Archived - Departmental Performance Report 2011–12 - Supplementary Tables

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Details on Transfer Payment Programs

Name of transfer payment program: Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries (Vote 5)

Start date: 1991–92

End date: Ongoing

Description: Compensation to Export Development Canada and the Canadian Wheat Board for reduction of debts of debtor countries

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments made to Export Development Canada and the Canadian Wheat Board to compensate for debt relief to debtor countries under the Heavily Indebted Poor Countries Initiative and the Canadian Debt Initiative.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants 53.4 25.1 150.5 135.3 2.0 148.5
Total contributions
Total other types of transfer payments
Total program activity(ies) 53.4 25.1 150.5 135.3 2.0 148.5

Comments on variances: The variance between planned spending and actual expenditures is attributable to delays in providing debt relief to the Côte d’Ivoire because of the post-election violence that delayed the completion of the debt relief process. Actual spending varies year over year because annual debt relief payments are determined by the number of countries that complete the debt relief process, and the amount that these countries owe to Canada and Canadian agencies. Both of these factors inevitably fluctuate from year to year as countries move at their own pace through the debt relief process.

Audits completed or planned: Not applicable

Evaluations completed or planned: Not applicable

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Toronto Waterfront Revitalization Initiative (Vote 5)

Start date: April 2001

End date: March 31, 2014

Description: The Toronto Waterfront Revitalization Initiative (TWRI) is both an infrastructure and an urban renewal investment. The goals of the initiative include positioning Canada, Ontario, and Toronto in the new economy, thereby ensuring Canada’s continued success in the global economy. This includes increasing economic growth and development opportunities; recognizing the intrinsic links between economic, social, and environmental health; enhancing the quality of life in Toronto; and encouraging sustainable urban development.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Federally funded projects related to increased public accessibility and revitalized urban infrastructure were completed. The construction of additional kilometres of public transit, which is not being funded by the federal government, is behind schedule. However, planning and design-related activities for which the federal government provided funding were completed.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions 107.7 53.6 30.9 30.9 20.5 10.4
Total other types of transfer payments
Total program activity(ies) 107.7 53.6 30.9 30.9 20.5 10.4

Comments on variances: The variance between planned spending and actual spending as well as the year-over-year variance is attributable to some infrastructure projects being implemented more slowly than originally expected. This is typical of infrastructure programs because conditions (e.g., weather, availability of materials, and coordination) can easily affect a project’s timelines.

Audit completed or planned: A recipient audit of the District Energy System project will be completed in May 2012.

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: In addition to frequent discussions and monthly teleconferences to monitor federally funded projects, working group meetings are held quarterly and are attended by the Toronto Waterfront Revitalization Corporation and the three levels of government.

 

Name of transfer payment program: Harbourfront Centre Funding Program (Vote 5)

Start date: March 2006

End date: March 31, 2016

Description: The primary objective of the Harbourfront Centre Funding Program is to provide operational funding support to the Harbourfront Centre until March 31, 2016. Such support will assist the Harbourfront Centre in covering its fixed operational costs. The funding program will also facilitate the Harbourfront Centre’s ability to leverage funding from other levels of government and pursue other revenue-generating strategies that allow the organization to provide the general public with continued access to cultural, recreational, and educational programs and activities held in Toronto’s waterfront area.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Harbourfront Centre received $5 million in funding for administrative and operational costs, helping the organization to leverage funding from other government sources and pursue revenue-generating strategies. Accordingly,the Harbourfront Centre remained open, providing community and cultural programming for the general public in Toronto.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions 5.0 4.2 7.0 7.0 (7.0)
Total other types of transfer payments
Total program activity(ies) 5.0 4.2 7.0 7.0 (7.0)

Comments on variances: Spending for the program is proceeding according to the timelines established in Budget 2011. Details on planned spending were not sufficiently complete for inclusion in the 2011–12 Report on Plans and Priorities.

Audit completed or planned: A federal desk audit of the Harbourfront Centre Funding Program completed in March 2012 concluded that the funds were being spent according to the Terms and Conditions of the Program.

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: In addition to frequent discussions with the recipient, site visits were held to facilitate the monitoring of specific activities.

 

Name of transfer payment program: Payments to the International Development Association

Start date: 1960

End date: Ongoing

Description: This program provides encashment of demand notes to allow the International Development Association to disburse concessional financing for development projects and programs in the world’s poorest countries.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Payments made were consistent with the Government of Canada’s commitments.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 384.3 384.3 384.3 384.3 384.3
Total program activity(ies) 384.3 384.3 384.3 384.3 384.3

Comments on variances: Not applicable

Audit completed or planned: Not applicable

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Payments to the International Development Association transfer payment program was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Recipients were engaged through spring and annual meetings of the World Bank Group.

 

Name of transfer payment program: Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 1957

End date: Ongoing

Description: Formula-based Equalization payments are made to eligible provincial governments to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 14,185.0 14,372.0 14,658.6 14,658.6 14,658.6
Total program activity(ies) 14,185.0 14,372.0 14,658.6 14,658.6 14,658.6

Comments on variances: The actual expenditure of $14.7 billion was the official estimate of Equalization for 2011–12 that was released to the provinces on December 20, 2010. The increase of $286.6 million from 2010–11 represents the legislated annual growth in program spending.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Territorial Formula Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 1985

End date: Ongoing

Description: Territorial Formula Financing payments provide territorial governments with the resources they need to deliver services that are comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 2,497.9 2,663.6 2,876.1 2,876.1 2,876.1
Total program activity(ies) 2,497.9 2,663.6 2,876.1 2,876.1 2,876.1

Comments on variances: The increase of $213 million in 2011–12 is attributable to growth in the Gross Expenditure Base escalator (GEB), which is faster than the growth in revenue capacity. Growth in the GEB principally reflects increases in the Provincial/Territorial-Local (PL) Expenditure index. The PL index enables territorial governments to keep pace with public sector spending in the provinces.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004

End date: Ongoing

Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government’s commitment to maintain the Canada Health Act’s national criteria (comprehensiveness, universality, portability, accessibility, and public administration), conditions, and prohibitions against user fees and extra-billing.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 24,081.0 25,605.4 26,951.9 26,941.8 26,941.8 10.1
Total program activity 24,081.0 25,605.4 26,951.9 26,941.8 26,941.8 10.1

Comments on variances: The Canada Health Transfer is escalated 6 per cent each year. Asfor 2009–10, the amounts for 2010–11 and 2011–12 also included transition payments to ensure that Canada Health Transfer payments made to provinces and territories were not lower than the 2007–08 amounts they would have received prior to the introduction of certain changes in Budget 2007. In addition, the amounts from 2010–11 and 2011–12 include amounts for deductions under the Canada Health Act.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004

End date: Ongoing

Description: The Canada Social Transfer (CST) provides equal per capita cash support to provincial and territorial governments to assist them in financing social programs, post-secondary education, and programs for children. The CST gives provinces and territories the flexibility to allocate payments to those areas according to their own priorities and supports the federal government’s commitment to prohibit minimum residency requirements for social assistance.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 10,857.9 11,178.8 11,514.0 11,514.0 11,514.0
Total program activity(ies) 10,857.9 11,178.8 11,514.0 11,514.0 11,514.0

Comments on variances: The increase of $335.2 million over 201011 is attributable to the legislated annual 3 per cent escalation of the Canada Social Transfer program.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982;and other statutory authorities)

Start date: 1867

End date: Ongoing

Description: The statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 32.2 32.1 32.1 32.1 32.1
Total program activity(ies) 32.2 32.1 32.1 32.1 32.1

Comments on variances: Not applicable

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)

Start date: 1964

End date: Ongoing

Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfers. In the 1960s, Quebec chose to use the federal government’s contracting-out arrangements for certain federal-provincial programs. Quebec continues to receive the value of these tax points through its own income tax system and reimburses the Government of Canada for the discontinued programs for which it had received a tax point transfer. Taken together, the Youth Allowances Recovery and the Alternative Payments for Standing Programs are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments and recoveries that met all legislative requirements

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments (596.3) (678.2) (685.6) (709.6) (709.6) 24
Total program activity(ies) (596.3) (678.2) (685.6) (709.6) (709.6) 24

Comments on variances: The variance between planned spending and actual spending is attributable to prior-year adjustments and to a revised estimate of the 2011–12 recovery, made in March 2012. The recovery for 2011–12 was greater than the recovery for 2010–11 because the value of the estimated tax points was greater in 2011–12.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act)

Start date: 1977

End date: Ongoing

Description: The Alternative Payments for Standard Programs is a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer (CHT) and Canada Social Transfer (CST) tax point transfers. In the 1960s, Quebec chose to use the federal government’s contracting-out arrangements for certain federal-provincial programs. Since Quebec, like other provinces, receives its full cash entitlement under the CHT and CST, the value of these tax points is reimbursed to the Government of Canada each year. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments and recoveries that met all legislative requirements

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments (2,702.6) (3,072.6) (3,113.0) (3,219.7) (3,219.7) 106.7
Total program activity(ies) (2,702.6) (3,072.6) (3,113.0) (3,219.7) (3,219.7) 106.7

Comments on variances: The variance between planned spending and actual spending is attributable to prior-year adjustments arising from the estimates cycle and to a revised estimate of 2011–12 recoveries, made in February 2012.

