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Table 3: Services Received Without Charge

($ Thousands)

2006-2007

Accommodations provided by Public Works and Government Services Canada

70,862

Contributions covering employers' share of employees' insurance premiums
and expenditures paid by the Treasury Board of Canada Secretariat (excluding revolving funds); employer's contribution to employees insured benefits plans and associated expenditures paid by the Treasury Board of Canada Secretariat

524,962

Workers' Compensation paid without charge by Human Resources andSkills Development Canada

11,657

Salary and associated expenditures of legal services provided by the Department of Justice Canada

3,869

Total 2006-2007 Services Received Without Charge

$611,350

Note: *Due to rounding, figures may not add to totals shown.

Table 6b: Policy on Service Standards for External Fees – DND FY 2006–2007

External Fee

Stakeholder Consultation

Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)

Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request.

The Access to Information Act provides fuller details.

The most common performance measurement is the percentage of “on-time” responses as stipulated by the performance standard. For this reporting period those are 92.9% for the Access to Information Act and 63.7% for the Privacy Act.

The Access to Information Act and the Access to Information Regulations establishes the service standard. 

The Department of Justice and the Treasury Board Secretariat undertook consultations with stakeholders, for amendments done in 1986 and 1992.

Landing fees charged for civilian aircraft using DND facilities. Fees collected are in accordance with the annual DND Cost Factors Manual Table 7-3 (aircraft landing fees).

On request, DND will provide landing service at a DND aerodrome for civilian aircraft when such service is in the public interest and consistent with departmental policy. This service shall not result in an unacceptable degradation of capacity to conduct normal operations nor compete with services readily available from the private sector.

Landing service provided in response to all requests meeting specified criteria.

No instances of degradation of DND operational capacity as a result of such service provision.

No complaints of competition with services available from the private sector received.

Agreements with commercial aircraft companies are reviewed on a regular basis. Landing fees collected are in accordance with the DND Cost Factors Manual table applicable to aircraft type/weight and service provided.

Complaints as to competition with private sector service providers are investigated and responded to as they arise.

B. Other Information: N/A

Note:

The Department of National Defence is charging landing fees to civilian aircraft at the following locations: Goose Bay, Bagotville, Greenwood, Trenton, Moose Jaw, Cold Lake and Comox.

Table 7a: Summary of Capital Spending by Program Activity

($ Thousands)

Actual
Spending
2004–2005

Actual
Spending
2005–2006

2006–2007

Planned
Spending

Total
Authorities

Actual
Spending

Defence Services Program

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

2,018,826

2,070,255

2,290,763

2,261,026

2,139,798

Conduct Operations

200,260

143,159

181,778

223,408

212,260

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

28,844

23,987

27,069

29,354

30,572

Total

$2,247,930

$2,237,401

$2,499,609

$2,513,788

$2,382,630

Notes:

1. Total Capital Spending for 2006–2007 of $2,382,630 thousand does not agree with the Total Capital Spending reported on Table 2 Voted and Statutory Items in the amount of $2,381,824 thousands as the amount on this table includes $806 thousands of Spending of proceeds from the disposal of surplus of Crown assets.
2. The difference between Planned Spending and Actual 2006–2007 is explained by project slippage due to capacity and timing of contract award.
3. Due to rounding, figures may not add up to totals shown.

Supplementary information on the major Crown projects listed below can be found at http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp

1. HALIFAX Class Modernization/Frigate Life Extension (HCM/FELEX)
2. Submarine Capability Life Extension<
3. Canadian Patrol Frigate (CPF)
4. Tribal Class Update & Modernization Project (TRUMP)
5. Joint Support Ship (JSS)
6. Maritime Helicopter Project (MHP)
7. Armoured Personnel Carriers (APC)
8. Mobile Gun System (MGS)
9. Multi Mission Effects Vehicle (MMEV)<
10. Light Utility Vehicle Wheeled (LUVW)
11. Intelligence Surveillance, Target Acquisition and Reconnaissance (ISTAR)
12. Medium Support Vehicle System Project (MSVS)
13. Canadian Forces Utility Tactical Transport Helicopter (CFUTTH) Project
14. Canadian Search and Rescue Helicopter Project
15. Military Automated Air Traffic System (MAATS) Project
16. Airlift Capability Project – Strategic (ACP-S)
17. Airlift Capability Project – Tactical(ACP-T)
18. Fixed Wing Search And Rescue (FWSAR)
19. Medium-To Heavy-Lift Helicopter (MHLH)
20. Protected Military Satellite Communications (PMSC)
21. Material Acquisition And Support Information System (MASIS)

