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2009-10
Report on Plans and Priorities

Fisheries and Oceans Canada

Supplementary Information (Tables)

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Table of Contents

• Details on Transfer Payments Programs
• Green Procurement
• Sustainable Development Strategy
• Horizontal Initiatives
• Internal Audits
• Evaluations
• Sources of Respendable and Non-respendable Revenue
• Status Report on Major Crown Projects
• Summary of Capital Spending by Program Activity
• User Fees/External Fees
• Future-oriented Statement of Operations

Table of Contents

Aboriginal Aquatic Resource and Oceans Management (AAROM)

Aboriginal Fisheries Strategy

Atlantic Integrated Commercial Fisheries Initiative

Aboriginal Inland Habitat Program

Aquaculture Innovation and Market Access Program (AIMAP)

Academic Research Contribution Program

Pacific Integrated Commercial Fisheries Initiative

DFO Small Craft Harbour Class Contribution Program

Small Craft Harbours (SCH) Divestiture Class Grant Program

 

 

Aboriginal Aquatic Resource and Oceans Management (AAROM)

Strategic Outcome:	Sustainable Fisheries and Aquaculture — Conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders
Program Activity:	Fisheries and Aquaculture Management
Start date:	2005-2006
End date:	Ongoing
Description:
Launched in October 2004, the AAROM Program provides for Capacity Building and Collaborative Management initiatives that supports the involvement of Aboriginal groups, working together, to obtain access to technical, scientific and administrative expertise in order to facilitate their participation in multi-stakeholder and other decision-making processes used to manage aquatic resources and ocean spaces. Aboriginal groups transition from Capacity Building into Collaborative Management. Provisions of Contribution Agreements under AAROM may include: establishing AAROM collaborative management structures or AAROM bodies; accessing skilled professional, administrative and technical expertise from within the Aboriginal community or other external sources but excluding public office holders; participating in aquatic resource and oceans management planning — through development of resource and oceans management plans and coordination of community input into the development of plans; developing or providing input into the development of models, structures and processes to guide the interactions of external bodies and agencies with the respective Aboriginal group; planning and holding consultation sessions with member communities on AAROM-related issues; participating in various government technical committees and other multi-stakeholder fora; developing, implementing and monitoring AAROM capacity building strategies; developing enforcement capacity including Aboriginal Fishery Officers and upgrading the skills of Aboriginal Guardians; collaborating in scientific research efforts related to aquatic resource and oceans management; participating in and providing input to various aquatic and oceans resource policy and management processes; undertaking scientific research activities to support appropriate watershed/ecosystem-based management efforts, including the collection and gathering of Aboriginal Traditional Knowledge (ATK); conducting community outreach, stewardship and awareness activities; conducting liaison activities with other relevant/interested parties; developing protocols on ATK — dealing with new and innovative approaches to collect, analyze and integrate this information into environmental and habitat assessments and management practices; ongoing program planning, administration and reporting activities of the AAROM Collaborative Management body; and negotiations and implementation of related AAROM agreements (and associated protocols) for which DFO is a signatory. AAROM is applicable in areas where DFO manages the fishery, and where land claim agreements addressing those matters covered under AAROM are not in place. Where the Aboriginal group has signed a comprehensive land claims agreement, and one or more of the matters covered by the AAROM Program are not dealt with in the agreement, the group would be eligible to apply for support in those matters not covered.
Expected results:
34 AAROM Agreements (23 Collaborative Management and 11 Capacity Building) with Aboriginal organizations involving approximately 330 member communities. These agreements allow Aboriginal groups to: work together in relation to a watershed or ecosystem; build capacity in aquatic resource and oceans co-management areas including aquaculture; establish aquatic resource and oceans management bodies — or "aggregate bodies"; obtain access to skilled personnel and related support which allows them to participate more effectively in decision-making and advisory processes; obtain access to commercial fishery opportunities (including vessels and gear); and build fisheries catch monitoring and enforcement capacity.

 

$ millions	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	0.0	11.1	11.1	11.1
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	0.0	11.1	11.1	11.1

 

Planned evaluations and audits
An evaluation was conducted on AAROM in 2008-09. This evaluation covered elements of a formative and summative nature. The valuation is scheduled to be completed prior to March 31, 2009. Internal audits are conducted in accordance with TBS Policy on Transfer Payments and the Audit and Evaluation Directorate's Risk-Based Internal Audit Plan.

 

Aboriginal Fisheries Strategy

Strategic Outcome:	Sustainable Fisheries and Aquaculture — Conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders
Program Activity:	Fisheries and Aquaculture Management
Start date:	1992
End date:	Ongoing
Description:
Launched in 1992, the Aboriginal Fisheries Strategy (AFS) provides for negotiated arrangements with Aboriginal groups around the harvesting, use and management of Aboriginal food, social and ceremonial fisheries and, where applicable, communal commercial fisheries. In 1994, DFO introduced a commercial access component to the AFS, the Allocation Transfer Program (ATP). The ATP facilitates the voluntary retirement of commercial fishing licences and the issuance of communal licences to eligible Aboriginal groups in a manner that does not add to the existing effort on the resource. Provisions of negotiated fisheries agreements under the AFS may include: a harvest allocation to the Aboriginal group for FSC purposes; terms and conditions pertaining to communal fishing licences; enforcement provisions, including the training and engagement of Aboriginal Fisheries Guardians; arrangements for the co-management and stewardship of fisheries resources and their supporting habitats, including the restoration and protection of species at risk; co-management projects for the improvement of the management of fisheries generally, such as scientific research, stock assessment, fish enhancement and habitat management; and communal commercial fishing arrangements including the transfer of vessels and gear as well as support for fisheries-related economic opportunities (e.g., demonstration fishery projects, aquaculture development, business planning support, etc.). Where Agreements pertaining to the FSC Fisheries cannot be concluded between DFO and an Aboriginal group, DFO will issue to the group a communal fishing licence that establishes the terms and conditions of its FSC fishery. The AFS is applicable where DFO manages the fishery and where a fisheries management regime has not already been established under a land claims settlement.
Expected results:
Increased integration of Aboriginal peoples in the commercial fishing industry. Increased participation of Aboriginal groups in fisheries co-management activities. Increased and more effective participation of Aboriginal groups in DFO/multi-stakeholder aquatic resource and oceans management structures and processes. More collaborative relations among DFO, Aboriginal groups and non-Aboriginal resource users.

 

$ millions	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	0.0	33.7	33.7	33.9
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	0.0	33.7	33.7	33.9

 

Planned evaluations and audits
The Evaluation Directorate of DFO will conduct an evaluation of the AFS, AAROM, program components of the IACMF in Fiscal Year 2013-14 using the common IACMF Evaluation Strategy contained in this document. The evaluation process will be undertaken in an integrated fashion to the extent possible using the IACMF Evaluation Strategy. The original objectives of each of the individual programs will be respected and examined and separate reports will be created for each Contribution Program. Internal audits are conducted in accordance with TBS Policy on Transfer Payments and the Audit and Evaluation Directorate's Risk-Based Internal Audit Plan.
Audit completed in 2007 available at http://www.dfo-mpo.gc.ca/communic/cread/audits/07-08/60285_e.htm. Evaluation completed in 2007 available at http://www.dfo-mpo.gc.ca/communic/cread/evaluations/07-08/60285_e.htm.