The recovery for 2011–12 was greater than the recovery for 2010–11 because the value of the estimated tax points was greater in 2011–12.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Wait Times Reduction Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2004–05

End date: 2013–14

Description: As part of the 10-Year Plan to Strengthen Health Care, the Government of Canada committed support to the provinces and territories to help reduce wait times in the health care system—primarily in support of human resources and tools to manage wait times. A total of $4.25 billion was provided through a third-party trust fund in 2004 and was notionally allocated over five years, from 2004–05 to 2008–09. This amount has been paid in full. From 2009–10 to 2013–14, annual funding of $250 million will be provided to the provinces and territories through cash transfer payments.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 250.0 250.0 250.0 250.0 250.0
Total program activity(ies) 250.0 250.0 250.0 250.0 250.0

Comments on variances: Not applicable

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Payment to Ontario Related to the Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2009–10

End date: 2010–11

Description: Direct payments are made to the Government of Ontario to ensure its per capita cash entitlements in relation to the Canada Health Transfer are the same as for other provinces receiving Equalization.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Ontario

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 489.1 160.4 (18.0) (18.0) 18.0
Total program activity(ies) 489.1 160.4 (18.0) (18.0) 18.0

Comments on variances: No amount was entered for planned spending in the 2011–12 Report on Plans and Priorities (RPP) because the program relates to a prior year and there was no indication at the time of the RPP preparation that there would be a change to the 2010–11 amount that might occur in 2011–12. With the recalculation of the Canada Health Transfer for 2010–11 in October 2011, the decline in the value of Ontario’s Canada Health Transfer tax point transfer led to a decline in the value of this payment of nearly $18 million. The amount for 2010–11 will be recomputed until the final calculation of September 2013. No payments are legislated for program years after 2010–11.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Incentive for Provinces to Eliminate Taxes on Capital (Part IV—Federal-Provincial Fiscal Arrangements Act)

Start date: 2007–08

End date: 2010–11

Description: A financial incentive to encourage provinces to eliminate provincial capital taxes or restructure an existing capital tax on financial institutions into a minimum tax.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

Results achieved: All provinces general capital taxes have been eliminated as of July 2012, which has strengthened Canada’s business tax advantage and increased the competitiveness of businesses.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 163.4 160.9 0.8 0.8 (0.8)
Total program activity(ies) 163.4 160.9 0.8 0.8 (0.8)

Comments on variances: The variance in year-over-year actual spending from 2010–11 to 2011–12 reflects the timing of preliminary and final payments associated with the incentive, which applies only to revenues foregone between March 18, 2007, and January 1, 2011. The payment in 2011–12 represents an adjustment to a preliminary payment to a province in respect of revenues foregone in 2007–08 (i.e., a final payment). There are several outstanding requests for final payments from the provinces; however, according to the Department’s current knowledge, these amounts are likely to be modest (i.e., no more than $20 million, in aggregate).

At the time that the 2011–12 Main Estimates and the Report on Plans and Priorities were prepared, it was not possible to determine whether any final payments would be payable in 2011–12 because no information had been provided by the eligible provinces.

Audit completed or planned: Not applicable

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: The framework for compensation was legislated on December 14, 2007, and federal transfer payments related to the elimination of provincial capital taxes are determined by Part IV of the Federal-Provincial Fiscal Arrangements Act.

 

Name of transfer payment program: Canadian Securities Regulation Regime Transition Office (Canadian Securities Regulation Regime Transition Office Act)

Start date: 2009–10

End date: 2012–13

Description: In Budget 2009, the Government of Canada committed to move forward quickly with willing provinces and territories to establish a Canadian securities regulator respecting regional interests and expertise as well as constitutional jurisdiction. The Canadian Securities Regulation Regime Transition Office leads the development of draft legislation and is working with willing partners to establish an appropriate framework for moving forward. The funds will be used to finance the Transition Office’s operations.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: In an Order in Council dated March 27, 2012, the mandate of the Canadian Securities Regulation Regime Transition Office was extended by one year to July 12, 2013, to assist with consultations with provinces and territories and to ensure the availability of resources for the development of a cooperative common securities regulator.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 5.4 13.2 11.0 14.3 14.3 (3.3)
Total program activity(ies) 5.4 13.2 11.0 14.3 14.3 (3.3)

Comments on variances: In 2009, Parliament created the Canadian Securities Regulation Regime Transition Office under the Canadian Securities Regulation Regime Transition Office Act, with the mandate to lead and manage all aspects of the transition to a Canadian securities regulator. The Act authorizes the Minister of Finance to make direct payments to the Transition Office for its use in fulfilling its three-year mandate that commenced on July 13, 2009, in an amount not to exceed $33 million, or any other amount that may be specified in an appropriation act. In this regard, three equal $11 million transfers were planned over the course of the mandate, which has since been extended to July 2013. Actual funding transferred to the Transition Office was within the $33 million budget and reflected its planned yearly activities. Further information on the Transition Office’s funding and activities is available in its Annual Report tabled in Parliament.

Audit completed or planned: The Canadian Securities Regulation Regime Transition Office’s enabling statute requires that its financial statements be audited annually by the Auditor General of Canada. The financial statements and audit report are available in the Transition Office’s Annual Report tabled in Parliament.

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: The Department of Finance Canada is in continuous contact with the Canadian Securities Regulation Regime Transition Office (e.g., regular face-to-face meetings, weekly conference calls, and daily emails) to consult on the development and implementation of the Transition Office’s business plan, review strategic priorities, and collaborate on the execution of deliverables.

 

Name of transfer payment program: Establishment of a Canadian Securities Regulation Regime and Canadian Regulatory Authority (Budget Implementation Act, 2009)

Start date: 2009–10

End date: 2011–12

Description: In Budget 2009, the Government of Canada committed to move forward quickly with willing provinces and territories to establish a Canadian securities regulator respecting regional interests and expertise as well as constitutional jurisdiction. These funds will be used to compensate participating provinces and territories for matters relating to the transition toward a Canadian securities regulator.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: On December 22, 2011, the Supreme Court of Canada determined that the proposed Canadian Securities Act as drafted was not constitutionally valid under the general branch of the federal power to regulate trade and commerce. The Court also found that Parliament has a role with matters of genuine national importance and scope, including management of systemic risk and in ensuring fair and efficient capital markets nationally. The Court indicated that each level of government has jurisdiction over some aspects of the regulation of securities and each level can work in collaboration with the other to carry out its responsibilities. Accordingly, the government indicated in Budget 2012 that it is consulting with provinces and territories, a number of which have reaffirmed their interest in working cooperatively toward a common securities regulator.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 150.0 0 0 150.0
Total program activity(ies) 150.0 0 0 150.0

Comments on variances: In Budget 2009, the Government indicated that it was prepared to enter into financial arrangements with participating jurisdictions in relation to the establishment of a Canadian securities regulator. The Budget Implementation Act, 2009 provided up to $150 million for compensating provinces and territories for matters relating to transition. No payments were made in 2011–12. The government is consulting with provinces, some of which have reaffirmed their interest in working cooperatively toward a common securities regulator. The government will assess the path forward as those discussions progress.

Audit completed or planned: Not applicable

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: The government is consulting with provinces, some of which have reaffirmed their interest in working cooperatively toward a common securities regulator. Because no payments were made in fiscal year (FY) 2011–12, the full balance was carried forward into FY 2012–13, pending the conclusion of negotiations to establish a common capital markets regulator.

 

Name of transfer payment program: Debt Payments on Behalf of Poor Countries to International Organizations pursuant to section 18(1) of the Economic Recovery Act (stimulus)

Start date: 2010

End date: 2054

Description: Payments for Canada’s commitment to the G8-led Multilateral Debt Relief Initiative

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Payments to international organizations were consistent with the Government of Canada’s commitments under the Multilateral Debt Relief Initiative

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants 51.2
Total contributions
Total other types of transfer payments 73.4 51.2 51.2 51.2
Total program activity(ies) 51.2 73.4 51.2 51.2 51.2

Comments on variances: The difference between 2010–11 and 2011–12 actual expenditures is attributable to a one-time payment made to international organizations in 2010–11 as part of Canada’s G20 commitment to provide exceptional debt relief to Haiti because of the 2010 earthquake.

Audit completed or planned: Not applicable

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Transitional Assistance to Provinces Entering into the Harmonized Value-Added Tax Framework (Part III.1—Federal-Provincial Fiscal Arrangements Act)

Start date: 2010

End date: 2011

Description: The Governments of Canada and Ontario entered into a Comprehensive Integrated Tax Coordination Agreement following Ontario’s decision to adopt the harmonized value-added tax framework. The Agreement was entered into under the authority of Part III.1 of the Federal-Provincial Fiscal Arrangements Act. As part of the Agreement, Canada has committed to provide Ontario with $4.3 billion in transitional assistance, in two payments, to help offset transition costs and to facilitate economic growth and job creation. Canada also provided $1.599 billion in transitional assistance to the Government of British Columbia as part of the Comprehensive Integrated Tax Coordination Agreement with that province. This transitional assistance is being returned to Canada as part of British Columbia’s exit from the harmonized value-added tax framework.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Implementation of the harmonized value-added tax

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 250.0 3,769.0 1,880.0 1,560.2 1,560.2 319.8
Total program activity(ies) 250.0 3,769.0 1,880.0 1,560.2 1,560.2 319.8

Comments on variances: The decline in transitional assistance payments between 2010–11 and 2011–12 is in accordance with the schedule of transitional assistance payments agreed to with Ontario and British Columbia under their sales tax harmonization agreements. The $1.88 billion in planned spending for 2011–12 represents the $1.3 billion and $580 million in transitional assistance paid to Ontario and British Columbia, respectively. The difference between planned and actual spending for 2011–12 represents the return of transitional assistance received by British Columbia as part of its exit from the harmonized value-added tax framework. The $1.599 billion paid to British Columbia is being repaid over a five-year period (2011–12 to 2015–16) at $319.8 million per year.

Audit completed or planned: Not applicable

Evaluation completed or planned: Not applicable

Engagement of applicants and recipients: Comprehensive Integrated Tax Coordination Agreements are signed with provinces entering into the harmonized value-added tax framework. The agreements provide for the rights and obligations of the parties in respect of harmonized taxes.

