ARCHIVED - 2008-2009 DPRs - Details on Project Spending

Name of Transfer Payment Program: An Act to Authorize the Minister of Finance to Make Certain Payments, 2005 and Budget Implementation Act, 2007

Start date: June 29, 2005

End date: N/A

Description: Support the reform of the Afghan National Police by contributing to the United Nations Development Programme (UNDP)-managed Law and Order Trust Fund for Afghanistan (LOTFA), the only instrument responsible for the payment of police and corrections officers' salaries in Afghanistan. Support for the implementation of the Afghan National Drug Control Strategy by contributing to the United Nations Office on Drugs and Crime (UNODC) Afghanistan Counter Narcotics Program, which aims to achieve a sustainable decrease in cultivation, production, trafficking and consumption of illicit drugs.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: UNODC Contribution: Strengthened coordination among law enforcement officials on the trafficking of precursor chemicals and strengthened law enforcement systems for the exchange of criminal intelligence have led to significant progress to ensure that chemicals in the Central Asia region are not diverted to the illicit manufacture of heroin in Afghanistan. The establishment of a dedicated Counter Narcotics Training Academy for training the Counter Narcotics Police of Afghanistan (CNPA) and the extension of the Ministry of Counter Narcotics presence into the provinces have led to improved CNPA operational capabilities in the area of interdiction, communication and field drug-testing. The development of a training curriculum and intelligence collection system for the Afghan Border Police has improved Afghan and Pakistani capacities along selected border crossings.
UNDP-LOTFA Contribution: Canada's financial contribution supported LOTFA in the disbursement of salaries and food allowances to 64,070 Afghan National Police (ANP) in all 34 provinces of Afghanistan. Timely and regular payment of ANP salaries has been identified as a key enabler to ANP retention and anti-corruption efforts, and has a direct impact on the ANP's ability to support law and order. Ensuring timely and transparent payment of police members has facilitated the advancement of the ANP and Ministry of Interior reform agenda, and helped to identify new areas for future international support to reinforce Afghan capacity and promote further institutional development.

Comment(s) on Variance(s): No spending was planned for 2007-08, but $10.0 million was expended. It would not have been possible to have planned for this amount of spending because of the unpredictable nature of programming efforts in Afghanistan.

Signifficant Audit Findings and URL(s) to Last Audit(s): UNODC Contribution: No audit date has been set yet.
UNDP-LOTFA Contribution: The Seventh Joint Coordination and Monitoring Board (JCMB) meeting, held in Tokyo, Japan, in February 2008, tasked the International Police Coordination Board (IPCB) with conducting an evaluation of police reform efforts, which will include elements of the LOTFA program, before the Ninth JCMB meeting (spring 2009). That evaluation was completed and the relevant report ("IPCB Afghanistan Police Reform Progress Report") was issued in November 2008. As LOTFA is managed by the UNDP, it is subject to the UN control and accountability mechanisms. Canada, as a member of the UN, will have access to internal audits and evaluations of LOTFA when they become available. The UNDP commissioned an evaluation of the LOTFA program. The terms of reference for the evaluation are available at www.undp.org.af/Operations/Procurement/Notices/ArchivedNotices/08-05-18-LOTFAIVEvaluationToR.pdf. The report on that evaluation, dated February 22, 2009, is entitled "Evaluation of the Law and Order Trust Fund for Afghanistan (LOTFA) Phase IV: Report." Neither the IPCB nor the UNDP report is available on the Internet. However, both reports may be obtained from the Peacekeeping and Peace Operations Division of DFAIT.

Name of Transfer Payment Program: Commonwealth Secretariat

Start date: September 28, 1965

End date: N/A

Description: Canada's assessed contribution to the regular budget of the Commonwealth is a legally binding obligation of membership. The purpose of Canada's membership is to further the Government of Canada's foreign policy goals related to international peace, security and development and, to this end, to enhance relationships among the 53 Commonwealth member countries. For further information, see www.thecommonwealth.org.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Much of the regular budget is directed to supporting and implementing the decisions of the Commonwealth Heads of Government Meetings and a large web of regular meetings of Commonwealth sectoral ministers including, for example, the Commonwealth Ministerial Action Group and Ministers of Foreign Affairs, Finance, Health and Education.

Results include diplomatic interventions in the form of good offices and public pressure by the Secretariat and/or coordinated action by Commonwealth ministers to support democratic institutions and procedures; programs to build capacity in democratic and human rights procedures; and enhanced cooperation among Commonwealth countries related to economic, social and political development.

Comment(s) on Variance(s): Contributions to the Commonwealth Secretariat are established each year in May by the Board of Governors and assessed in pounds sterling. The variance reflects currency and assessment rate differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): www.thecommonwealth.org/document/34293/39128/strategic_documents/

Name of Transfer Payment Program: Food and Agriculture Organisation of the United Nations (FAO)

Start date: July 1982

End date: N/A

Description: Canada's annual assessed contribution to the FAO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to agricultural development and provide it with a voice in the international community. For further information, see www.fao.org.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Achieving food security for all is at the heart of FAO efforts: to make sure people have regular access to enough high-quality food to lead active, healthy lives. FAO's mandate is to raise levels of nutrition, improve agricultural productivity, better the lives of rural populations and contribute to the growth of the world economy.

FAO's objectives, as set out in its constitution, are:
to promote the common welfare by furthering action for the purpose of raising levels of nutrition and standards of living of the peoples within member nations;
to secure improvements in the efficiency of the production and distribution of all food and agricultural products, including fisheries, marine products and forestry products; and
to better the condition of rural populations. Thus contributing to an expanding world economy and ensuring humanity's freedom from hunger.

Comment(s) on Variance(s): Contributions are assessed in both U.S. dollars and euros. The variance reflects currency and assessment rate differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): www.fao.org/aud/activities.html

Name of Transfer Payment Program: Global Peace and Security Fund and its component programs: the Global Peace and Security Program, the Global Peace Operations Program, and the Glyn Berry Program for Peace and Security

Start date: October 3, 2005; operationalized September 18, 2006

End date: March 31, 2013

Description: The GPSF is a critical component of the Stabilization and Reconstruction Task Force (START) portfolio. Funded from the Peace and Security Pool of the International Assistance Envelope, the GPSF fills a funding gap by providing dedicated resources for activities that are necessary for a timely response with respect to countries in or at risk of crisis, but that are not properly the responsibility of the Department of National Defence (DND) and are outside Canada's traditional official development assistance program. Examples of these activities are supporting peace operations and peace processes, supporting justice and security system reform, enhancing transitional justice and reconciliation, and improving the peace enforcement and peace operations capacities of military and police in Africa and the Americas. Major recipients of funding are Afghanistan, Sudan and Haiti.

