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Minister's Message

I am pleased to submit to Parliament and Canadians the Canadian Grain Commission’s Departmental Performance Report for the fiscal year 2010-11.

Growing up on a farm in Saskatchewan, I understand the challenges facing Canadian families in the sector. That’s why putting “Farmers First” is my personal priority and shapes my decisions as the Minister of Agriculture and Agri-Food (AAF).

Our nation’s agricultural sector has evolved, and we should all be proud of our progress. Today’s sector is resilient, responding to the challenges and opportunities it faces by innovating and adapting to changing consumer demands, advancing technology and globalization.

The partner organizations within the AAF Portfolio share my commitment to seeing our industry succeed. While each have separate roles to play, the Canadian Grain Commission and the other Portfolio partners – Agriculture and Agri-Food Canada (AAFC), the Canadian Food Inspection Agency (CFIA), Farm Credit Canada, the Canadian Dairy Commission, the National Farm Products Council of Canada and the Canada Agricultural Review Tribunal – make it possible for me to meet the sector’s needs, effectively and efficiently.

I know I can rely on the continuing collaborative efforts of my Portfolio team to support me in tackling the agricultural sector’s challenges, while helping the sector to capitalize on its tremendous potential for growth and future profitability.

This report details how the Canadian Grain Commission used its resources from April 1, 2010 to March 31, 2011, to regulate grain handling and establish and maintain grain standards, while protecting the interests of producers and ensuring a dependable commodity for domestic and export markets.

Chief Commissioner's Message

Since 1912, the Canadian Grain Commission has served as the federal agency responsible for setting standards of quality and regulating Canada’s grain handling system. Our vision is to be a leader in delivering excellence and innovation in grain quality and quantity assurance, grain quality research, and producer protection. Canadian Grain Commission programs result in shipments of grain that consistently meet contract specifications for quality, safety and quantity. In addition, the Canadian Grain Commission regulates the grain industry to protect producers' rights and facilitate fair treatment within the licensed grain handling system.

During 2010-11, the Canadian Grain Commission continued to work collaboratively with AAF Portfolio partners and other government agencies, Canadian grain producers, and grain industry stakeholders to maintain market competitiveness and add value to Canadian producers and Canada’s grain quality assurance system (GQAS). These close working relationships help to ensure that the Canadian Grain Commission is informed and able to adapt to emerging challenges associated with delivering upon our strategic outcome of ensuring Canada’s grain is safe, reliable and marketable and Canadian grain producers are protected. There continues to be increased market demand for grain safety assurances and increased sophistication of grain safety specifications. As a result, the Canadian Grain Commission continued to focus efforts on meeting today’s grain safety assurance requirements and continued to evaluate, define and evolve the Canadian Grain Commission’s role in testing, monitoring and assuring the safety of Canada’s grain.

I am pleased to report that, once again, the Canadian Grain Commission received a positive audit of its annual financial position. A copy of the audited financial statements is available on the Canadian Grain Commission’s website at: http://www.grainscanada.gc.ca/cgc-ccg/cr-rm/crm-mrm-eng.htm. As Chief Commissioner, I am proud of the Canadian Grain Commission’s ongoing exemplary work to effectively meet the needs of producers, the industry and all Canadians in general. Moving forward, the Canadian Grain Commission remains committed to working with stakeholders to ensure Canada’s GQAS builds on its reputation as the best in the world. I invite you to read this report to learn more about the Canadian Grain Commission’s accomplishments and challenges and how the organization carried out its mandate during the 2010-11 reporting period.

Section I – Organizational Overview

Raison d’être

Responsibilities

Under the Canada Grain Act, the Canadian Grain Commission sets standards of quality and regulates the handling of 21 grains¹ grown in Canada to ensure our country’s grain is safe, reliable and marketable and Canadian grain producers are protected. The Canadian Grain Commission is an unbiased, third-party agency in Canada’s grain sector and is the official certifier of Canadian grain. Through its activities, the Canadian Grain Commission supports a competitive, efficient grain sector and upholds Canada’s international reputation for consistent and reliable grain quality. To achieve its mandate, the Canadian Grain Commission:

• regulates all aspects of grain handling in Canada through the grain quality and quantity assurance programs;
  
• carries out scientific research to understand all aspects of grain quality and grain safety and to support the grain grading system; and
  
• has implemented a number of producer protection programs and safeguards to ensure the fair treatment of Canadian grain producers when they deliver their grain to licensed grain handling companies and grain dealers.