Table 11: Alternative Service Delivery

Supplementary information on the following Alternative Service Delivery programs and/or services can be found at:http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp

• Contracted Airborne Training Services (CATS)
• Wheeled Light Armoured Vehicle (WLAV) Life Cycle Support Project
• Canadian Forces Station Alert Modernization Project
• 202 Workshop Depot
• DND/Montfort Hospital Collaborative Arrangement
• Information Management Services Transformation Project

Source: Vice-Chief of the Defence Staff Group

RESPONSE TO PARTLIAMENTARY COMMITTEES

On December 7, 2006, the Standing Committee on Public Accounts tabled its 11th Report based on Chapter Two of the May 2006 Report of the Auditor General of Canada (National Defence - Military Recruiting and Retention). The Department worked on the Government Response to the Committee report and the official response will be tabled in the new year. Meanwhile, Defence was asked to report in this DPR on the status of specific recommendations.  These can be found in Section II under “Standing Committee on Public Accounts” on pages 34 to 37. As requested in Recommendation 1 of the report, Defence also tabled with the Committee detailed action plans for the implementation of the recommendations made in the SCOPA report before March 31, 2007 as requested.

RESPONSE TO THE AUDITOR GENERAL INCLUDING TO THE COMMISSIONER OF THE ENVIRONMENT AND SUSTAINABLE DEVELOPMENT (CESD)

Office of the Auditor General (OAG)

During the reporting period, the Auditor General tabled three Chapters in Parliament that included recommendations directed at the Department of National Defence and the Canadian Forces.  Two Chapters tabled in May 2006 were Follow-Ups of chapters that were previously reported in Parliament:  “Military Recruiting and Retention” and “NATO Flying.

Training in Canada”.  In November 2006, the Auditor General tabled a Chapter entitled “Relocating Members of the Canadian Forces, RCMP, and the Federal Public Service”. 

In the Chapter “Military Recruiting and Retention”, the Auditor General reported that the Department has made satisfactory progress in responding to the audit recommendations that were previously reported in 2002.  She also stated, however, that the recruiting system is not fully supporting the needs of the Canadian Forces.  Further, she suggested that current recruiting and attrition problems could put the success of the CF’s planned expansion at risk. The Department agreed with the five audit recommendations presented by the Auditor General in this Chapter. 

In the Chapter “NATO Flying Training in Canada”, the Auditor General also reported that the Department had made satisfactory progress in responding to the recommendations made in 2002 on NATO Flying Training in Canada.  She acknowledges that the Department successfully negotiated a settlement with the contractor for training that was missed prior to December 2002.  Subsequent to December 2002, however, she noted that the Department paid an additional $39 million for training that was not received.  The Department accepted the two audit recommendations presented the Auditor General in this Chapter. 

In the Chapter “Relocating Members of the Canadian Forces, RCMP, and the Federal Public Service”, the Auditor General reported that the government-wide relocation contract that was awarded to Royal Lepage Relocation Services in November 2004 was not tendered in a fair and equitable manner.  In addition, Public Works and Government Services Canada did not take steps to ensure that all bidders in the tendering process had access to correct and complete information.  The Auditor General also reported that the Department had not established adequate controls over relocation expenditures.  Three of the audit recommendations in this Chapter were directed solely at the Department of National Defence and an additional two were directed at National Defence, along with the Treasury Board Secretariat and/or the RCMP.

These three Chapters, including departmental responses to the audit recommendations contained in them, can be accessed on the Auditor General’s website here: 

http://www.oag-bvg.gc.ca/domino/reports.nsf/html/05menu_e.html

Commissioner of the Environment and Sustainable Development

In September 2006, the Commissioner of the Environment and Sustainable Development tabled a Report in Parliament that contained two government-wide audit Chapters that made reference to the Department of National Defence.  None of recommendations contained in these Chapters were directed at National Defence.  These two Chapters were entitled: “Sustainable Development Strategies” and “Environmental Petitions”.  These two Chapters can be found on the Commissioner’s website here: http://www.oag-bvg.gc.ca/domino/reports.nsf/html/c2006menu_e.html

External audits

No external audits specifically related to the DND/CF were reported on during fiscal 2006–2007. 