The GPSF is both a responsive and a directive program, established to provide timely, focused, effective and accountable international assistance in response to critical peace and security challenges. DFAIT works closely with a range of government departments including the Canadian International Development Agency, Public Safety Canada, the RCMP, DND, the Correctional Service of Canada, the Canada Border Services Agency and Justice Canada. Among other assistance, these partnerships provide critical expertise in the area of justice and security system reform to the civilian components of UN peace operations.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: In 2008-09, over 800 projects were funded through the GPSF, supporting conflict prevention, post-conflict peacebuilding and stabilization initiatives. The GPSF is divided into three sub-programs: the Global Peace and Security (GPS) program, Global Peace Operations Program (GPOP); and Glyn Berry Program for Peace and Security.

The GPS program focused on three foreign policy priority countries (Afghanistan, Sudan and Haiti) and disbursed approximately $137 million. The GPOP focused on the development of peacekeeping capabilities with UN and regional organisations for future missions in the Americas and Africa, and supported 22 projects with $8.4 million in programming. The Glyn Berry Program builds on Canada's direct contributions to fragile states by contributing to the dialogue surrounding the continuing evolution of international policies, laws and institutions. The Glyn Berry Program provided over $5 million to 64 diverse research, policy development and advocacy initiatives.

Key results achieved through the GPSF include:

• Over $15 million in disbursements to Haiti to advance security system reform by providing technical and financial support for police, corrections and border management reform, including the deployment of up to 100 Canadian police and eight corrections officers to the UN Stabilization Mission in Haiti (MINUSTAH). DFAIT's investment in Haiti has been key to advancing Canada's engagement in the Americas, particularly as regards democratic governance and security.
• Support to 30 projects in Sudan with over $48 million in funding in support of peacebuilding and recovery. This included $40 million in training and equipment support to African countries providing military or police personnel to the United Nations/African Union Mission in Darfur (UNAMID), as well as support to institutions associated with the implementation of the Comprehensive Peace Agreement.
• Provided over $42 million to Afghanistan in support of security sector development, including $20 million for Afghan police and correctional officer salaries.
• Approximately $15 million was disbursed in support of peacebuilding and stabilization operations in four fragile areas (Colombia, Uganda, Lebanon and the Middle East Peace Process) implicating Canadian strategic security interests. An additional $15 million was provided for mine clearance and support to tribunals (including in Sierra Leone, Lebanon and Cambodia) to facilitate reconciliation and the restoration of peace and the rule of law.
• Closer engagement with the stabilization units of the United States and United Kingdom through the establishment of an ongoing work plan.
• Through partnerships with the UN, other multilateral institutions, and civil society organisations, the GPSF has contributed to the strengthening of regional stability and has helped to advance efforts on peace, security and human rights in fragile states.
• Increased the protection of the human rights of civilians at risk, including supporting a review of the Security Council's use of sanctions and the implementation of protection of civilian mandates in UN peacekeeping operations.
• Approximately $5 million provided to build institutional and normative infrastructure to enhance the rights, safety and democratic influence of individuals in fragile states and democratic crises, for example through support to the youth "Get Out the Vote" campaign to increase participation in Venezuela's local and regional elections, development of an electronic database for UN sanctions reports, and provision of real-time answers to practitioners' questions about peacebuilding using a virtual workspace

Comment(s) on Variance(s): The variance is due to a programming environment that is challenged by conflict, weak governance or a high degree of instability.

Signifficant Audit Findings and URL(s) to Last Audit(s): In fall 2007, START managed an internal program audit (IPA) of the GPSF in line with the previously completed formative evaluation. The IPA report highlights the significant progress that START has made toward implementing appropriate systems and procedures, and the fact that the program has established good working relationships with other government departments to achieve a whole-of-government approach to its programming efforts. The findings described in the IPA report are consistent with a new program in its infancy. START has made significant efforts to develop appropriate systems and procedures; however, gaps still remain. The most significant findings presented in the IPA report focus on the governance and management structures of START and the GPSF. The IPA report identified a need to clarify the roles and responsibilities of the governance and committee structures of START and the GPSF at the deputy minister and assistant deputy minister levels to ensure appropriate representation from other government departments. The START Advisory Board should be reviewed, and terms of reference developed and agreed upon by the members. The other major finding concerns the structure of START, the GPSF and the management mechanisms within them. The auditors recommended that DFAIT, in association with relevant stakeholders, document the division of responsibilities between START and the geographic task forces, and between START and the sub-programs drawing on the GPSF (www.tbs-sct.gc.ca/rma/database/newdeptview_e.asp?id=1161).

Name of Transfer Payment Program: Grants in Aid of Academic Relations

Start date: January 1, 1989

End date: March 31, 2011

Description: Grants and contributions in aid of academic relations support the following initiatives:

• understanding Canada (formerly Canadian Studies);
• international scholarships and fellowships;
• international education, including provincial and territorial participation in multilateral activities in the area of education; and
• all other international education activities.

These programs advance departmental priorities by:

• supporting public diplomacy and advocacy through fostering partnerships, cooperation and linkages in the area of education between Canadian and international individuals and institutions; establishing a network of international experts on Canada to advance Canada's interests abroad; and promoting public discussion of key issues through networking, exchanges and conferences; and
• advancing Canada's global citizenship (in support of the International Assistance Envelope) through scholarships and other programs that promote academic cooperation and mobility with developing countries.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: In 2008-09, the Understanding Canada program awarded 583 grants to organisations and individuals, with 84% of the grants to organisations and 87% of the grants to individuals directly aligned with government priorities.
   In 2008-09, over 420 scholarships were awarded to international students through the International Scholarship Program, with 100% alignment to the government's priority countries and themes.
   In 2008-09, the International Education and Youth Division successfully coordinated federal and provincial representation at approximately 50 ministerial and expert-level multilateral conferences where education was the main topic.