 

Atlantic Integrated Commercial Fisheries Initiative

Strategic Outcome:	Sustainable Fisheries and Aquaculture — Conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders
Program Activity:	Fisheries and Aquaculture Management
Start date:	2007-2008
End date:	2011-2012
Description:
The long-term goal of the Atlantic Integrated Commercial Fisheries Initiative is to continue to create positive conditions towards concluding longer-term DIAND-led arrangements for MMFNs. The immediate goals are to assist MMFNs to: Enhance capacity in governance and management of MMFN commercial fishing enterprises; Develop effective participation in sustainable, integrated commercial fisheries with a greater role in fisheries management; and Help diversify existing fishing enterprises to support the full realization of economic potential of existing fishing licences. AICFI has been developed to proceed along two separate paths of deployment. The first is through individual MMFNs where the individual First Nations can apply for funding for components of the initiative provided they have completed the prerequisite planning as per component requirements. This will allow First Nations the ability to personalize their development to their own needs and development schedule. The second path of deployment is through associated aggregate bodies which may apply for funding to proceed with the development of the CFE Business Development Unit as well as co-management and various training and mentoring projects. Aggregate bodies will develop expertise that can be shared with individual First Nations which will provide smaller First Nations a larger voice within the commercial fishery as well as provide a higher value for dollar on mentoring and training sessions.
Expected results:
AICFI has developed an RMAF/RBAF which sets the performance measurement and risk management strategy to assist DFO management in the delivery of the program. The following results are expected for the participating MMFNs: Sound (transparent and accountable) commercial fishing enterprise (CFE) governance structures; Sound business management processes for CFE management and operation; A Fisheries Coordinator mentored in areas of expertise required to meet the commercial fisheries business management needs of the community; Fishing skills acquired through at sea mentoring or in-class training; Fisheries Management System (FMS) in place for interested, eligible MMFNs; Greater involvement by MMFNs in fisheries co-management; and Increased ability by MMFNs to optimize existing access and achieve CFE profitability and sustainability.

 

$ millions	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	0.0	9.6	11.6	11.3
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	0.0	9.6	11.6	11.3

 

Planned evaluations and audits
A formative evaluation of AICFI will be completed in 2009-2010 and a summative evaluation in 2012-2013. Internal audits are conducted in accordance with TBS Policy on Transfer Payments and the Audit and Evaluation Directorate's Risk-Based Internal Audit Plan.

 

Aboriginal Inland Habitat Program

Strategic Outcome:	Healthy and Productive Aquatic Ecosystems – the sustainable development and integrated management of resources in or around Canada's aquatic environment through oceans, fish habitat and species at risk management.
Program Activity:	Habitat Management
Start date:	2004-2005
End date:	Ongoing
Description:
The objective of the Aboriginal Inland Habitat Program (AIHP) is to assist Aboriginal communities in inland provinces (Alberta, Saskatchewan, Manitoba, Ontario, and parts of Quebec) to develop their capacity for collaborative fish habitat management. AIHP endeavors to enhance the ability of Aboriginal communities, working together, to participate in decision-making related to habitat management regulatory and non-regulatory activities. Greater coordination with Aboriginal groups in inland areas on habitat matters should allow for more effective delivery of DFO's habitat management responsibilities. It should also help Aboriginal groups and DFO work more effectively to understand the implications and identify the impacts on First Nations of projects or proposals that affect fish habitat.
Expected results:
Collaborative management capacity, infrastructure, governance, processes and relationships in place with Aboriginal groups; Capacity and standards are in place to support compliance and accountability; Increased capacity of Aboriginal groups to participate in aquatic resources and oceans management at a broad watershed/ecosystem level.

 

$ thousands	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	2,850.0	1,875.0	1,875.0	1,875.0
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	2,850.0	1,875.0	1,875.0	1,875.0

 

Planned evaluations and audits
None currently planned

 

Aquaculture Innovation and Market Access Program (AIMAP)

Strategic Outcome:	Sustainable Fisheries and Aquaculture and Healthy and Productive Aquatic Ecosystems.
Program Activity:	Sustainable aquaculture management
Start date:	June 2008
End date:	March 31, 2013
Description:
The Aquaculture Innovation and Market Access Program will help to create the conditions necessary for the success of the Canadian aquaculture industry. The Canadian aquaculture industry has expanded much more slowly than its international competitors due to the combination of a number of sector specific constraints including, among others: Inadequate Canadian investment in innovation to support high sector productivity, competitiveness, expansion and advances in greener technology; and Inadequate Canadian product certification and traceability investment to meet emerging market demands and expectations. While these constraints are not solely responsible for the sector's slow growth, they contribute significantly to a poor business climate for aquaculture.
Expected results:
Catalyze private sector and other investment in the aquaculture sector that will: Improve the competitiveness of the Canadian aquaculture industry by encouraging an aquaculture sector that continuously develops and adopts innovative technologies and management techniques to enhance its global competitiveness and environmental performance; and Position Canadian aquaculture products as having high value in the market place based on their environmental performance, traceability and other considerations. Contribution funding under AIMAP is intended to enable recipients to plan, manage and complete projects that will achieve DFO strategic outcomes. Annually, $4.5 M is allocated to innovation related projects and $200,000 towards market access projects.

 

$ millions	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	n/a	0.0	0.0	0.0
Total contributions	n/a	4.7	4.7	4.7
Total other types of transfer payments	n/a	0.0	0.0	0.0
Total Transfer payments	n/a	4.7	4.7	4.7

 

Planned evaluations and audits
None currently planned

 

Academic Research Contribution Program

Strategic Outcome:	Support DFO strategic outcomes
Program Activity:
Start date:	2004
End date:	March 2009
Description:
Funding for academic research in support of DFO Science priorities
Expected results:
Increased academic research relevant to DFO strategic priority areas Increased Scientific knowledge related to DFO priorities Increased credibility of DFO Science within the academic community and with stakeholders

 

$ thousands	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	700,000	582,000	252,000	140,000
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total program activity	700,000	582,000	252,000	140,000

 

Planned evaluations and audits
Planned evaluations: 2008-09
Planned audits: 2008-09 (will be deferred by 1 year)

 

Pacific Integrated Commercial Fisheries Initiative

Strategic Outcome:	Sustainable Fisheries and Aquaculture — Conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders
Program Activity:	Fisheries and Aquaculture Management
Start date:	July 2007
End date:	March 31, 2012
Description:
On July 16, 2007, the Minister of Fisheries and Oceans announced the Pacific Integrated Commercial Fisheries Initiative, which is designed to support increased First Nations participation in integrated commercial fisheries, where all commercial harvesters fish under common and transparent rules, a higher standard of accountability for all resource users, and strengthened collaboration and cooperation amongst all fishery interests. PICFI is a $175 million, 5-year initiative, developed to support the implementation of much needed reforms which includes the following four distinct yet integrated elements: Increased First Nation Participation in Integrated Commercial Fisheries, BC-wide, in advance of treaties, through the Voluntary relinquishment of Commercial Licenses and quota to support First Nations self-sufficiency through economic development, build a foundation for future treaties and bring First Nations more fully into integrated management processes; First Nation Capacity Building to support the development of First Nations commercial fisheries enterprises so that the commercial fishery access provided is effectively utilized and managed; Fisheries Accountability Measures to support enhanced fisheries monitoring, catch reporting, greater enforcement and enable the development of a traceability system all fishery participants are confident that integrated management plans are being respected and that the fisheries resource is being managed in a sustainable manner; and New Pacific Co-Management Models to establish new mechanisms for increasing the collaboration of resource users in commercial fisheries decision-making to facilitate joint problem-solving among interested groups and better achieve sustainable resource management approaches that meet conservation goals.
Expected results:
increased participation and benefits for First Nations in integrated commercial fisheries and related areas in advance of treaty; establishment of First Nation owned and operated Commercial Fisheries Enterprises (CFE) operating with sound governance practices and structures. new models of co-management supporting strengthened cooperation and collaboration amongst users, particularly around salmon; a higher standard of reporting and monitoring, and strengthened enforcement levels.

 

$ millions	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	0.0	38.9	32.5	26.5
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	0.0	38.9	32.5	26.5

 

Planned evaluations and audits
A formative evaluation will be completed in the autumn of 2009 and a summative evaluation in the autumn of 2012. Internal audits are conducted in accordance with TBS Policy on Transfer Payments and the Audit and Evaluation Directorate's Risk-Based Internal Audit Plan.

