ARCHIVED - Department of Finance - Supplementary Tables

Name of Transfer Payment Program: Compensation to Canadian Agencies or Entities Established by an Act of Parliament for Reduction of Debts of Debtor Countries (Vote 5)

Start Date: 1991–92

End Date: Ongoing

Description: Compensation to Export Development Canada (EDC) and the Canadian Wheat Board (CWB) for reduction of debts of debtor countries

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payment to EDC and CWB to compensate for debt relief to debtor countries

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	172.1	53.4	229.0	229.0	25.1	203.9
Total Contributions	16.2	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	—	—	—
Total Program Activity(ies)	188.3	53.4	229.0	229.0	25.1	203.9

Comment(s) on Variance(s): Variances between planned spending and actual expenditures are generally unavoidable because of the many uncertainties surrounding the timing and amounts of debt relief payments. Each year the International Trade and Finance Branch of the Department of Finance Canada estimates the amounts of debt relief compensation payments that the Department of Finance Canada will pay to EDC and CWB for the fiscal year. This is always a rough estimate because EDC and CWB provide debt relief only after heavily indebted poor countries have fulfilled certain conditions and are granted their debt relief "completion point" by the executive boards of the International Monetary Fund and the World Bank. The timing of when the "completion point" is given varies depending on the progress of the country toward that point. As soon as the conditions are deemed to be met, EDC and CWB provide debt relief to the country and issue an invoice to the Department for compensation.

For example, Côte D'Ivoire was expected to reach its completion point in 2010–11, which would have resulted in a payment to EDC for full debt relief to Côte D'Ivoire. However, because of delays resulting from political instability in Côte D'Ivoire, the country is not expected to receive debt relief until 2011–12 at the earliest.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: The Internal Audit and Evaluation Committee of the Department of Finance Canada performed an evaluation of Canada's international debt relief initiatives, which is available at http://www.fin.gc.ca/treas/evaluations/ecidri-eiiadc-eng.asp.

Name of Transfer Payment Program: Toronto Waterfront Revitalization Initiative (Vote 5)

Start Date: April 2001

End Date: March 31, 2014

Description: The Toronto Waterfront Revitalization Initiative (TWRI) is both an infrastructure and an urban renewal investment. The goals of the TWRI include positioning Canada, Ontario and Toronto in the new economy, thereby ensuring Canada's continued success in the global economy. This includes increasing economic growth and development opportunities; recognizing the intrinsic links between economic, social and environmental health; enhancing the quality of life in Toronto; and encouraging sustainable urban development.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Five TWRI projects receiving federal funding were completed during 2010–11, including two waterfront venues that are well used by the public (Sugar Beach and the Sherbourne Common South Side Park). In addition, capital work was carried out on several federally funded projects that are scheduled to open in 2011–12.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	107.7	65.0	75.2	53.6	11.4
Total Other Types of Transfer Payments	—	—	—	—	—	—
Total Program Activity(ies)	—	107.7	65.0	75.2	53.6	11.4

Comment(s) on Variance(s): Variance between planned spending and actual spending is attributable to the budget re-profiling to future years that was necessary to address project requirements beyond fiscal year 2010–11. This is consistent with the program's automatic re-profile authority.

The decrease in actual spending from 2009–10 to 2010–11 occurred because the majority of the projects associated with the program were completed in fiscal year 2009–10.

Audit Completed or Planned: Project audits were carried out on behalf of the federal TWRI Secretariat in 2010–11 on the contracting practices of the Toronto Waterfront Revitalization Corporation and on the Central Waterfront Public Realm Planning and Design Contribution Agreement. The audits found that the Toronto Waterfront Revitalization Corporation has implemented controls related to previous audit recommendations that dealt with contracting and procurement issues and that the organization was complying with the Terms and Conditions of the Central Waterfront Public Realm Planning and Design Contribution Agreement.

Evaluation Completed or Planned: In 2010, a consultant engaged by the federal TWRI Secretariat completed evaluation work related to the York and John Quay projects. The evaluation determined that the projects were successful from multiple perspectives and represented "important early wins in the overall effort to develop the Toronto waterfront."

Name of Transfer Payment Program: Harbourfront Centre Funding Program (Vote 5)

Start Date: March 2006

End Date: March 31, 2012

Description: The primary objective of the Harbourfront Centre Funding Program is to provide operational funding support to Harbourfront Centre until March 31, 2012. Such support will assist Harbourfront Centre in covering its fixed operational costs. The funding program will also facilitate Harbourfront Centre's ability to leverage funding from other levels of government and to pursue other revenue-generating strategies that allow the organization to provide the general public with continued access to cultural, recreational, and educational programs and activities held in Toronto's waterfront area.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

Results Achieved: Harbourfront Centre received and spent the full complement of its annual funding under the Harbourfront Centre Funding Program, using the funding to cover its operational costs. Accordingly, Harbourfront Centre remained open and carried out its mandate to provide the general public with continued access to cultural, educational and recreational activities.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	5.0	5.0	5.0	4.2	0.8
Total Other Types of Transfer Payments	—	—	—	—	—	—
Total Program Activity(ies)	—	5.0	5.0	5.0	4.2	0.8

Comment(s) on Variance(s): Variance between planned spending and actual spending occurred because the first quarterly payment for fiscal year 2010–11 was made in advance in fiscal year 2009–10, as allowed for in the Contribution Agreement. This advance payment was also the cause of the decrease in actual expenditures from 2009–10 to 2010–11.

Audit Completed or Planned: A federal desk audit of the Harbourfront Centre Funding Program concluded that the funds were being spent according to the Terms and Conditions of the program.

Evaluation Completed or Planned: The five-year evaluation of the Harbourfront Centre Funding Program that was completed in 2010 received approval from the Departmental Audit and Evaluation Committee in December 2010. The report can be found at http://www.fin.gc.ca/treas/evaluations/ehcfp-epfhc-eng.asp.

Name of Transfer Payment Program: Payments to the International Development Association

Start Date: 1960

End Date: Ongoing

Description: This program provides encashment of demand notes to allow the International Development Association (IDA) to disburse concessional financing for development projects and programs in the world's poorest countries. IDA has been consistently evaluated by independent studies as one of the top ways to deliver aid and constitutes an integral part of how Canada delivers its international assistance.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

Results Achieved: Payments were completed on time. Results achieved by IDA over the last five years include the following:

• One million additional teachers have qualified to teach at the primary level;
• Seven million people have access to a basic package of health, nutrition, or population services;
• Two thousand health facilities have been constructed, renovated or equipped;
• At least 7.8 million pregnant women have received prenatal care; and
• At least 2480 km of rural roads and 1790 km of non-rural roads have been constructed or rehabilitated.