Comment(s) on Variance(s): Grants: Funds were needed for priority programs under contribution agreements.
Contributions: Funds were made available from other divisions to cover two priority projects (Canadian Education Centres Network and Canada-U.S. Fulbright Program).

The division responsible for these programs uses its terms and conditions to support projects requested by other DFAIT divisions (funds are transferred to this division).
During the fiscal year, this division received funds from CIDA for expanded scholarship activity in Latin America and the Caribbean.

Signifficant Audit Findings and URL(s) to Last Audit(s): Although the official report has not yet been published, an audit was performed in 2007-08. The four main findings were: (1) program management exercised due diligence in accordance with government policy; (2) program payments were managed in accordance with DFAIT policies; (3) internal controls provided reasonable assurance that recipients complied with the requirements of the grant agreement; and (4) grant agreements complied with financial authorities.

Name of Transfer Payment Program: Initiatives Related to the Destruction, Disposition and Securing of Weapons of Mass Destruction

Start date: August 12, 2003

End date: March 2013

Description: To implement Canada's commitment to the G8 Global Partnership Against the Spread of Weapons and Materials of Mass Destruction, launched at the 2002 Kananaskis Summit, through projects for the destruction of chemical weapons, the dismantlement of nuclear submarines, the enhancement of nuclear and radiological security, the employment of former weapons scientists, and the prevention of biological weapons proliferation. Canada committed up to $1 billion over 10 years to implement the goals of the Global Partnership, initially in the former Soviet Union, where the threat was most acute. The justification for the Partnership was based on an assessment of threats to Canadian and international security following the terrorist attacks of September 2001. Evaluations at the G8 level have identified the continuing seriousness of the terrorist and weapons of mass destruction (WMD) threats and the ongoing value of the Global Partnership, an international cooperative threat reduction approach. Twenty-three countries are engaged in projects, and an amount close to US$20 billion has been pledged.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: A reduced threat from WMD for Canadians and a more secure national and international environment, as a result of WMD materials securely stored, and expertise redirected, while strengthening the international non-proliferation, arms control and disarmament regime and achieving Canada's domestic and international security objectives.

Comment(s) on Variance(s): The Global Partnership Program received additional funds in the Supplementary Estimates B as a result of the approval of its Phase Three Treasury Board submission on June 19, 2008, and returned funds that were loaned from other areas of DFAIT in FY 2007-08.

Signifficant Audit Findings and URL(s) to Last Audit(s): The follow-up audit (FUA) to the 2005-06 internal audit was completed to assess the progress made in implementing its recommendations. The FUA assessed the level of implementation of 26 recommendations. The recommendations directed at the Global Partnership were assessed as "fully implemented" or "substantially implemented" (subsequently fully implemented). A number of recommendations assessed as "noticeable implementation" concern broader Branch and/or corporate issues, where work is under way. An Action Plan and Management Response was submitted and accepted, and actions have been taken or are under way to address and implement the FUA's recommendations. The follow-up audit report can be found at www.international.gc.ca/department/auditreports/2007/2007-en.asp.

Recipient audit activity has included financial audits of the nuclear-powered submarine dismantlement project under Implementing Arrangements 3 and 4 with the shipyard in northwest Russia to examine the contributions for the defuelling and dismantling of Victor and Typhoon Class submarines and transport of three-compartment units. The audits found that amounts audited align in all respects with the costs claimed by the recipient under the terms and conditions of the Implementing Arrangements and also concluded that the recipient's accounting systems and policies are consistent with DFAIT financial terms and conditions.

Recipient audit activity also included initial visits to the nuclear and radiological security projects. Visits were conducted at two physical protection project sites to determine the recipients' comprehension of the Implementing Arrangements' terms and conditions and to ascertain the recipients' capability to produce financial reports that meet DFAIT and Treasury Board requirements. The auditors identified that the two physical protection sites have adequate capacity to comply with the financial terms and conditions of the Implementing Arrangements signed with DFAIT and to fulfill the requirements of the recipient audits. A financial audit was conducted at a third physical protection site to evaluate the recipient's compliance with the terms and conditions of the Implementing Arrangement with DFAIT. The audit found that the recipient was in compliance with the terms of the Arrangement. Three liaison visits were also conducted at the offices of the contractor for physical protection projects in Moscow. The purpose of the first liaison visit was to ensure that the project was administered in accordance with the terms and conditions of the Implementing Arrangement. The visit found that the internal processes of the contractor are in compliance with the terms of the Agreement. The purpose of the second and third liaison visits was to ensure that project outputs complied with those identified in the Cooperation Projects. The visits found that the outcomes annotated in the Cooperation Projects were achieved.

Name of Transfer Payment Program: International Atomic Energy Agency (IAEA)

Start date: December 19, 1989

End date: N/A

Description: Canada's annual assessed contribution to the IAEA is a legally binding obligation of membership. Payment is made to ensure that membership is in good standing and to maintain influence and credibility in a key international body, the aims of which Canada supports. The IAEA is the world's centre for nuclear cooperation and it works to further the safe, secure and peaceful use of nuclear technology, in particular by verifying that states adhere to their commitments to use nuclear energy only for peaceful purposes. Canada has significant interests at the IAEA, based on our belief in the importance of the Agency's role in advancing the goals of nuclear non-proliferation, safety and security, our advanced and extensive nuclear energy and radioisotope production industries, and our important uranium sector.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: The projection of Canadian values abroad, the preservation of Canadian national security, the strengthening of international stability and security, the promotion of world economic growth and prosperity, and support for multilateral institutions and mechanisms:

1. effective and efficient implementation of the IAEA's major programs as reflected in the Agency's biennial program and budget;
2. an increased profile for Canada in the Agency's activities;
3. direct and indirect technical and commercial dividends to the Canadian nuclear industry; and
4. IAEA actions and decisions consistent with Canadian foreign policy priorities.

Comment(s) on Variance(s): The variance was due to foreign currency fluctuations and the IAEA's transition from the U.S. dollar to the euro.