It is widely recognized that Canadian Grain Commission programs and activities are integral in permitting Canadian exporters to market successfully in competitive international grain markets and are essential for producers in order to realize maximum value from their grain. To ensure relevancy and success, the Canadian Grain Commission continued to work collaboratively with producers, industry stakeholders and government partners on the development of new technologies, protocols, and a sound regulatory framework to address emerging challenges and opportunities facing the Canadian grain sector.

The Canadian Grain Commission’s head office is located in Winnipeg, Manitoba. As of March 31, 2011, the Canadian Grain Commission employed 671 full-time equivalents and operated 12 additional offices across Canada. Canadian Grain Commission programs and activities are funded through a combination of revolving fund user fee and appropriation sources. Additional information on the Canadian Grain Commission’s mandate, responsibilities, and programs is available on the Canadian Grain Commission website at http://www.grainscanada.gc.ca/.

Strategic Outcome(s) and Program Activity Architecture (PAA)

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Canada is known around the world for the quality, consistency, reliability and safety of its grain and grain products. The provision of Canadian Grain Commission programs and activities is integral to maintaining this reputation and to the functioning of Canada’s grain industry and Canada’s grain quality assurance system (GQAS). This is particularly important considering Canada exported approximately $11.4 billion² in cereals, grains and oilseeds during 2010. The Canadian Grain Commission also provides producer protection services and safeguards to ensure the fair treatment of Canadian grain producers and to ensure producers realize maximum value from their grain. In our role as a neutral third-party regulator and arbitrator, the Canadian Grain Commission works in partnership with virtually every participant in the grain industry including producers, industry stakeholders, AAF Portfolio partners, and other government departments and agencies.

Organizational priorities

Priority	Type1a	Strategic Outcome(s) and/or Program Activity(ies)
Operational Priority 1:  Deliver services as mandated by the Canada Grain Act in a climate of constantly changing international and domestic markets, technological advancements and evolving end-user needs and preferences	Ongoing	This priority is aimed at continuously improving program and service delivery models and integrating new technologies and protocols into daily programs and services to ensure continued progress towards the Canadian Grain Commission's strategic outcome and all of its program activities.
Status1b
Mostly Met Results/Plans Going Forward: Continued to successfully provide consistent daily delivery of programs and services as mandated by the Canada Grain Act (see Section II of this report). To support the transition away from Kernel Visual Distinguishability (KVD), communication campaigns were delivered concerning the eligibility of varieties, declaration requirements upon delivery, and the consequences of delivering non-registered or de-registered varieties. Going forward, the Canadian Grain Commission will continue to support variety protocols and continue to develop and assess appropriate monitoring programs and laboratory methods for identifying grain varieties. Collaboration efforts will continue with producers, the industry and CFIA to ensure appropriate timeframes for notification of de-registration of varieties. The Canadian Grain Commission continued efforts to evolve service delivery models for grain quality assurance including the needs-based evolution and integration of process verification into the GQAS. The Flax Container Protocol is operational and the first shipment under the protocol will occur soon. The continuation of pilot programs for the Accredited and Certified Container Sampling Programs, as well as an evaluation of the possible recognition of the Canadian Grain Commission's Hazard Analysis Critical Control Point (HACCP) programs by the Global Food Safety Initiative, will continue as strategic initiatives into 2011-12. Efforts continued to ensure that the Canadian Grain Commission’s workforce evolves to meet future service requirements. Beginning in May 2010, the One Operational Group (OOG) Implementation Committee held meetings to identify and evaluate implementation options. A final meeting was held in November 2010 and a final report and recommendations were submitted to the joint Union-Management OOG Steering Committee in December 2010. The Steering Committee has been reviewing the OOG Implementation report and considering the pros and cons of implementing OOG. A decision will be made in 2011-12 whether or not to proceed with implementation.