 

DFO Small Craft Harbour Class Contribution Program

Strategic Outcome:	Safe and Accessible Waterways
Program Activity:	Small Craft Harbours
Start date:	April 3, 2008
End date:	March 31, 2013
Description:
The Small Craft Harbours (SCH) Class Contribution Program provides support for safe harbours for the benefit of present and future generations by maintaining the highest possible standards to Canadians. Funding assistance for the national network of harbours can be categorized into two main support areas: Harbour Capacity Building: Support of fishing industry infrastructure such as the building of new facilities, construction and maintenance and harbour development studies and/or other research and development activities. Operational and Capacity Support: Activities to support Harbour Authorities and Harbour Authority support organizations, including activities related to organizational capacity development, insurance coverage, training and professional development, conferences relevant to harbour operations.
Expected results:
Increased client satisfaction. More timely response to environmental obligations. Increased local economic development and reduced dependency on DFO. Harmonization of services across harbours. Strengthened and more sustainable Harbour Authority model.

 

$ thousands	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	0.0	0.0	0.0	0.0
Total contributions	1,646.0	500.0	500.0	500.0
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	1,646.0	500.0	500.0	500.0

 

Planned evaluations and audits
Formative in 2010-11

 

Small Craft Harbours (SCH) Divestiture Class Grant Program

Strategic Outcome:	Safe and Accessible Waterways
Program Activity:	Small Craft Harbours
Start date:	April 1, 2006
End date:	March 31, 2011
Description:
DFO's program review commitments included the decision to dispose of recreational harbours and all derelict and low-activity harbours. These harbours are offered at nominal cost to other federal departments, provinces, municipalities, local non-profit organizations or First Nations. If there is no interest, the harbour is offered at market value. As a last resort, it is demolished. The Divestiture Class Grant Program provides those recipients who wish to acquire a harbour as soon as possible with a payment to accept the harbour "as is" in lieu of SCH undertaking any required repairs or improvements. The recipients are not obligated to use the payment for repairs and improvements. They must, however, assume full responsibility for the harbour and must keep the harbour open to the public for at least five years.
Expected results:
Reduction in the number of recreational, derelict or inactive/less active fishing harbours owned and operated by DFO at a cost saving to Canadians by providing funds directly to recipients rather than effecting repairs prior to transfer Harbours will be divested quicker using the grant program compared to the regular divestiture process The cost of the grant is less than the cost of DFO effecting the repairs Safe and public access to the harbours will continue for a minimum of five years SCH will be able to focus its limited resources on a smaller, more efficient portfolio of core fishing harbours

 

$ thousands	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2011-12
Total grants	2,300.0	500.0	500.0	500.0
Total contributions	0.0	0.0	0.0	0.0
Total other types of transfer payments	0.0	0.0	0.0	0.0
Total Transfer payments	2,300.0	500.0	500.0	500.0

 

Planned evaluations and audits
Summative Evaluation in 2011-12 Renewal audit in 2011-12

 

Table: Green Procurement

Plans to meet the objectives of the Policy on Green Procurement

As a science based department, DFO is keenly aware of their responsibility with regards to sustainable development and green procurement. We have encouraged Green Procurement for many years and have included the requirement for clauses in our contracts requiring reports to be i.e. double-sided on recycled paper or on disk also selection of goods and services is based on their efficient use of energy and natural resources, potential to reuse or recycle and safe means of disposal. The Mandatory Standing Offers of PWGSC is further enhancing this activity with their implementation of environmental performance considerations in their procurement decision-making processes and we applaud this move. The various training courses and information that have been made available has enabled our employees to be more aware of their roles and responsibilities as it relates to green procurement. Transportation is the single largest source of greenhouse gas emissions in Canada. The "greening" of DFO motor vehicle fleet is a continuous challenge considering the majority of vehicles in the DFO fleet are full-size pick up trucks (69.4%). While the essential of the DFO necessitate the need for a large number of light and medium duty trucks, either to meet the operational needs of operating in remote locations or the requirements for transporting equipment, controls to ensure that vehicles are purchased with respect to balancing equipment versus environmental sustainability (including programs when available that encourage purchasing vehicles that consume less fuel, alternative fuels, or both) should continue. Though the passenger motor vehicle fleet is considerably smaller (9.3%), the department is seriously looking at different approaches to purchase hybrid or duel fuel where applicable such as Leadership Vehicle Rebate Initiative; potential funding. DFO will develop a Green Procurement Policy early in the next fiscal year and look forward to working with private industry and other government departments to continue our green procurement together with sustainable development initiatives. Currently DFO is laying out the groundwork to combine Procurement, Contracting and Realty requirements embedded in a policy that will allow DFO to build a policy in FY 2009-10. As part of a policy, we wish to embed into the policy a section that addresses the four stages of Life Cycle Management (LCM) of assets, not only looks at Green Procurement from the Planning and Procurement stages but as well the In-Use [maintenance] and disposal issues at the end of the life cycle stage [to reflect the current CAD position on e-waste management.]

Establishment of green procurement targets

In progress. Targets will be integrated into the new DFO Green Procurement Policy.

Green procurement targets associated benefits anticipated

Targets will be integrated into the new DFO Green Procurement Policy.