Signifficant Audit Findings and URL(s) to Last Audit(s): The latest external audit of the IAEA accounts was completed on March 31, 2009, covering the financial period ending December 31, 2008. The audit report, including recommendations, is included in the "Agency's Accounts for 2008" report by the Director General. This will be made public and released on the Agency's website in time for the September 2009 annual regular session of the General Conference, although the Government of Canada has reviewed and commented on the findings at the April 2009 IAEA Programme and Budget Committee meeting. The German Federal Court of Audit conducted its audit in accordance with the Common Auditing Standards of the Panel of External Auditors of the United Nations, the Specialized Agencies and the International Atomic Energy Agency. Those standards require that the auditors plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The audit included examining evidence supporting the amounts and disclosures in the Agency's financial statements. The audit also included assessing the accounting principles used and significant estimates made by the Director General, as well as evaluating the overall financial statement presentation. As a result of this examination, the Vice-President of the German Federal Court of Audit certified that, in his unqualified opinion:

1. The financial statements reflect properly the recorded financial transactions for the biennium ended December 31, 2008, and present fairly, in all material respects, the organisation's financial position as at that date.
2. The financial transactions reflected in the statements, which auditors have tested as part of the audit, have in all significant respects been in accordance with the applicable Financial Regulations and Legislative Authority.
3. The financial statements have been prepared in accordance with the stated accounting policies and procedures, which were applied on a basis consistent with that of the preceding financial period.

The most recent publicly released report is the "Agency's Accounts for 2007," which is available at www.iaea.org/About/Policy/GC/GC52/GC52Documents/English/gc52-11_en.pdf.

Name of Transfer Payment Program: International Criminal Court (ICC)

Start date: April 1, 2005

End date: N/A

Description: This is an assessed contribution transfer payment.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: The year 2008 marked the 10th anniversary of the adoption of the Rome Statute, the founding treaty of the ICC. In 2008, the first substantive trial proceedings started, with the first ICC trial commencing on January 26, 2009. In 2008 there were four "situations" (Uganda, Democratic Republic of the Congo, Central African Republic and Darfur) involving six cases before the Court. The Prosecutor applied for a warrant of arrest for Sudanese President Omar al-Bashir in July 2008. As of March 2009, the Court had issued 14 arrest warrants in these four situations and there were four persons detained at the ICC's detention facility. The relationship between the external auditor and the Office of the Internal Auditor has been strengthened, and the external peer review team reported that the Court was in compliance with international best practices. The overall implementation rate of the 2007 ICC budget was 90.5%, compared with 79.7% in 2006.

Comment(s) on Variance(s): There was a change to the assessed contributions for 2007 as a result of Japan's accession to the Rome Statute of the ICC. With the increase in the number of states parties to the Rome Statute, from 106 to 108, the assessed contributions (share of the cost for the budget of the ICC) of each state party decreased. In addition, the total approved budget of the ICC for the year was approximately 5% less than the projected amount used to plan spending for the year.

Signifficant Audit Findings and URL(s) to Last Audit(s): Audits and evaluations are the responsibility of the Committee on Budget and Finance, which meets twice a year. Canadian Masud Husain was elected to the body in 2009. The reports of the Committee for 2008 can be found at www2.icc-cpi.int/iccdocs/asp_docs/B.pdf.

Name of Transfer Payment Program: International Labour Organisation (ILO)

Start date: January 1, 1989

End date: N/A

Description: Canada's annual assessed contribution to the ILO, a UN specialized agency, is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to international labour and social policy issues and provide it with a voice in the international community.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Through membership in the ILO, Canada can promote its interests in global labour and employment issues and help to shape international labour standards. These standards establish the norms for labour agreements with Canada's trade partners and for multilateral corporate social responsibility guidelines, and influence Canadian labour laws and policies.

Comment(s) on Variance(s): Contribution amounts for the ILO are determined each year at the June conference. The variance reflects currency and assessment rate differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_101783.pdf. An independent oversight advisory committee was also established in 2008 to provide advice on financial management and auditing. Its first report was released in March 2009.

Name of Transfer Payment Program: International Organisation of the Francophonie (OIF)

Start date: March 9, 1972

End date: N/A

Description: As a member of the OIF, Canada is required to contribute to the operational fees of the organisation.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: The OIF has been active in all the areas for which it has been mandated by its member states.

Comment(s) on Variance(s): The variance reflects currency differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): An audit is planned for 2010-11.

Name of Transfer Payment Program: North Atlantic Treaty Organisation (NATO) Civil Administration

Start date: January 1, 1989

End date: N/A

Description: Canada's annual assessed contribution to NATO is a legally binding obligation of membership based on the 1949 North Atlantic Treaty. Canada's contribution furthers its foreign policy goals by funding the administrative budget of NATO, an international organisation vital to Canadian defence and security interests. NATO was designed to promote the stability of the North Atlantic area and to safeguard the freedom and security of its people by political and military means, based on the principles of democracy, individual liberty and international law. The NATO civil budget, structured along "output based" lines in response to objectives set annually by the North Atlantic Council, covers the activities of the NATO Secretary General, the NATO headquarters and the NATO international staff. The NATO civil administration supports the process of consensus building and decision making among alliance members and manages NATO's relations with its partners. The NATO civil budget also supports the work of various NATO agencies with specialized responsibilities. An effective and efficient NATO civil administration assists alliance members in promoting security and stability in the North Atlantic area and in responding effectively to current security challenges, particularly in Afghanistan. The NATO accounts are subject to annual audit by the International Board of Auditors for NATO.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: The results achieved include effective decision making by the alliance in pursuit of the NATO objectives of stability and security in Afghanistan, the North Atlantic region and beyond; support to NATO operations; timely implementation of decisions taken by the North Atlantic Council; appropriate response to current and emerging defence and security challenges; enhanced relations with NATO partners and cooperation with other international organisations; and proper management of the alliance's resources.

Comment(s) on Variance(s): The variance is due to advance payments that were called in 2006-07 for the civil budget General Account and the new NATO Headquarters Account, resulting in a credit being carried forward into 2007-08. In addition, the Canadian dollar to euro exchange rate fluctuated between a monthly average low of 1.388 to a high of 1.597 in 2007-08. These rate changes affected both the planning figures and expenditures. Note that 2007-08 was an exception due to the advance payments and that this reduced spending level does not reflect a reduction in the civil budget. We expect the current fiscal year's expenditures to approximate $18 million, in line with the 2007-08 planning figure.