 

Name of transfer payment program: Transitional Payment to Newfoundland and Labrador (Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act)

Start date: 2011–12

End date: 2011–12

Description: This payment is the result of the 2005 Offshore Arrangement between the Government of Canada and Newfoundland and Labrador, which included the requirement for a Transitional Payment in 201112 should the province not receive Equalization in that fiscal year.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Newfoundland and Labrador

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 536.1 536.1 (536.1)
Total program activity(ies) 536.1 536.1 (536.1)

Comments on variances: Details on planned spending had not been completed at the time the 2011–12 Report on Plans and Priorities was prepared. Although there were no expenditures against this vote in 2010–11, the 2011–12 payment is in accord with the payment of $641.9 million made to Newfoundland and Labrador in 2010–11 under the Canada-Newfoundland Atlantic Accord Implementation Act, which expired in 2010–11. The 2005 Offshore Arrangement provided a benefit to the province equal to what the province would have received had Part 1 of the Equalization offset provision of the Canada-Newfoundland Atlantic Accord Implementation Act been extended to include the year 2011–12.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Additional Fiscal Equalization Offset Payment to Nova Scotia (Nova Scotia and Newfoundland and Labrador Additional Fiscal Equalization Offset Payments Act)

Start date: 2011–12

End date: 2019–20

Description: This payment is made under the 2005 Offshore Arrangement between the Government of Canada and Nova Scotia. The Arrangement guaranteed the province that its Equalization payments would not be reduced because of offshore oil and gas revenues that entered into the formula. This is derived by applying the Equalization formula with and without offshore oil and gas revenues and comparing the resulting Equalization payments.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Nova Scotia

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 33.7 33.7 (33.7)
Total program activity(ies) 33.7 33.7 (33.7)

Comments on variances: The calculation hadnot been completed at the time that the 2011–12 Report on Plans and Priorities was prepared. In 2011–12, the cumulative drawdown exceeded the $830 million advance payment made in 2005. As a result, a payment of $33.7 million was paid to Nova Scotia in March 2012.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Additional Fiscal Equalization to Nova Scotia (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 2011–12

End date: 2019–20

Description: This payment is related to the 2005 Offshore Arrangement between the Government of Canada and Nova Scotia. Following the introduction of a new formula for Equalization in 2007, Nova Scotia was guaranteed that on a cumulative basis over the lifetime of the Arrangement, beginning in 2008–09, the new formula would not reduce its Equalization payments and 2005 Offshore Arrangement payments when compared with the payments the province would have received under the formula that was in place when it signed its 2005 Offshore Arrangement.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to Nova Scotia

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 82.7 82.7 (82.7)
Total program activity(ies) 82.7 82.7 (82.7)

Comments on variances: The calculation wasnot completed at the time that the 2011–12 Report on Plans and Priorities was prepared.The $82.7 million payment made in 2011–12 was the first payment made to Nova Scotia in accordance with the conditions of its 2005 Offshore Accord and the guarantees that it had received following the introduction of a new formula for Equalization in 2007.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: International Bank for Reconstruction and Development for the Agriculture Advance Market Commitment (Bretton Woods and Related Agreements Act, subsection 8(1))

Start date: 2010–11

End date: 2014–15

Description: AgResults (formerly the Agriculture Advance Market Commitment) bridges the gap between public and private investment in the agricultural sector in support of global food security through the use of pull mechanisms, such as advanced market commitments, which make payment once results are achieved.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Payments were timely, accurate, and consistent with the Government of Canada’s commitments for financial support to AgResults.

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 9.0 9.0 (9.0)
Total program activity(ies) 9.0 9.0 (9.0)

Comments on variances: Spending plans had not been made public in time for inclusion in the 2011–12 Report on Plans and Priorities.

Audit completed or planned: Not applicable

Evaluation completed or planned: An evaluation conducted by the Department’s Internal Audit and Evaluation Group of the International Trade and Finance Branch, including policy work related to the Agriculture Advance Market Commitment, was in progress in July 2012.

Engagement of applicants and recipients: Not applicable

 

Name of transfer payment program: Additional Fiscal Equalization Payment – Total Transfer Protection (Part I—Federal-Provincial Fiscal Arrangements Act)

Start date: 2011–12

End date: 2011–12

Description: In 2010–11, as a complement to Canada’s Economic Action Plan, the Government of Canada provided provinces with protection to prevent declines in major transfers between 2009–10 and 2010–11. This protection was extended for 2011–12. Specifically, a comparison between 2010–11 and 2011–12 was made of the sum of Equalization, the Canada Health Transfer, the Canada Social Transfer, the Payment to Ontario Related to the Canada Health Transfer, and the Total Transfer Protection received in 2010–11. When there was a decline, the province received Total Transfer Protection in 2011–12. This payment was made as an additional Fiscal Equalization payment to Nova Scotia, New Brunswick, Quebec, and Manitoba.

Strategic outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)
  2009–10 Actual
spending
2010–11 Actual
spending
2011–12 Planned
spending
2011–12 Total
authorities
2011–12 Actual
spending
Variance
Total grants
Total contributions
Total other types of transfer payments 509.5 952.1 952.1 (952.1)
Total program activity(ies) 509.5 952.1 952.1 (952.1)

Comments on variances: Planned spending was not included in the 2011–12 Report on Plans and Priorities because the legislation had not yet received royal assent.

Audit completed or planned: The annual financial audit conducted by the Office of the Auditor General of Canada was completed in August 2012.

Evaluation completed or planned: An evaluation conducted by the Department of Finance Canada’s Internal Audit and Evaluation Group of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was completed in January 2012. The evaluation report is available on the Department’s website.

Engagement of applicants and recipients: Not applicable


Greening Government Operations 

Notes:

  • “RPP” refers to the Report on Plans and Priorities and represents planned or expected results.
  • “DPR” refers to the Departmental Performance Report and represents actual results.
  • “Departments” refers to departments and agencies.
  • “FY” refers to fiscal year.

Green Building Targets

8.1 As of April 1, 2012, and pursuant to departmental strategic frameworks, new construction and build-to-lease projects, and major renovation projects, will achieve an industry-recognized level of high environmental performance.[1]
Performance Measure RPP DPR
Target Status N/A
Number of completed new construction, build-to-lease, and major renovation projects in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Number of completed new construction, build-to-lease, and major renovation projects that have achieved an industry-recognized level of high environmental performance in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Existence of a strategic framework. (Optional for RPP 2011–12) Not Applicable Not Applicable

Strategies and/or Comments

i. The Department of Finance Canada is a tenant department. Therefore, this target does not apply.

 

8.2 As of April 1, 2012, and pursuant to departmental strategic frameworks, existing crown buildings over 1000 m2 will be assessed for environmental performance using an industry-recognized assessment tool.[2]
Performance Measure   RPP DPR
Target Status   N/A
Number of buildings over 1000 m2, according to the departmental strategic framework. (Optional in FY 2011–12)   Not Applicable Not Applicable
Percentage of buildings over 1000 m2 that have been assessed using an industry-recognized assessment tool, according to the departmental strategic framework. FY 2011–12 Not Applicable Not Applicable
FY 2012–13 Not Applicable  
FY 2013–14 Not Applicable  
Existence of a strategic framework. (Optional for RPP 2011–12)   Not Applicable  

Strategies and/or Comments

i. The Department of Finance Canada is a tenant department. Therefore, this target does not apply.

 

8.3 As of April 1, 2012, and pursuant to departmental strategic frameworks, new lease or lease renewal projects over 1000 m2, where the Crown is the major lessee, will be assessed for environmental performance using an industry-recognized assessment tool.[3]
Performance Measure RPP DPR
Target Status  N/A
Number of completed lease and lease renewal projects over 1000 m2 in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Number of completed lease and lease renewal projects over 1000 m2 that were assessed using an industry-recognized assessment tool in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Existence of a strategic framework. (Optional for RPP 2011–12) Not Applicable Not Applicable

Strategies and/or Comments

i. The Department of Finance Canada is a tenant department. Therefore, this target does not apply. 

 

8.4 As of April 1, 2012, and pursuant to departmental strategic frameworks, fit-up and refit projects will achieve an industry-recognized level of high environmental performance.[4]
Performance Measure RPP DPR
Target Status  N/A
Number of completed fit-up and refit projects in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Number of completed fit-up and refit projects that have achieved an industry-recognized level of high environmental performance in the given fiscal year, according to the departmental strategic framework. (Optional in FY 2011–12) Not Applicable Not Applicable
Existence of a strategic framework. (Optional for RPP 2011–12) Not Applicable Not Applicable

Strategies and/or Comments

i. The Department of Finance Canada is a tenant department. Therefore, this target does not apply.

Greenhouse Gas Emissions Target

8.5 The federal government will take action now to reduce levels of greenhouse gas (GHG) emissions from its operations to match the national target of 17% below 2005 by 2020.
Performance Measure   RPP DPR
Target Status   N/A
Departmental GHG reduction target:Percentage of absolute reduction in GHG emissions by FY 2020–21, relative to FY 2005–06.   Not Applicable Not Applicable
Departmental GHG emissions in FY 2005–06, in kilotons of CO2 equivalent.   Not Applicable Not Applicable
Departmental GHG emissions in the given fiscal year, in kilotons of CO2 equivalent. FY 2011–12 Not Applicable Not Applicable
FY 2012–13 Not Applicable  
FY 2013–14 Not Applicable  
FY 2014–15 Not Applicable  
FY 2015–16 Not Applicable  
FY 2016–17 Not Applicable  
FY 2017–18 Not Applicable  
FY 2018–19 Not Applicable  
FY 2019–20 Not Applicable  
FY 2020–21 Not Applicable  
Change in departmental GHG emissions from FY 2005–06 to the end of the given fiscal year, expressed as a percentage. FY 2011–12 Not Applicable Not Applicable
FY 2012–13 Not Applicable  
FY 2013–14 Not Applicable  
FY 2014–15 Not Applicable  
FY 2015–16 Not Applicable  
FY 2016–17 Not Applicable  
FY 2017–18 Not Applicable  
FY 2018–19 Not Applicable  
FY 2019–20 Not Applicable  
FY 2020–21 Not Applicable  
Existence of an implementation plan to reduce GHG emissions.   Not Applicable Not Applicable

Strategies and/or Comments

i. The Department of Finance Canada is a tenant department. Therefore, this target does not apply.