For more information on IDA's results, please visit http://www.worldbank.org/ida/.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	318.3	384.3	384.3	384.3	384.3	0
Total Program Activity(ies)	318.3	384.3	384.3	384.3	384.3	0

Comment(s) on Variance(s): No variance identified

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Internal evaluation ongoing, with results expected in fall 2011

Name of Transfer Payment Program: Fiscal Equalization (Part I—Federal-Provincial Fiscal Arrangements Act)

Start Date: 1957

End Date: Ongoing

Description: Formula-based Equalization payments are made to eligible provincial governments to enable them to provide reasonably comparable levels of public services at reasonably comparable levels of taxation. Equalization payments are unconditional.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	13,462.2	14,185.0	14,372.0	14,372.0	14,372.0	0
Total Program Activity(ies)	13,462.2	14,185.0	14,372.0	14,372.0	14,372.0	0

Comment(s) on Variance(s): The increase in expenditures from 2009–10 to 2010–11 is attributable to the commitment in Budget 2009 to establish a sustainable growth path for the Equalization program that had been announced by the Minister of Finance in November 2008. Aggregate payments, including those for 2010–11, are based on a three-year moving average of nominal Gross Domestic Product growth applied to the previous year's Equalization amount.

Audit Completed or Planned: The Department's Internal Audit and Evaluation Branch released its Audit of the Management of Transfer Payments to Provinces and Territories in December 2010. The audit concluded that overall, "the Department's controls and processes related to the administration of the four major statutory vote transfer payments are effective and appropriate." The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Territorial Formula Financing (Part I.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 1985

End Date: Ongoing

Description: Territorial Formula Financing payments are made to all territorial governments to provide the resources they need to deliver services that are comparable to those delivered by provincial governments, taking into account the high costs and unique challenges in the North.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	2,312.9	2,497.9	2,663.6	2,663.6	2,663.6	0
Total Program Activity(ies)	2,312.9	2,497.9	2,663.6	2,663.6	2,663.6	0

Comment(s) on Variance(s): Territorial Formula Financing is a gap-filling formula between a proxy of each territory's expenditure need and its revenue-raising capacity. The increase in expenditures from 2009–10 to 2010–11 of $165.6 million (6.6 per cent) is attributable to an increase in the gap between the measured proxies of territorial expenditure need (Gross Expenditure Bases, or GEBs) and their measured revenue capacities. While revenue capacities increased, they did not increase by as much as GEBs.

Audit Completed or Planned: The Department's Internal Audit and Evaluation Branch released its Audit of the Management of Transfer Payments to Provinces and Territories in December 2010. The audit concluded that overall, "the Department's controls and processes related to the administration of the four major statutory vote transfer payments are effective and appropriate." The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments was in progress in August 2011.

Name of Transfer Payment Program: Canada Health Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004

End Date: Ongoing

Description: The Canada Health Transfer (CHT) provides equal per capita support for health care through cash and tax transfers to provincial and territorial governments. The CHT supports the government's commitment to maintain the Canada Health Act's national criteria (comprehensiveness, universality, portability, accessibility and public administration), conditions and prohibitions against user fees and extra-billing.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	22,759.0	24,081.0	25,426.3	25,605.4	25,605.4	(179.1)
Total Program Activity(ies)	22,759.0	24,081.0	25,426.3	25,605.4	25,605.4	(179.1)

Comment(s) on Variance(s): The variance between planned and actual spending occurred because the Main Estimates did not include the protection payment amounts added as a result of the fall 2010 re-estimates of prior years. These protection payments were legislated in Budget 2007 as additional funding to provinces and territories to ensure that their Canada Health Transfer payments were not lower than the 2007–08 amounts that they would have received prior to the introduction of other changes in Budget 2007. These amounts are recalculated on a regular basis. In addition, the Main Estimates figure did not include March 2011 deductions under the Canada Health Act.

The year-over-year change in actual expenditures is primarily attributable to the annual 6 percent escalated payment. In addition, there was funding from Budget 2007 that legislated protection payments to provinces and territories to ensure that their payments were not lower than the 2007–08 amounts that they would have received prior to the introduction of other changes in Budget 2007. Each year's actual expenditures also include (different) amounts for deductions under the Canada Health Act.

Audit Completed or Planned: The Department's Internal Audit and Evaluation Branch released its Audit of the Management of Transfer Payments to Provinces and Territories in December 2010. The audit concluded that overall, "the Department's controls and processes related to the administration of the four major statutory vote transfer payments are effective and appropriate." The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments was in progress in August 2011.

Name of Transfer Payment Program: Canada Social Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004

End Date: Ongoing

Description: The Canada Social Transfer (CST) provides equal per capita cash support and tax transfer support to provincial and territorial governments to assist them in financing social programs, post-secondary education, and programs for children. The CST gives provinces and territories the flexibility to allocate payments to those areas according to their own priorities and supports the government's commitment to prohibit minimum residency requirements for social assistance.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	10,567.9	10,857.9	11,178.7	11,178.8	11,178.8	(0.1)
Total Program Activity(ies)	10,567.9	10,857.9	11,178.7	11,178.8	11,178.8	(0.1)

Comment(s) on Variance(s):The variance between planned and actual spending occurred because the 2010–11 Main Estimates did not include the protection payment amounts added as a result of the fall 2010 re-estimates of prior years. These protection payments were legislated in Budget 2007 as additional funding to provinces and territories to ensure that their payments were not lower than the 2007–08 amounts that they would have received prior to the introduction of other changes in Budget 2007. These amounts are recomputed on a regular basis.

The increase in actual spending from 2009–10 to 2010–11 is attributable to the annual payment increase of 3 per cent. In addition, there was funding resulting from Budget 2007 that legislated protection payments to provinces and territories to ensure that their payments were not lower than the 2007–08 amounts that they would have received prior to the introduction of other changes in Budget 2007. 

Audit Completed or Planned: The Department's Internal Audit and Evaluation Branch released its Audit of the Management of Transfer Payments to Provinces and Territories in December 2010. The audit concluded that overall, "the Department's controls and processes related to the administration of the four major statutory vote transfer payments are effective and appropriate." The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Statutory Subsidies (Constitution Act, 1867; Constitution Act, 1982; and other statutory authorities)

Start Date: 1867

End Date: Ongoing

Description: Statutory subsidies provide a source of funding to provinces in accordance with terms of entry into Confederation.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	32.0	32.2	32.0	32.1	32.1	(0.1)
Total Program Activity(ies)	32.0	32.2	32.0	32.1	32.1	(0.1)

Comment(s) on Variance(s): Very small variance due to rounding

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Youth Allowances Recovery (Federal-Provincial Fiscal Revision Act, 1964)

Start Date: 1964

End Date: Ongoing

Description: The Youth Allowances Recovery is a recovery from the Province of Quebec for an additional tax point transfer (three points) above and beyond the Canada Health Transfer and Canada Social Transfer tax point transfers. In the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Quebec continues to receive the value of these tax points through its own income tax system and reimburses the Government of Canada for the discontinued programs for which it had received a tax point transfer. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the "Quebec Abatement." These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	(332.7)	(596.3)	(655.8)	(678.2)	(678.2)	22.4
Total Program Activity(ies)	(332.7)	(596.3)	(655.8)	(678.2)	(678.2)	22.4

Comment(s) on Variance(s): The Youth Allowance Recovery represents a recovery from Quebec of the cash value of the tax points (three points) that under previous funding arrangements, the Province opted to collect through its own tax system, instead of receiving cash payments from the Government of Canada to fund a youth allowances program. Since the program for which it received this tax transfer no longer exists, the value of these tax points is reimbursed to the Government of Canada each year. Until the tax data for 2010 are finalized, the figures will be based on forecasts. 