INTERNAL AUDITS AND EVALUATIONS

Internal Audits and Evaluations completed during fiscal 2006–2007:

• Security Clearance Process – Internal Audit
• System Engineer Support Contract – Internal Audit
• Wheeled Light Armoured Vehicle Life Cycle Support Contract – Internal Audit
• Contracting for Transportation – Internal Audit
• NDHQ Operations & Maintenance – Internal Audit
• Acquisition Card Use – Internal Audit
• Material Acquisition and Support Optimization Project – Internal Audit
• Civilian Performance Planning & Review Process – Internal Audit
• Management of Non-Classified Information Technology Hardware – Review
• Defence Research & Development Contracts – Risk Analysis
• CF Contractor Augmentation Program – Evaluation
• Functional Responsibilities in Support of CF Transformation – Evaluation
• Harassment Prevention and Resolution Policy and Program – Evaluation
• Perspectives on the Capital Equipment Acquisition Process – Evaluation
• CF Medical Support to Deployed Operations – Evaluation
• CF Outside Canada (OUTCAN) Exchange and Liaison Programs – Evaluation
• Pearson Peacekeeping Centre Funding Contribution – Evaluation
• Chemical, Biological, Radiological, Nuclear (CBRN) Research and Technology Initiative (CRTI) – Evaluation (Formative)

The audit and evaluation reports listed above include recommendations designed to improve the performance of the DND/CF, as well as the management response to them.  Completed reports can be found at: http://www.forces.gc.ca/crs/rpt/reports_e.htm

Table 14: Sustainable Development Strategy (SDS)

1.  What are the key goals, objectives, and/or long-term targets of the SDS?

The key goals of Defence’s SDS 2003 are to:

• protect the health of ecosystems through the sustainable use of training areas;
• protect human health and the environment through the responsible management of hazardous materials and addressing departmental contaminated sites;
• protect the atmosphere through reduction in the Ozone Depleting Potential of in-service systems and equipment using halocarbons and reduce Green House Gas emissions; and integrate environmental considerations fully into Defence management processes, systems and activities through integration of sustainable buildings concepts into the design process, and promulgate a Defence Green Procurement policy. 

2.  How do your key goals, objectives, and/or long-term targets help achieve your department’s strategic outcomes?

Defence SDS 2003 looks further out than the three-year cycle of the strategy itself. The target on sustainable military training areas for instance spans the period 2003 to 2010 and has been revised and integrated into the Defence SDS 2006 demonstrating the Department’s continuing support of resource conservation, sound environmental stewardship and good governance. Defence is the government’s largest employer and consumer of goods and services and is one of the largest landholders. As such, the Department acts in compliance with the Government of Canada’s administrative and governance policies, legislation and regulations, and contributes to broader government priorities through responsible stewardship of the assets with which it has been entrusted.

Furthermore, in addition to the traditional targets contained in the Defence strategy, SDS 2003 also contained five Commitments to Continual Improvement (untargeted commitments to report on government priorities, such as water consumption) and three legacy Targets (targets that were not met in SDS 2000, but on which we continue to report until they are fully achieved).

3. What were your targets for the reporting period?

Eleven targets and five Commitments to Continual Improvement are enunciated in Defence SDS 2003 supporting the key goals listed above.  In addition, three “legacy” targets that were not fully achieved in the course of SDS 2000; namely, Environmental Management Systems, Integrated Pest Management Plans, and Hazardous Materials Management Plans are outlined.

4. What is your progress to date?

Of the 11 targets set out in SDS 2003, Defence has exceeded three targets, met three targets, and partially met a further three targets.  Two targets were not met.

The three targets exceeded are: B.1. (Eliminate or reduce 15 per cent of specified nationally procured High-Risk (HR) Hazardous Materials from use); B.4. (Reduce the Contaminated Sites Liability by 4 per cent per year); and, C.1. (Reduce the Ozone depleting potential of in-service systems and equipment using Halocarbons by 5 per cent);

The two targets not met are: B.5. (Minimize the environmental liability associated with petroleum Fuel Storage infrastructure and distribution assets) and B.6. (Minimize the environmental liability associated with Aviation Fuel Storage Capacity); and,

None of the three SDS 2000 Legacy targets pursued during SDS 2003 were met: SDS 2000 target A.3. (Develop and implement Integrated Pest Management (IPM) Plans at all Bases /Wings); SDS 2000 target B.1. (Develop and implement Hazardous Material Management Plans at all Bases/Wings/Organizations); and, SDS 2000 target D.1. (Implement Environmental Management Systems).