Priority	Type1a	Strategic Outcome(s) and/or Program Activity(ies)
Operational Priority 2: Position the GQAS to remain relevant and support the continued competitiveness of Canadian grains in both domestic and international markets	Ongoing	This priority is aimed at developing programs, initiatives, and new research methods and processes to maintain and strengthen the Canadian GQAS to ensure a safe, dependable commodity. This includes the development of new technologies, protocols, and a sound regulatory framework so that the GQAS continues to evolve to address emergent and future needs. This priority is primarily linked to the quality assurance and the grain quality research program activities.
Status1b
Mostly Met Results/Plans Going Forward: During 2010-11, the Canadian Grain Commission participated in an Assistant Deputy Minister (ADM) Steering Committee and an interdepartmental working group on tech related market access issues that included AAFC, CFIA and Health Canada. While a Canadian Grain Commission position on low level presence (LLP) of unapproved genetically engineered events has been developed, collaborative work will continue in 2011-12 towards addressing biotechnology issues in order to ensure continued market access for Canadian grains. In addition, an internal Canadian Grain Commission Working Group is in the process of developing a clear monitoring and testing plan for new GM events. In order to increase stakeholder understanding of the role and responsibilities of the Canadian Grain Commission, and to strengthen the Canadian Grain Commission's image and brand, a global communications plan was developed and approved. Execution of the plan has begun and includes a new look for all Canadian Grain Commission materials, new displays for eastern and western Canada, new print materials including international and producers' brochures, and new elements on the Canadian Grain Commission's web site including a “Commercially Clean” process video. Continued execution of the communications plan will be an operational activity in 2011-12.

Priority	Type1a	Strategic Outcome(s) and/or Program Activity(ies)
Operational Priority 3: Grain Safety Assurance	New	This is a priority due to increased market demand for grain safety and increased sophistication of grain safety specifications by buyers and food inspection authorities. Activities include monitoring for and assurance of grain safety as well as working in collaboration with AAF Portfolio partners and other federal government departments and agencies in defining roles. This priority is primarily linked to the quality assurance and the grain quality research program activities.
Status1b
Mostly Met Results/Plans Going Forward: This priority included several activities intended to enhance Canadian Grain Commission grain safety and monitoring activities. Progress has been made towards readiness for an International Standards Organization (ISO) 17025 certification pre-audit of key grain safety analytical methods in the Grain Research Laboratory (GRL). As well, several new methods related to pesticide residue analyses, trace elements analysis have been developed and validated. Efforts will continue in 2011-12 with a focus on mycotoxins. Collaboration with AAF Portfolio partners and other federal government departments and agencies will also continue to further clarify and define roles. Sampling and monitoring programs related to grain safety will continue to be refined, and efforts will continue to implement validated testing methods in Canadian Grain Commission regional labs.

Priority	Type1a	Strategic Outcome(s) and/or Program Activity(ies)
Management Priority 1: Effective People Management	Previously committed to	Effective people management ensures the Canadian Grain Commission continues to attract and maintain motivated and engaged people with the right skills, in the right place, at the right time. This priority involves all elements of the Canadian Grain Commission's People Management Framework (PMF) that sets out the strategies for meeting the Canadian Grain Commission's current and future people needs and for meeting Public Service Renewal objectives established by the Privy Council Office. This priority is linked to all program activities.
Status1b
Mostly Met Results/Plans Going Forward Significant progress was made in a number of areas including support and measurement of the Performance Development and Achievement Program (PDAP), competency-based management, the new employee orientation program, the addition to and training of new peer supporters for the Informal Conflict Management System, action plans for Employment Equity and Diversity and the Public Service Commission audits, and consultations towards the development of a Canadian Grain Commission Values and Ethics Code. Going forward, people management will continue to be monitored and evaluated for effectiveness. Due to the significant progress during 2010-11, this priority will be managed operationally by divisions and individual managers.

