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2010-11
Departmental Performance Report

Fisheries and Oceans Canada

The original version was signed by
The Honourable Keith Ashfield, P.C., M.P.
Minister of Fisheries and Oceans

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Table of Contents

Minister's Message

Section I: Organizational Overview

• Raison d’être
• Responsibilities
• Program Activity Architecture (PAA)
• Organizational Priorities
• Risk Analysis
• Summary of Performance
• Expenditure Profile
• Estimates by Vote

Section II: Analysis of Program Activities by Strategic Outcome

• Strategic Outcome #1 - Safe and Accessible Waterways
  • Program Activity 1.1: Canadian Coast Guard
  • Program Activity 1.2: Small Craft Harbours
  • Program Activity 1.3: Science for Safe and Accessible Waterways
• Strategic Outcome #2 - Sustainable Fisheries and Aquaculture
  • Program Activity 2.1: Fisheries and Aquaculture Management
  • Program Activity 2.2: Science for Sustainable Fisheries and Aquaculture
• Strategic Outcome #3 - Healthy and Productive Aquatic Ecosystems
  • Program Activity 3.1: Oceans Management
  • Program Activity 3.2: Habitat Management
  • Program Activity 3.3: Species at Risk Management
  • Program Activity 3.4: Science for Healthy and Productive Aquatic Ecosystems
• Internal Services

Section III: Supplementary Information

• Financial Highlights
• Financial Statements
• List of Supplementary Information Tables

Section IV: Other Items of Interest

• Website References
• Organizational Contact Information

Minister's Message

It is my pleasure to present the 2010-11 Departmental Performance Report for Fisheries and Oceans Canada.

Our Department, including the Canadian Coast Guard, which is a Special Operating Agency within Fisheries and Oceans Canada, has again proven to be a leader in the management of oceans and freshwater resources, as well as in the crucial area of marine safety.

We continued to implement Canada's Economic Action Plan, using funding to finance vital fisheries and marine infrastructure, and provide support for coastal communities affected by the economic downturn.

In 2010-11, we focused on several areas to achieve our three strategic outcomes:

• Safe and accessible waterways;
• Sustainable fisheries and aquaculture; and
• Healthy and productive aquatic ecosystems.

Improving the Economic Viability of Canada's Fisheries

Sustainable fisheries and aquaculture make a significant contribution to Canada's economy. An estimated 80,000 Canadians make their living directly from fishing and related activities, and seafood is one of our largest commodity exports. Last year, our sales abroad totalled more than $3.9 billion. Our objective is to ensure Canada remains a world leader in sustainable fish and seafood products.

We continued to work closely with industry stakeholders to help them obtain the certification needed to expand access to markets, maintained our emphasis on conservation and sustainable management of fisheries and the enforcement of regulations, and invested substantially in aquaculture innovation.

Enhancing Marine Safety and Security through Fleet Renewal

The Canadian Coast Guard carries out critical work in support of Canada's commercial fishing industry, maritime transportation, and national sovereignty. This requires a well-equipped and adaptable fleet of vessels. Our Department continued fleet renewal for the Canadian Coast Guard, acquiring 81 new small boats. To support our government's commitment to security and sovereignty under the Northern Strategy, a new polar icebreaker will be delivered in 2017.

Our Department's Canadian Hydrographic Service continued its work surveying Canadian waters and producing and updating hydrographic products and services to ensure safe navigation of Canadian waterways. This work supports national security, emergency preparedness, and the establishment of Canada's offshore boundaries.

We repaired or undertook maintenance projects at more than 200 core fishing harbours and completed the majority of phase one construction work for a small craft harbour in Pangnirtung, Nunavut.

Ensuring Sustainable Development of our Fisheries and Oceans

To help ensure sustainable development of our fisheries and oceans, we continued to focus on habitat management. Our Department is creating new oceans centres of expertise to broaden our knowledge of Canada's waters. We continued to expand our network of Marine Protected Areas and develop strategies to monitor our Arctic boundary waters.

We also continued to support the work of the Commission of Inquiry into the Decline of Sockeye Salmon in the Fraser River to determine what can be done to restore and conserve the stock.

Improving our Effectiveness through Collaboration

We recognize that collaboration is the key to improving our effectiveness as a department.

By working with the provinces and territories, advisory groups, and the public, we will build strong, sustainable fisheries and maritime sectors for future generations.