The variance between the planned and actual amounts is a result of prior year adjustments as well as a revised estimate of the 2010–11 recovery, made in March 2011.

The recovery for 2010–11 was greater than that for 2009–10 because the value of the estimated tax points was greater in that year.

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Alternative Payments for Standing Programs (Part VI—Federal-Provincial Fiscal Arrangements Act)

Start Date: 1977

End Date: Ongoing

Description: Description: The Alternative Payments for Standing Programs is a recovery from the Province of Quebec for an additional tax point transfer (13.5 points) above and beyond the Canada Health Transfer (CHT) and Canada Social Transfer (CST) tax point transfers. In the 1960s, Quebec chose to use the federal government's contracting-out arrangements for certain federal-provincial programs. Since Quebec, like other provinces, receives its full cash entitlement under the CHT and CST, the value of these tax points is reimbursed to the Government of Canada each year. Taken together, the Alternative Payments for Standing Programs and the Youth Allowances Recovery are known as the Quebec Abatement. These arrangements ensure that all provinces and territories are treated the same through cash and tax transfers in support of health and social programs.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	(2,973.9)	(2,702.6)	(2,976.7)	(3,072.6)	(3,072.6)	95.9
Total Program Activity(ies)	(2,973.9)	(2,702.6)	(2,976.7)	(3,072.6)	(3,072.6)	95.9

Comment(s) on Variance(s): The Alternative Payments for Standing Programs program represents a recovery from Quebec of the cash value of tax points (13.5 points) that under previous funding arrangements, the province opted to collect through its own tax system, instead of receiving cash payments from the Government of Canada to fund social programs. Since, like other provinces, Quebec now receives its full cash entitlement under the Canada Health Transfer and the Canada Social Transfer, the value of these tax points is reimbursed to the Government of Canada each year. Until the tax data for 2010 and 2011 are finalized, the figures will be based on forecasts.

The variance between planned spending and actual amounts is a result of prior-year adjustments arising from the estimates cycle as well as a revised estimate of 2010–11 recoveries, made in February 2011. The recovery for 2010–11 was greater than that for 2009–10 because the value of the estimated tax points was greater in that year.

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments was in progress in August 2011.

Name of Transfer Payment Program: Wait Times Reduction Transfer (Part V.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2004–05

End Date: 2013–14

Description: As part of the 10-Year Plan to Strengthen Health Care, the Government of Canada committed support to the provinces and territories to help reduce wait times in the health care system—primarily in support of human resources and tools to manage wait times. A total of $4.25 billion was provided through a third-party trust fund in 2004 and was notionally allocated over five years, from 2004–05 to 2008–09. This amount has been paid in full. From 2009–10 to 2013–14, annual funding of $250 million will be provided to the provinces and territories through a transfer.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces and territories

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	250.0	250.0	250.0	250.0	0
Total Program Activity(ies)	—	250.0	250.0	250.0	250.0	0

Comment(s) on Variance(s): No variance identified

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Payment to Ontario Related to the Canada Health Transfer (Budget Implementation Act, 2009)

Start Date: 2009–10

End Date: 2010–11

Description: Direct payments are made to the Government of Ontario to ensure that its per capita cash entitlements in relation to the Canada Health Transfer are the same as for other Equalization-receiving provinces.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all the legislative requirements for financial support to Ontario

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	489.1	213.8	160.4	160.4	53.4
Total Program Activity(ies)	—	498.1	213.8	160.4	160.4	53.4

Comment(s) on Variance(s): The Budget Implementation Act, 2009 provides Ontario with separate payments outside of the Canada Health Transfer (CHT) cash envelope for 2009–10 and 2010–11. These payments ensure that Ontario's per capita cash entitlements in relation to the CHT are the same as those for other Equalization-receiving provinces. With the recalculation of the CHT for 2010–11, the decline in the value of Ontario's CHT tax point transfer leads to a decline in the value of this payment to $160 million.

The payment for 2009–10 of $489 million was a legislated fixed amount, based on the December 2008 first estimate of the CHT; the payment for 2010–11 of $160 million is formula-based, such that payments are recalculated along with each new CHT estimate. With this recalculation of the CHT for 2010–11, the decline in the value of Ontario's CHT tax point transfer leads to a decline in the value of this outside payment.

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Incentive for Provinces to Eliminate Taxes on Capital (Part IV—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2007–08

End Date: 2010–11

Description: Financial incentive to encourage provinces to eliminate provincial general capital taxes and/or to eliminate or restructure an existing provincial capital tax on financial institutions into a minimum tax

Strategic Outcome: A strong and sustainable economy, resulting in increased business investment, higher standards of living and improved quality of life for Canadians

Results Achieved: All provincial general capital taxes will be eliminated by July 1, 2012, increasing the competitiveness of businesses by strengthening Canada's business tax advantage.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	170.0	163.4	170.0	160.9	160.9	9.1
Total Program Activity(ies)	170.0	163.4	170.0	160.9	160.9	9.1

Comment(s) on Variance(s): The difference between planned spending and actual expenditures reflects the fact that one planned payment did not occur because one province did not provide the required information in time for a payment in 2010–11. This payment will be carried over to 2011–12.

The impact of this deferred payment on actual spending in 2010–11 was partly offset by the fact that provincial entitlements were generally higher than anticipated when compared to the projections by the provinces in 2009–10. Higher provincial entitlements reflected the use of updated corporate tax data.

The variation in payments from 2009–10 to 2010–11 reflects the change in the amount of forgone provincial capital tax revenue that is eligible for the incentive payment.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Establishment of a Canadian Securities Regulation Regime and Canadian Regulatory Authority (Budget Implementation Act, 2009)

Start Date: 2009–10

End Date: 2010–11

Description: In Budget 2009, the Government of Canada committed to move forward quickly with willing provinces and territories to establish a Canadian securities regulator that respects regional interests and expertise as well as constitutional jurisdiction. Program funds will be used to compensate participating provinces and territories for matters relating to the transition toward a Canadian securities regulator.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians.