5. What adjustments have you made, if any? Discuss how lessons learned have influenced your adjustments.

With the third year of the three-year reporting cycle for SDS 2003 completed, the Department continues to refine the content of business planning and functional guidance tools to promote innovative activities, including sustainable building, and cost-saving and environmentally sound activities, such as energy performance contracting. National Defence is concerned with the slow progress to address certain targets, for instance the rationalization and upgrading of fuel storage tanks. Many of the lessons learned from these initiatives have been formalised within the new (SDS 2006) iteration of the Defence SDS. In fact, lessons learned during the process of SDS 2003 have led the Department to include all three of the targets that were not reached in fiscal 2006–2007 as commitments in SDS 2006 to further improve our understanding of and performance on these issues. The failure to “close the book” on the SDS 2000 Legacy Targets during this SDS cycle is a cause for increasing concern and will be addressed by continuing to focus on this unfinished business in the latest iteration of the Defence SDS.

Note: 

DND maintains a consolidated record of all registered storage tanks in a national database.  Due to data gaps in this consolidated record, it was not possible to determine compliance with the applicable Technical Guidelines for 521 aboveground tanks and 98 underground tanks.

Table 15: Procurement and Contracting 

Supplementary information on procurement and contracting can be found at : http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 16: Storage Tanks

Supplementary information on storage tanks can be found at : http://www.tbs-sct.gc.ca/rma/dpr3/06-07/index_e.asp.

Table 17: Personnel Requirements – Military (Regular Force) by Program Activity

Program Activity

Actual

2004 –
2005

Actual

2005 –
2006

Planned

2006 –
2007

Actual

2006 –
2007

Generate and Sustain Integrated Forces

N/A

N/A

56,890

56,484

Conduct Operations

N/A

N/A

5,600

6,300

Contribute to Canada and the International Community

N/A

N/A

971

995

Total

61,715

61,923

63,461

63,779

Notes:

1. Actual Military (Regular Force) FTEs for fiscal 2004–2005 was broken down according to the PRAS and reported through the five Capability Programs for Defence. Actual FTE count for fiscal2005–2006 and 2006–2007 is based on the approved PAA and reported according to the three Program Activities for Defence. The breakdown by Capability Program for fiscal 2004–2005 can be found in the Departmental Performance Report (DPR) for the period ending March 31, 2005.
2. Actual Military (Regular Force) FTEs for fiscal year 2005–2006 reflect the Regular Force Expansion of 5,000 announced in Budget 2005 and includes Class C Reserves.
3. Planned Military (Regular Force) FTEs for fiscal 2005–2006 is higher than Actual 2005–2006 due to the reduction in Reservists serving on Class C contracts as a result of the operational pause that began early in 2005, even though CF recruiting was over target in fiscal 2005–2006.
4. Class C Reservists are not included in 2006–2007 planned and actual figures. For information on the Reserve Strength see Section II, page 41.

Table 18: Personnel Requirements – Civilian by Program Activity

Program Activity

Actual
2004 –
2005

Actual
2005–
2006

Planned
2006–
2007

Actual
2006–
2007

Generate and Sustain Integrated Forces

20,019

20,951

20,370

22,309

Conduct Operations

622

688

2,355³

609

Contribute to Canada and the International Community

1,426

1,412

1,444

1,501

Total²

22,067¹

23,051

24,169

24,419

Total (as reported in the RPP/DPR)

22,063¹  

23,018

24,169

N/A

Notes:

1. Differences in totals between this table and previous RPP/DPR input are due to missing cost centres and a move to the PAA structure. Some of the FTEs in the missing cost centres have been accounted for by estimating the FTEs in these areas and attributing them to Generate and Sustain Integrated Forces. These FTE numbers are derived from a representative financial formula, as there is not a consistent 1:1 relationship between FTEs and programs.
2. Includes Communication Security Establishment (CSE) FTEs.
3. The difference between ‘Planned 2006–2007’ and other columns for ‘Generate and Sustain Integrated Forces’ and ‘Conduct Operations’ is due to a reallocation of a portion of CSE.

Table 19: Personnel Requirements – Combined Military (Regular Force) and Civilian by Program Activity

Program Activity

Actual
2004 –
2005

Actual
2005 –
2006

Planned
2006 –
2007

Actual<
2006 –
2007

Generate and Sustain Integrated Forces

N/A

N/A

N/A

78,793

Conduct Operations

N/A

N/A

N/A

6,909

Contribute to Canada and the International Community

N/A

N/A

2,415

2,496

Total

83,778¹

84,974

87,630

88,198

Notes:

1. Differences in totals between this table and previous RPP/DPR input are due to missing cost centres and a move to the PAA structure.
2. Class C Reservists are not included in 2006–2007 planned and actual figures.