Surplus Electronic and Electrical Equipment Target

8.6 By March 31, 2014, each department will reuse or recycle all surplus electronic and electrical equipment (EEE) in an environmentally sound and secure manner.
Performance Measure   RPP DPR
Target Status   On Track
Existence of an implementation plan for the disposal of all departmentally generated EEE. (Optional for RPP 2011–12)   No Not Applicable
Total number of departmental locations with an EEE implementation plan fully implemented, expressed as a percentage of all locations, by the end of the given fiscal year. FY 201112 Not Applicable Not Applicable
FY 201213 Not Applicable  
FY 201314 1  

Strategies and/or Comments

i. Scope: Location of facilities is 140 O’Connor, Ottawa, Ontario. This is the only location for the Department of Finance Canada.

ii. Processes: Disposal of electronic and electrical equipment is currently a shared service provided by the Treasury Board of Canada Secretariat. Processes are being reviewed to ensure that all equipment is reused or recycled in a responsible manner. The Department of Finance Canada will fully implement an EEE plan in 100% of its locations by 2013–14.

iii. Reporting: Reporting requirements and mechanisms will be established to evaluate the effectiveness of the implementation plan.

iv. Continuous Improvement: Plans and procedures will be established to ensure that the target is met.

Printing Unit Reduction Target

8.7 By March 31, 2013, each department will achieve an 8:1 average ratio of office employees to printing units. Departments will apply the target where building occupancy levels, security considerations, and space configuration allow.
Performance Measure   RPP DPR
Target Status   Opportunity for Improvement
Ratio of departmental office employees to printing units in fiscal year 2010–11, where building occupancy levels, security considerations and space configuration allow. (Optional)    2:1  
Ratio of departmental office employees to printing units at the end of the given fiscal year, where building occupancy levels, security considerations and space configuration allow. FY 201112 3:1 2.2:1
FY 201213 8:1  
FY 201314 8:1  

Strategies and/or Comments

i. Definition: The Department of Finance Canada defines a “printing unit” as stand-alone and networked printers as well as multi-function devices (copiers). Faxes and scanners are excluded from this definition.

ii. Scope: The targets exclude certain operational areas, such as the Minister’s and executive offices, as well as stand-alone and network printers required for security reasons (e.g., the Department’s secure network).

iii. Number of Print Units: The number of units will be determined using print audit software or by physical inventory when necessary.

iv. Number of Employees: All employees of the Department will be included, to be determined in consultation with Human Resources specialists.

v. Processes: Work is underway to centralize the management of printer and copier resources. This will reduce indiscriminate purchases of printers, and facilitate the implementation of the recommendations of the print optimization study conducted in 2011–12. Implementation of the optimized print strategy will begin in 2012–13, with full implementation targeted for the Department’s move to 90 Elgin in 2013–14.

vi. Communications and Continuous Improvement: The Department will establish plans and strategies for departmental engagement to ensure that the target is met.

vii. Reporting: The Department will establish reporting requirements and procedures to monitor implementation.

viii. Comments: During 2011–12, the Department implemented a second network for security purposes. This network required a separate print infrastructure. In implementing this print infrastructure, the Department reallocated existing printers and multi-functional devices and replaced existing copiers with multi-functional devices when possible, to minimize the impact on printer reduction targets.

Paper Consumption Target

8.8 By March 31, 2014, each department will reduce internal paper consumption per office employee by 20%. Each department will establish a baseline between 2005–06 and 2011–12, and an applicable scope.
Performance Measure   RPP DPR
Target Status    On Track
Number of sheets of internal office paper purchased or consumed per office employee in the selected baseline year, according to the departmental scope. (Optional for RPP 2011–12)    8,371  
Cumulative reduction (or increase) in paper consumption, expressed as a percentage, relative to the selected baseline year. (Optional for RPP 2011–12) FY 201112 5%  18%
FY 201213  10%  
FY 201314  20%  

Strategies and/or Comments

i. Scope: All multi-purpose paper (8.5 x 11, 8.5 x 14, 11 x 17) for office-related operations within the Department of Finance Canada.

ii. Number of Employees: All employees of the Department will be included, to be determined in consultation with Human Resources specialists.

iii. Method of determining paper baseline: The Department established a baseline for FY 2010–11, based on procurement data. This figure was divided by the number of employees to determine each employee’s usage.

iv. Processes: The acquisition of paper is done solely using the Public Works and Government Services Canada’s Green Standing offer for paper.

v. Communications and Continuous Improvement: Employees are made aware of paper reduction practices through ongoing communication, including employee information sessions and the intranet.

vi. Links: The print optimization and paper reduction targets are closely linked. Therefore, environmental management and IT specialists are working toward implementing duplex printing as the default on print units, to reduce paper usage.

vii. Reporting: The Department will continue to report annually on paper reduction targets.

Green Meetings Target

8.9 By March 31, 2012, each department will adopt a guide for greening meetings.
Performance Measure RPP DPR
Target Status Achieved 
Presence of a green meetings guide. (Optional for RPP 2011–12) Yes  Yes

Strategies and/or Comments

i. Scope: Meetings held within or by the Department of Finance Canada.

ii. Processes: The Green Meeting Guide is intended to be used by meeting organizers and participants to reduce the environmental impacts of meetings held within or by the Department.

iii. Reporting: The Corporate Services Branch will establish a strategy to report on the effectiveness of the Green Meeting Guide.

iv. Communications and Engagement: An information session to educate employees about the guide was held during 2011–12, and the guide is posted on the Department’s intranet. Efforts will continue to increase awareness within the Department.

Green Procurement Targets

8.10 As of April 1, 2011, each department will establish at least three SMART green procurement targets to reduce environmental impacts.

1. By March 31, 2014, 50% of new contracts for services will have environmental considerations built into them.
Performance Measure RPP DPR
Target Status  On Track to Exceed
Percentage of services contracts with environmental criteria relative to the total number of services contracts awarded. N/A
Progress against performance in the given fiscal year. 10% 50%

Strategies and/or Comments

i. Scope: Departmental service contracts over $10,000 are included in the definition. Environmental criteria identified will be consistent with the Guideline for Green Services Procurement. In 2011–12, only those contracts awarded by the Department of Finance Canada through consolidated procurement instruments developed by Public Works and Government Services Canada (PWGSC) will be reported as including environmental criteria. Contracts awarded by PWGSC are not included.

ii. Performance: Most of the Department’s service contracts focus on consultation, advice, and report preparation. Because only a small number of considerations may be relevant, the Department has focused on the greening of contracting processes to reduce the environmental impact of its contracting activity, as follows:

  • All bid solicitations are transmitted electronically.
  • Bidders are instructed to submit bids electronically.
  • Contract documents are printed using the duplex printing option on paper with 30% post-consumer recycled content, and then circulated electronically for signatures using scanning technology, to reduce paper consumption.
  • Suppliers are encouraged to submit invoices electronically. A direct deposit pilot project is underway, eliminating the requirement to print and distribute cheques.
  • In addition, departmental managers are encouraged to minimize contractor travel by using video and telephone conferencing, and to correspond electronically whenever possible and appropriate.

iii. Processes: The Department uses PWGSC’s consolidated procurement instruments as required, including commodities such as temporary help services, IT professional services, and printing and publishing.

iv. Reporting: The Department will establish process requirements to track and report on progress toward the target.

v. Communications and continuous improvement: The Department will continue to develop plans and strategies for departmental engagement and communications to ensure that the target is met.

 

2. By March 31, 2012, 90% of IT Hardware purchases will be environmentally preferred models.
Performance Measure RPP DPR
Target Status Achieved
Percentage of IT Hardware purchases that meet the target relative
to the total IT Hardware purchases.
N/A
Progress against performance in the given fiscal year. 90% 100%

Strategies and/or Comments

i. Scope: “IT Hardware” is defined as desktop and notebook computers.

ii. Processes: The Department of Finance Canada uses Public Works and Government Services Canada’s mandatory consolidated procurement instruments to purchase all desktop and notebook computers and IT Hardware.

 

3. By March 31, 2013, 90% of furniture purchases will be environmentally preferred models.
Performance Measure RPP DPR
Target Status On Track
Percentage of furniture purchases meeting the target relative
to the total percentage of all furniture purchases.
N/A 
Progress against performance in the given fiscal year. 60% 84%

Strategies and/or Comments

i. Scope: “Office furniture” is defined as chairs, cabinets, shelving, and panel and desk systems.

ii. Processes: The Department of Finance Canada uses Public Works and Government Services Canada’s (PWGSC’s) mandatory consolidated procurement instruments to purchase the various furniture types (chairs, cabinets, shelving, panels and desks) whenever possible.

iii. Reporting: The Department can track and report on progress toward the target.

iv. Communications and continuous improvement: The Department will continue to use PWGSC’s mandatory consolidated procurement instruments and will incorporate environmental considerations into furniture purchases.