Results Achieved: In May 2010, the government tabled for information in Parliament the proposed Canadian Securities Act, and concurrently referred it to the Supreme Court of Canada for a ruling on whether Parliament has the constitutional authority to enact the proposed legislation. Should a favourable ruling be received from the Supreme Court of Canada, the government plans to introduce for adoption in Parliament the proposed Canadian Securities Act, which would then go through the normal parliamentary legislative process.

Compensation was not provided to participating provinces and territories for matters relating to the transition toward a Canadian securities regulator in 2010–11 but is expected to be made in 2011–12 after an agreement is reached between participating jurisdictions and the government as part of the transition to a Canadian securities regulator.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	150.0	0	0	150.0
Total Program Activity(ies)	—	—	150.0	0	0	150.0

Comment(s) on Variance(s): In Budget 2009, the government indicated that it is prepared to enter into financial arrangements with participating jurisdictions as it moves toward a Canadian securities regulator. The Budget Implementation Act, 2009 provided up to $150 million for compensating provinces and territories for matters relating to transition. The payment was not made in 2010–11 but is expected to be made in 2011–12 after an agreement is reached between participating jurisdictions and the government as part of the transition to a Canadian securities regulator.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Canadian Securities Regulation Regime Transition Office (Canadian Securities Regulation Regime Transition Office Act)

Start Date: 2009–10

End Date: 2011–12

Description: In Budget 2009, the Government of Canada committed to move forward quickly with willing provinces and territories to establish a Canadian securities regulator that respects regional interests and expertise as well as constitutional jurisdiction. In July 2009, the Canadian Securities Regulation Regime Transition Office (Transition Office) was created under the Canadian Securities Regulation Regime Transition Office Act to lead and manage all aspects of the transition to a Canadian securities regulator. The Act also provided its funding.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: The Transition Office led the development of the proposed Canadian Securities Act, which was tabled in Parliament in May 2010 and concurrently referred to the Supreme Court of Canada for a ruling on whether Parliament has the constitutional authority to enact the proposed legislation. In July 2010, the Transition Office released the Transition Plan for the Canadian Securities Regulatory Authority. The Transition Office developed the proposed Canadian Securities Act and Transition Plan in consultation with participating provinces and territories.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	5.4	11.0	13.2	13.2	(2.2)
Total Program Activity(ies)	—	5.4	11.0	13.2	13.2	(2.2)

Comment(s) on Variance(s): The Transition Office's enabling statute, the Canadian Securities Regulation Regime Transition Office Act, authorizes the Minister of Finance to make direct payments to the Transition Office for its use in fulfilling its mandate, in an amount not to exceed $33 million for a three-year period commencing July 13, 2009. In this regard, three equal $11 million payments were planned over the course of the mandate. Actual funding transferred to the Transition Office reflected its shorter initial year of operation for 2009-10 as well as its anticipated work for 2009-10 and 2010-11. Further information on the Transition Office's funding and activities is available in its Annual Report tabled in Parliament.

Audit Completed or Planned: The Transition Office's enabling statute requires that its financial statements be audited annually by the Auditor General of Canada. The financial statements and audit report are available in the Transition Office's Annual Report tabled in Parliament.

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Debt Payments on Behalf of Poor Countries to International Organizations pursuant to section 18(1) of the Economic Recovery Act

Start Date: 2010

End Date: 2054

Description: Payments for Canada's commitment to the G8-led Multilateral Debt Relief Initiative

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Responsible administration of financial obligations under the Multilateral Debt Relief Initiative

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	149.3	51.2	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	51.2	73.4	73.4	(22.4)
Total Program Activity(ies)	149.3	51.2	51.2	73.4	73.4	(22.4)

Comment(s) on Variance(s): Prior to fiscal year 2010–11, this payment was considered a grant. The change to a statutory vote was made at the request of the World Bank in order to further solidify the legal framework underpinning these payments. The increase over planned spending is attributable to the contributions that Canada made for international debt relief to Haiti following the 2010 earthquake.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: The Internal Audit and Evaluation Committee of the Department of Finance Canada performed an evaluation of Canada's international debt relief initiatives, which is available at http://www.fin.gc.ca/treas/evaluations/ecidri-eiiadc-eng.asp.

Name of Transfer Payment Program: Transitional Assistance to Provinces Entering into the Harmonized Value-Added Tax Framework (Part III.1—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2010

End Date: 2011

Description: Ontario and British Columbia decided to enter into a harmonized value-added tax framework and signed Comprehensive Integrated Tax Coordination Agreements with the Government of Canada. Canada entered into these agreements under the authority of Part III.1 of the Federal-Provincial Fiscal Arrangements Act. As part of the agreements, Canada has committed to providing Ontario with $4.3 billion and British Columbia with $1.599 billion in transitional assistance. In 2009–10, British Columbia received $250 million. In 2010–11, Ontario received $3 billion and British Columbia received $769 million.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Transitional assistance payments for 2010–11 to Ontario and British Columbia were made as scheduled.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	250.0	3,000.0	3,769.0	3,769.0	(769.0)
Total Program Activity(ies)	—	250.0	3,000.0	3,769.0	3,769.0	(769.0)

Comment(s) on Variance(s): A footnote to the 2010–11 Report on Plans and Priorities (RPP) indicated that additional payments of transitional assistance could be made to British Columbia. Under the Canada-British Columbia Comprehensive Integrated Tax Coordination Agreement, $769 million was provided to British Columbia in 2010–11, which accounts for the difference between planned spending in the 2010–11 RPP and actual spending in the 2010–11 Departmental Performance Report. The $769 million payment was recorded in the Supplementary Estimates (A) for 2010–11 as a statutory appropriation.

The total amount of transitional assistance scheduled to be paid to Ontario and British Columbia as a result of their entering into the Harmonized Value-Added Tax Framework was $5.899 billion. The payment schedule for British Columbia was revised, in keeping with the terms of the agreement, and is available on the province's website. One payment of $250 million was paid to British Columbia in 2009–10. Two payments totalling $3.769 billion were paid in 2010–11: $3 billion to Ontario and $769 million to British Columbia. The remaining $1.88 billion was paid in 2011–12, as identified in the Main Estimates for 2011–12: $1.3 billion to Ontario and $580 million to British Columbia.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Small and Medium Enterprise Finance Challenge

Start Date: June 2010

End Date: March 31, 2012

Description: Rapid growth in small and medium-sized enterprises (SMEs) drives job creation in a wide range of economies, yet more than two-thirds of SMEs in developing countries have no access to private sector financing. The large gap between the demand and supply of SME financing is a serious constraint on efforts to promote strong and sustainable global recovery. To overcome this challenge, leaders of the G20 launched the Small and Medium Enterprise Finance Challenge. The goal was to solicit innovative and scalable proposals from the private sector for governments and public institutions to be more effective in leveraging private finance for SMEs in developing countries.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Together with contributions from other countries, follow through on the G20's commitment to mobilize funding for the implementation of the fourteen winning proposals of the Small and Medium Enterprise Finance Challenge, including the leveraging of investment resources from international financial institutions and other interested parties

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	20.0	20.0	(20.0)
Total Program Activity(ies)	—	—	—	20.0	20.0	(20.0)

Comment(s) on Variance(s): Spending plans had not been made public in time for inclusion in the 2010–11 Main Estimates.