Priority	Type1a	Strategic Outcome(s) and/or Program Activity(ies)
Management Priority 2: Management Accountability	Previously committed to	This priority is aimed at sound integrated and accountable management of the Canadian Grain Commission. This priority is linked to all program activities.
Status1b
Mostly Met Results/Plans Going Forward The Canadian Grain Commission expended a considerable amount of effort to make progress toward developing a sustainable funding model to reduce reliance on ad-hoc funding. Considerable preparation work was done in advance of the December 2010 release of the Canadian Grain Commission’s User Fees Consultation Document, including conducting a producer opinion poll in November 2010. In January 2011, the Canadian Grain Commission held stakeholder consultation sessions near the major grain growing regions of Canada. On March 1, 2011, the Individual Fees Consultation Document was issued, and consultations were completed by the end of March 2011. This initiative will continue into 2011-12 as the Canadian Grain Commission continues efforts to update user fees and develop a sustainable funding mechanism. The Canadian Grain Commission’s performance in the fifteen areas of management in the Management Accountability Framework (MAF) was evaluated by Treasury Board in 2010-11. The results were relatively positive as Treasury Board evaluated the Canadian Grain Commission as acceptable or strong in many areas. During 2011-12, as part of our ongoing operations, plans will be developed to address the areas identified as ‘opportunities for improvement’. The Canadian Grain Commission’s Internal Audit function is fully staffed and operational and was assessed by Treasury Board and the Office of the Comptroller General as ‘acceptable’ during the first year of operations. In 2011-12, the Canadian Grain Commission will commence the Program Evaluation function with focus on developing the Evaluation Plan and conducting a “pilot” Program Evaluation. Both functions are now considered operational and, as such, are no longer strategic initiatives for 2011-12. Progress has been made towards the development and implementation of policies related to Information Technology, physical, and personnel security, including the establishment and staffing of a Security Officer position. A phased approach is in place for the review and revision of the existing Business Continuity Plans, which commenced at head office and will soon be rolled out to the regions. The continued evolution of policies and related training will become operational in 2011-12.

^1a Priority “Type” Legend

• Previously committed to—committed to in the first or second fiscal year prior to the subject year of the report.
• Ongoing—committed to at least three fiscal years prior to the subject year of the report.
• New—newly committed to in the subject year of the report.

^1b Priority "Status" Legend

• Exceeded:  More than 100 per cent of the expected level of performance for the priority identified in the corresponding Report on Plans and Priorities (RPP) was achieved during the fiscal year.
• Met All:  100 per cent of the expected level of performance for the priority identified in the corresponding RPP was achieved during the fiscal year.
• Mostly Met:  80 to 99 per cent of the expected level of performance for the priority identified in the corresponding RPP was achieved during the fiscal year.
• Somewhat Met:  60 to 79 per cent of the expected level of performance for the priority identified in the corresponding RPP was achieved during the fiscal year.
• Not Met:  Less than 60 per cent of the expected level of performance for the priority identified in the corresponding RPP was achieved during the fiscal year.
  

Risk Analysis

The Canadian grain industry, the Canadian Grain Commission, and Canada’s GQAS operate in a climate of constant change (e.g. increased market demand for grain safety assurances, increased sophistication of grain safety specifications by buyers and food inspection authorities). The Canadian Grain Commission and the GQAS must be able to adjust in a measured and careful fashion to these changes in order to maintain Canada’s reputation as a consistent supplier of quality grain. To this end, the Canadian Grain Commission is continually monitoring and adapting programs and services to provide consistent and reliable grain quality and grain safety assurance that meets the needs of international and domestic markets and to ensure Canadian grain producers are protected. From its inception in 1912, Canadian Grain Commission programs and practices have been built on sound risk management and risk mitigation principles.

Risk assessment and risk management is carried out by all Canadian Grain Commission divisions and units as an integrated part of their policy, planning, priority setting, resourcing, program delivery, and reporting activities. In addition, risk assessment and risk management is embedded in the Integrated People and Business Planning process to ensure the workforce and work environments align with the current and future needs of the Canadian Grain Commission. Successful risk assessment and risk management is evidenced by the Canadian Grain Commission’s long-standing success in delivering upon its strategic outcome and program activities.