8.11 As of April 1, 2011, each department will establish SMART targets for training, employee performance evaluations, and management processes and controls, as they pertain to procurement decision making.

Training for select employees
By March 31, 2014, 95% of functional specialists of procurement or materiel management will have green procurement training through the Canada School of Public Service (CSPS) course C215 or an in-house equivalent.
Performance Measure RPP DPR
Target Status Exceeded
Percentage of functional specialists of procurement or materiel management with formal green procurement training relative to the total number of functional specialists of procurement or materiel management deemed as requiring training. N/A 
Progress against performance in the given fiscal year. 30% 100%

Strategies and/or Comments

i. Scope: All Departmental functional specialists in procurement or materiel management have completed green procurement training offered by the Canada School of Public Service (CSPS).

ii. Processes: The Department will use CSPS course C215 or an in-house alternative and an appropriate delivery method.

 

Employee performance evaluations for managers and functional heads of procurement and materiel management.
By March 31, 2012, 100% of employee performance evaluations for managers and functional heads of procurement and materiel management will have a performance clause relative to green procurement.
Performance Measure RPP DPR
Target Status Achieved
Percentage of materiel managers, procurement personnel and functional specialists with a green procurement clause in their performance evaluation relative to the total number of materiel managers, procurement personnel and functional specialist staff deemed as relevant. N/A 
Progress against performance in the given fiscal year. 100% 100%

Strategies and/or Comments

i. Scope: The Director, Contracting and Procurement and the Team Leader, Contracting and Procurement.

ii. Results: The Director and the Team Leader have performance clauses related to green procurement in their performance evaluations.

 

Management processes and controls.
By March 31, 2014, 50% of all identified procurement processes and controls will ensure environmental performance considerations are integrated into the procurement process.
Performance Measure RPP DPR
Target Status On Track to Exceed
Percentage of identified procurement processes and controls with environmental performance considerations integrated relative to the total number of identified procurement processes and controls. N/A
Progress against performance in the given fiscal year. 10% 54%*

Strategies and/orComments

i. Scope: The Department of Finance Canada has defined all contracts as being in scope for environmental performance considerations.

ii. *Processes: Contracting in the Department is centralized. All contracting and procurement, with the exception of acquisition card transactions, are reviewed and carried out by functional specialists in procurement. Functional specialists have completed training on green procurement offered by the Canada School of Public Service. Acquisition cardholders also receive green procurement training. The Department has developed green procurement checklists for goods and services to aid procurement specialists in promoting the inclusion of environmental performance considerations in contracts. In developing contracting strategies, the Department considers and recommends the use of Public Works and Government Services Canada (PWGSC) consolidated procurement instruments (which include environmental performance criteria) for much of its procurement—54% of transactions and 90% of the value of departmental contracts are awarded by PWGSC or under PWGSC procurement instruments. The Department has also greened its internal procurement operations to minimize impacts on the environment.

iii. Reporting: The Department will continue to monitor and report on contract activity and qualitative efforts to incorporate environmental criteria into the contracting process and controls.

iv. Communications and continuous improvement: Contracting and procurement staff will continue to promote the inclusion of environmental considerations into contracting processes.

Reporting on the Purchase of Offset Credits

Mandatory reporting on the purchase of greenhouse gas emissions offset credits, according to the Policy Framework for Offsetting Greenhouse Gas Emissions from Major International Events.
Performance Measure RPP DPR
Quantity of emissions offset in the given fiscal year. (Optional for all RPPs) N/A  N/A

Strategies and/or Comments

i. The Department of Finance Canada did not purchase offset credits in 2011–12.

Green Procurement Reporting for Departments and Agencies Not Bound by the Federal Sustainable Development Act

Departments and agencies bound by the Policy on Green Procurement but not the Federal Sustainable Development Act must complete mandatory reporting, in compliance with Section 7 of the Policy on Green Procurement.[5]

Strategies and/or Comments

i. The Department of Finance Canada is bound by the Federal Sustainable Development Strategy and will meet the requirements of the Policy on Green Procurement through its Departmental Sustainable Development Strategy.

Voluntary Reporting on Any Other Greening Government Operations Initiative

The Department will reuse its surplus office supplies internally by offering a Surplus Supplies Store for use by the Administrative Officer community. Any additional surplus office supplies will be donated to non-profit organizations in the National Capital Region.
Performance Measure RPP DPR
Target Status On Track
Quantity of skids of supplies reused and sent to non-profit organizations. (Baseline 2010–11) 7
Progress against performance in the given fiscal year. N/A 6

Strategies and/or Comments

i. Sources of Supplies: The Department of Finance Canada worked with the Administrative Officer community to encourage reuse and recycling of surplus office supplies.

ii. Processes: Corporate Services staff and volunteers from the Green Citizenship Network triage the surplus supplies and ensure that they are reused within the Department or donated to non-profit organizations.

iii. Donations: The Department directed surplus office supplies to registered non-profit organizations as appropriate.

iv. Reporting: The Department tracks and reports on the number of skids of supplies donated.

v. Communications and continuous improvement: The Department will continue to communicate the environmental and financial benefits of reusing supplies.

 

By March 31, 2014, 75% of acquisition cardholders will have green procurement training through the CSPS course C215 or an in-house equivalent.
Performance Measure RPP DPR
Target Status On Track to Exceed
Percentage of acquisition cardholders trained in green procurement relative to the total number of acquisition cardholders. N/A 
Progress against performance in the given fiscal year. 20% 75%

Strategies and/or Comments

i. Scope: The target applies to all departmental acquisition cardholders.

ii. Processes: The Department developed and made a presentation on “Green Procurement” for the administrative community, including acquisition cardholders. The objective of the presentation was to provide cardholders with a basic understanding and appreciation of green procurement and to raise awareness of the benefits of “buying green” in both a business and personal context. The presentation included key elements of the C215 course offered by the Canada School of Public Service.

iii. Number of acquisition cardholders: The Department has approximately 100 acquisition cardholders.

iv. Reporting: Although turnover of cardholders is low, mandatory training will be provided periodically for all new cardholders.

v. Communications and continuous improvement: The Department will continue to communicate with employees in order to raise awareness of this initiative.

 

By March 31, 2014, 7.5% of Department of Finance Canada employees will be members of the Green Citizenship Network.
Performance Measure RPP DPR
Target Status On Track
Percentage of personnel who are members of the Department’s Green Citizenship Network. (Baseline November 2010) 6.17% 
Progress against performance in the given fiscal year. 6.50% 5.6%

Strategies and/or Comments

i. Processes: The Department of Finance Canada’s Green Citizenship Network (GCN) promotes environmental stewardship in the workplace and is responsible for implementing the principles of sustainable development within the Department. The GCN is a network of environmentally conscious employees from the Department. The GCN was previously a joint committee led by the Treasury Board of Canada Secretariat and composed of employees of the co-tenants of L’Esplanade Laurier—the Department of Finance Canada and the Secretariat. In 2010–11, the Department of Finance Canada took over responsibility for its own greening of operations and the GCN. In 2011–12, the GCN participant list was validated and the result showed a slight drop in participation. However, the validation exercise confirmed that there are a significant number of environmentally conscious employees interested in participating. Efforts are underway to further enhance participation.

ii. Reporting: The Department will continue to track participation in the GCN.

iii. Communications and continuous improvement: The Department will promote participation through information sessions and other promotional activities, such as an “Enviro Fair,” and by encouraging new employees to participate by promoting at orientation sessions for new employees.


Endnotes

1 High environmental performance is demonstrated by achieving LEED NC Silver, Green Globes Design 3 Globes, or equivalent.

2 Industry-recognized assessment tools are BOMA BESt, Green Globes, or equivalent.

3 Industry-recognized assessment tools are BOMA BESt, an appropriately tailored BOMA International Green Lease Standard, or equivalent.

4 High environmental performance is demonstrated by achieving LEED CI Silver, Green Globes Fit-Up 3 Globes, or equivalent.

5 Alternatively, departments and agencies bound by the Policy on Green Procurement but not the Federal Sustainable Development Act (FSDA) may follow the approach required of FSDA departments for green procurement by setting and reporting on green procurement targets as specified in sections 8.10 and 8.11 above.


Horizontal Initiatives

Name of horizontal initiative: Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime, formerly the National Initiative to Combat Money Laundering

Name of lead department(s): Department of Finance Canada

Lead department program activity: Economic and Fiscal Policy Framework

Start date: June 2000

End date: 2011–12

Total federal funding allocation (from start date to end date): $639.3 million

Description of the horizontal initiative (including funding agreement): Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime was formally established in 2000 as the National Initiative to Combat Money Laundering (NICML), as part of the federal government’s ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act, created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the Proceeds of Crime (Money Laundering) Act was amended to include measures to fight terrorist financing activities, and was renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act(PCMLTFA).

The NICML was expanded and its name formally changed to “Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime.” In December 2006, Bill C-25 amended the PCMLTFA to further align Canada’s legislation with the international anti-money laundering and anti-terrorist financing standards established by the Financial Action Task Force, and to respond to areas of domestic risk. The amendments included enhanced client identification requirements, the creation of a registration regime for money services businesses, and the establishment of an administrative and monetary penalties regime to deal with lesser infractions of the PCMLTFA.

Shared outcome(s): To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of offences of money laundering and terrorist financing.

Governance structure(s): Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime is a horizontal initiative composed of both funded and non-funded partners. The funded partners are the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, the Financial Transactions and Reports Analysis Centre, the Royal Canadian Mounted Police, the Canada Revenue Agency, the Canada Border Services Agency, and the Canadian Security Intelligence Service. The non-funded partners are Foreign Affairs and International Trade Canada, Public Safety Canada, and the Office of the Superintendent of Financial Institutions Canada. An interdepartmental Assistant Deputy Minister-level group and working group, consisting of all partners and led by the Department of Finance Canada, has been established to direct and coordinate the government’s efforts to combat money laundering and terrorist financing activities. In addition, the Department also chairs a Public/Private Sector Advisory Committee. This broad-based advisory committee is composed of both public and private sector representatives who provide general guidance for Canada’s AML/ATF Regime.