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: International Finance Corporation (IFC)—Financial Mechanisms for Climate Change

Start Date: March 8, 2011

End Date: December 31, 2030

Description: As part of Canada's commitment under the Copenhagen Accord on climate change, the Department of Finance Canada provided $285.7 million of concessional financing to IFC to leverage energy efficiency and clean energy projects by the private sector in developing countries, and $5.8 million of technical assistance to build expertise and capacity for these types of projects.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: As part of the $400 million in new and additional climate change financing that Canada provided in 2010–11, Canada delivered on its commitment to provide its fair share of fast-start financing under the Copenhagen Accord. The Department of Finance Canada will work with the IFC to track the amount of private investment directly mobilized by this contribution, as well as the emissions reductions achieved.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	5.8	5.8	(5.8)
Total Program Activity(ies)	—	—	—	5.8	5.8	(5.8)

Comment(s) on Variance(s): Spending plans had not been made public in time for inclusion in the 2010-11 Main Estimates

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Funding for the Global Risk Institute in Financial Services

Start Date: 2010–11

End Date: 2010–11

Description: The Global Risk Institute in Financial Services (GRi) is a collaborative effort between the Toronto Financial Services Alliance, a partnership of the City of Toronto and the financial services industry, and the governments of Canada and Ontario. GRi will be a world-class centre for research and training across multiple financial risk management and regulatory disciplines. Research conducted by GRi will form the basis for training and ongoing professional development of capital market practitioners and regulators. The main beneficiaries of GRi's research will be the financial services practitioners and regulators as well as policy makers. Research will be conducted by participating universities and consultants and disseminated by GRi through publications and public events.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: GRi was incorporated on January 1, 2011, under the Canada Business Corporations Act, thus allowing it to enter into legal agreements. Federal funding was transferred to GRi by March 31, 2011. GRi is in the process of selecting its board of directors and preparing a calendar of events.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	10.0	10.0	(10.0)
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	—	—	—
Total Program Activity(ies)	—	—	—	10.0	10.0	(10.0)

Comment(s) on Variance(s): Spending plans had not been made public in time for inclusion in the 2010–11 Main Estimates

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Subsidy Resources to the International Monetary Fund's Poverty Reduction and Growth Trust

Start Date: April 1, 2010

End Date: September 22, 2010

Description: The International Monetary Fund (IMF) has established the Poverty Reduction and Growth Trust (PRGT) as its concessional lending framework for low-income countries. The PRGT's assistance and conditionality is guided by a country's Poverty Reduction Strategy, which is country-specific and involves broad-based participation by civil society and the private sector. In Budget 2010, Canada provided $40 million in subsidy resources to PRGT to support its poverty reduction activities in low-income countries over the medium-term, which is consistent with the commitments made at the G20 London Summit.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Together with contributions from G20 countries and the IMF's internal resources, Canada's contribution will allow PRGT to provide up to US$17 billion worth of flexible and concessional financing to low-income countries over the medium term, thereby allowing them to meet their poverty reduction and Millennium Development Goals.

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	40.0	40.0	(40.0)
Total Program Activity(ies)	—	—	—	40.0	40.0	(40.0)

Comment(s) on Variance(s): Spending plans had not been made public in time for inclusion in the 2010-11 Main Estimates

Audit Completed or Planned: Not applicable

Evaluation Completed or Planned: Not applicable

Name of Transfer Payment Program: Additional Fiscal Equalization Payment – Total Transfer Protection (Part I—Federal-Provincial Fiscal Arrangements Act)

Start Date: 2010–11

End Date: 2010–11

Description: Complementing Canada's Economic Action Plan, the Government of Canada provided provinces with protection to prevent declines in major transfers between 2009–10 and 2010–11. Specifically, for those two years, a comparison was made of the sum of Equalization, the Canada Health Transfer, the Canada Social Transfer, and the Payment to Ontario Related to the Canada Health Transfer. When there was a decline, the province received Total Transfer Protection. For Equalization-receiving provinces, this payment was made as an additional Fiscal Equalization payment. Under this program, protection payments were made to Prince Edward Island, Nova Scotia, New Brunswick, and Manitoba.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	509.5	509.5	(509.5)
Total Program Activity(ies)	—	—	—	509.5	509.5	(509.5)

Comment(s) on Variance(s): Legislation was not passed in time for the transfer payment to be included in Planned Spending

Audit Completed or Planned: The annual audit by the Office of the Auditor General of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Transfer Payment Program: Canada Health Transfer and Canada Social Transfer to Saskatchewan, Newfoundland and Labrador – Total Transfer Protection

Start Date: 2010–11

End Date: 2010–11

Description: Complementing Canada's Economic Action Plan, the Government of Canada provided provinces with protection to prevent declines in major transfers between 2009–10 and 2010–11. Specifically, for those two years, a comparison was made of the sum of Equalization, the Canada Health Transfer, the Canada Social Transfer, and the Payment to Ontario Related to the Canada Health Transfer. When there was a decline, the province received Total Transfer Protection. Protection payments to provinces that did not receive Equalization were provided as additional Canada Health Transfer payments. Under this measure, protection payments were made to Saskatchewan and Newfoundland and Labrador.

Strategic Outcome: A strong and sustainable economy, resulting in increasing standards of living and improved quality of life for Canadians

Results Achieved: Timely and accurate payments that met all legislative requirements for financial support to provinces

Program Activity: Transfer and Taxation Payment Programs
($ millions)

	2008-09 Actual Spending	2009-10 Actual Spending	2010-11 Planned Spending	2010-11 Total Authorities	2010-11 Actual Spending	Variance(s)
Total Grants	—	—	—	—	—	—
Total Contributions	—	—	—	—	—	—
Total Other Types of Transfer Payments	—	—	—	15.7	15.7	(15.7)
Total Program Activity(ies)	—	—	—	15.7	15.7	(15.7)

Comment(s) on Variance(s): Legislation was not passed in time for the transfer payment to be included in Planned Spending.

Audit Completed or Planned: The annual audit by the Office of the Auditor general of Canada was in progress in August 2011.

Evaluation Completed or Planned: An evaluation by the Department's Internal Audit and Evaluation Branch of the Federal-Provincial Relations Division, including the administrative aspects of all major transfer payments, was in progress in August 2011.