Signifficant Audit Findings and URL(s) to Last Audit(s): In 2007, the International Board of Auditors for NATO issued the Annual Activities Report for NATO bodies and associated organisations. See www.nato.int/issues/iban/index.html.

Name of Transfer Payment Program: Organisation for Economic Co-operation and Development (OECD)

Start date: March 20, 1975

End date: N/A

Description: To pay the assessed contribution required of Canada for its participation as a member of the OECD. The contribution pays for the Secretariat (professionals and support staff who provide high-quality research and analysis) and maintenance of the headquarters, located in Paris.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: OECD work programs and policy positions that reflect input from across government and support domestic priorities (productivity and competitiveness, climate change, economic impacts related to aging and immigration, foreign investment); continued work to address economic problems, including the financial crisis, through cooperation with other members (soft law, guidelines, agreements); ongoing Canadian influence on policy development among other members and non-members to improve the functioning of the international economic environment; identification of new and emerging issues for analysis, both domestic and global, that affect our economy and standard of living. Continued sound management of the OECD, including an agreement to reform financing; launch of institutional reforms to improve budgeting and priority setting; ongoing accession process for five candidates; ongoing discussions on enhanced engagement with major emerging economies, reflecting Canadian priorities to increase the long-term effectiveness of the organisation and build relationships with China, India and the Americas (particularly Brazil); improved linkages between the OECD and the G8 through the Heiligendamm Dialogue Process, and work in support of G20 Leaders efforts to address the financial crisis.

Comment(s) on Variance(s): Planned amounts are based on the previous year's assessed contribution, increased by a small amount to reflect French inflation (the OECD is based in Paris). Canada's share of the budget changes annually as it is based on a formula that takes into account a country's three-year average GDP and population statistics.

Signifficant Audit Findings and URL(s) to Last Audit(s): Audits are performed annually, but results are not declassified for three years. Financial statements can be found at www.oecd.org/document/30/0,3343,en_2649_201185_17367518_1_1_1_1,00.html.

Name of Transfer Payment Program: Organisation for Security and Co-operation in Europe (OSCE)

Start date: January 1, 1993

End date: N/A

Description: Canada's annual assessed contribution to the OSCE is an obligation arising out of Canada's commitments as one of the 56 participating states of the organisation. Canada's contribution furthers its foreign policy goals by funding programs implemented by the OSCE's institutions and field operations in priority foreign policy areas for Canada related to regional and international security.
The OSCE is a focused regional forum with a comprehensive and cooperative approach to security. Canada's contribution to the organisation's unified budget covers the costs associated with the implementation of the organisation's work programs and activities in three dimensions: political and military aspects of security; economic and environmental cooperation; and cooperation in humanitarian and other fields. This integrated approach allows the OSCE to make a significant contribution to furthering European security and transatlantic cooperation through non-coercive measures. Canada's contribution also supports stronger partnership with Canadians in developing and implementing Canada's international security policy, through the involvement of members of Parliament in the work of the OSCE Parliamentary Assembly, the deployment of Canadians to OSCE field operations, and the contribution of Canadian experts to the organisation.
The OSCE unified budget, based on a programmatic approach, is approved by the OSCE Permanent Council on a yearly basis. The OSCE accounts are subject to an annual report by external auditors as well as an internal oversight annual report, which are made available to participating states.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: During 2008-09, the OSCE, due to its comprehensive approach to security, made a significant contribution to furthering European security and transatlantic cooperation through the implementation of programs and activities in priority areas for Canada, such as good governance and respect for human rights, election monitoring, the promotion of tolerance and non-discrimination, conflict prevention, and crisis management. The OSCE budget supports programs of the OSCE Secretariat in Vienna, as well as the OSCE institutions (Office for Democratic Institutions and Human Rights, Representative on Freedom of the Media, and High Commissioner on National Minorities) and the organisation's 18 field missions. The results include effective and timely implementation of the decisions of the OSCE Permanent Council; continuous monitoring of the security and stability situation in Europe; concerted programming to actively contribute to conflict prevention, conflict resolution and post-conflict institution building; and proper management of the organisation's resources. OSCE financial practices and administrative procedures are kept under constant review by the Advisory Committee on Management and Finance, where Canada plays a leading role.

Comment(s) on Variance(s): The variance can be attributed to fluctuations in the exchange rate, delays in reaching consensus on the OSCE budget, and board and living allowances for vacant positions.

Signifficant Audit Findings and URL(s) to Last Audit(s): Audited financial statements for the year ending December 31, 2007, are located at www.osce.org/item/34374.html.

Name of Transfer Payment Program: Organisation of American States (OAS)

Start date: May 31, 1990

End date: N/A

Description: To pay Canada's annual assessed contribution to the OAS, a Charter obligation of membership.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved:

• Role of the Organisation of American States in the promotion of democracy and human rights is strengthened through Canadian support and leadership for OAS activities, including electoral observation missions.
• Successful Fifth Summit of the Americas reinforces key role of the OAS in strengthening the Inter-American architecture.
• Canada's profile and leadership at the OAS is enhanced through the Canadian presence in OAS organs (Inter-American Juridical Committee, Justice Studies Center of the Americas, Permanent Council of the OAS, Committee on Hemispheric Security, Committee on Administrative and Budgetary Affairs, Inter-American Committee on Culture).

Comment(s) on Variance(s): Canada's quota contribution to the OAS is paid in U.S. dollars. The variance is due to exchange rate differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): The independent Board of External Auditors assessed the OAS as being well managed overall in its 2008 annual report. See www.oas.org/oaspage/bid/2007/bid1507_03eng.doc.

Name of Transfer Payment Program: Payments in Lieu of Taxes on Diplomatic, Consular and International Organisations' Property in Canada

Start date: January 18, 1979

End date: N/A

Description: The purpose of this memorandum of understanding is to outline the relationship between Foreign Affairs and International Trade Canada and Public Works and Government Services Canada, National Capital Area, under the Diplomatic, Consular and International Organisations' Property Grants Order (P.C.1979-59, January 18, 1979), the Municipal Grants Act, and successor Orders and Acts. It establishes responsibilities and procedures governing the provision of services related to the payment of grants in lieu of real property and frontage or area taxes with respect to diplomatic and consular property. These procedures are designed to ensure fiscal and operational accountability, while promoting efficient program delivery and optimal reciprocal conditions for the Government of Canada abroad.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Fulfilled Canada's international obligations to foreign diplomatic missions pursuant to the Vienna Convention on Diplomatic Relations and the Vienna Convention on Consular Relations, as well as obligations pursuant to Headquarters agreements in force between Canada and international organisations.

