence in Defence Management

The government’s chosen tool to institute management excellence within the public service is the Management Accountability Framework (MAF). Defence has embraced MAF as the definitive resource for continuous improvement throughout all levels of management.  In addition, the MAF Assessment is a key source document for the establishment of Defence Priorities for ensuing years. Based upon the recommendations from the MAF Round V Assessment, senior Defence leadership has established the following management-related priorities for fiscal year 2009-2010:

  1. Implement the Defence Investment Plan;
  2. Continue to implement the Management Resource and Reporting Structure (MRRS);
  3. Consolidate the departmental approach to Information Management/Information Technology (IM/IT);
  4. Continue to strengthen the core Control Framework and develop materiel, infrastructure, and information control frameworks in support of audited departmental financial statements; and
  5. Undertake measures to address the “Web of Rules” within Defence.
Implement the Defence Investment Plan

The Investment Plan (IP) gives a view of the long-term investment perspective based on the Canada First Defence Strategy and on those elements of Canadian Forces modernization and transformation expected to be implemented over the next 10 years. The IP facilitates Defence implementation of the CFDS by helping to manage the long-term complexity of balancing resources across the four pillars that form the foundation of military capabilities – personnel, equipment, readiness and infrastructure. The IP provides detailed guidance on how and when to invest in these areas and in other important support capabilities. 

The IP is a living document supported by a force development process that provides the rigorous analysis needed to inform key investment decisions. The force development process identifies CF-wide military capability goals, assesses present and future capability gaps, and prioritizes capability requirements for investment consideration. The IP integrates these considerations with other investment and funding requirements from across Defence into a single coherent plan that ensures the sequencing of investments corresponds to the capability need and the availability of funds. This not only minimizes the risk of capability gaps, but also ensures affordability and sustainability.

Continue to Implement the MRRS 

Defence is presently developing a Performance Measurement Framework for the updated Program Activity Architecture.  The intent is to create a single performance measurement system based on the Architecture activities that will be a foundation for the establishment of performance measures for the Investment Plan, Business Plans, Defence Strategy Map, and for displaying progress and accountability in reporting to Government. These measures are designed to inform senior management as to whether the intended effects are being achieved by demonstrating good governance, accountability, sound decision-making, and achieving the best value for investment.

Consolidate the Departmental Approach to IM/IT

The focus of activities in the realm of consolidating the approach to IM/IT aims to ensure that resources and activities are better aligned with departmental priorities and to attain the optimal use of resources through standardization, elimination of duplication through retiring legacy systems that are no longer necessary and to increase accessibility to information and technologies required to meet the strategic and operational commitments of Defence. We will continue to actively participate with the Treasury Board Secretariat Policy Framework Update Process to streamline policies and directives, specifically relating to IM/IT and IT security frameworks. 

Control Framework in Support of Audited Departmental Financial Statements

Implementing processes to ensure that the Department can sustain a controls reliant audit of financial statements is a priority for the Department. Details are provided under the section Financial Management Services.

Web of Rules 

During the past year, DND undertook significant work (under the Government of Canada web of rules initiative) to identify and assess “ways and means” to move to a risk based approach for DND Program Management and departmental approvals. This important work will allow DND to simplify and reduce the administrative burden in low risk areas. It will help towards creating the necessary capacity for increased vigilance in areas of higher risk files and will provide the needed capacity for new Program requirements.

Governance

Although the current governance structure satisfies both Treasury Board Secretariat and departmental requirements, Defence has an ongoing commitment to continuously improve its ability to manage the institution. A fulsome review of the governance structure is therefore proposed to ensure transparency and understanding of the decision-making process, organizational flexibility and adaptability to rapidly changing requirements, and the effective and efficient use of personnel and resources. 