Performance highlights: The Department of Finance Canada released two consultation papers, in November 2011 and December 2011, to seek views on policy options to address money laundering and terrorist financing risks to the financial sector.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) increased its number of compliance examinations by more than 56 per cent to 1,069 in 2011–12.

The Royal Canadian Mounted Police (RCMP) Anti-Terrorist Financing Team was involved in 208 investigations into terrorist financing in 2011–12. The RCMP implemented measures to ensure that all proactive FINTRAC disclosures received by the RCMP Proceeds of Crime Branch in Ottawa are fully reviewed when a file on an investigative occurrence is opened and forwarded to the appropriate investigative unit.

The Canada Border Services Agency performed 1,694 seizures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), totalling $30 million in 2011–12.

In 2011–12, the Public Prosecution Service of Canada laid 6,233 charges for the possession of proceeds of crime and 41 charges for money laundering under the Criminal Code as well as 17 charges under the PCMLTFA.

In 2011–12, the Canada Revenue Agency’s (CRA’s) Special Enforcement Program completed 132 audits based on FINTRAC disclosures; total federal income taxes were reassessed at $20,196,146, and total Goods and Services Tax / Harmonized Sales Tax was reassessed at $2,718,735. Of the 132 audits, six cases were referred for consideration for criminal prosecution for tax evasion. In addition, the CRA’s Charities Directorate revoked the registration of three charities on grounds that included their links to terrorism and took compliance action against four other registered charities. In addition, 10 organizations were denied registration or withdrew their application upon examination by the Charities Directorate.

Canada continued to play a strong role in the work of the Financial Action Task Force (FATF) in 2011–12, contributing to the analysis of global trends in money laundering and terrorist financing and to the development of policy, including the revision of the global FATF standards on combatting money laundering and the financing of terrorism as well as the proliferation and financing of weapons of mass destruction (adopted by FATF members in February 2012). Canada also continued to play a key role in the FATF Style Regional Bodies that help combat money laundering and terrorist financing in the Caribbean, South American, and Asia-Pacific regions. Efforts included directly providing technical assistance and training as well as funding capacity-building efforts.

Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime
        2011–12
($ millions)
       
Federal partners Federal partner program activity Names of programs for federal partners Total allocation (from start
date to
end date) ($ millions)
Planned spending Actual spending Expected
results
Results achieved
Department of Finance Canada Financial
Sector
Policy
Policy Development and Oversight of Anti-
Money Laundering and Anti-Terrorist Financing Regime
$3.3 $0.3 $0.3 The Department
of Finance Canada
will continue its
effective oversight
of Canada’s Anti-
Money Laundering
and Anti-
Terrorist Financing
(AML/ATF)
Regime by:
  • Monitoring the financial sector for money
    laundering and terrorist financing risks and other emerging illicit financing risks;
  • Participating in strategic domestic and international policy development activities that support the government’s commitments to the AML/ATF Regime;
  • Working to address the recommendations from the 10-year Treasury Board-mandated evaluation of the AML/ATF Regime;
  • Initiating the five-year parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
  • Completing the implementation of the Budget 2009 measure related to counter-measures to tackle illicit financing;
  • Continuing to participate in horizontal initiatives related to national security; and
  • Heading the Canadian delegations to participate as an active member of the FATF and the Asia/Pacific Group on Money Laundering (APG), as a Cooperative and Supporting Nation to the Caribbean Financial Action Task Force (CFATF), and as an observer on the Financial Action Task Force of South America Against Money Laundering (GAFISUD).
The Department
of Finance Canada
continued its effective
oversight of Canada’s
AML/ATF Regime.
The Department:
  • Monitored the financial sector for money laundering and terrorist financing and illicit financing risks and, through a consultative process, identified proposed measures to mitigate these risks. These measures were included in two consultation papers, released in November 2011 and December 2011, to seek views on policy options to strengthen Canada’s AML/ATF Regime and address money laundering and terrorist financing risks to the financial sector;
  • Continued to address policy and operational issues to ensure that Canada’s AML/ATF Regime is effective and participated in strategic domestic and international policy development activities that support the government’s commitments to the Regime;
  • Hosted spring and fall meetings of the Public/Private Sector Advisory Committee, to consult on and identify AML/ATF Regime-related private sector issues;
  • Addressed recommendations from the 10-year Treasury Board-mandated evaluation of the AML/ATF Regime, completing the Action Plan for Recommendations 1 and 3;
  • Initiated and supported the five-year parliamentary review of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, including the release of the December 2011 public consultation paper;
  • Consulted, through the December 2011 consultation paper, on detailed measures to implement the Budget 2009 measure related to counter-measures on illicit financing, and hosted regular meetings of the interdepartmental Illicit Financing Advisory Committee, established in late 2010;
  • Continued to participate in horizontal initiatives related to national security (e.g., the Interdepartmental Coordinating Committee on Criminal Code Terrorist Listings co-chaired by Foreign Affairs and International Trade Canada and Public Safety Canada);
  • Headed the Canadian delegations to the APG, CFATF, FATF and GAFISUD, participated in G7 financial policy experts’ meetings, and, in coordination and consultation with AML/ATF Regime partners;
  • Contributed to the development of FATF policy, the revision of the international FATF standards (adopted February 2012), and supported FATF work on money laundering and terrorist financing trends and typologies;
  • Played a challenge function in the APG, CFATF, FATF and GAFISUD, including participating in the mutual (peer) evaluation processes to evaluate and rate countries’ compliance with the FATF standards;
  • Participated in the FATF International Co-operation Review Group that publicly identifies and monitors high-risk jurisdictions; and
  • Identified and leveraged funds to support capacity building through the provision of technical assistance and training for the APG, CFATF and GAFISUD, and provided advice and guidance to CFATF on governance and capacity issues.
Department of Justice Canada Justice policies, laws and programs Criminal Law Policy Section and International Assistance Group $7.2 $0.1 $0.1 The Criminal Law Policy Section (CLPS) and the International Assistance Group (IAG) of the Department of Justice Canada play a significant role in Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. For 2011–12, it is anticipated that the CLPS will carry out work related to the Financial Action Task Force (FATF), including attending FATF-related international meetings. These may include meetings of the subgroups of the FATF—for example, the Working Group on Evaluation and Implementation and FATF Style Regional Bodies, including the Caribbean Financial Action Task Force and the Financial Action Task Force of South America Against Money Laundering. Resources will also be allocated to ensure the CLPS’s continued involvement in developing policy on money laundering and terrorist financing. Finally, the Human Rights Law Section will receive money to deal with any ancillary constitutional issues raised during prosecutions. During 2011–12, the Department of Justice Canada, including the CLPS and particularly the Criminal sector of the Litigation Branch, continued to do operational work in support of Canada’s AML/ATF Regime. Counsel continued to provide legal advice to the Department of Finance Canada and other AML/ATF Regime partners, and attended a number of FATF meetings. The AML/ATF funds earmarked for the Department of Justice Canada were entirely used for Regime-related purposes.
Public Prosecution Service of Canada Drug, Criminal Code and terrorism prosecution program Drug, Criminal Code and terrorism prosecution program $13.8 $2.3 $4.9 In 2011–12, the Public Prosecution Service of Canada (PPSC) will focus on:
  • Continuing to provide legal advice and support to the Royal Canadian Mounted Police and other enforcement agencies during investigations related to the proceeds of crime, money laundering and terrorist financing, as well as to investigations related to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), and undertaking prosecutions arising from those investigations;
  • Continuing to provide Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime-related training to law enforcement personnel and prosecutors, and to support policy development and coordination; and
  • Supporting the work of the Financial Action Task Force, as required.

The PPSC laid new AML/ATF Regime-related charges during 2011–12, including 6,233 related to the possession of proceeds of crime and 41 related to money laundering under the Criminal Code, and 17 charges under the PCMLTFA. There were no charges related to the terrorism financing provisions of the Criminal Code during this period.

Provision of legal advice was recorded by in-house counsel for 40 per cent of the possession of proceeds of crime files, 22 per cent of the money laundering files, and 5 per cent of the PCMLTFA files that these new charges represent.

Finally, PPSC counsel provided both formal and ad hoc training to law enforcement personnel over the course of investigations. Resources were also dedicated to policy development and coordination to ensure consistency in prosecutorial services across all regions.

Financial Transactions and Reports Analysis Centre of Canada Detection and Deterrence of Money Laundering and Terrorist Financing Detection and Deterrence of Money Laundering and Terrorist Financing $355.6 $45.5 $43.5

Financial intelligence
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) produces and disseminates financial intelligence on suspected money laundering, terrorist financing, and other threats to the security of Canada, making case disclosures to appropriate law enforcement agencies, the Canadian Security Intelligence Service or other agencies designated by legislation to support investigations and prosecutions. FINTRAC also conducts strategic analysis of financial intelligence from a variety of information sources, which informs various stakeholders about trends and patterns in money laundering and terrorist financing.

In 2011–12, FINTRAC will continue to provide law enforcement, intelligence bodies and international partners with timely financial intelligence and case disclosures to support investigations and other actions. FINTRAC will also ensure that its partners, policy makers and other interested parties have the knowledge and support they need to make informed decisions on existing and emerging issues related to money laundering and terrorist financing.