Table 20: Summary of Military (Regular Force) FTEs by Rank

Rank Structure

2004 – 2005

2005 – 2006

2006 – 2007

General/Lieutenant-General; Admiral, Vice-Admiral

11

12

12

Major-General, Rear-Admiral

23

21

20

Brigadier-General, Commodore

38

44

48

Colonel, Captain(Navy)

325

330

323

Lieutenant-Colonel, Commander

1,090

1,115

1,133

Major, Lieutenant-Commander

3,192

2,247

3,280

Captain, Lieutenant (Navy)

5,840

5,882

5,827

Lieutenant, Second-Lieutenant, Sub-Lieutenant, Acting Sub-Lieutenant

1,952

2,068

2,312

Officer Cadet, Naval Cadet

1,749

1,720

1,902

Chief Warrant Officer, Chief Petty Officer 1^st Class

668

674

629

Master Warrant Officer, Chief Petty Officer 2^nd Class

1,803

1,861

1,907

Warrant Officer, Petty Officer 1^st Class

3,682

3,726

2,702

Sergeant, Petty Officer 2^nd Class

6,760

6,802

6,782

Master Corporal, Corporal, Master Seaman, Leading Seaman

24,632

24,681

25,155

Private, Private (Recruit), Able Seaman, Ordinary Seaman

9,950

9,742

10,747

Total

61,715

61,923

63,779

Notes:

1. DPR fiscal 2005–2006 (annual monthly average); Actual strength for March 31, 2006 was 62,779.
2. ADM (IM) DHRIM Strength Report as of March 31, 2007 (actual strength). 
3. FTEs table fiscal 2006–2007 column does not include 1,430 primary reservists (annual monthly average) employed on Class C status.

Table 21: Summary of Civilian FTEs by Occupational Group

Capability Program

Actual
2004 –
2005

Actual
2005 –
2006

Planned
2006 –
2007

Actual
2006 –
2007

OIC Appointments

4

3

3

4

Executive

102

104

109

109

Scientific and Professional

1,870

1,993

2092

2165

Administrative and Foreign Service

4,948

5,328

5592

5787

Technical

2,171

2,299

2413

2456

Administrative Support other than Clerical

630

601

630

574

Clerical and Regulatory

3,256

3,398

3568

3628

Operational other than General Labour and General Services

2,290

2,370

2489

2574

General Labour and Trades

3,032

3,106

3260

3109

General Services

2,188

2,214

2325

2293

Other (Students, Minister's Staff, Unknown)

148

139

143

149

Communications Security Establishment (CSE) staff - (executives and non-executives)

1,424

1,492

1567

1578

Total¹

22,063

23,047

24,191

24,426

Note:

1.        Differences in totals between this table and previous RPP/DPR input are due to missing cost centres and a move to the PAA structure.

(in thousands of dollars)

2007

2006*

Expenses (Note 4)

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

12,552,623

13,197,635

Conduct Operations

2,313,180

1,351,719

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

1,106,068

1,042,235

15,971,871

15,591,589

Revenues (Note 5)

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

208,187

305,398

Conduct Operations

24,784

36,090

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

215,376

154,680

448,347

496,168

Net Cost Of Operations

15,523,524

15,095,421

(in thousands of dollars)

2007

2006

Assets

Financial Assets

Receivables (Note 6)

168,000

634,186

Loans and Advances (Note 7)

30,752

29,942

198,752

664,128

Non-Financial Assets

Prepaid Expenses (Note 8) 

863,604

517,512

Inventories (Note 9)

5,192,436

4,955,682

Tangible Capital Assets (Note 10)

26,137,296

25,921,679

32,193,336

31,394,873

32,392,088

32,059,001

Liabilities

Accounts Payable and Accrued Liabilities

1,820,680

1,732,901

Vacation Pay and Compensatory Leave

221,449

168,072

Deposits and Trust Accounts (Note 11)

1,868

2,215

Deferred Revenue (Note 12)

67,597

61,886

Canadian Forces Pension and Insurance Accounts (Note 13)

43,700,028

42,720,547

Lease Obligations for Tangible Capital Assets (Note 14)

759,903

832,612

Severance Benefits (Note 15)

1,350,019

1,271,768

Environmental Liabilities (Note 16)

497,416

442,977

48,418,960

47,232,978

Equity of Canada

(16,026,872)

(15,173,977)

32,392,088

32,059,001

(in thousands of dollars)

2007

2006

Equity of Canada, beginning of year

(15,173,977)

(14,845,341)