Section I: Organizational Overview

Raison d’être

Fisheries and Oceans Canada (DFO) plays the lead role in managing Canada's fisheries and safeguarding its waters, ensuring safe, healthy, and productive waters and aquatic ecosystems for the benefit of present and future generations. The Department's work is built around three strategic outcomes:

Safe and Accessible Waterways

• Providing access to Canadian waterways and ensuring the overall safety and integrity of Canada's marine infrastructure for the benefit of all Canadians;

Sustainable Fisheries and Aquaculture

• Delivering an integrated fisheries and aquaculture program that is credible, science-based, affordable, and effective and contributes to sustainable wealth for Canadians while respecting Aboriginal and treaty rights; and

Healthy and Productive Aquatic Ecosystems

• Ensuring the sustainable development and integrated management of resources in or around Canada's aquatic environment and carrying out critical science and fisheries management activities.

Responsibilities

DFO is responsible for developing and implementing policies and programs in support of Canada's scientific, ecological, social, and economic interests in oceans and fresh waters.

DFO is a national and international leader in marine safety and in the management of oceans and freshwater resources. Departmental activities and presence on Canadian waters help to ensure the safe movement of people and goods. As a sustainable development department, DFO integrates environmental, economic and social perspectives to ensure Canada's oceans and freshwater resources benefit this generation and those to come.

The Canadian Coast Guard (CCG), a Special Operating Agency within DFO, is responsible for services and programs that contribute to the safety, security, and accessibility of Canada's waterways. CCG supports other government organizations through the provision of a civilian fleet and a broadly distributed shore-based infrastructure.

The Oceans Act entrusts the Minister with leading integrated oceans management and providing coast guard and hydrographic services, while the Fisheries Act gives the Minister responsibility for the management of fisheries, habitat, and aquaculture. The Species at Risk Act gives the Minister responsibilities associated with the management of aquatic species at risk.

Organization

Fisheries and Oceans Canada is a highly decentralized department, with more than eight of every ten employees located outside national headquarters. National headquarters, in Ottawa, establish national objectives, policies, procedures, and standards for the Department and CCG.

Information about DFO's six regions and the Canadian Coast Guard is available at http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html. A diagram of DFO's organizational structure is available at http://www.dfo-mpo.gc.ca/us-nous/organisation-eng.htm.

Program Activity Architecture (PAA)

The Government of Canada's Management, Resources and Results Structure¹ (MRRS) is the foundation of a common, government-wide approach to the collection, management, and reporting of financial and non-financial information. DFO's Program Activity Architecture (PAA) is a component of its MRRS and shows how DFO's programs align with the Department's three strategic outcomes.

Each program activity is linked to a single Government of Canada Outcome Area (as indicated in the figure that follows), permitting whole-of-government reporting. The Whole-of-Government Framework maps the financial and non-financial contributions of federal organizations receiving appropriations, by aligning their program activities to a set of high-level outcome areas defined for the government as a whole (additional information on the Whole-of-Government Framework is available at http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx).

The PAA also includes a stand-alone program activity called Internal Services, defined as the activities and resources that support an organization's program needs and other corporate obligations. For more information on DFO's Internal Services, see Internal Services.

DFO'S Program Activity Architecture for 2010-11

[text version]

Organizational Priorities

DFO focused on a number of priorities in 2010-11. Descriptions and key plans for each of the priorities can be found in the 2010-11 Report on Plans and Priorities.² Key accomplishments are presented below, and an overall performance rating has been assigned to each priority based on the following:

If this percentage of expected performance is achieved…	The performance rating is defined as…	The performance rating is shown graphically as…
More than 100%	Exceeded
100%	Met All
80 to 99%	Mostly Met
60 to 79%	Somewhat Met
Less than 60%	Not Met

