Analysis of trends in spending and human resources - DRR 2016-17

Actual expenditures

Departmental spending trend graph

Budgetary performance summary for Rrograms and Internal Services (dollars)

Source: Assistant Deputy Minister (Finance) / Chief Financial Officer Group

Notes:

1. Due to rounding, figures may not add up to totals shown.
2. Where the actual spending amount is higher than the total authorities, this does not represent an over-expenditure of Parliamentary authorities. Parliamentary authorities are allocated by vote and not by individual programs, sub-programs, and sub-sub programs.
3. Significant variances in financial resources are explained below and detailed at the sub-sub program level in the supplementary information section in the document entitled "Supporting Information on Lower-Level Programs". Explanations are provided when the variance is at least 100M or when the difference between the actual and the planned amount is 100%.

Actual spending for 2016-17 is lower than planned spending for 2017-18. The net change is primarily due to funding related to major capital equipment and infrastructure projects.

The difference between planned spending and final spending authorities used for 2016-17 is summarized as follows:

Actual human resources

Notes:

1. One FTE does not necessarily equal one employee (i.e. two part-time employees may count as one FTE). See Appendix: Definitions.
2. Regular force personnel strength is measured as the total Regular force population regardless of their status, and therefore includes an average of 1,100 personnel on leave without pay (90 percent related to parental leave), 1,650 personnel on Service Personnel Holding List and Retirement Leave, and 8,000 personnel on basic training and subsidized university training.
3. Due to rounding, the FTE count at the sub-program and the sub-sub-program levels may not add up to totals shown.

The Regular force personnel total strength is currently 2,000 personnel below its authorized strength of 68,000 +/- 500, due to unachieved recruiting targets and higher than anticipated attrition. Enhanced recruiting and retention strategies have been developed which will increase intake and mitigate attrition in order to enable the Regular force to attain its full authorized strength as soon as practicable.

National Defence’s civilian population increased slightly; however, the approved 24,192, less transfer of pension positions in July 2016, civilian FTE ceiling was not reached. The department is in a transition period and is currently focussed on aligning civilian resources with renewed departmental priorities which will help ensure that we have the right people, in the right place, at the right time while respecting human resources and budget allocations.

Human Resources - Reserve force personnel

The Reserve force is a unique and valued component of the CAF. The Primary Reserve is currently below the Government of Canada-directed strength level due to a higher than forecasted attrition and challenges in meeting recruiting quotas. Mitigating actions are underway to improve recruiting success and to reduce voluntary attrition in order to re-establish and expand the Primary Reserve’s strength by 1,500 to a government-authorized 28,500 personnel.

In addition, the CAF Regular force recruiting plan includes the annual component transfer of 800 personnel from the Primary Reserve. The remaining two active sub-components of the Reserve force – the Canadian Rangers and the Cadet Organization Administration and Training Service – were maintained at the current approved total strength targets of 5,000 and 8,000 respectively. Institutionally, a major review of Primary Reserve requirements will continue so as to ensure the allocation and employment of personnel is consistent with Defence priorities, is sustainable and remains within Government of Canada direction.

The following table summarizes National Defence’s total planned and actual human resources for Reserve force personnel for FY 2016-17. ^xxvii

Expenditures by vote

For information on National Defence’s organizational voted and statutory expenditures, consult the Public Accounts of Canada ^xxviii

Alignment of spending with the whole-of-government framework

Alignment of 2016-17 actual spending with the whole-of-government framework ^xxix (dollars)

Financial statements and financial statements highlights

Financial statements

The National Defence and Canadian Armed Forces’ financial statements [unaudited] for the year ended 31 March 2017, are available on the departmental website. ^xxx

Financial statements highlights

The financial information presented within this report is intended to serve as a general overview of National Defence’s financial position and operations.

Note: The Departmental Financial Statement is prepared on an accrual accounting basis in accordance with Treasury Board Accounting Standard 1.2 and includes non-cash transactions. Financial information provided in other sections of the 2016-17 Departmental Results Report is cash-based (planned and actual spending) and tied to annual Parliamentary Appropriations (Authorities).