Table: Sustainable Development Strategy

SDS Departmental Goal

On behalf of the Government of Canada, DFO is responsible for developing and implementing policies and programs that support Canada's scientific, ecological, social and economic interests in oceans and fresh waters. As a department committed to sustainable development, DFO works to protect and conserve Canada's aquatic resources, while supporting the development and use of these resources.
Federal Sustainable Development goal	Performance measurement	Department's expected results for 2009-10
Sustainable Development and Use of Natural Resources Governance for Sustainable Development	Risk Management Framework implemented in regions; guidance material developed and followed. Number of National Operational Statements (OPS) developed and approved. Decrease in the number of letters of advice (LOAs) related to low-risk referrals covered by National and Regional Operational Statements. Number of OPS integrated into provincial/territorial permitting processes (low risk). Number of training modules, training courses and workshops developed. Percentage of Habitat Management staff that have completed mandatory training courses (Habitat Management 101, Information Management 101). Percentage of staff that have completed their individual training under the Mandatory Training Program. More time and resources dedicated to monitoring/auditing. Date in project cycle when environmental assessment process begins for Major Projects. Environmental assessments to be triggered progressively closer to the beginning of the review process. Number of industry associations who have integrated Operational Statements (OPS) into industry best management practices. Improved understanding and relationships with national and regional stakeholders, and number of partnership agreements and/or arrangements on habitat management being implemented. Risk Management Framework informed by peer reviewed science advice.	Through the Environmental Process Modernization Plan, service delivery and effectiveness of fish habitat management is consistent with principles of sustainable development.
Sustainable Development and Use of Natural Resources	Progress against activities that support the implementation of Canada's Action Plan to Address the Threat of Aquatic Invasive Species. Database, methodologies and tracking system developed. Risk Assessments completed.	The introduction of aquatic invasive species is minimized and the impact of existing ones is remediated.
Sustainable Development and Use of Natural Resources	Management plans in place for designated MPAs.	Marine activities are proactively managed and the health of Canada's oceans is preserved in collaboration with stakeholders.
Sustainable Development and Use of Natural Resources	Effectiveness of response to number of spills.	Efficacy in ensuring an effective response to minimize adverse impacts of marine pollution incidents in Canadian waters is enhanced.
Governance for Sustainable Development	All maintenance, repair, or divestiture projects will comply with applicable environmental regulations and standards, including environmental assessments and environmental compensation measures. 95% of all Harbour Authority-managed harbours in place for at least two years will have developed and submitted the required Environmental Management Plans.	Small-craft harbours operations are consistent with recognized Canadian and international environmental standards.
Sustainable Development and Use of Natural Resources Governance for Sustainable Development	Number of levels of service standards achieved. Number of client consultations held.	Implementation of a risk-based priority approach in providing up-to-date navigational information to mariners in a timely and efficient manner.
Sustainable Development and Use of Natural Resources	All lighted aids converted.* 80% of steel buoys replaced* * completed and reported in the 2007-2008 DPR	The right mix of electronic and conventional aids to navigation is obtained to meet the changing needs of mariners and to improve overall cost and eco-efficiencies.
Sustainable Development and Use of Natural Resources Governance for Sustainable Development	Percentage of conservation frameworks that incorporate the precautionary and ecosystem approach. Number of roundtables, task groups and summits that address specific fisheries issues. Number of fisheries with stable sharing arrangements. Number of disputes regarding access and allocation that are settled. Number of education programs and communication and inter-governmental initiatives. Number of partnerships and negotiated enforceable management measures. Number of major case investigations. Establishment of administrative sanctioning regime. Expanded ticketing system.	A new approach to fisheries management is developed through Fisheries Renewal initiatives, such as the Sustainable Fisheries Framework and associated policies and tools to meet the needs of an evolving industry, recognizing principles of sustainable development, as well as the precautionary and ecosystem approach. Note: Language has been revised from the SDS in order to provide more specificity.
Sustainable Development and Use of Natural Resources Governance for Sustainable Development	Science advice to inform the development of a new aquaculture governance regime will be measured by: Number of collaborative scientific research projects. Use of new knowledge to provide scientific advice on the interactions between aquaculture and the environment.	A new aquaculture governance regime is developed.
Sustainable Communities Governance for Sustainable Development	Number of AFS contribution agreements. Number of groups with signed contribution agreements. Number of AAROM capacity building contribution agreements. Number of multi-year AAROM collaborative management agreements. Number of groups who have made the transition from capacity-building to collaborative management.	Strengthened collaboration with Aboriginal groups contributing to sustainable Aboriginal communities.
Governance for Sustainable Development Sustainable Development and Use of Natural Resources	Extent to which scientific contributions (workshops, publications) have contributed to addressing strategic issues under the International Governance Strategy. Reduction in over-fishing and IUU from current levels on high seas and reduced pressure on stocks. Degree to which Regional Fisheries Management Organizations are moving from stocks to ecosystem-based management issues on the international scene. Frequency and tone (positive-neutral negative) of international media reports through media analysis. Improved international cooperation on governance issues.	Illegal, Unreported, and Unregulated (IUU) fishing and over-fishing are reduced through greater international cooperation on management, enforcement, and trade measures.
Sustainable Development and Use of Natural Resources	Annual review of DFO SEA process as part of the regular business planning cycle.	Environmental impacts are taken into consideration in DFO's policies, plans and programs through the integration of a Strategic Environmental Assessment (SEA) approach.
Sustainable Development and Use of Natural Resources	Number of DFO personnel trained via a national delivery of the Environmental Compliance Program (both various media and in-person training sessions).	DFO staff members understand and are able to respond to environmental concerns as part of their daily work, including environmental compliance requirements, when relevant.
Climate Change	State of the Ocean reports for Pacific and Atlantic coasts* with relevant scientific publications, and enhanced body of knowledge for the Arctic Ocean and ecosystem. *work may continue beyond 2009 Department-wide campaign of education and promotion to enhance awareness and understanding of the risks of climate change will be measured by: attendance at events and sessions; number of users to visit the improved website; the creation and distribution of promotional material within the Department; and amount of information distributed to employees via email/mail.	The impact of climate change issues on departmental business is better understood.
Climate Change	Environmental and sustainability standards and specifications in place* for use for all CCG asset development and procurement. Specifically, environmental standards in place for design and acquisition of the next phase of Fleet Renewal. Number of standards that contain environmental/sustainability considerations. Number of specific standards that are published. *deferred to 2011-2012 to allow for the development of an Environmental Management Framework which will establish principles and considerations to begin addressing greening of government priorities including green house gas emissions reductions.	A Canadian Coast Guard (CCG) that better understands the environmental impact of its business and directs the operation and development of all assets in accordance with a set of industry leading standards and regulations.
Sustainable Development and Use of Natural Resources Sustainable Communities	Number of DFO personnel trained in Environmental Management Plans via internet training modules or in person sessions. Number of assessments undertaken each year. Number of contaminated sites funded under this program for remediation or risk management.	Frameworks for action are developed to direct DFO's environmental man-agement, including storage tank systems, hazardous materials, and contaminated sites.

 

DFO's next Sustainable Development Strategy will be tabled in 2011.

The Federal Sustainable Development Act, passed in June 2008, responds to the need for a more coordinated implementation of sustainable development within the federal government. It requires that the Minister of the Environment table a federal sustainable development strategy in Parliament, complete with goals, targets and implementation strategies, by the spring of 2010. Federal departments are expected to table individual strategies in 2011 to reflect how their program activities will support the federal goals and targets. The federal and departmental strategies will contribute to a more coherent approach to sustainable development as well as foster greater transparency and accountability to the public and Parliament.

Horizontal Initiatives

Horizontal initiatives are programs or initiatives in which partners from two or more organizations have agreed under a formal funding agreement to work toward the achievement of shared outcomes.

DFO is the lead on one horizontal initiative, Health of the Oceans, which was allocated $61.4 million in federal funds over a five-year period. This initiative is discussed in detail in DFO's Report on Plans and Priorities.

 

Table: Horizontal Initiatives

Health of the Oceans (HOTO)

 

DFO is a partner on the following horizontal initiatives led by other government departments:

Program	Lead Department	DFO Partner	Start Date	End Date of the Horizontal Initiative
Building Public Confidence in Pesticide Regulation and Improving Access to Pest Management Products	Health Canada	Yes	2002-03	2008-09
Canadian Biotechnology Strategy	Industry Canada	Yes	1998	2010-11
Invasive Alien Species Partnership Program	Agriculture and Agri-Food Canada, DFO, Natural Resources Canada, and EC all lead the Aquatic Invasive Species Partnership Program, but the program is administered by EC.	Yes	2005	2009-10
International Polar Year	Indian and Northern Affairs Canada	Yes	April 1, 2007	March 31, 2012
National Aquatic Animal Health Program	Canadian Food Inspection Agency	Yes	2005	Ongoing
Mackenzie Gas Project (MGP) and induced oil and gas exploration and development in the NWT	Indian and Northern Affairs	Yes	Budget 2004, Budget 2005, 2004-05	2008-09
Implementation of the Act respecting the protection of wildlife species at risk in Canada	Environment Canada	Yes	2000	Ongoing
20% Paper Burden Reduction Initiative	Industry Canada	Yes	March 19, 2007	November 2008
Canadian Group on Earth Observations (CGEO)	Environment Canada	Yes	July 2003	Ongoing; No new funds — annual multi-departmental contributions
Great Lakes Basin Ecosystem Initiative	Environment Canada	Yes	April 1, 2005	March 31, 2010