Internal Audit

During fiscal year 2009-2010, the overall Defence internal audit function will focus on complying with the 2006 Treasury Board Policy on Internal Audit, which must be implemented across government by 1 April 2009.  Key to compliance is the expansion of Defence’s professional audit capacity.  As such, the recruitment of additional audit personnel remains a priority.  Individual audit engagements will continue to focus in the areas of highest risk within the realms of capital acquisition, security, materiel management, contracting and financial management.

The specific audit engagements planned for initiation in fiscal year 2009-2010 are presented in Section III: Supplementary Information - Table 4.

Evaluation

During fiscal year 2009-2010, Defence’s evaluation function will focus on implementing the expected new Evaluation policy, and on providing support to the development of the revised Program Activity Architecture. A major consideration of both is a significant increase of effort whereby the evaluation function will commence a multi-year growth program. Individual evaluation engagements planned for fiscal year 2009-2010 will focus on CF both operational, and operational support issues.

The specific evaluation engagements planned for initiation in fiscal year 2009-2010 are presented in Section III: Supplementary Information - Table 5.

Financial Management Services

Enhance Financial Management 

Financial Management Services contributes directly to informed and prudent consideration of resource issues in Departmental decision-making. Among the many challenges facing Defence, the following three stand out as priorities for fiscal year 2009-2010:

These will receive particular attention and will have resources specifically dedicated to their accomplishment:

Accrual Accounting/Accrual Budgeting

Departmental appropriations are provided on the modified cash basis used for reporting and accountability to Parliament.  In keeping with modified cash and accrual fiscal control and reporting, this report will present information on planned and actual spending for fiscal year 2009-2010 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 Defence funding base to full accrual status.

Audited Financial Statements

Defence will continue the process of confirming that the control frameworks for the business processes that feed its financial system are well documented, complete and repeatable and that some means of confirming compliance throughout the Department has been implemented. The ultimate objective of this activity is to position the Department to sustain an initial controls-reliant audit of its financial statements by the Office of the Auditor General as early as fiscal year 2012-2013.

Implement Chief Financial Officer (CFO) Model

Effective fiscal year 2009-2010, the CFO model takes effect to address the requirements of the Accountability Act. This will encompass the increased oversight and reporting requirements necessary to meet the spirit and intent of enhanced government-wide accountability, including the challenge function, formal attestation activity, as well as support to the evolving corporate governance structure, and a range of changes to financial policies.

Real Property Services

The overall Defence real property portfolio is in many respects the largest and most complex of the Government of Canada, comprising 33 percent of all federal buildings and 7 percent of all federal land, with 25 main installations or military bases across Canada.  The total realty replacement cost of Defence-owned buildings and works, including housing, is estimated at $21 billion.  Evolving Defence requirements over many years have dictated the nature, number and diversity of real property assets in the portfolio today.  Suitable real property assets are essential to support operations at home and abroad, to accommodate and train personnel, to store and maintain equipment, and, generally, to fulfill the defence mission. The importance of real property has been recognized as one of the four pillars upon which military capabilities are built in the Canada First Defence Strategy. 

Real property assets are a major strategic resource. With such a diverse and ageing portfolio, in which more than 50 percent of the assets are more than 50 years old, there are significant challenges associated with the stewardship of real property, including a dynamic and evolving Defence structure, a complex web of rules, shifting demographics straining human resource capacity, a varying market economy and dated real property information management and information technology processes and systems.

In order to address the challenges and issues related to the real property portfolio, in fiscal year 2009-2010, the Defence management team will:

Furthermore, Defence has over 400 construction projects that are at different stages of approval and implementation in the current and next two fiscal years. Advancing these projects provides a great opportunity for Defence to contribute to the Government’s plan to strengthen the economy in communities across Canada while meeting the Canada First Defence Strategygoal of replacing or refurbishing 25 percent of the Defence infrastructure portfolio in 10 years and 50 percent in 20 years. Achieving this initiative will require the revamping of departmental planning, approval and risk management processes for construction projects.

For additional information on major projects in the Capital Construction Program see Section III: Supplementary Information - Tables 10a and 10b.

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