Globally Competitive Fisheries Contributing to … • Sustainable Fisheries and Aquaculture	Performance Rating:
	Priority Type3: Ongoing
Key Accomplishments Participated with Indian and Northern Affairs Canada4 in exploratory discussions with First Nations to identify First Nations interests in the fishery. Developed elements of a framework to guide treaty negotiations on Aboriginal fisheries. Finalization of the framework has been delayed at the intergovernmental level to 2012 or 2013. Implemented regulatory changes associated with the aquaculture industry including the introduction of the new federal Pacific Aquaculture Regulations (December 2010). Commenced harmonization between DFO's National Code on Introductions and Transfers and the Canadian Food Inspection Agency's Health of Animals Regulations, and released a public discussion document on fish health treatment. The development of fish health regulations was delayed by inter-departmental negotiation requirements. Facilitated market access for the Canadian fish and seafood industry: 237 export permits were issued from a total of 264 applications; and The Catch Certification Office was established to support the Canadian fish and seafood industry in meeting the technical requirements of the European Union. Approximately 10,851 catch certificates were issued in 2010-11. Implemented numerous elements of the Sustainable Fisheries Framework5 (SFF): All regions have developed plans for the implementation of SFF and have begun to apply stock reference points and other elements of the Precautionary Approach. Additional SFF policies were developed, including the Ecological Risk Analysis Framework for the policy on Managing Fishery Impacts on Sensitive Benthic Areas. As of 2010-11, 42 of 136 major stocks (as identified by the Fisheries Checklist6) have an upper stock reference and a limit reference point defined. Peer-reviewed science advice on an encounter protocol framework for corals and sponges (Sensitive Benthic Areas Policy) and precautionary approach frameworks for Canadian input control fisheries (Precautionary Approach Policy) were produced. Implemented the Atlantic Lobster Sustainability Measures7 program supporting industry efforts to maintain healthy lobster stocks and improve abundance in declining areas. Sustainability plans for 29 of 41 lobster fishing areas have been approved with $34.9 million in funding proposals and a further $10.3 million currently under consideration. Over 90% of sustainability plans and funding proposals submitted to date have been directed at licence and trap retirement. Increased stability, transparency, and predictability in fisheries management: 12 current and seven past Integrated Fisheries Management Plans can now be found on the DFO website8 in both official languages. Fisheries Management decisions are also available on the DFO website9. 78% of major stocks (as identified by the Fisheries Checklist) in Atlantic Canada have stabilized sharing arrangements that are available on the DFO website10.

Health of the Oceans Contributing to … • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Previously committed to
Key Accomplishments Designated Tarium Niryutait as a Marine Protected Area11 in August 2010. Work continued toward the designation of four additional Areas of Interest as Marine Protected Areas by 2013. Established four Centres of Expertise to provide national guidance on the state of the oceans reporting, traditional ecological knowledge, coastal management, and corals and sponges. Deliverables have been established until the end of 2012, and are currently on track for March 2012. Adopted an Integrated Oceans Management Plan in August 2010 for the Beaufort Sea portion of the Arctic to advance ecosystem-based management. Work continues with other Arctic nations. Delivered equipment packages designed to improve the Canadian Coast Guard's capacity to respond to oil spills in the Arctic.

Fleet Renewal Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Ongoing
Key Accomplishments Made progress on the procurement of the following vessels: Nine Mid-Shore Patrol Vessels (delivery is on track for 2013) and one Offshore Oceanographic Science Vessel (delivery delayed from 2013 to 2014); Three Offshore Fishery Science Vessels (delivery is on track for 2014 for two of the three vessels, the third is delayed until 2015); and One Polar Icebreaker (delivery is on track for 2017). Used Economic Action Plan funding to accelerate vessel procurement and conduct vessel life extensions, repairs and refits as follows: Acquired 81 new small boats, including five 47-foot Search and Rescue Motor Lifeboats, 16 replacement Environmental Response Barges, and 60 small craft. Work continues on 14 additional replacement Environmental Response Barges and three In-shore Science Vessels to be delivered in late 2011. Conducted vessel life extensions on five Canadian Coast Guard vessels, extending their service life by 10-15 years. Repaired or refit 35 Canadian Coast Guard vessels, providing for each vessel an added value of reduced life cycle cost, more cost-effective operation, extended serviceable life, and improved vessel reliability and availability to deliver programs. Implemented a 30-year Fleet Renewal Plan for Canadian Coast Guard helicopters and vessels to address developing trends and forecast client requirements.