Net Cost of Operations

(15,523,524)

(15,095,421)

Current Year Appropriations Used (Note 3)

15,682,630

14,682,343

Revenue Not Available for Spending

(97,949)

(132,002)

Change in Net Position in the Consolidated Revenue Fund
(Note 3)

 (1,525,402)

(352,630)

Services Provided Without Charge by Other Government Departments (Note 19)

611,350

569,074

Equity of Canada, end of year

(16,026,872)

(15,173,977)

(in thousands of dollars)

2007

2006

Operating Activities

Net Cost of Operations

15,523,524

15,095,421

Non-Cash Items Included in Net Cost of Operations:

Amortization of Tangible Capital Assets

(1,783,758)

(1,748,330)

Gain or Loss on Disposals / Adjustments of Tangible Capital Assets

(221,636)

(290,416)

Services Provided Without Charge by Other Government Departments

(611,350)

(569,074)

Variations in Statement of Financial Position

Increase (decrease) in Receivables and Advances

(465,376)

404,471

Increase in Prepaid Expenses

346,092

36,657

Increase in Inventories

236,754

55,319

Increase in Liabilities, net of Capital Lease Obligations

(1,258,691)

(836,464)

Cash Used by Operating Activities

11,765,559

12,147,584

Capital Investment Activities

Acquisitions of Tangible Capital Assets (excluding Leased Tangible Capital Assets) (Note 10)

2,235,599

1,983,092

Proceeds on Disposal of Surplus Assets

(20,471)

(17,895)

Payments against / Adjustments to Capital Lease Obligations

78,592

84,930

Cash Used by Capital Investment Activities

2,293,720

2,050,127

Financing Activities

Net Cash Provided by Government of Canada

(14,059,279)

(14,197,711)

Asset Class

Amortization Period

Buildings

10-40 years

Works

5-40 years

Machinery and Equipment 

3-30 years

Informatics Hardware

3-30 years

Informatics Software

2-12 years

Arms and Weapons

3-30 years

Other Equipment 

5-30 years

Ships and Boats

10-30 years

Aircraft 

20-40 years

Non-military Motor Vehicles

2-30 years

Military Vehicles

3-25 years

Other Vehicles

4-25 years

Leasehold Improvements

Lesser of useful life of the improvement or term of lease

Leased Tangible Capital Assets

Economic life or term of lease

Repairable spares are amortized in accordance with the sum of the accumulated amortization of the equipment platform that they support.

(in thousands of dollars)

2007

2006

Net Cost of Operations

15,523,524

15,095,421

Adjustments for items affecting Net Cost of Operations
but not affecting Appropriations

Amortization of Tangible Capital Assets 

(1,783,758)

(1,748,330)

Services Provided Without Charge by Other Government Departments

(611,350)

(569,074)

Severance Benefits

(78,251)

(133,591)

Refund of Previous Year’s Expenses

77,786

104,707

Vacation Pay and Compensatory Leave

(53,377)

53,278

Gain or Loss on Disposals and Adjustments of Capital Assets

(221,636)

(290,416)

Return on Investments

9,400

19,330

Other Revenues

7,966

12,782

Justice Canada Fees

(6,110)

(5,314)

Environmental Liabilities and Other Allowances

(55,833)

8,384

Allowance of Bad Debts

(8,532)

(3,548)

Sale of Real Property through Canada Lands Company

2,930

0

Miscellaneous

12

5

(2,720,753)

(2,551,787)

Adjustments for items not affecting Net Cost of Operations but affecting Appropriations

Tangible Capital Assets Acquisitions (excluding capital leases)

2,235,599

1,983,092

Payments Against Capital Lease Obligations

79,100

85,410

Inventory Purchases Net of Usage and Adjustments

236,754

55,320

Net Variation Prepaid Expenses

346,092

36,657

Revenues Collected from Prior Year Receivables

(17,686)

(21,770)

2,879,859

2,138,709

Current Year Appropriations Used

15,682,630*

14,682,343

(in thousands of dollars)

2007

2006

Appropriations Provided

Operating expenditures – Vote 1

12,014,954

9,861,479

Capital Expenditures – Vote 5

2,513,788

2,247,930

Grants & Contributions – Vote 10

191,985

187,819

Forgiveness of Debt –Vote 11a

2

0

Governor General Special Warrants – Vote 1

0

1,246,468

Governor General Special Warrants – Vote 10

0

793

14,720,729

13,544,489

Statutory Amounts:

Contributions to Employee Benefit Plan - Members of the Military

905,145

892,953

Contributions to Employee Benefit Plan - Civilians

254,004

253,313

Spending of Proceeds from the Disposal of Surplus Crown Assets

20,591

7,999

Payments under the Supplementary Retirement Benefits Act

6,796

7,392

Payments under Parts I-IV of the Defence Services Pension Continuation Act

1,493

1,664

Pensions and Annuities Paid to Civilians

80

93

Minister’s Salary and Motor Car Allowance

73

72

Collection Agency Fees

39

54

1,188,221

1,163,540

Less: Lapsed Appropriations: Operating

(226,320)

(25,686)

Current Year Appropriations Used

15,682,630*

14,682,343

(in thousands of dollars)

2007

2006**

Net Cash Provided by Government

14,059,279

14,197,711

Revenue Not Available for Spending

97,949

132,002

Change in Net Position in the Consolidated Revenue Fund

Variations in Canadian Forces Pension and Insurance Accounts

979,481

989,977

Variations in Accounts Receivable, Loans and Advances

465,376

(404,471)

Variations in Accounts Payable and Accrued Liabilities

87,779

(214,162)

Other Adjustments

(7,234)

(18,714)

1,525,402

352,630

Current Year Appropriations Used

15,682,630*

14,682,343

(in thousands of dollars)

2007

2006

Operating

Salary and Employee Benefits

8,323,894

7,718,642

Amortization

1,783,758

1,748,330

Professional and Special Services

1,442,056

1,657,319

Repair and Maintenance

971,476

953,861

Transportation and Communication

746,402

579,884

Materials and Supplies

616,254

735,432

Loss on Disposals and Write-offs and Write-downs of Tangible Capital Assets*

467,310

219,013

Other Services

391,557

269,313

Equipment and Other Rentals

266,966

156,645

Expenses Related to Tangible Assets**

250,426

936,181

Utilities

150,864

144,293

Accommodation

137,255

125,888

Interest on Capital Lease Payments

45,911

48,309

Advertising, Printing and Related Services

35,353

36,453

Bad Debts

8,532

3,548

Other Expenses

138,199

63,662

15,776,213

15,396,773

Transfers

Transfers to Other Countries and International Organizations

174,876

172,625

Transfers to Non-Profit Organizations

10,293

9,905

Transfers to Individuals

8,386

9,163

Transfers to Other Levels of Government

2,103

3,123

195,658

194,816

15,971,871

15,591,589

(in thousands of dollars)

2007

2006

Sale of Goods and Services

396,336

430,759

Interest and Gains on Foreign Exchange

12,591

24,660

Gains on Disposals of Assets

9,590

12,999

Other

29,830

27,750

448,347

496,168

(in thousands of dollars)

2007

2006

External Clients

217,924

242,817

Other Government Departments*

72,689

520,810

Gross Receivables

290,613

763,627

Less: Allowance for Doubtful Accounts on
External Receivables

122,613

129,441

Net Receivables

168,000

634,186

(in thousands of dollars)

2007

2006

Imprest Accounts, Standing Advances and Authorized Loans to CF Members

30,658

29,904

Advances to NATO Personnel for Recoverable Damage Claims

94

38

30,752

29,942

(in thousands of dollars)

2007

2006

Foreign Military Purchases

406,085

159,289

Sea Sparrow Missiles

271,328

189,401

Joint Strike Fighter Development

78,237

90,273

NATO Flying Training Canada (NFTC)

11,885

39,712

Military Salaries

8,213

5,254

Cooperative Logistics Arrangements

7,664

9,641

Other Purchases

80,192

23,942

863,604

517,512

(in thousands of dollars)

2007

2006

Ammunition, Bombs and Missiles*

2,883,766

2,912,223

Uniforms and Clothing

373,247

335,957

Land Equipment Spares

256,370

211,103

Contractor Held Inventory 

249,911

151,309

Engineering, Test and Technical Equipment and Machine Tools

238,639

 222,608

Communication and Informatics Equipment

225,940

214,794

Aircraft Spares

193,242

193,056

Sonobuoys, Parts and Accessories*

142,987

131,294

Ship Spares

139,487

132,841

Medical Equipment

58,177

59,371

Miscellaneous

430,670

391,126

5,192,436

4,955,682

(in thousands of dollars)

2007

2006

Contractor Security Deposits

Deposits, beginning of year

2,001

2,430

Deposits received

3,566

5,336

Refunds

(3,943)

(5,765)