Comment(s) on Variance(s): Any variance between planned and actual spending is attributable to lower than anticipated municipal realty taxes. Changes in the volume and entitlement of grants can be other factors in the year-end variance.

Signifficant Audit Findings and URL(s) to Last Audit(s): N/A

Name of Transfer Payment Program: Projects and Development Activities Resulting from Francophonie Summits

Start date: March 9, 1979

End date: N/A

Description: This fund provides funding to cooperation programs and activities undertaken by the International Organisation of the Francophonie (OIF). It also provides financial support to the Government of New Brunswick to foster its participation in international Francophonie activities. This fund helps to promote Canadian interests and is consistent with political and economic objectives Canada has set itself for the Francophonie. It also promotes active participation from the Government of New Brunswick in summits, ministerial conferences and other related Francophonie activities.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values

Results Achieved: The OIF has been active in all the areas identified in our contribution agreement, in accordance with the overall guidance provided by member states of the Organisation; the Government of New Brunswick was able to take part in all significant activities of the OIF.

Comment(s) on Variance(s): Contribution payments are made according to actual expenses (pro rata).

Signifficant Audit Findings and URL(s) to Last Audit(s): A recipient audit is planned for 2009-10.

Name of Transfer Payment Program: United Nations Educational, Scientific and Cultural Organisation (UNESCO)

Start date: January 1, 1988

End date: N/A

Description: Canada's annual assessed contribution to UNESCO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to culture, science and education, and provide it with a voice in the international community.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: In a decision adopted at its 181st session, the Executive Board noted with satisfaction the progress achieved under Major Programmes I to V and by the UNESCO Institute for Statistics as well as the positive results achieved in incorporating UNESCO's priorities into development assistance frameworks and joint programs at the country level and in strengthening inter-agency collaboration at the global level. It further recognized the efforts to focus the education program on areas of greatest need and to improve the participation of researchers and community associations in the MOST Programme: http://unesdoc.unesco.org/images/0018/001821/182173e.pdf. Report by the Director-General on the Execution of the Programme Adopted by the General Conference: http://unesdoc.unesco.org/images/0018/001811/181148e.pdf.

Comment(s) on Variance(s): Contributions are assessed in both U.S. dollars and euros. The variance reflects currency differences and differences in the assessment rate from the previous year.

Signifficant Audit Findings and URL(s) to Last Audit(s): http://portal.unesco.org/en/ev.php-URL_ID=21622&URL_DO=DO_TOPIC&URL_SECTION=201.html

Name of Transfer Payment Program: United Nations Organisation

Start date: March 27, 1980

End date: N/A

Description: Canada's assessed contribution to the regular budget of the United Nations is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to international peace, security and development and provide it with a voice in the international community. Assessed contributions are used to finance the organisation's programs toward attainment of the UN's objectives, as set out in its Charter. For further information, see www.un.org.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Efforts to maintain international peace and security and promote sustainable economic growth and development in accordance with the Millennium Development Goals. In particular, progress in the development of Africa; the promotion of human rights; effective coordination of humanitarian assistance efforts; promotion of justice and international law; progress toward disarmament; and international cooperation for drug control, crime prevention and the combating of international terrorism in all its forms and manifestations.

Comment(s) on Variance(s): Contributions to the UN, the UN Capital Master Plan and the international criminal tribunals are based on General Assembly resolutions in December 2007. Contributions are assessed in U.S. dollars. The variance reflects currency and assessment rate differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): www.un.org/depts/oios/

Name of Transfer Payment Program: UN Peacekeeping Operations

Start date: October 5, 2000

End date: N/A

Description: Canada's assessed contribution to UN peacekeeping operations is a legally binding obligation of membership. For further information, see www.un.org.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Worked to enhance peace and security for the countries and regions concerned; and worked to increase levels of security, basic services and levels of governance provided in affected areas, which will promote the prospects for peace as well as enable reconstruction and development activities.

Comment(s) on Variance(s): Contributions for peacekeeping operations are assessed at various times throughout the year, in U.S. dollars. The variance is due to currency differences and the changing costs of various peacekeeping missions. As well, in 2007-08 two new missions to which Canada contributes were added.

Signifficant Audit Findings and URL(s) to Last Audit(s): www.un.org/depts/oios/pages/annual_reports.html

Name of Transfer Payment Program: World Health Organisation (WHO)

Start date: January 1, 1990

End date: N/A

Description: Canada's annual assessed contribution to the WHO is a legally binding obligation of membership. The purpose of membership is to further the Government of Canada's foreign policy goals related to health and provide it with a voice in the international community.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved:

• Worked to enhance global health security (maintaining a comprehensive outbreak alert and response mechanism supported by new international health regulations; responding rapidly and effectively in crisis situations).
• Accelerated efforts toward achieving the Millennium Development Goals (reducing maternal mortality, improving child survival, addressing the global pandemics of HIV/AIDS, tuberculosis and malaria, promoting healthy environments, increasing access to essential medicines).
• Further promotion of equity in health (strengthening health systems to reach the poor and disadvantaged).
• Ensured accountability by improving organisational effectiveness, transparency and accountability.

Comment(s) on Variance(s): Contributions to the WHO are based on resolutions made in the annual World Health Assembly. Contributions are assessed in U.S. dollars. The variance reflects differences in the assessment rate from the previous year, a reduction due to a credit for prompt payment, and currency differences.

Signifficant Audit Findings and URL(s) to Last Audit(s): N/A. For information on governance, please see www.who.int/governance/en/index.html.

Name of Transfer Payment Program: World Trade Organisation (WTO)

Start date: January 1, 1995

End date: March 31, 2009

Description: The purpose of this program is to pay the assessed contribution for Canada's membership in the WTO.

Strategic Outcome: CANADA'S INTERNATIONAL AGENDA-The international agenda is shaped to Canada's benefit and advantage in accordance with Canadian interests and values.