Table: Upcoming Internal Audits over the next three fiscal years

Name of Internal Audit	Internal Audit Type	Status	Expected Completion Date
2008-2009
Information for Decision Making	Special Audit	Conduct Stage	2009-2010
Aboriginal Aquatic Resource and Oceans Management (AAROM)	Compliance Audit	Conduct Stage	2009-2010
At-Sea Mentoring Initiative (ASMI) and First Nations Fisheries Operations Management Initiative (FOMI)	Compliance Audit	Planning Stage	2009-2010
Succession Planning	Special Audit	Conduct Stage	2009-2010
Environmental Response Services	Performance Audit	Planning Stage	2009-2010
2009-2010
Financial Management (areas to be determined)	Compliance Audit	Planned	2009-2010
Small Craft Harbours	Performance Audit	Planned	2009-2010
Contribution: Pacific Salmon Foundation/T. "Buck"/Suzuki Foundation 1	Compliance Audit	Planned	2009-2010
Contribution: Yukon Salmon Committee 1	Compliance Audit	Planned	2009-2010
Follow-up Audit of the MCF Supporting Statistical Information on the Fisheries	Info Systems Audit	Planned	2009-2010
OCG Horizontal Audit (lead by TBS/OCG)	Government-wide Audit	Planned	2009-2010
Staffing and Classification 2	Compliance Audit	Planned	2009-2010
Management of Information Technology Security 2	Compliance Audit	Planned	2009-2010
Business Continuity Planning 2	Compliance Audit	Planned	2009-2010
Federal Contaminated Sites Action Plan 2	Compliance Audit	Planned	2009-2010
Academic Research Contribution Program 1	Compliance Audit	Planned	2009-2010
2010-2011
Financial Management - areas to be determined	Compliance Audit	Planned	2010-2011
Marine Communications and Traffic Services	Performance Audit	Planned	2010-2011
Fisheries Resources	Performance Audit	Planned	2010-2011
Diversity (Employment Equity Planning and Recruitment Strategy)	Compliance Audit	Planned	2010-2011
Aboriginal Policy and Governance	Performance Audit	Planned	2010-2011
Integrated Oceans Management	Performance Audit	Planned	2010-2011
Habitat Program Services	Performance Audit	Planned	2010-2011
National Life-Cycle Material Management Information Services	Info Systems Audit	Planned	2010-2011
Follow up Audit of Conservation and Protection	Follow-up Audit	Planned	2010-2011
OCG Horizontal Audit (lead by TBS/OCG)	Government-wide Audit	Planned	2010-2011
Small Craft Harbours Divestiture Class Grant Program 1	Compliance Audit	Planned	2010-2011
Search and Rescue	Performance Audit	Planned	2011-2012
Facilities/Asset Management Services	Performance Audit	Planned	2011-2012
Coast Guard College	Performance Audit	Planned	2011-2012
2011-2012
Environmental Assessments	Performance Audit	Planned	2011-2012
Resource Management	Performance Audit	Planned	2011-2012
Follow up Audit of Succession Planning	Follow-up Audit	Planned	2011-2012
Follow up of Audit of Information for Decision Making	Follow-up Audit	Planned	2011-2012
Department's Readiness for Audited Financial Statements	Special Audit	Planned	2011-2012
Small Craft Harbours Class Contribution Program 2	Compliance Audit	Planned	2011-2012
Small Craft Harbours Divestiture of Non-core Harbours Program 2	Compliance Audit	Planned	2011-2012
Atlantic Integrated Commercial Fisheries Initiative 2	Compliance Audit	Planned	2011-2012
Pacific Integrated Commercial Fisheries Initiative 2	Compliance Audit	Planned	2011-2012
New Aquaculture Initiative 2	Compliance Audit	Planned	2011-2012
Conservation and Protection of Fish Habitat 2	Performance Audit	Planned	2011-2012
Species at Risk Program	Compliance Audit	Planned	2011-2012

¹ TBS mandated audits

² Validation by DMC required

Note: IAD is in the process of updating the 2009-10 to 2011-12 Internal Audit Risk-based Work plan and the plan will be tabled for approval at the March Departmental Audit Committee Meeting.

 

Electronic Link to Internal Audit Plan:

http://www.dfo-mpo.gc.ca/communic/CREAD/index_e.htm

 

Glossary of Terms:
Compliance Audit	The audit objective is to ensure that the area or subject audited conforms and adheres to agency and departmental policies, plans and procedures, laws, regulations, contracts or other requirements. Compliance audits include TBS mandated audits.
Info Systems Audit	The audit objective is to ensure that there is an appropriate system controls and surrounding controls are in place. Areas of audit may include infrastructure, electronic data exchange, system controls, system continuity plan, etc.
Performance Audit	The audit objective is to evaluate the department's activities through a systematic process for the purpose of making recommendations about the economic and efficient use of resources, effective achievement of business objectives and compliance with policies. Performance audits include program, sectoral and follow-up audits.
Special Audit	The audit objective is to assess whether the management control framework has sufficient and effective controls in place to prevent or detect errors. Where gaps are identified, the appropriate and relevant recommendations are made to management based on best practices from relevant industry and other government organizations.

Table: Upcoming Evaluations over the next three fiscal years

The following table lists all planned upcoming evaluations for the reporting period 2009-10 that pertain to the Department's work.

Name of Evaluation	Program Type	Status	Expected Completion Date
Canada's Submission to the Commission on the limits of the Continental Shelf (CLCS) under the United Nations Convention on the Law of the Sea (UNCLOS) (Interdepartmental Evaluation led by DFO)	Policy	In progress	2009-10
Cabinet Directive – Strategic Environmental Assessment (Interdepartmental Evaluation led by CEAA)	Policy	In progress	2009-10
National Aquatic Animal Health Program (NAAHP) (Interdepartmental Evaluation led by CFIA)	Direct Program Spending	Planned	2010-11
Habitat Stewardship Program for Species at Risk (Interdepartmental Evaluation led by Environment Canada)	Transfer Payment Program	In progress	2009-10
Salmonid Enhancement Program (SEP)	Direct Program Spending	In progress	2009-10
Building Public Confidence in Pesticide Regulation and Improving Access to Pest Management Products (BPC)	Direct Program Spending	In progress	2009-10
Coast Guard College	Direct Program Spending	Planned	2009-10
Science Renewal	Direct Program Spending	Planned	2009-10
International Fisheries Conservation	Direct Program Spending	Planned	2009-10
Icebreaking Services	Direct Program Spending	Planned	2009-10
Ocean Climate	Direct Program Spending	Planned	2009-10
Life-cycle and Asset Management Services	Direct Program Spending	Planned	2009-10
Contribution – Yukon Salmon Sub-committee	Transfer Payment Program	Planned	2009-10
Contribution – Pacific Salmon Foundation/T. Buck Suzuki	Transfer Payment Program	Planned	2009-10
Contribution Atlantic Integrated Commercial Fisheries Initiative (AICFI)	Transfer Payment Program	Planned	2009-10
Contribution – Pacific Integrated Commercial Fisheries Initiative (PICFI)	Transfer Payment Program	Planned	2009-10

 

Electronic Link to Evaluation Plan:

For completed evaluations, please visit: http://www.dfo-mpo.gc.ca/communic/CREAD/index_e.htm

Sources of Respendable and Non-Respendable Revenue

Table: Sources of Revenue

$ millions

	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Total Respendable Revenue	52.0	50.0	50.0	50.1
Total Non-Respendable Revenue	46.3	46.1	46.1	46.1
Total Revenue	98.3	96.1	96.1	96.2

Note:

For respendable revenues, planned revenue refers to revenue targets, whereas for non-respendable revenues it reflects the forecast of revenues for the year in question.

These amounts are subject to revision in light of the External Charging Review.

Because of rounding, figures may not add to the totals shown.

 

Table: Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ millions)

Program Activity	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Canadian Coast Guard
Maintenance Dredging Services Tonnage Fees in the St. Lawrence Shipping Channel	6.6	4.6	4.6	4.6
Marine Navigation Services Fees	27.7	27.7	27.7	27.8
Coast Guard Radio Tolls	0.1	0.1	0.1	0.1
Employee Deductions for Employee Housing	0.0	0.1	0.1	0.1
Icebreaking Services Fees	13.8	13.8	13.8	13.8
Canadian Coast Guard College	3.7	3.7	3.7	3.7
Total Respendable Revenue	52.0	50.0	50.0	50.1

Note:

Planned revenue refers to revenue targets.