Financial intelligence
In 2011–12, FINTRAC continued to implement improvements to its mechanisms for defining, prioritizing and addressing its partners’ intelligence requirements in a timely manner. FINTRAC made 796 case disclosures of financial intelligence. Of these, 637 were related to money laundering; 116 were related to terrorist financing and other threats to the security of Canada; and 43 were related to all three areas.

Of all disclosures, 64 per cent were initiated by voluntary information records (VIRs). VIRs are used by FINTRAC’s investigative and intelligence partners to signal priority investigations where financial intelligence could make an important contribution. FINTRAC also continued to support partners and stakeholders by producing and disseminating classified and unclassified strategic financial intelligence assessments, briefs and other reports. Additionally, FINTRAC conducted a study that examined trends in its case disclosures from 2007 to 2011 and a study on trends in suspicious transaction reporting. These studies served to highlight the fundamental importance of financial intelligence to money laundering and terrorist financing investigations.

           

Compliance
FINTRAC seeks to counter money laundering and terrorist financing by improving the compliance of its reporting entities with their obligations under Part 1 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and related Regulations, including obligations for reporting, record keeping, and verifying identity.

For 2011–12, FINTRAC will continue to use a risk-based approach to compliance to ensure that reporting entities understand and are engaged in meeting their legislative obligations for anti-money laundering and anti-terrorist financing.

Compliance
FINTRAC used sound risk management practices that rely on fact-based research and analysis to tailor its compliance activities according to the risk of non-compliance by reporting entities, thereby ensuring that the level of compliance activity undertaken was commensurate with the risk of non-compliance.

The number of compliance examinations (both on-site and desk) increased by more than 56 per cent to 1,069 from 684 in 2010–11. FINTRAC also requested 6,026 compliance assessment reports from reporting entities across several sectors to assess the level of their compliance.

FINTRAC continued to promote self-service tools available on its website as an effective approach for guiding reporting entities on their obligations.

Royal Canadian Mounted Police Federal policing Money Laundering Units $80.2 $7.0 $6.0

The Royal Canadian Mounted Police (RCMP) will enhance national and international opportunities for the detection and investigation of money laundering activities, including leading investigations of money laundering involving organized crime.

The RCMP will also explore the strategic realignment of anti-money laundering resources to maximize their effectiveness. Consideration will be given to critical mass, recognition of RCMP national priority targets and large-scale money laundering targets, and international airports within Canada.

Finally, the RCMP will develop proactive Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) disclosures as well as other intelligence so that anti-money laundering and Integrated Proceeds of Crime resources can be maximized to disrupt the activities of organized criminals and crime groups.

The RCMP’s Proceeds of Crime Branch (POCB) continued to enhance its partnerships with such U.S. organizations as the Criminal Investigation Section of the Internal Revenue Service, the Drug Enforcement Administration, the Homeland Security Investigations, and the Federal Bureau of Investigation, all of which have a mandate to educate, inform and combat money laundering. The POCB continued to foster international relationships with Strategic Alliance Group (SAG) partners and is working toward joint investigative efforts. The POCB focused on promoting and leveraging information sharing relevant to subjects of interest in RCMP investigations involving suspects from the United States and other foreign jurisdictions as well as Canadians living abroad. There were 109 files with an international component in 2011–12.

In 2011, AML investigative teams were established in Ottawa, Montreal, Toronto, Calgary and Vancouver. These teams carried out 45 money laundering investigations primarily focused on national enforcement priorities.

FINTRAC continued to be an important partner contributing to the development of money laundering investigations. Since 2011, the RCMP has implemented measures to ensure that all proactive FINTRAC disclosures received by the RCMP POCB in Ottawa are fully reviewed when an investigative occurrence file is opened and forwarded to the appropriate investigative unit. This oversight, review and proactive management of inbound proactive disclosures have resulted in the identification and quick response to high-priority investigations of money laundering.

    Anti-Terrorist Financing Units Regime $32.6 $5.0 $3.7 Through the gathering and analysis of financial intelligence, the RCMP Anti-Terrorist Financing Team (ATFT) will focus on converting that financial intelligence into proactive investigations for the Anti-Terrorist Financial Investigative Units, thus enhancing the ability to detect and deter terrorist financing activities. The ATFT will continue to work closely with domestic partners to further criminal investigations of terrorist financing and will participate and contribute to international forums such as the Financial Action Task Force (FATF) and international law-enforcement working groups on terrorist financing.

In 2011–12, the RCMP’s ATFT at National Headquarters and the Anti-Terrorist Financial Investigative Units in the field continued to support counterterrorism strategies by gathering and analyzing financial intelligence on terrorist financing, supporting national security criminal investigations with a terrorist financing component, and leading counterterrorism investigations where terrorist financing was the main focus.

The ATFT was involved in 208 terrorist financing investigations, 5 of which achieved major project status. During that period, the ATFT submitted 59 voluntary information reports to FINTRAC and received 100 disclosures from FINTRAC. The ATFT continued to provide training to the RCMP and its partner agencies. Two anti-terrorist financing courses were delivered to 47 candidates.

The ATFT continued to support the FATF, the Asia/Pacific Group on Money Laundering (APG), and the Middle East and North Africa Financial Action Task Force (MENAFATF). Building on existing relationships with domestic and international partners of Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime, the ATFT participated in five practitioners’ groups and conferences, including the FATF Plenary sessions, the AML/ATF regime of East Timor, and the FATF Regional Body. The Department of Finance Canada continued to consult with the ATFT on FATF-related matters, including international cooperation, information sharing and related projects.

The RCMP enhanced cooperation with key domestic partner agencies in Canada’s AML/ATF Regime through secondment and exchange programs. The RCMP also enhanced cooperation internally between enforcement units that investigate predicate offences, such as frauds, drugs, and customs, and those units that investigate terrorist financing. The cooperation included working jointly on national priority projects to identify possible links between criminal activities/organized crime and the financing of terrorism. Such cooperation will enhance enforcement opportunities to disrupt the flow of funds to support terrorist groups and terrorist activity.

Canada Revenue Agency Special Enforcement Program Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime $26.0 $2.2 $2.2 In 2011–12, the Canada Revenue Agency (CRA) will focus on:
  • Participating in committees and initiatives that aim to manage and strengthen Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime;
  • Continuing to enhance operational relationships with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and other partners in Canada’s  AML/ATF Regime; and
  • Conducting research and analysis related to money laundering and tax avoidance and evasion—for example, conducting compliance action focused on individuals and entities participating in money laundering and terrorist financing activities.

The Special Enforcement Program (SEP) will continue to treat all disclosures from FINTRAC on a priority basis. The SEP will thoroughly review all disclosures received from FINTRAC and will audit those with identifiable tax potential. The projected number of audits will remain at approximately 90 cases, with a projected federal tax recovery of $9,000,000. However, given the complexity of the files received from FINTRAC, the lengthy amount of time required to complete these cases, and the fact that the number of referrals continues to increase, the number of audits that the SEP can complete in 2011–12 may be impacted. These factors will also potentially impact the federal tax recovery for those cases.

The results of the audits will be compiled for intelligence purposes to determine whether trends or additional participants in these activities can be identified.

In 2011–12, the CRA continued its efforts to enhance operational relationships with FINTRAC and other AML/ATF Regime partners. The CRA held information sessions for FINTRAC that focused on operational functions and improving the quality of information shared between the two organizations. Compliance priorities were shared with FINTRAC, allowing its analysts to place an increased emphasis on selected sectors.

The CRA continued to explore options to increase its interaction with both FINTRAC and its law enforcement partners, particularly the Royal Canadian Mounted Police. Meetings at the headquarters level were expanded to include the CRA’s Offshore Compliance Section in order to improve the CRA’s ability to detect and address non-compliance.

The CRA received 124 FINTRAC disclosures between April 1, 2011, and March 31, 2012. The majority of these disclosures were worked on by the SEP, which conducts audits and other enforcement activities related to subjects suspected of earning income from illegal activities.

The SEP also completed 132 audits based upon FINTRAC disclosures, with total federal income taxes reassessed in the amount of $20,196,146 and total Goods and Services Tax / Harmonized Sales Tax reassessed in the amount of $2,718,735.

In addition, provincial income taxes were assessed, and interest and penalties may be assessed.

Of the 132 audits completed, six cases were referred for consideration for criminal prosecution for tax evasion.

The CRA continued to focus on tracking information from FINTRAC disclosures in order to identify trends in tax non-compliance. This intelligence was shared with the CRA’s risk assessment function and incorporated into existing intelligence.