While the majority of risk involved in the Canadian Grain Commission's work is inherent and constant, some risk varies according to changes in the internal and external environment. The inherent risks in Canadian Grain Commission programs and services, such as risks associated with assuring accurate quality and quantity assessment and accurate certification of Canadian grain, are addressed by continuous monitoring and adjustment in order to bring residual risk to tolerable levels, thereby maintaining high performance standards. Feedback from producers and grain handlers, domestic and international processors, and other government organizations often provides early indication of potential risk in the external environment. Effective management of risks often results in opportunities for improvement to Canadian Grain Commission program activities and Canada's GQAS.

During 2010-11, the Canadian Grain Commission finalized its Integrated Risk Management (IRM) Policy. The IRM Policy clearly articulates expectations for risk management throughout the organization and promotes a culture of risk-informed decision-making. The IRM Policy defines the governance structure and roles and responsibilities that support the integration of IRM into all levels of the Canadian Grain Commission. Significant progress was also made towards finalizing the Canadian Grain Commission's Corporate Risk Profile (CRP). Using a standardized approach, a Canadian Grain Commission Integrated Risk Management Working Group representing a cross section of programs and functions, aggregated, analyzed and assessed (by likelihood and impact) the key high level risks and created a broad but detailed picture of the risks facing the Canadian Grain Commission. Efforts will continue in 2011-12 to finalize the CRP and to further integrate risk information into planning and reporting processes and project management.

Risk mitigation strategies used to achieve results and successfully deliver upon the organization's strategic outcome and program activities are described in Section II by program activity.

Summary of Performance

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
42,577	85,895	78,5712a

^2a The Canadian Grain Commission uses the modified cash basis of accounting from the Public Accounts for reporting actual spending.

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
3573a	671	3143a

^3a Planned human resource FTEs for 2010-11 as reported in the RPP was 357 based on approved authorities at that point in time. Given all authorities secured by the Canadian Grain Commission, the full planned FTE complement is 720. The difference between the full FTE complement and actual FTEs is -49.

Planned Spending to Total Authorities

Planned spending for 2010-11 was approximately $42.6 million, whereas the total authorities were $85.9, representing a change of $43.3 million. The difference is primarily because:

• 2010-11 planned spending as reported in the Canadian Grain Commission’s 2010-11 Report on Plans and Priorities (RPP) reflects only the Canadian Grain Commission’s approved authorities at the time the RPP was prepared. This included:
  • $5.5 million of annual appropriation, and
  • $37.1 million of respendable revenue based on projected grain volumes of 50 million tonnes.
• Total authorities include the Canadian Grain Commission’s authority limit with respect to respendable revenue as well as additional authorities provided to the Canadian Grain Commission subsequent to the publication of the RPP. This included:
  • $5.5 million of annual appropriation,
  • $42.5 million authority limit of respendable revenue as per the Main Estimates,
  • $26.0 million of Supplementary Estimates,
  • $11.4 million authorization for utilization of operating surplus, and
  • $0.5 million for operating budget carry forward, severance benefits, and other.

Planned human resource FTEs for 2010-11 as reported in the RPP was 357 based on approved authorities at that point in time. Given all authorities secured by the Canadian Grain Commission, the full planned FTE complement is 720. The difference between the full FTE complement and actual FTEs is -49.

Total Authorities to Actual Spending

Total authorities for 2010-11 were approximately $85.9 million, whereas actual spending was $78.6 million, representing a difference of $7.3 million. This difference is primarily because:

• The 2010-11 expenditure framework was based on the Canadian Grain Commission planning to respend revenue of $37.1 million which is $5.4 million less than the authority limit of $42.5 million; and
• In keeping with the spirit of cost containment and the Canadian Grain Commission’s reliance on ad-hoc funding, the Canadian Grain Commission manages and monitors operating expenditures conservatively and capital expenditures were limited to ‘mission-critical’ acquisitions.

Further information on Canadian Grain Commission funding is provided in the Expenditure Profile Section.