Results Achieved: Canada participated in all standing and ad hoc meetings of the WTO in fiscal year 2008-09. These included regular participation in General Council meetings (which deal with institutional and administrative issues that have a strong trade policy component); the Committee on Budget, Finance, and Administration; the Dispute Settlement Body; the Trade Policy Review Body; WTO informal ministerial meetings; senior official meetings; as well as numerous other councils, committees, working parties and negotiating groups covering the wide range of WTO issues. Other international work by Canada-such as that in the Organisation for Economic Co-operation and Development, APEC and the Cairns Group-also supports our work at the WTO.

Canada was actively involved in all areas of the Doha Development Agenda in 2008-09 and continues to work with other WTO members to advance these negotiations. A meeting of ministers was held in July 2008 with a view to reaching agreement on modalities in the agriculture and non-agriculture market access (NAMA) negotiations. While the talks broke down, significant progress was made in agriculture and industrial products. Canada was an active participant at the ministerial meeting, attended by both the Minister of International Trade and the Minister of Agriculture and Agri-Food Canada. Since the July meeting, Canada has continued to be involved in technical discussions that are ongoing in all negotiating groups. For example, in the agriculture and NAMA areas of the negotiations, Canada has been playing a lead role in protecting domestic interests and seeking new market access opportunities for Canadian exporters. Following the release of the chairs' texts in July 2008, Canada continued to defend its position and interests strongly. In services, Canada participated actively in the July Services Signalling Conference, participated in several plurilateral and bilateral market access negotiations throughout 2008-09, and continues to act as coordinator of the "Really Good Friends" group of services demandeurs. In trade facilitation negotiations, Canada continues to work to move the negotiations forward, which seek to encourage increased trade, growth and investment by reducing costly delays and red tape at borders. In rules, Canada maintained its participation in the rules negotiations to clarify and improve subsidy disciplines and the rules governing anti-dumping and countervail investigation.

Canada participated in WTO Trade Policy Reviews of 16 members in 2008-09, including the Trade Policy Reviews of China, the United States and Japan. The Trade Policy Review is a peer review exercise designed to provide a collective appreciation and understanding of the full range of individual members' trade policies and practices and their impact on the multilateral trading system.

The Trade Policy Review Mechanism also calls for the Trade Policy Review Body (TPRB) to undertake an annual overview of developments in the international trading environment. This is assisted by an annual report of the Director-General, which sets out major activities and highlights significant policy issues affecting the trading system. In view of the financial and economic crisis, this work increased in significance this year, as it also serves to facilitate a monitoring role for the standstill commitments on trade protectionism made by G20 and APEC members in November 2008. Canada is very supportive of this work by the TPRB and has provided the Secretariat with information on trade and trade-related activities that it has undertaken since the beginning of the crisis. It is our view that the reports from the Director-General on the financial and economic crisis and trade-related developments provide useful and timely information concerning international trends and that greater transparency and surveillance of trade policies and practices will contribute to addressing the trade challenges of the global economic crisis.

On accessions, throughout 2008-09 DFAIT held bilateral meetings with a view to advancing negotiations with several countries, including Russia, Azerbaijan, Bhutan, Bosnia and Herzegovina, Serbia and Yemen, and also concluded bilateral negotiations with Montenegro, paving the way for its accession in 2009-10 on terms that will benefit Canadian goods and services exporters.

Canada continued to be an active participant in WTO dispute settlement proceedings. Canada's Ambassador and Permanent Representative to the WTO, John Gero, is chairperson of the Dispute Settlement Body. Canada is currently a complainant in the following cases: Korea: Measures Affecting the Importation of Bovine Meat and Meat Products from Canada (Complaint by Canada) (WTO Ref. DS391); European Communities: Measures Affecting the Approval and Marketing of Biotech Products (Complaint by Canada) (WTO Ref. DS292); China: Measures Affecting Imports of Auto Parts (Complaint by Canada) (WTO Ref. DS342); United States: Subsidies and Other Domestic Support for Corn and Other Agricultural Products (Complaint by Canada) (WTO Ref. DS 357); European Communities: Certain Measures Prohibiting the Importation and Marketing of Seal Products (Complaint by Canada) (WTO Ref. DS 369); United States: Certain Country of Origin Labelling (COOL) Requirements (Complaint by Canada) (WTO Ref. DS 384); European Communities: Hormones (WTO Ref. DS48).

Canada is a respondent in the following case: Canada: Provisional Anti-Dumping and Countervailing Duties on Grain Corn from the United States (Complaint by the United States) (WTO Ref. 338).

Canada is a third party in the following cases: China: Grants, Loans and Other Incentives (Complaint by the United States) (WTO Ref. 387); European Communities: Measures Affecting Trade in Large Civil Aircraft (Complaint by the United States) (WTO Ref. DS 316); United States: Measures Affecting Trade in Large Civil Aircraft (Complaint by the EC) (WTO Ref. DS 353); United States: Definitive Antidumping and Countervailing Duties Against Chinese Products (Complaint by China) (WTO Ref. DS379); Chile: Price Band System and Safeguard Measures Relating to Certain Agricultural Products (Complaint by Argentina) (WTO Ref. DS207); China: Measures Affecting the Protection and Enforcement of Intellectual Property Rights (Complaint by the United States) (WTO Ref. DS 362); United States: Measures Affecting Trade in Large Civil Aircraft (Complaint by the EC) (WTO Ref. DS317); European Communities: Measures Affecting Trade in Large Civil Aircraft (Second Complaint by the United States) (WTO Ref. DS347).

Comment(s) on Variance(s): The variance reflects currency rate difference.

Signifficant Audit Findings and URL(s) to Last Audit(s): The last report of the external auditor is for the biennium 2006/2007. The report can be found in WTO document WT/BFA/W/168. The external auditor for the period in question was the Austrian Court of Audit.
The auditors examined the Financial Statements in document WT/BFA/W/157 relating to the financial period 2006 including Statements 1 to 6, Schedules A, B, C, D, E, F, G, H, I and an Annex and the Financial Statements in document WT/BFA/W/168 relating to the financial period 2007, including Statements 1 to 7 and Schedules A, B, C. Furthermore, the representatives of the Austrian Court of Audit examined the Financial Statements on Extra-Budgetary Funds in document WT/BFA/W/158 relating to the financial period 2006 and document WT/BFA/W/169 relating to the financial period 2007 on a sample basis. Their examination included a general review of the accounting procedures and such tests of the accounting records and other supporting evidence as they considered necessary in the circumstances. As a result of the examination, the opinion is given that these statements were prepared in conformity with the accounting policies described in the Annex of the document WT/BFA/W/157 and in Statement 7 of document WT/BFA/W/168 and that such policies were applied on a basis consistent with that of the biennium 2004/2005. They present fairly the financial position of the World Trade Organisation as at the end of each of the two financial periods covering the biennium 2006/2007. The financial statements were prepared in accordance with the stated accounting principles. The transactions were in accordance with the Financial Rules and the Financial Regulations set out in WT/L/157, WT/L/156/Rev.1, WT/L/157/Rev.1 and WT/L/156/Rev.2 including further instructions in WT/BFA/W/121 and with legislative authority.