Name of Horizontal Initiative: Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, formerly the National Initiative to Combat Money Laundering

Name of Lead Department(s): Department of Finance Canada

Lead Department Program Activity: Economic and Fiscal Policy Framework

Start Date: June 2000

End Date: 2010–11

Total Federal Funding Allocation (from start date to end date): $533.8 (millions)

Description of the Horizontal Initiative (including funding agreement): The National Initiative to Combat Money Laundering was established in 2000 as part of the government's ongoing effort to combat money laundering in Canada. Legislation adopted that year, the Proceeds of Crime (Money Laundering) Act, created a mandatory reporting system for suspicious financial transactions, large cross-border currency transfers, and certain prescribed transactions. The legislation also established the Financial Transactions and Reports Analysis Centre of Canada to collect and analyze these financial transaction reports and to disclose pertinent information to law enforcement and intelligence agencies. In December 2001, the Proceeds of Crime (Money Laundering) Act was amended to include measures to fight terrorist financing activities and renamed the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The National Initiative to Combat Money Laundering was expanded and is now known as Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime. In December 2006, Bill C-25 amended the Proceeds of Crime (Money Laundering) Act to ensure that Canada's legislation remains consistent with international anti-money laundering and anti-terrorist financing standards established by the Financial Action Task Force and is responsive to areas of domestic risk. Amendments include enhanced client identification requirements, the creation of a registration regime for money services businesses, and the establishment of an administrative and monetary penalties regime to deal with lesser infractions of the Act.

Shared Outcome(s): To detect and deter money laundering and the financing of terrorist activities and to facilitate the investigation and prosecution of money laundering and terrorist financing offences

Governance Structure(s): Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime is a horizontal initiative comprising both funded and non-funded partners. The funded partners are the Department of Finance Canada, the Department of Justice Canada, the Public Prosecution Service of Canada, the Financial Transactions and Reports Analysis Centre of Canada, the Canada Border Services Agency, the Canada Revenue Agency, the Canadian Security Intelligence Service and the Royal Canadian Mounted Police. The non-funded partners are Public Safety Canada, the Office of the Superintendent of Financial Institutions Canada, and Foreign Affairs and International Trade Canada. An interdepartmental assistant deputy minister-level group and working group, consisting of all partners and led by the Department of Finance Canada, has been established to direct and coordinate the government's efforts to combat money laundering and terrorist financing activities. In addition, the Department of Finance Canada also chairs a Public/Private Sector Advisory Committee. This broad-based advisory committee, comprising both public and private sector representatives, provides general guidance for Canada's Anti-Money Laundering and Anti-Terrorist Regime.

Performance Highlights: A 10-Year evaluation of Canada's Anti-Money Laundering and Anti-Terrorist Financing Regime, which included a Management Action Plan, was completed and published on the Department of Finance Canada website.

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) increased its disclosures to law enforcement and security partners to 769 cases of suspected money laundering, terrorist financing and threats to the security of Canada.

The Royal Canadian Mounted Police created five anti-money laundering teams in Ottawa, Montreal, Toronto, Calgary and Vancouver.

The Canadian Border Services Agency performed more than 1,640 seizures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, totalling over $30 million.

The Public Prosecution Service of Canada laid 6,494 charges for the possession of proceeds of crime and 30 charges for money laundering under the Criminal Code, as well as 31 charges under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

The Canada Revenue Agency's (CRA's) Special Enforcement Program completed 115 audits based on FINTRAC disclosures; total federal income taxes were reassessed at $26,756,939, and total Goods and Services Tax / Harmonized Sales Tax dollars were assessed at $813,069. In addition, CRA's Charities Directorate revoked the registration of three Canadian charities on grounds that included links to terrorism.

Canada continued to play a leadership role in the revision of the Financial Action Task Force (FATF)'s international standards for anti-money laundering and anti-terrorist financing. As well, Canada recently extended its participation in the FATF-Style Regional Bodies network by becoming an observer of the Grupo de Accion Financiera de Sudamerica, the FATF-Style Regional Body for South America.