Strategic Outcome 1: Canada's grain is safe, reliable and marketable and Canadian grain producers are protected

Performance Indicators	Targets	2010-11 Performance
Number of instances where buyers are dissatisfied with Canadian Grain Commission standards, methods or procedures used to ensure a dependable commodity for domestic and export markets	Zero instances	Mostly Met There were three instances where buyers of Canadian grain expressed dissatisfaction with Canadian Grain Commission standards, methods or procedures. To put this in context, the Canadian Grain Commission certified the quality of 8,257 cargoes representing 29.6 million tonnes of grain in 2010-11. Going forward, the Canadian Grain Commission will work collaboratively with industry stakeholders to adjust methods and/or procedures where appropriate to ensure a dependable commodity for domestic and export markets and to maintain market access for Canadian producers. Communication efforts will be enhanced in crop years where growing conditions cause increased quality concerns to ensure producers, handlers and buyers are aware of grading impacts and availability of higher quality product.
Level of producer satisfaction with Canadian Grain Commission producer protection services	Zero unresolved or unaddressed complaints	Met All The Canadian Grain Commission responded to all producer inquiries and complaints during 2010-11.

Program Activity4a	2009-10 Actual Spending ($ thousands)	2010-11 ($ thousands)				Alignment to Government of Canada Outcomes4b
		Main Estimates4d, 4e	Planned Spending4d, 4e	Total Authorities4d, 4f	Actual Spending4f
Quality Assurance Program	41,356	24,249	21,176	44,918	39,095	Innovative and knowledge-based economy4c
Quantity Assurance Program	12,432	9,710	8,479	15,245	12,557	Innovative and knowledge-based economy4c
Grain Quality Research Program	10,057	3,564	3,564	9,083	10,075	Innovative and knowledge-based economy4c
Producer Protection Program	3,851	950	903	3,163	3,688	Fair and secure marketplace4c
Internal Services4g	12,586	9,451	8,455	13,486	13,156	N/A
Total	80,282	47,924	42,577	85,895	78,571

^4a Program activity descriptions are available on the Treasury Board Secretariat Main Estimate website at: http://www.tbs-sct.gc.ca/est-pre/20102011/p2-eng.asp.

^4b Additional information on the Government of Canada Outcomes is available at:  http://publiservice.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx. The Canadian Grain Commission’s program activities all align with the key federal spending area of ‘economic affairs’.

^4c Further information on Canadian Grain Commission program activity alignment with the Government of Canada Outcome areas is available at:  http://www.grainscanada.gc.ca/cgc-ccg/cr-rm/goco-rogoc-eng.htm.

^4d The 2010-11 Main Estimates and planned spending values, as reported in the RPP, appear low because they reflect only the Canadian Grain Commission’s approved authorities. They do not include ad-hoc appropriation of $26.0 million as well as access to $11.4 million of operating surplus. These amounts were not approved at the time of the Canadian Grain Commission’s Annual Reference Level Update (ARLU) and RPP reports were prepared. Total authorities for 2010-11 include these amounts.

^4e Planned spending differs from Main Estimates 2010-11 with respect to non-appropriation funding because planned spending includes respendable revenue of $37.1 million based on projected grain volumes of 50 million tonnes, while Main Estimates reflects the authority limit of respendable revenue for 2010-11 of $42.5 million.

^4f Total authorities include additional funding approved subsequent to the publication of the RPP. There were no significant program changes during 2010-11. The difference between total authorities and actual spending include:

• The 2010-11 expenditure framework was based on the Canadian Grain Commission planning to respend revenue of $37.1 million which is $5.4 million less than the authority limit of $42.5 million, and
• In keeping with the spirit of cost containment and the Canadian Grain Commission’s reliance on ad-hoc funding, the Canadian Grain Commission manages and monitors operating expenditures conservatively and capital expenditures were limited to ‘mission-critical’ acquisitions.

^4g Commencing in the 2009-10 Estimates cycle, resources for Internal Services are displayed separately from other program activities and are no longer distributed among the other program activities as was the case in previous Main Estimates. This affects the comparability of spending and FTE information by program activity prior to fiscal year 2009-10.