  Charities—Public Safety and Anti-Terrorism Combatting Terrorist Resourcing Through Charities $15.3 $4.1 $4.1 Under the Income Tax Act, the Canada Revenue Agency (CRA) is responsible for administering the registration system for charities. This responsibility recognizes that the existence of a strong regulatory deterrence against terrorist abuse of charities contributes to suppressing the financing of terrorism in Canada and to protecting and preserving the social cohesion and the well-being of Canadians. The CRA’s regulatory oversight of charities has been strengthened by the enactment of complementary measures under the Charities Registration (Security Information) Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Actand by changes to the Income Tax Act that authorize broader information sharing between partners of Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. Under these authorities, intelligence provided to the CRA assists in its mandate to protect the integrity of the registration system for charities, and information disclosed by the CRA can be used for investigative purposes. In 2011–12, the CRA will continue to consolidate its capacity to identify and respond to cases involving possible links to terrorism by deploying new decision support systems, refining risk management tools, developing a privacy management framework and bringing regulatory actions to the attention of Canadians. In 2011–12, the following results were achieved:
  • A new due diligence tool to support analysis was implemented, risk indicators were refined, and staffing and training of the full complement of program full-time equivalents continued.
  • The normal business of reviewing applications for charitable registration, monitoring registered charities, and exchanging information under legal authorities with AML/ATF Regime partners continued.
  • The CRA revoked the registration of three Canadian charities on grounds that included their links to terrorism. Compliance action was also taken against four registered charities, and 10 organizations were denied registration or withdrew their application upon examination by the Charities Directorate.
  • The revocations and compliance actions were published on the CRA’s website.
The Charities Directorate:
  • Received 47 disclosures from AML/ATF Regime partners and, in turn, made 48 disclosures to partners, which could assist in their investigations;
  • Participated in interdepartmental committee meetings, providing charities-related subject-matter expertise;  
  • Attended international conferences and continued to co-lead and provide subject-matter expertise at international capacity-building workshops; and
  • Co-chaired a project sponsored by the Asia/Pacific Group on Money Laundering on vulnerabilities in the NPO Sector.
A former director of the Charities Directorate shared expertise with the new Australian Charities and Not-for-Profits Commission Implementation Task Force in developing a capacity to address the Financial Action Task Force recommendation on protecting non-profit organizations from terrorist financing.
Canada Border Services Agency Risk Assessment Anti-Money Laundering and Anti-Terrorist Financing Regime $81.9 $2.0 $2.1 The Canada Border Services Agency (CBSA) will focus on:
  • Continuing to be involved in tactical and strategic analysis and assessments of intelligence related to money laundering and terrorist financing activities;
    • Participating in the exchange of information on currency seizures to assist in the investigation or prosecution of money laundering and terrorist financing activity offences with the U.S. Immigration and Customs Enforcement and the U.S. Customs and Border Protection; and
    • Participating in joint forces operations with the Royal Canadian Mounted Police and other government departments. Several specific operations exemplify the high level of cooperation between Canada’s Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime partners and related international agencies.

The CBSA performed 1,694 seizures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, totalling $30 million; $3.0 million of this total was forfeited to the Crown, and penalties were assessed in the amount of $727,500.

In addition, 109 seizures were suspected of being proceeds of crime or funds for the use of terrorist activities and resulted in forfeitures.

  Admissibility determination Anti-Money Laundering and Anti-Terrorist Financing Regime   $4.2 $4.1 Border services officers (BSOs) will focus on:
  • Maintaining the responsibility to enforce the physical cross-border reporting obligation, including the examination of baggage and conveyances, and to question and search individuals for unreported or falsely reported currency and monetary instruments; and
  • Continuing to seize currency and monetary instruments if they are not reported and are greater than the reporting threshold. Seized non-reported currency and monetary instruments are forfeited with no terms of release when BSOs suspect that the seized currency or monetary instruments are proceeds of crime or funds for use in financing terrorist activities. In all other instances, the seized amount will be returned upon payment of a penalty. BSOs are trained to recognize various monetary instruments and potential instances of non-compliance.

Dedicated Cross-Border Currency Reporting Teams will continue to be an integral part of the CBSA’s outbound enforcement effort.

The Currency Detector Dogs Service will continue to play an important role in the detection of unreported currency that may be related to money laundering or terrorist financing.

 
  Internal Services Anti-Money Laundering and Anti-Terrorist Financing Regime   $1.1 $1.1 In 2011–12, Internal Services will focus on:
  • Providing functional direction to the regions on the administration and enforcement of Part 2 of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act;
  • Providing critical strategic planning, priority setting and coordination for the Cross-Border Currency Reporting Program;
  • Continuing to work closely with other key government departments on matters related to money laundering and terrorist financing; and
  • Continuing to be involved in international conferences and workshops that require the presence of cross-border law enforcement expertise.
 
Total     $616.7 $74.1 $67.5    

Comments on variances (if applicable): For the Public Prosecution Service of Canada, actual costs have been calculated for all files in which a possession of proceeds of crime, money laundering or offences under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act have been recorded. Many of these files involve other offences, including the substantive offences that generated proceeds of crime. However, it is not possible to assess the costs associated with each of the offences included in a given file. Prosecution costs can only be calculated against the file as a whole.

Results achieved by non-federal partners (if applicable): Not applicable

† Certain organizations that are partners in the AML/ATF Regime are exempt from reporting; therefore the figures presented in the table may not sum to the total amount allocated.

Contact information:
Rachel Grasham
Chief, Financial Crimes Section
Phone:613-943-2883


Internal Audits and Evaluations 

Internal Audits (current reporting period)
Name of internal audit Internal audit type Status Completion date
Audit of the Debt Management Process
Financial Management and Process Controls Completed June 7, 2011
Practice Inspection of the Internal Audit Function Governance, Risk Management and Process Controls Completed August 23, 2011
Audit of Integrated Human Resources Planning Human Resources Completed January 4, 2012
Audit of the Federal Budget Process Risk Management, Governance and Process Controls Completed January 4, 2012
Follow-Up Audit of the Office of the Auditor General Income Tax Legislation Audit Risk Management, Governance and Process Controls Completed January 4, 2012
Audit of the Access to Information Process Governance, Risk Management and Process Controls Completed May 29, 2012
Audit of Contracting Financial Management and Process Controls Completed August 28, 2012
Audit of the Business Continuity Plan Governance, Risk Management and Process Controls Completed August 28, 2012

 

Evaluations (current reporting period)
Name of evaluation Program activity Status Completion date
Evaluation of the Federal-Provincial Relations Division  Direct Spending  Completed  January 4, 2012
Evaluation of the Economic Studies and Policy Analysis Division  Direct Spending  Completed  January 4, 2012
Evaluation of Canada’s Payments to the International Development Association (IDA)  Direct Spending  Completed  January 4, 2012
Evaluation of the Asset Allocation Framework of the Exchange Fund Account Treasury Evaluation Program  Completed  March 2, 2012

Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees and External Audits
Response to parliamentary committees
  • No recommendations were received in 2011–12.
Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)
External audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages
  • No external audits were conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages in 2011–12.

Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ millions)
      2011–12
     
Program Activity 2009–10 Actual 2010–11 Actual Main
Estimates
Planned
Revenue
Total
Authorities
Actual
Internal Services            
Sale of departmental documents 0.0 0.0 0.4 0.4 0.4 0.0
Recoveries related to the provision of internal support services to other government departments 0.0 0.0 0.0 0.0 0.2 0.2
Total Respendable Revenue 0.0 0.0 0.4 0.4 0.6 0.2

 

Non-Respendable Revenue
($ millions)
      2011–12
     
Program Activity 2009–10 Actual 2010–11 Actual Planned
Revenue
Actual
Economic and Fiscal Policy Framework        
Loans, Investments, and Advances        
Federal-provincial fiscal arrangements 0.1 0.1 0.1 0.1
Other Miscellaneous Revenues        
Sundries 0.0 0.0 0.1   0.25
 
Subtotal 0.1 0.1 0.2 0.35
Transfer and Taxation Payment Programs        
Loans, Investments, and Advances        
Financial Consumer Agency of Canada 0.0 0.1 0.1 0.1
International Monetary Fund—Poverty Reduction and Growth Facility 3.8 1.0 0.8 1.0
International Finance Corporation—Global Trade Liquidity Program 0.2 1.9 0.8 3.5
Other Miscellaneous Revenues        
Sale of real property to Canada Lands Company Limited 1.8 2.4 3.0 4.8
Guarantee fees1 28.7 121.9 18.6 10.4
 
Subtotal 34.5 127.3 23.3 19.8
Treasury and Financial Affairs  
Cash and Accounts Receivable  
Chartered banks 9.1 14.3 3.9 23.4
Short-term deposits2 11.4 40.4 30.4 66.7
Receiver General balance at the Bank of Canada 62.4 30.5 36.0 25.6
Foreign Exchange Accounts        
International reserves held in the Exchange Fund Account—transfer of profit3 1,455.5 1,718.1 1,616.9 1,672.2
International Monetary Fund—subscriptions— transfer of profit 4.5 5.9 5.2 7.1
International Monetary Fund—General Resources Account—transfer of profit 0.5 2.4 1.6 3.9
Loans, Investments, and Advances        
Interest Revenue—Canada Mortgage and Housing Corporation Loan4 1,744.0 1,951.7 1,943.3 1,962.8
Interest Revenue—Farm Credit Canada Loan4 89.7 158.0 141.3 196.5
Interest Revenue—Business Development Bank of Canada Loan4 34.1 97.9 67.6 111.2
Other Miscellaneous Revenues        
Domestic coinage5 115.5 131.0 179.3 106.7
Transfer from the following accounts, which were unclaimed or outstanding for ten years or more—outstanding interest account—unclaimed cheques6 33.7 62.0 29.3 40.9
Unclaimed balances received from the Bank of Canada in respect of chartered banks 0.2 0.3 1.4 0.4
Transfer from matured debt outstanding 1.0 0.3 2.9 0.8
Other Accounts        
Public Works and Government Services Canada—Consulting and Audit Canada Revolving Fund 0.2 0.1 0.1 0.1
 
Subtotal 3,561.8 4,212.9 4,059.2 4,218.3
Internal Services        
Refunds of previous years’ expenditures—refund of salaries, goods, and services 0.4 0.2 0.2 0.2
Adjustments to prior year’s payables 0.6 0.4 0.6 0.0
Sales of goods and services—rights and privileges 0.1 0.1 0.1 0.1
Subtotal 1.1 0.7 0.9 0.3
 
Total Non-Respendable Revenue 3,597.5 4,341.0 4,083.6 4,238.8
1. The decrease relates to Asset-Backed Commercial Paper Guarantee fees accrued in 2010–11.
2. The increase relates to higher balances and interest rates.
3. The decrease relates to lower interest rates and foreign-exchange revaluation.
4. The increases relate to higher average outstanding balances during 2011–12 and higher average interest rates.
5. The decrease relates to lower demand for domestic coinage.
6. The decrease relates to the timing of unclaimed cheques.