These amounts are subject to revision in light of the External Charging Review.

Because of rounding, figures may not add to the totals shown.

 

Non-Respendable Revenue
($ millions)

Program Activity	Forecast Revenue 2008-09	Planned Revenue 2009-10	Planned Revenue 2010-11	Planned Revenue 2011-12
Canadian Coast Guard
Aids to Navigation Services in the Deep Water Channel between Montreal and Lake Erie	0.0	0.0	0.0	0.0
Rental of Land, Buildings and Equipment	0.0	0.2	0.2	0.2
Miscellaneous	0.2	0.2	0.2	0.2
Small Craft Harbours
Small Craft Harbours Revenue	1.0	1.0	1.0	1.0
Other Services and Service Fees	0.0	0.0	0.0	0.0
Science — Safe and Accessible Waterways
Sale of Charts and Publications	1.6	1.4	1.4	1.4
Technology Transfer Licences	1.1	1.1	1.1	1.1
Fisheries Management
Commercial Licences	35.1	34.9	34.9	34.9
Recreational Licences	5.2	5.2	5.2	5.2
Conservation Stamps	1.5	1.5	1.5	1.5
Rental of Land, Buildings and Equipment	0.2	0.2	0.2	0.2
Habitat Management
Rental of Land, Buildings and Equipment	0.1	0.2	0.2	0.2
Miscellaneous	0.0	0.0	0.0	0.0
Science — Healthy and Productive Aquatic Ecosystems
Technology Transfer Licences	0.2	0.1	0.1	0.1
Total Non-respendable Revenue	46.3	46.1	46.1	46.1

Note:

Planned revenue is the forecast of revenues for the year in question.

These amounts are subject to revision in light of the External Charging Review.

Because of rounding, figures may not add to the totals shown.

Status Report on Major Crown Projects

 

Table of Contents

Mid-Shore Patrol Vessels (MSPV)

Offshore Fisheries Science Vessels (OFSV)

Offshore Oceanographic Science Vessel (OOSV)

Polar Icebreaker Project

 

 

Mid-Shore Patrol Vessels (MSPV)

Description:

The Mid-Shore Patrol Vessels project will acquire up to twelve (12) Mid-Shore Patrol Vessels (MSPV) for the Canadian Coast Guard (CCG) Fleet — eight (8) for Fisheries Conservation and Protection (C&P) duties and four (4) for Maritime Security duties. This project serves two purposes: 1) Fleet Renewal — the acquisition of C&P patrol vessels represents the first step in modernization of the CCG fleet and will ensure the integrity of the fishery monitoring program and will provide the capacity for DFO to support the strategic role in fisheries enforcement; 2) Maritime Security — the acquisition of MSPV for Maritime Security will allow CCG, in conjunction with the RCMP, to respond to the Government's commitment to enhance the security of the nation's coasts and waterways.

 

Project Phase:

The MSPV Project is currently in the Implementation phase.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); RCMP; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada; Public Safety Canada; Department of National Defence (DND).

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	n/a at this time

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	August 2005
Effective Project Approval (EPA)	June 2006
1st Request for Proposal (RFP) (cancelled)	July 2007
Amended Effective Project Approval — to include 4 additional vessels identified in Budget 2007	December 2007
2nd RFP issued (cancelled)	August 2008
3rd RFP to be issued	Early 2009
Target Contract Award	Fall 2009
First Vessel Delivery	Fall 2011
Last vessel delivery for MSPV	Summer 2014

 

Progress Report and Explanations of Variances

An RFP for MSPV detailed design and construction was issued 8 Nov 2006. Federal Budget 2007 approved funding for 4 additional vessels for C&P, for a total of 12 vessels. A review of the four submissions received in response to the RFP revealed that the understanding between bidders and the Crown concerning bid evaluation requirements was insufficient to allow the process to proceed. This initial solicitation was cancelled in July 2007.

The second RFP was issued in December 2007. Bids received in response to the second RFP exceeded the anticipated costs. This second RFP was also cancelled. A 3rd RFP is scheduled to be issued in early 2009.

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project: The RFP requires overall Industrial Benefits equal to 100% of contract value. Regional distribution will be determined at contract award.

 

Mid-Shore Patrol Vessels

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
212.5	10.6	8.6	193.3

 

Offshore Fisheries Science Vessels (OFSV)

Description:

The Offshore Fisheries Science Vessels (OFSV) project will acquire three (3) OFSV for the Canadian Coast Guard (CCG) Fleet. The OFSV will replace three (3) aging Coast Guard ships on the East and West Coasts of Canada that provide a platform from which critical scientific research and ecosystem-based management can be performed.

 

Project Phase:

The OFSV Project is currently in the definition and design phase.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments	Industry Canada (IC); Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	n/a at this time

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	October 2005
Amended PPA	November 2006
Effective Project Approval (EPA) — Target Date	2009
Contract Award	2009
First Vessel Delivery	2011
Delivery of last OFSV	2014

 

Progress Report and Explanations of Variances

Federal Budget 2005 allocated funding for two (2) Offshore Fisheries Science Vessels (OFSV). Subsequently Budget 2007 announced additional funding for one (1) additional vessel, for a total of three (3) OFSV. The OFSV project is currently refining the cost estimate in order to obtain Effective Project Approval (EPA).

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Offshore Fisheries Science Vessels

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
279.5	3.0	13.9	262.6

 

Offshore Oceanographic Science Vessel (OOSV)

Description:

The Offshore Oceanographic Science Vessel (OOSV) project will aquire a replacement vessel for the Canadian Coast Guard's largest science vessel - CCGS Hudson. This vessel was built in 1963 and its replacement is critical to fulfillment of the Department's science mandate as well as mandates of other government departments and agencies. The vessel currently operates on the East Coast of Canada.

 

Project Phase:

The OOSV Project is currently in the definition and design phase.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); Environment Canada; NRCan; Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada.

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	n/a at this time

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	July 2008
Effective Project Approval (EPA) and Authority to Contract — Target Date	Spring 2010
Contract Award	Fall 2010
Delivery of Offshore Oceanographic Science Vessel	2012

 

Progress Report and Explanations of Variances

Federal Budget 2007 allocated funding for the replacement of the CCGS Hudson with a new Oceanographic Science Vessel (OOSV). The OOSV project is currently finalizing a substantive cost estimate in order to obtain Effective Project Approval (EPA).

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Offshore Oceanographic Science Vessel

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
108.9	0.8	2.0	106.1

 

Polar Icebreaker Project

Description:

The Polar Icebreaker project will replace the Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. The new Polar Icebreaker will help to strengthen Arctic sovereignty and will be able to operate in the Arctic in more severe weather conditions and for a longer period of time - 3 seasons instead of the current 2 seasons.

 

Project Phase:

The Icebreaker Project is currently proceeding to obtain Preliminary Project Approval in 2009.

 

Leading and Participating Departments and Agencies

Lead Department or Agency	Canadian Coast Guard (CCG), Department of Fisheries and Oceans (DFO)
Contracting Authority	Public Works and Government Services Canada (PWGSC)
Participating Departments or Agencies	Industry Canada (IC); Treasury Board Secretariat (TBS); Privy Council Office (PCO); Indian and Northern Affairs Canada; Atlantic Canada Opportunities Agency (ACOA); Western Economic Diversification Canada (WED); Canadian Economic Development (CED); Finance Canada; Environment Canada; National Defence (DND).

 

Prime and Major Subcontractor(s)

Prime Contractor	To be determined
Major Subcontractor(s)	n/a at this time

 

Major Milestones

Major Milestone	Date
Preliminary Project Approval (PPA)	Spring 2009
Effective Project Approval (EPA) — Target Date	TBD
Contract Award	TBD
Vessel Delivery	2017

 

Progress Report and Explanations of Variances

Federal Budget 2008 allocated funding for the replacement of the Canadian Coast Guard's largest, most capable heavy Arctic icebreaker, the CCGS Louis S. St-Laurent. The project is currently in the process of developing Preliminary Project Approval documentation.