Contractor Security Deposits, end of year

1,624

2,001

Trust Account, Estates – Armed Services*

Trust Account, beginning of year

214

121

Funds received

1,848

1,667

Payments

(1,818)

(1,574)

Trust Account, Estates – Armed Services, end of year

244

214

1,868

2,215

(in thousands of dollars)

2007

2006

Foreign Governments

Beginning of Year

44,426

61,305

Funds Received

78,446

94,378

Revenue Earned

(77,857)

(111,257)

Foreign Governments, end of year

45,015

44,426

Other Specified Purposes

Beginning of Year

17,460

15,544

Funds Received

14,121

6,948

Revenue Earned

(8,999)

(5,032)

Other Specified Purposes, end of year

22,582

17,460

67,597

61,886

(in thousands of dollars)

2007

2006

Canadian Forces Superannuation Account

Beginning of Year

42,362,772

41,350,714

Funds Received and other credits

3,136,297

3,158,617

Payments and other charges

(2,211,903)

(2,146,559)

Canadian Forces Superannuation Account, end of year

43,287,166

42,362,772

Canadian Forces Pension Fund Account

Beginning of Year

30,873

88,851

Funds Received and other credits

855,559

827,503

Payments and other charges

(84,292)

(57,747)

Transfers to the Public Sector Pension Investment Board

(738,546)

(827,734)

Canadian Forces Pension Fund Account, end of year

63,594

30,873

Reserve Force Pension Fund Account

Beginning of Year

0

0

Funds Received and other credits

4,856

0

Payments and other charges

(1,580)

0

Reserve Force Pension Fund Account, end of year

3,276

0

Retirement Compensation Arrangements Account*

Beginning of Year

129,670

94,907

Funds Received and other credits

52,123

64,875

Payments and other charges

(32,443)

(30,112)

Retirement Compensation Arrangements Account, end of year

149,350

129,670

Regular Forces Death Benefit Account

Beginning of Year

197,232

196,098

Funds Received and other credits

31,490

31,315

Payments and other charges

(32,080)

(30,181)

Regular Force Death Benefit Account, end of year

196,642

197,232

43,700,028

42,720,547

(in thousands of dollars)

Total Future
Minimum Lease Payments

Imputed Interest
(5.29% to 8.05%)

Balance of Obligations 2007

Balance of Obligations 2006

Buildings

118,203

(44,007)

74,196

76,487

Aircraft

883,516

(262,454)

621,062

653,802

Ships and Boats

59,144

0

59,144

101,573

Informatics Hardware

6,461

(960)

5,501

750

1,067,324

(307,421)

759,903

832,612

(in thousands of dollars)

2007 - 2008

2008 - 2009

2009 - 2010

2010 - 2011

2011 - 2012

2012-2013
and
Thereafter

Buildings

6,487

6,487

6,487

6,491

6,900

85,351

Aircraft

70,106

70,106

70,106

70,106

70,106

532,986

Ships and Boats

30,856

16,716

11,572

0

0

0

Informatics Hardware

1,999

1,999

2,463

0

0

0

109,448

95,308

90,628

76,597

77,006

618,337

(in thousands of dollars)

2007

2006

Public Service Employees

Accrued benefit obligation, beginning of year

264,768

212,877

Expenses for the year

53,771

69,639

Benefits paid during the year

(20,920)

(17,748)

Accrued benefit obligation, end of year

297,619

264,768

Canadian Forces Members

Accrued benefit obligation, beginning of year

1,007,000

925,300

Expenses for the year

150,864

170,477

Benefits paid during the year

(105,464)

(88,777)

Accrued benefit obligation, end of year

1,052,400

1,007,000

1,350,019

1,271,768

(in thousands of dollars)

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012 and Thereafter

Total

Fixed Assets

1,555,000

1,054,000

684,000

322,000

2,920,000

6,535,000

Purchases

1,582,000

1,132,000

769,000

641,000

3,269,000

7,393,000

Operating Leases

3,000

4,000

4,000

1,000

0

12,000

3,140,000

2,190,000

1,457,000

964,000

6,189,000

13,940,000

(in thousands of dollars)

2007

2006

Employer's Contributions to the Health and Dental Plans Paid by Treasury Board Secretariat

524,962

484,074

Accommodation Provided by Public Works and Government Services Canada

70,862

71,031

Worker’s Compensation Coverage Provided by Human Resources and Social Development

11,657

11,258

Legal Services Provided by Justice Canada

3,869

2,711

611,350

569,074

(in thousands of dollars)

2007

2006

Accounts Payable to Other Government Departments and Agencies

99,846

92,097