Expenditure Profile

The Canadian Grain Commission is funded by a combination of an ongoing appropriation, special appropriation, and authority to re-spend fees collected. A revolving fund (RF) was set up for the Canadian Grain Commission in 1995 with the expectation that the Canadian Grain Commission would be largely self-funded through fees for services. However, the RF has not worked as expected. The Canadian Grain Commission has been unable to modify user fees since 1991 for a variety of reasons despite the fact that operating costs have continually increased, and annual grain volumes can fluctuate considerably from year to year. As a result, overall cost recovery has fallen from approximately 90 percent in the early 1990s to between 50 and 60 percent today.

The Canadian Grain Commission’s falling cost recovery level has caused the Canadian Grain Commission to rely on ad-hoc government appropriations since 1999 to fund operations on an annual basis. The Canadian Grain Commission receives annual appropriation to fund a portion of the costs related to the GRL and the functions that were associated with the Assistant Commissioner positions. The last Assistant Commissioner term ended in June 2008 and Assistant Commissioner functions have been assumed by Canadian Grain Commission Commissioners, the Canadian Grain Commission Licensing Unit, and the Canadian Grain Commission Communications Unit. The remainder of the organization’s funding comes from yearly ad-hoc government appropriations and fee revenues collected primarily from inspection and weighing services. The Canadian Grain Commission continues to monitor and control discretionary spending and continues the ongoing process of cost containment and reallocation of internal resources to meet new and emerging priorities.

The Canadian Grain Commission is currently assessing options to ensure appropriate funding is available to meet operational and staffing requirements. Federal Budget 2010 provided the Canadian Grain Commission with $26.0 million for fiscal year 2010-11 and $30.2 million for fiscal year 2011-12. During 2010-11, the Canadian Grain Commission completed the first two user fee consultation phases as per the User Fees Act. The first phase included the release of a User Fees Consultation Document. Consultation sessions were held across Canada with grain producers and industry stakeholders. Stakeholders were asked to make written submissions to the Canadian Grain Commission on the proposed approach to updating Canadian Grain Commission user fees. The second phase of consultations included the release of the Individual Fees Consultation Document (pre-proposal notification). During this phase, stakeholders were asked to provide feedback on proposed individual fees as well as proposed service standards and performance measures associated with the individual fees.

Federal Budget 2010 instituted cost containment measures designed to reduce departmental spending by 1.5%. As a revolving fund, the Canadian Grain Commission acted in the spirit of cost containment and actual spending reflects a 2.5% decrease from the previous fiscal year spending. The Canadian Grain Commission continued to manage and monitor operating expenditures conservatively. In addition, capital expenditures were limited to ‘mission critical’ capital.

The differences between total authorities and actual spending over the past several years are due to:

• The 2010-11 expenditure framework was based on the Canadian Grain Commission planning to respend revenue of $37.1 million which is $5.4 million less than the authority limit of $42.5 million, and
• In keeping with the spirit of cost containment and the Canadian Grain Commission’s reliance on ad-hoc funding, the Canadian Grain Commission manages and monitors operating expenditures conservatively and capital expenditures were limited to ‘mission-critical’ acquisitions.

Canada's Economic Action Plan (CEAP)

Departmental Spending Trend

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Note:  Planned spending for 2009-10 reflects only the Canadian Grain Commission’s approved authorities as per the ARLU and Main Estimates. 2009-10 total authorities include additional ad-hoc funding totalling $42.4 million that was not approved at the time of the Canadian Grain Commission’s ARLU and RPP report. Planned spending for 2010-11 reflects only the Canadian Grain Commission’s approved authorities and differs from Main Estimates 2010-11 with respect to non-appropriation funding because planned spending includes respendable revenue of $37.1 million based on projected grain volumes of 50 million tonnes while Main Estimates reflects the authority limit of respendable revenue for 2010-11 of $42.5 million. 2010-11 total authorities includes authority limit of respendable revenue plus additional ad-hoc funding totalling $37.4 million that was not approved at the time of the Canadian Grain Commission’s ARLU and RPP report were prepared.

Voted and Statutory Items

For information on Canadian Grain Commission votes and/or statutory expenditures, please see the 2010–11 Public Accounts of Canada (Volume II) publication. An electronic version of the Public Accounts is available at: http://www.tpsgc-pwgsc.gc.ca/recgen/txt/72-eng.html.

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