Expenditure under the WTO Secretariat in 2007 amounted to CHF 169,261,956, leaving a budgetary surplus of CHF 7,603,294. With respect to the Appellate Body and its Secretariat, 2007 expenditure amounted to CHF 4,658,163, resulting in a budgetary surplus of CHF 453,037. The total excess of income over expenditure amounted to CHF 9,943,207 (Statement 2).

Name of Transfer Payment Program: Disaster Financial Assistance Arrangements (DFAA)

Start date: 1970

End date: Ongoing

Description: Assist provinces and territories with response and recovery costs as a result of large-scale natural disasters.

Strategic Outcome: A safe and resilient Canada

Results Achieved: The Disaster Financial Assistance Arrangements (DFAA) continue to cost share provincial and territorial assistance to individuals, small businesses and local governments affected by natural disasters, including expenditures to repair and rebuild damaged public infrastructure. In 2008-09, Orders in Council were approved for 10 natural disasters. Commitments totalling $120,490,936 were made during the same period. Nine provinces and territories received training sessions on the revised Program Guidelines that were introduced on January 1, 2008.

Each year, estimates based on Disaster Financial Assistance Arrangements events in process are submitted and included as part of Public Safety Canada’s A-base funding. The timing of Disaster Financial Assistance Arrangements payments is largely dependent on the timing of submission of the required provincial or territorial documentation to support the payment request. The lapse in the estimated budget for the Disaster Financial Assistance Arrangements resulted from several expected provincial and territorial requests for payment not occurring within the fiscal year.

Significant audit findings: Documentation in support of each provincial and territorial DFAA request for payment is submitted to Audit Services Canada for audit prior to issuance of any federal payments.

Name of Transfer Payment Program: First Nations Policing Program (FNPP)

Start date: 1991-92

End date: Ongoing

Description: Under the First Nations Policing Program (FNPP), Public Safety Canada negotiates, administers and monitors tripartite agreements for policing services in First Nations communities. These policing services are culturally appropriate and responsive to the particular needs of First Nations and Inuit communities and are cost-shared 52% by Canada and 48% by the province/territory. Currently, Public Safety Canada funds 1,241 Aboriginal police officers under the FNPP and 168 tripartite agreements are in place covering 327,430 people.

Strategic Outcome: A safe and resilient Canada

Results Achieved: In 2008-09, Public Safety Canada managed 168 First Nation Policing Program Agreements in 408 communities across Canada. The Aboriginal Policing Directorate, First Nation partners and the provinces/territories continue to collaborate though the negotiation of tripartite agreements that fund a dedicated police presence in First Nation communities.

Comment(s) on Variance(s): The $31.3M variance between Planned and Actual Spending is mainly due to a budget transfer of $39.8M to the Royal Canadian Mounted Police for First Nations community policing services, offset by a transfer of $7.8M received from the National Crime Prevention Strategy for the renewal of certain First Nations Policing Program agreements.

Significant audit findings: The Aboriginal Policing Directorate is currently undergoing a follow-up audit to the Management Action Plan of the 2007 FNPP Audit.

Name of Transfer Payment Program: Joint Emergency Preparedness Program (JEPP)

Start date: 1980

End date: Ongoing

Description: Contributions to enhance the national capability to manage all types of emergencies and ensure a reasonably uniform emergency response and recovery capacity across Canada. National capabilities are enhanced through training activities, the purchase of emergency response equipment and joint emergency planning.

Strategic Outcome: A safe and resilient Canada

Results Achieved: The Joint Emergency Preparedness Program is a cost-shared program in partnership with provinces and territories which contributes to the safety and security of Canadians by providing funding to projects aiming to strengthen national emergency response.

Significant audit findings: All projects exceeding a JEPP contribution of $50,000 are audited by provincial/territorial auditors prior to a payment being issued. Also, 5% of the total projects are selected annually for auditing by federal auditors.

Name of Transfer Payment Program: National Crime Prevention Strategy (NCPS)

Start date: 1998-99

End date: Ongoing

Description: The National Crime Prevention Strategy, which is administered by the National Crime Prevention Centre (NCPC) in collaboration with provinces and territories, provides national leadership on effective and cost-efficient ways to prevent and reduce crime by addressing known risk factors in high-risk populations and places. The NCPC works in close collaboration with key partners, including police, community organizations, municipalities, and academics, to support the development and implementation of evidence-based crime prevention projects, and the dissemination and use of practical knowledge.

Strategic Outcome: A safe and resilient Canada

Results Achieved: Further to the renewal of the refocused National Crime Prevention Strategy in June 2007, activities under the NCPS have led to positive changes in risk and protective factors among high-risk children and youth; youth at risk of gang involvement; youth at risk of drug involvement; and high-risk offenders returning to the community. Ultimately, these changes will lead to a reduction in offending among these targeted populations. The NCPC has developed a new Accountability, Risk and Audit Framework (ARAF) to reflect these new directions.

Comment(s) on Variance(s): There are several reasons for the variance between planned and actual spending. Notably, the National Crime Prevention Strategy’s new directions (confirmed in June 2008 by the Treasury Board) for the implementation of more evidence-based, focused and targeted interventions are more demanding of community-based organizations. As a result, projects require more developmental work than was the case under the previous strategy. In addition, the National Crime Prevention Centre had to slow down project development activities in 2007-08 because of the uncertainty related to the level of available funding in 2008-09, as $30M of its funding was set to end on March 31, 2008. This resulted in many fewer projects being ready for funding in 2008-09.

Significant audit findings: The Department completed five audits in 2008-09; none have reported non compliance.