Analysis of trends in spending and human resources

Actual expenditures

Departmental spending trend graph

The following graph presents planned (voted and statutory) spending over time.

Budgetary performance summary for Core Responsibilities and Internal Services (dollars)

Source: Vice-Chief of the Defence Staff Group / 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 core responsibility and program.
3. Significant variances in financial resources are detailed at the core responsibility and program level in the “Supporting information on the program inventory” section of the document. Explanations are provided when the variance is at least 100M or when the difference between the actual and the planned amount is 100%. 

Budgetary actual gross spending summary (dollars)

Notes: Due to rounding, figures may not add up to totals shown.

Actual human resources

The COVID-19 pandemic impacted the CAF’s ability to recruit and train personnel. As a result, the total CAF Regular Force strength declined from 67 500 personnel to 65 554 personnel in FY 2020–21. 

The department’s civilian population increased to 25 629 full-time equivalents (FTEs), up from 25 499 from FY 2019–20. This increased capacity helps ensure that we have the right people, in the right place, at the right time while respecting human resources and budget allocations. The department is in a state of growth and is focused on aligning civilian resources to fulfill renewed departmental priorities and supporting SSE. 

The following table shows actual, forecast and planned full-time equivalents (FTEs) for each Core Responsibility in the Department of National Defence and the Canadian Armed Forces’ departmental results framework and to Internal Services for the years relevant to the current planning year.

Human resources summary for Core Responsibilities and Internal Services

Total planned human resources – Reserve Force personnel

The Reserve Force is a valued and integrated component of the CAF. It is divided into four distinct sub-components: 

• Primary Reserve Force;
• Cadet Organization Administration and Training Service;
• Canadian Rangers; and
• Supplementary Reserve (strategic reserve). 

The Primary Reserve consists predominately of part-time professional CAF members, located throughout Canada, ready with reasonable notice to conduct or contribute to domestic and international operations to safeguard the defence and security of Canada. As articulated in Strong, Secure, Engaged: Canada’s Defence Policy, there are 10 independent initiatives and two activities that centre on the Reserve Force. In FY 2020–21, the Central Coordination Authority was established within the Vice Chief of the Defence Staff Group in order to review the existing fiscal framework of these initiatives and activities and to manage access to funding through a single conduit. The Central Coordination Authority will coordinate efforts across the CAF to meet the overall Defence Policy objective of maximizing the operational output of the Reserve Force (full-time capability through part-time service) through the conception, development, funding, sustainment and integration of unique enablers and/or combat multipliers (new or existing). 

The Cadet Organization Administration and Training Service completed an organizational restructure and will be maintained at the current approved target of 8 000 personnel. 

The Canadian Rangers are an integral CAF northern presence and regularly provide support to local, provincial or territorial authorities for ground search and rescue. They are Canada’s eyes, ears and guides across the country, particularly the sparsely settled northern, coastal and isolated areas of Canada. The Canadian Rangers, as a sub-component of the Reserve Force are separate from the Primary Reserve Force and are unique not only in the skills and expertise they bring to the CAF, but also in the locations in which they operate.

The COVID-19 pandemic resulted in more requests for support from Canadian Rangers compared to previous years. In FY 2020–21, Canadian Rangers contributions included:

• More than 1 100 days of Canadian Rangers supporting their communities as part of either Operations VECTOR or LENTUS;
• More than 60 ground search and rescue; and
• Nineteen patrols to inspect Northern warning system sites.

Canadian Rangers patrol growth was paused in FY 2020–21 in order to limit the risk of transmitting COVID-19 to isolated communities. This growth will resume when restrictions ease.

During FY 2020–21, Canadian Ranger development and enhancement were areas of focus as part of an overall ongoing review of the Canadian Ranger program. This review will seek to optimize the Rangers’ role while modernizing institutional support to operations. In January 2021, the Commander of the CA issued his planning guidance to start the implementation of the Canadian Ranger Enhancement initiative in the second quarter of FY 2021–22. 

The following table provides our total planned human resources for Reserve Force personnel for the next three FYs (2020–23).

	Planned 2020–21	Actual 2020–21	Difference (actual minus planned)
Primary Reserve	28,950	23,935	5,015
Cadet Organization Administration and Training Service	8,000	6,965	1,035
Canadian Rangers	5,640	5,249	391

Average paid strength (APS) is used to report the strength of the Primary Reserve in the Departmental Results Report as per the guidance and methodology for counting the Primary Reserve, dated 6 March 2017. The guidance and methodology indicate that APS will continue to be used to report to Government, while other metrics are used internally to report to CAF. To enhance accuracy in reporting Primary Reserve strength and capabilities, a harmonized methodology is deemed necessary. To do so, a one-CAF establishment model will set the appropriate framework required to increase efficiency and effectiveness in measuring the Primary Reserve output (trained effective strength) in support of Canada’s Defence Policy (SSE).

Expenditure by vote

For information on the Department of National Defence and the Canadian Armed Forces’ organizational voted and statutory expenditures, consult the Public Accounts of Canada 2020-21^{Endnote 186}.

Government of Canada spending and activities

Information on the alignment of the Department of National Defence and the Canadian Armed Forces’ spending with the Government of Canada’s spending and activities is available in the GC InfoBase ^{Endnote 187}.

Financial statements and financial statements highlights

Financial statements

The Department of National Defence and the Canadian Armed Forces’ financial statements (unaudited) for the year ended 31 March 2021 are available on the departmental website^{Endnote 188}.

Financial statements highlights

Condensed Statement of Operations (unaudited) for the year ended 31 March 2021 (dollars)

Condensed Statement of Financial Position (unaudited) as of 31 March 2021 (dollars)

Financial information	2020–21	2019–20	Difference (2020–21 minus 2019–20)
Total net liabilities	7,208,305	6,219,658	988,647
Total net financial assets	3,664,528	3,263,733	400,795
Departmental net debt	3,543,777	2,955,925	587,852
Total non-financial assets	43,342,374	41,504,280	1,838,094
Departmental net financial position	39,798,597	38,548,355	1,250,242