Industrial Benefits

Canadian industry in the following regions of Canada will benefit from this project.

Regional distribution will be determined at contract award.

 

Polar Icebreaker

($ millions)

Current Estimated Total Expenditure	Forecast Expenditures to March 31, 2009	Planned Spending 2009-2010	Future Years' Requirements
$800.0 ($720 accrual)	0.0	13.0	$787.0 ($720 accrual)

Table: Summary of Capital Spending by Program Activity

($ millions)

Program Activity	Forecast Spending 2008-09	Planned Spending 2009-10	Planned Spending 2010-11	Planned Spending 2012-12
Canadian Coast Guard	211.3	261.6	346.5	517.4
Small Craft Harbours	30.0	83.0	112.7	30.0
Science for Safe and Accessible Waterways	0.0	0.0	0.0	0.0
Fisheries and Aquaculture Management	1.0	1.0	1.0	1.0
Science for Sustainable Fisheries and Aquaculture	2.0	2.0	2.0	2.0
Oceans Management	0.0	0.0	0.0	0.0
Habitat Management	0.0	0.0	0.0	0.0
Species at Risk Management	0.0	0.0	0.0	0.0
Science for Healthy and Productive Aquatic Ecosystems	0.0	0.0	0.0	0.0
Internal Services (IS)	66.6	64.2	57.1	56.1
Total	310.9	411.8	519.3	606.5

User Fees

DFO implemented an External Charging Framework in 2007-08. The framework provides the necessary foundation for DFO's corporate approach that will guide responsible decision making with regard to DFO's external charging. This framework will also provide a foundation for explaining DFO external charging decisions to stakeholders. The Department has also prepared a guide to external charging for departmental managers.

No changes to user fees are planned for the upcoming planning period.

Future-oriented Statement of Operations

Year ended March 31, 2010

 

 

Department of Fisheries and Oceans

Management Responsibility for Future-Oriented Financial Statements

Responsibility for the compilation, content, and presentation of the accompanying future-oriented financial information for the year ended March 31, 2010 rests with the management of the Department of Fisheries and Oceans (DFO). The future-oriented financial information has been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector. The future-oriented financial information is submitted for Part III of Estimates (Report on Plans and Priorities), and will be used in the DFO's Departmental Performance Report to compare with actual results.

Management is responsible for the integrity and objectivity of the information contained in future-oriented financial information and for the process of developing assumptions. Assumptions and estimates are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. Much of the future-oriented financial information is based on these assumptions, best estimates, and judgment and gives due consideration to materiality. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. However, as with all such assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

The actual results achieved for the fiscal years covered in the accompanying future-oriented financial information will vary from the information presented and the variations may be material. (Note: The DFO is preparing these statements as part of a two-year pilot project and readers should be aware that this is the first year of the project.)

 

 

_____ Original signed by _____		_____ Original signed by _____
Michelle d'Auray, Deputy Minister Ottawa, Canada February 10, 2009		Cal Hegge, Assistant Deputy Minister, Corporate Services

 

 

Department of Fisheries and Oceans Canada

Future-oriented Statement of Operations

For the Year Ended March 31

(in thousands of dollars)

			Forecast 2010
Expenses (Note 6)
	Safe and Accessible Waterways
	Canadian Coast Guard Agency		706,167
	Small Craft Harbours		148,215
	Science		39,008
	Sustainable Fisheries and Aquaculture
	Fisheries and Aquaculture Management		350,570
	Science		149,757
	Healthy and Productive Aquatic Ecosystems
	Habitat Management		63,119
	Science		60,399
	Oceans Management		17,946
	Species at Risk		17,435
	Internal Services		336,945
	Total Expenses		1,889,561
Revenues (Note 7)
	Safe and Accessible Waterways
	Canadian Coast Guard Agency		50,358
	Science		2,502
	Small Craft Harbours		1,067
	Sustainable Fisheries and Aquaculture
	Fisheries and Aquaculture Management		41,802
	Healthy and Productive Aquatic Ecosystems
	Habitat Management		266
	Science		100
	Total Revenues		96,095
Net cost of operations			1,793,466

The accompanying notes form an integral part of these future-oriented financial statements.

 

 

Department of Fisheries and Oceans Canada

Notes to Future-oriented Financial Information

For the year ended March 31, 2010

1. Authority and purpose

The DFO was established under the Department of Fisheries and Oceans Act. The DFO reports to Parliament through the Minister of Fisheries and Oceans.

The mandate of the DFO, on behalf of the Government of Canada, is to be responsible for developing and implementing policies and programs in support of Canada's economic, social, ecological and scientific interests in oceans and fresh waters.

The DFO's guiding legislation includes the Oceans Act and the Fisheries Act. The DFO is also one of the three departments responsible for the Species at Risk Act.

The DFO's three strategic outcomes are delivered through nine program activities in addition to Internal Services, which are described below.

Safe and Accessible Waterways

Canadian Coast Guard Agency: Provision of maritime services that contribute to the enhancement and maintenance of maritime safety and commerce, protection of the marine and freshwater environment, as well as oceans and fisheries resource management, security and other government maritime priorities via maritime expertise, Canada's civilian fleet, a broadly distributed shore infrastructure and collaboration with various stakeholders.

Small Craft Harbours: Operation and maintenance of a national system of harbours critical to Canada's commercial fishing industry.

Science: Provision of scientific research, monitoring, advice, products and services and data management in support of Safe and Accessible Waterways.

Sustainable Fisheries and Aquaculture

Fisheries and Aquaculture Management: Conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders based on shared stewardship.

Science: Provision of scientific research, monitoring, advice, products and services and data management in support of Sustainable Fisheries and Aquaculture.

Healthy and Productive Aquatic Ecosystems

Habitat Management: Protection and conservation of freshwater and marine fish habitat, in collaboration with others, through a balanced application of regulatory and non-regulatory activities, including reviewing development proposals, conducting environmental assessments and monitoring compliance and effectiveness.

Species at Risk: Aquatic species at risk are managed to provide for the recovery of extirpated, endangered and threatened species; and the management of special concerned species to prevent them becoming at risk.

Science: Provision of scientific research, monitoring, advice, products and services and data management in support of Healthy and Productive Aquatic Ecosystems.

Oceans Management: Conservation and sustainable use of Canada's oceans, in collaboration with others, through integrated oceans management plans which include marine protected areas and marine environmental quality objectives.

Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are: Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services, Acquisition Services, and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not to those provided specifically to a program.

2. Underlying Assumptions

These future-oriented statements have been prepared:

• as at February 3^rd, 2009
• on the basis of government policies, government priorities, and external environment at the time the future-oriented financial information was finalized.
• according to the requirements of Treasury Board Accounting Policies which are based on Canadian generally accepted accounting principles for the public sector.
• on the basis that the resources provided will enable the DFO to deliver the expected results specified in the Report on Plans and Priorities.
• on the basis of historical costs.

3. Variations and Changes to the Forecast Financial Information

While every attempt has been made to accurately forecast final results from 2009-2010, actual results achieved are likely to vary from the forecast information presented, and this variation could be material.

Once the Report on Plans and Priorities is presented, the DFO will not be updating the forecasts for any changes to appropriations or forecast financial information made in ensuing supplementary estimates. Variances will be explained in the DFO's Departmental Performance Report.

4. Summary of significant accounting policies

The future-oriented financial information has been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

  (a) Parliamentary appropriations – The DFO is financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the DFO do not parallel financial reporting according to Canadian generally accepted accounting principles since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the future-oriented statement of operations are not necessarily the same as those provided through appropriations from Parliament. Note 5 provides a high-level reconciliation between these bases of reporting.