Federal Partners	Federal Partner Program Activity	Names of Programs for Federal Partners	Total Allocation (from Start to End Date)	2010-11 ($ millions)
				Planned Spending	Actual Spending	Expected Results	Results Achieved
Department of Finance Canada	Financial Sector Policy	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$3.3	$0.3	$0.3	The Department of Finance Canada will provide effective oversight of Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. The Department will complete the 10-year Treasury Board-mandated evaluation of the AML/ATF Regime to assess its effectiveness and access to continued funding. The Department will implement the Budget 2009 measure related to counter-measures against illicit financing. The Department will monitor the financial sector for money laundering and terrorist financing risks as well as other emerging illicit financing risks. The Department will participate in international forums related to combatting money laundering and terrorist financing such as the G7 Financial Experts meetings, the Financial Action Task Force, the Caribbean Financial Action Task Force, and the Asia Pacific Group on Money Laundering. In addition, the Department will contribute and respond to G20 work on illicit financing.	The Department of Finance Canada continued to address policy and operational issues to ensure the effectiveness of the AML/ATF Regime. The Department also hosted spring and fall meetings of the AML/ATF Regime's Public/Private Sector Advisory Committee. The Department completed the 10-year evaluation of the AML/ATF Regime and led the interdepartmental working group conducting the evaluation. The evaluation report was published on the Department's website. The Department continued to implement the Budget 2009 measure related to counter-measures against illicit financing, including legislative amendments promulgated as part of the legislation that implemented Budget 2010, the Jobs and Growth Act. The Department consulted with provincial gaming authorities on modernizing the Proceeds of Crime (Money Laundering) and Terrorist Financing Act to explicitly cover online casinos. The Department also met regularly with domestic partners to discuss potential money laundering and terrorist financing risks. The Department actively participated and undertook a leadership role at plenary and intercessional meetings of the Financial Action Task Force (FATF), the Caribbean Financial Action Task Force (CFATF), the Grupo de Accion Financiera de Sudamerica (GAFISUD) and the Asia/Pacific Group on Money Laundering (APG) plenary as well as meetings of the G7 Financial Experts. As the head of Canada's delegation at international forums relating to anti-money laundering and combatting the financing of terrorism (AML/CFT), the Department: coordinated federal partners' contributions; played a challenge function in FATF, APG, GAFISUD and CFATF mutual evaluation processes, a comprehensive peer review process that is the cornerstone of the global implementation of FATF standards (the FATF 40 Recommendations on money laundering and the 9 Special Recommendations on Terrorist Financing); contributed to the development of FATF policy and standards and the analysis of new AML/CFT trends and typologies; hosted a domestic workshop to feed into international work on incorporating effectiveness into the mutual evaluation process; participated in the FATF International Co-operation Review Group to identify and monitor high-risk jurisdictions; identified and leveraged funds to support capacity building and technical assistance for APG and CFATF as well as training for their individual members; and provided advice and guidance to CFATF member countries on governance and capacity issues.
Department of Justice Canada	The National Initiative to Combat Money Laundering	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$7.1	$0.1	$0.1	The Criminal Division of the Department of Justice Canada plays an important role in Canada's Anti- Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. For 2010–11, it is anticipated that the Criminal Division will use the resources it receives to carry out work related to the Financial Action Task Force (FATF), including attending FATF-related international meetings. Resources will also be allocated to ensure the Criminal Division's continued involvement in policy development related to money laundering and terrorist financing. Finally, the Human Rights Law Section will receive money to deal with any ancillary constitutional issues raised during the prosecutions.	The Department of Justice Canada, including the Criminal Law Policy Division and the Criminal Division of the Litigation Branch, continued to do operational work in support of the AML/ATF Regime. Counsel from the Criminal Division continued to provide legal advice to the Department of Finance Canada and to other participants in the AML/ATF Regime, and attended a number of FATF meetings. The funds targeted for the Department of Justice Canada within the AML/ATF Regime were used for Regime-related purposes only.
Public Prosecution Service of Canada (PPSC)	Addressing criminal issues to contribute to a safer world	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$11.5	$2.3	$3.0	PPSC plays a significant role in Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime. For 2010–11, it is anticipated that information provided to law enforcement by the Financial Transactions and Reports Analysis Centre of Canada  (FINTRAC) will result in a need by law enforcement for more prosecutorial legal advice. It is also anticipated that this information will result in additional charges being laid for money laundering and terrorist financing offences, thus resulting in an increased workload for prosecutors. PPSC also has responsibilities related to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). The work planned includes applications for production orders and prosecutions for PCMLTFA-related offences. In addition, resources will be used for the training of law enforcement personnel and prosecutors and for the development and coordination of policy related to AML/ATF. Finally, PPSC resources will be used to carry out work related to the Financial Action Task Force, as required.	During 2010–11, 6,494 charges for the possession of proceeds of crime and 30 charges for money laundering were laid under the Criminal Code, as well as 31 charges under the PCMLTFA. There were no charges laid related to the terrorism financing provisions of the Criminal Code during this period. Legal advice was provided by in-house counsel against 41 per cent of the possession of proceeds of crime files, 40 per cent of the money laundering files, and 19 per cent of the PCMLTFA files that these new charges represent. Finally, PPSC counsel provided both formal and ad hoc training to law enforcement personnel over the course of investigations. Resources were also dedicated to policy development and coordination to ensure consistency across all regions.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)	Collection, analysis and dissemination of financial information	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$306.6	$37.5	$36.2	FINTRAC's financial intelligence and case disclosures on money laundering will be widely disseminated to, and used by, law enforcement and intelligence agencies. FINTRAC will provide enhanced compliance in high-risk-reporting entity sectors.	In 2010–11, FINTRAC disclosed 769 cases of suspected money laundering, terrorist financing, and threats related to the security of Canada to law enforcement and security partners. This represents a significant increase over the 579 cases disclosed in 2009–10 and the 556 cases disclosed in 2008–09. In 2010–11, the average timeliness of case analysis improved by 18 per cent, decreasing from 68 days to 56 days. This decrease was due to improved business processes and a better understanding of partner needs. FINTRAC continued to make improvements to its mechanisms for defining and prioritizing partners' intelligence requirements. These enhancements have allowed FINTRAC analysts to better understand and respond to the needs of investigative and intelligence partners and to focus on the cases of highest importance. FINTRAC also continued to fulfill the needs of various partners and stakeholders in producing and disseminating a wide range of strategic financial intelligence assessments, briefs and reports. These products served to inform government policy and decision makers as well as reporting entities about money laundering and terrorist financing issues, methods, indicators and case studies, which enabled them to better combat money laundering and terrorist financing. One example during the year was the third report in FINTRAC's Typologies and Trends Report series entitled Money Laundering and Terrorist Financing (ML/TF) Typologies and Trends for Canadian Money Services Businesses (MSBs). This report, published in July 2010, will enable MSBs and other reporting entities and partners to recognize and combat money laundering and terrorist financing more effectively. Examinations continue to be a primary method for FINTRAC to ensure that reporting entities are complying with their obligations under anti-money laundering and anti-terrorist financing legislation. During 2010–11, FINTRAC made a number of enhancements to its current examination plan. The aim was to increase its coverage of reporting entities operating in the higher-risk sectors by examining the key market players, representing the majority of the respective sectors' market share, transactions and assets. FINTRAC also completed 684 examinations, of which 376 (55 per cent) were on-site examinations and 308 (45 per cent) were desk examinations. The Administrative Monetary Penalties (AMPs) program continues to encourage change in non-compliant behaviour. In its second year of implementation, an additional eight AMPs have been publicly named on FINTRAC's website, and one Non-Compliance Disclosure  was submitted to law enforcement.