  (b) Forecasted revenues:

• Revenues from regulatory fees are recognized in the accounts based on the services provided in the year.
• Other revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues.
• Revenues that have been received but not yet earned are recorded as deferred revenues.

  (c) Forecasted expenses – these are recorded when the underlying transaction or expense occurred subject to the following:

• Grants are recognized in the year in which the conditions for payment are met. In the case of grants which do not form part of an existing program, the expense is recognized when the Government announces a decision to make a non-recurring transfer, provided the enabling legislation or authorization for payment receives parliamentary approval prior to the completion of the financial statements;
• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement;
• Vacation pay and compensatory leave are expensed by the DFO in the year that the entitlement occurs.
• Services provided without charge by other government departments for accommodation, the employer's contribution to the health and dental insurance plans and legal services are recorded as operating expenses at their estimated cost.

  (d) Employee future benefits

• Pension benefits: Eligible employees participate in the Public Service Pension Plan, a multiemployer plan administered by the Government of Canada. The DFO's contributions to the Plan are charged to expenses in the year incurred and represent the total departmental obligation to the Plan. Current legislation does not require the DFO to make contributions for any actuarial deficiencies of the Plan.
• Severance benefits: Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.

  (e) Contingent liabilities – Contingent liabilities are potential liabilities which may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is determinable and an amount can be reasonably estimated, a forecast and notation is, accordingly, made.

  (f) Environmental liabilities – Environmental liabilities reflect the estimated costs related to the management and remediation of environmentally contaminated sites. Based on management's best estimates, a liability is accrued and an expense recorded when the contamination occurs or when the department becomes aware of the contamination and is obligated, or is likely to be obligated to incur such costs. If the likelihood of the department's obligation to incur these costs is determinable, and if an amount can be reasonably estimated, a forecast and notation is, accordingly, made.

  (g) Tangible capital assets – All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The DFO does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value, assets located on Indian Reserves and museum collections.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset Class	Amortization Period
Buildings	10-40 years
Work and infrastructure	5-75 years
Machinery and equipment	3-25 years
Informatics hardware	3-5 years
Informatics purchased and developed software	3 years
Arms and weapons for defense	5-10 years
Other equipment, including furniture	10 years
Ships and boats	5-25 years
Aircraft	15-25 years
Motor vehicles (non-military)	5-20 years
Other vehicles	10 years
Leasehold improvements – buildings	*
Leasehold improvements – works and infrastructure	*
Assets under capital leases	**

* the lesser of the economic life of the improvement or the lease term

** over the period of expected use, i.e., the economic life or lease term

  (h) Proceeds associated with the disposal of real property through Public Works and Government Services Canada (PWGSC) are not recorded in the DFO's future-oriented financial statements. PWGSC is responsible for the accounting and reporting of these proceeds.

  (i) Measurement uncertainty – The preparation of the future-oriented financial information requires management to make estimates and assumptions that affect the reported amounts of all the revenues and expenses reported in the future-oriented Statement of Operations. Assumptions are based upon information available and known to management at the time of development, reflect current business and economic conditions, and assume a continuation of current governmental priorities and consistency in departmental mandate and strategic objectives. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. Nonetheless, as with all such estimates and assumptions, there is a measure of uncertainty surrounding them. This uncertainty increases as the forecast horizon extends.

5. Parliamentary appropriations

The DFO receives most of its funding through annual parliamentary appropriations. Items recognized in the statement of operations in one year may be funded through parliamentary appropriations in prior, current or future years. Accordingly, the DFO has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following table.

 

Reconciliation of net cost of operations to appropriations available for use

				Forecast 2010
			(in thousands of dollars)
Net cost of operations				1,793,466
Adjustments for items affecting net cost of operations but not affecting appropriations
	Add (less):
		Revenue not available for spending		46,137
		Amortization of tangible capital assets		(171,530)
		Services provided without charge by other government departments		(107,733)
		Loss on write-offs and write-downs of tangible capital assets		(15,000)
		Loss on disposal of tangible capital assets		(7,500)
		Decrease (increase) in employee severance benefits		(5,000)
		Decrease (increase) in environmental liabilities		(3,124)
		Decrease (increase) in vacation pay and compensatory leave		(1,580)
		Increase (decrease) in inventory		(1,500)
		Refunds of previous years expenses		5,580
		Other		1,661
	Total adjustments for items not affecting appropriations			(259,589)
Adjustments for items not affecting net cost of operations but affecting appropriations
	Add (less):
		Acquisitions of tangible capital assets		325,001
	Total adjustments for items affecting appropriations			65,412
Appropriations available for use				1,858,878

 

 

6. Forecast Expenses

The following table presents details of expenses by category.

			Forecast 2010
		(in thousands of dollars)
Operating and administration
	Personnel and employee benefits		897,375
	Professional and special services		249,499
	Amortization		171,530
	Repair and maintenance		144,622
	Utilities, material and supplies		109,101
	Machinery and equipment		59,315
	Travel and relocation		57,033
	Rental		28,578
	Telecommunication		18,399
	Loss on write-off and write-downs of tangible capital assets and inventory		15,000
	Loss on disposal of tangible capital assets		7,500
	Communication services		4,917
	Other expenses		16,055
	Total operating and administration		1,778,924
Transfer payments
	Non-profit organizations		97,647
	Individuals		10,874
	Other level of governments within Canada		1,363
	Industry		405
	Other countries and international organizations		348
	Total transfer payments		110,637
Total expenses			1,889,561

 

 

7. Forecast Revenues

The following table presents details of revenues by category.

		Forecast 2010
		(in thousands of dollars)
Revenue
	Sales of goods and services		87,054
	Gains on disposals of tangible capital assets		4,071
	Revenue from earmarked supplementary fish fines		274
	Other revenue		4,696
Total revenues			96,095

 

8. Employee benefits

  (a) Pension benefits: The DFO's employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of two percent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Quebec Pension Plans benefits and they are indexed to inflation. Both the employees and the DFO contribute to the cost of the Plan.

The DFO's responsibility with regard to the Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the Plan's sponsor.

  (b) Severance benefits: The DFO provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations.

9. Contingent liabilities

  (a) Contaminated sites

Liabilities are accrued to record the estimated costs related to the management and remediation of contaminated sites where the DFO is obligated or likely to be obligated to incur such costs. The DFO has identified sites where such action is possible and for which a liability has been estimated.

The DFO's ongoing efforts to assess contaminated sites may result in additional environmental liabilities related to newly identified sites, or changes in the assessments or intended use of existing sites. These liabilities will be accrued in the year in which they become known.

  (b) Claims and litigation

Claims have been made against the DFO in the normal course of operations. Legal proceedings for claims totaling approximately $370.6 million were still pending at December 31st, 2008. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements. No expense has been estimated for the purpose of the DFO's 2009-2010 future-oriented Statement of Operations.

10. Related party transactions

The DFO is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The DFO enters into transactions with these entities in the normal course of business and on normal trade terms. Also, during the year, the DFO receives services which were obtained without charge from other Government departments as follows.

Services provided without charge by other government departments:

During the year, the DFO receives without charge from other departments, accommodation, legal fees and the employer's contribution to the health and dental insurance plans, administration costs and commissions paid to provincial workers' compensation boards. These services without charge have been recognized in the DFO's Future-oriented Statement of Operations as follows:

Forecast 2010
(in thousand of dollars)
Employer's contribution to the health and dental insurance plans provided by Treasury Board Secretariat		60,223
Accommodation provided by Public Works and Government Services Canada		43,400
Legal services provided by Justice Canada		3,160
Administration costs and commissions paid to provincial workers' compensation boards by Social Development Canada.		950
Total services provided without charge		107,733

The Government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the DFO's Future-oriented Statement of Operations.