Royal Canadian Mounted Police (RCMP)	Money Laundering Units (AML)	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$62.8	$6.9	$5.7	The RCMP will enhance national and international opportunities for the detection and investigation of money laundering activities, including leading national joint cash-smuggling interdiction operations. The RCMP will develop Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) disclosures, as well as other intelligence, to a point where resources from Integrated Proceeds of Crime units or from elsewhere in the RCMP could be redirected to investigations in order to increase seizures. The RCMP will review current distribution of resources in the Anti-Money Laundering Program to determine effectiveness, with a view to maximizing available resources.	The RCMP's Crime Branch has an on-site resource from the U.S. Internal Revenue Service's (IRS's) Criminal Investigation section to share intelligence from IRS databases for ongoing RCMP investigations involving U.S. targets and/or Canadians living in the U.S. Files with an international component for 2010 totalled 181. As part of the Integrated Proceeds of Crime and anti-money laundering (AML) human resource allocation review in 2010, five AML teams have been created in Ottawa, Montreal, Toronto, Calgary and Vancouver. This model will allow proactive FINTRAC intelligence to develop into large-scale money laundering and proceeds of crime investigations.
	Anti-Terrorist Financing Units	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$28.1	$5.2	$3.8	Through the gathering and analysis of financial intelligence, the Anti-Terrorist Financing Team (AFTF) will focus on converting that intelligence into proactive investigations, thus enhancing its ability to detect and deter terrorist financing activities. The AFTF will continue to work closely with domestic partners to further criminal investigations into terrorist financing and will participate in and contribute to international forums, such as the Financial Action Task Force and international law-enforcement working groups on terrorist financing.	The ATFT supports counter-terrorism strategies related to terrorist financing, financial intelligence gathering, investigations and enforcement. In 2010–11, ATFT supported 30 major investigations. In 2010-11, ATFT submitted six voluntary information reports to the Financial Transactions and Reports Analysis Centre (FINTRAC). In 2010–11, ATFT received 13 disclosures from FINTRAC. ATFT continues to provide training to the RCMP and its partner agencies. In 2010–11, two Anti-Terrorist Financing courses were delivered, with 52 candidates receiving training. ATFT continues to support the Financial Action Task Force (FATF), the Asia/Pacific Group on Money Laundering, and the Middle East and North Africa Financial Action Task Force. Building on existing partnerships with the lead department, the Department of Finance Canada, and its partners, the RCMP has participated at four practitioners' groups and conferences. The Department of Finance Canada continues to consult with ATFT on FATF-related matters, such as international cooperation, information sharing and related projects.
Canada Revenue Agency (CRA)	Special Enforcement Program (SEP)	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$23.8	$2.2	$2.2	CRA will focus on the following four pillars: Participating in committees and initiatives to manage and enhance Canada's Anti-Money Laundering and Anti-Terrorist Financing (AML/ATF) Regime; Enhancing operational relationships with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and other partners in the AML/ATF Regime; Conducting research and analysis; and Contributing to the work of international organizations to enhance cooperation between tax adminis-trations and AML/ATF authorities. In 2010–11, SEP will continue to thoroughly review all disclosures received from FINTRAC and to select those with potential for audit. The projected number of audits remains at 90, with a projected federal tax recovery of $7 million. However, the complexity of the files resulting from FINTRAC referrals is increasing, and this may lead to a reduction in the number of audits SEP is able to complete in 2011–12. The results of these audits will be gathered for intelligence purposes to determine whether trends can be established.	CRA has made significant efforts to enhance its operational relationships FINTRAC and other partners in the AML/ATF Regime. During this reporting period, CRA coordinated an information session with FINTRAC, focusing on its operational functions in order to improve the quality of information shared between the two organizations. CRA continues to explore options to increase its interaction with FINTRAC and its law enforcement partners, particularly the Royal Canadian Mounted Police. Meetings at the headquarters level were held to discuss and clarify roles, expectations, impediments and responsibilities to maximize the partnership and the shared goal of addressing the accumulation of illicit wealth in the criminal economy. CRA received 124 FINTRAC disclosures between April 1, 2010, and March 31, 2011. The majority of the disclosures have been worked on by SEP, which conducts audits, delinquent actions and other enforcement activities on individuals suspected of deriving income from illegal activities. In 2010–11, SEP completed 115 audits based upon FINTRAC disclosures, with total federal income taxes reassessed in the amount of $26,756,939 and total Goods and Services Tax / Harmonized Sales Tax dollars assessed at $813,069. Of the 115 audits completed, four cases were referred for consideration of criminal prosecution related to tax evasion. CRA has begun tracking information from FINTRAC disclosures in order to identify trends in tax non-compliance. This intelligence will be useful for risk assessment of future disclosures and other referrals from law enforcement agencies to CRA.
	Charities Directorate	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$11.8	$4.4	$4.4	CRA, under the Income Tax Act, has responsibility for administering the registration system for charities. This recognizes that the existence of a strong regulatory deterrence against terrorist abuse of charities contributes to suppressing the financing of terrorism in Canada and to protecting and preserving the social cohesion and well-being of Canadians. CRA's regulatory oversight of charities has been strengthened by the enactment of complementary measures under the Charities Registration (Security Information) Act and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act and by changes to the Income Tax Act that authorize broader information sharing between anti-money laundering and anti-terrorist financing (AML/ATF) agencies. Under these authorities, intelligence provided to CRA assists in its mandate to protect the integrity of the registration system for charities, and information disclosed by CRA can be used for investigative purposes. In 2010–11, CRA will consolidate its capacity to identify and respond to cases involving possible links to terrorism through continuing information technology (IT) development, expanding formal information-sharing arrangements with Regime partners, refining performance measurement and risk management tools, and staffing and training its full complement of program full-time equivalents.	Results delivered in 2010–11 focused on enhancing the suite of IT tools to support analysis and performance measurement; refining risk management tools; and continuing to staff and train the full complement of program full-time equivalents. CRA continued the normal business of reviewing applications for charitable registration, monitoring registered charities, and exchanging information under legal authorities with its partners, in relation to risks of support for terrorist activities. CRA revoked the registration of three Canadian charities on grounds that included their links to terrorism. It also continued to develop and enhance relationships and training with Regime partners, and provide a strong CRA presence in interdepartmental committees addressing cross-cutting policy and review activities relevant to Canada's AML/ATF regime. Note: The numbers in columns 4 and 5 have been revised from what was originally reported in the 2010–11 Report on Plans and Priorities.
Canada Border Services Agency (CBSA)1	Risk Assessment Program	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime	$74.6	$2.0	$1.4	The Risk Assessment Program involves identifying high-risk individuals and goods before their arrival at Canada's border by using advance passenger and cargo information from carriers, importers, exporters, and other partners. Once identified, high-risk individuals or goods are flagged for closer examination and possible enforcement action at a Canadian port of entry.	During 2010–11, the CBSA performed more than 1,640 seizures under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, totalling over $30 million. Approximately $2.6 million of this total was forfeited to the Crown, and penalties have been assessed in excess of $800,000. Over 100 seizures have resulted in forfeiture as suspected proceeds of crime or funds for the use of terrorist activities.
	Enforcement	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime		$3.5	$5.4	Border services officers detain, seize or forfeit, and impose penalties on goods and currency that are non-compliant with the Customs Act or other Canadian legislation and regulations, such as the Proceeds of Crime (Money Laundering) and Terrorist Financing Act. They are also responsible for administrating and enforcing the Immigration and Refugee Protection Act.
	Conventional Border	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime		$0.4	$0.2	CBSA is responsible for the development and administration of border-related programs and associated policies, regulations, and procedures.
	Recourse	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime		$0.3	$0.3	A redress process is available to individuals, importers, and carriers for CBSA enforcement-related actions.
	Internal Services	Canada's Anti- Money Laundering and Anti-Terrorist Financing Regime		$1.3	$1.3	Internal Services provides program support in areas such as governance and management support (e.g., communications and legal services), resources management services (e.g., information technology, human resources and financial management), and asset management services (e.g., real property and acquisitions).
Total			$529.5	$66.3	$64.3

Total Allocation For All Federal Partners (from Start to End Date)	Total Planned Spending for All Federal Partners for 2010–11	Total Actual Spending for All Federal Partners for 2010–11
$533.8†	$66.3	$64.3
† Certain organizations that are partners in Canada's Anti-Money Laundering and and Anti-Terrorist Financing Regime are exempt from reporting; therefore, the figures presented in the table may not sum to the total amount allocated.

Results to be achieved by non-federal partners (if applicable): Not applicable

Contact information.

Rachel Grasham
Chief, Financial Crimes Section
Telephone: 613-943-2883

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1 The figures reported for CBSA under Planned Spending 2010–11 include 20 per cent for the employee benefits plan (EBP) but not the 13 per cent for Public Works and Government Services accommodation costs.