Economic Action Plan Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: New
Key Accomplishments Implemented the following Economic Action Plan projects within budget by March 31, 2011: Repaired or undertook maintenance projects at over 200 core fishing harbours. Of the 272 projects, 220 were completed, 38 were nearly completed, and 14 reached the engineering and/or planning stages. Because some costs exceeded original estimates during implementation, the Small Craft Harbours program implemented a mitigation strategy, including scope adjustment and deferral of work to future years. Projects will be completed with funding from the program's regular budget. Completed 80% of Phase 1 construction work for a small craft harbour in Pangnirtung, Nunavut, and awarded the contract for Phase 2. Phase 1 is expected to be complete in early 2011-12, while all construction is expected to be complete by the summer of 2013. The project has experienced delays due to adverse weather and limited transportation to the remote area. Acquired 81 new small boats, including five 47-foot Search and Rescue Motor Lifeboats, 16 replacement Environmental Response Barges, and 60 small craft. Work continues on 14 additional Environmental Response Barges and three In-shore Science Vessels to be delivered in late 2011. Conducted vessel life extensions on five Canadian Coast Guard vessels, extending their service life by 10-15 years. Repaired or refit 35 Canadian Coast Guard vessels, providing for each vessel an added value of reduced life cycle cost, of each vessel, more cost-effective operation, extended serviceable life, and improved vessel reliability and availability to deliver programs. Upgraded 65 federal laboratories in accordance with the provisions of Canada's Economic Action Plan. Assessed 1,296 sites for contamination and performed remediation/risk management activities at 79 sites (this includes activities funded through Canada's Economic Action Plan only; additional work is outlined under Asset Management). Completed environmental assessments in support of the Mackenzie Valley Gas Pipeline in accordance with the Canadian Environmental Assessment Act and Northern Environmental Assessment Programs.

International Leadership Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Ongoing
Key Accomplishments Fought illegal, unreported, and unregulated fishing by: Using Canadian Forces long-range patrol and surveillance aircraft in important multinational fisheries enforcement activities in the North Pacific Ocean to protect high seas fish stocks from illegal fishing activities; Signing the United Nations Food and Agriculture Organization (FAO) Port State Measures Agreement to combat illegal, unreported, and unregulated fishing; and Continuing to take a leadership role in the FAO, including providing funding to assist in the preparation of an inter-governmental negotiation aimed at developing a global instrument to improve flag state12 performance as a key tool in preventing illegal, unreported, and unregulated fishing. Strengthened and advanced international fisheries management by: Contributing to negotiations for a new regulated fisheries management area in the high seas of the North Pacific Ocean thereby advancing Canadian objectives of marine conservation and protection and potential access by Canadians to fisheries resources in the region; Playing a strong role in helping members of the Northwest Atlantic Fisheries Organization (NAFO) continue with the closures of six vulnerable marine ecosystems in the NAFO Regulatory Area and the adoption of a number of plans and frameworks supporting proper management of shrimp, Greenland halibut, American Plaice, and cod; and Being among the key Parties to the International Commission for the Conservation of Atlantic Tunas, promoting a reduced Total Allowable Catch for Western and Eastern Atlantic bluefin tuna. Strengthened oceans and freshwater governance and biodiversity conservation by: Helping to develop a scientific framework for research involving ocean fertilization by Parties to the London Convention/Protocol; Leading the development of a decision by the United Nations Convention on Biological Diversity that will facilitate the compilation of data related to the application of criteria for ecologically and biologically significant areas and vulnerable marine ecosystems, as well as the convening of regional workshops to help build capacity in this area; and Launching a comprehensive, basin-wide, bi-national Asian carp risk assessment to combat the threat posed by invasive Asian carp to the Great Lakes. Preserved and increased access to international markets for Canadian fish and seafood products by: Supporting several ongoing free trade negotiations to ensure fish and seafood interests are properly reflected; Succeeding in getting the World Trade Organization (WTO) to establish a WTO panel to adjudicate Canada's challenge of the European Union seal ban regulation; and Initialling a cooperative arrangement with China designed to allow Canadian exports of edible seal products to the Chinese market.

Northern Strategy Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Previously committed to
Key Accomplishments Created an Arctic Vision for CCG and DFO programs that includes objectives for the next 5, 15, and 30 years. Developed and finalized the baseline requirements for a new polar icebreaker, on track for delivery in 2017. Completed 80% of Phase 1 construction work for the Pangnirtung Harbour in Pangnirtung, Nunavut and awarded the contract for Phase 2. Phase 1 is expected to be complete in early 2011-12, while all construction is expected to be complete by the summer of 2013. The project has experienced delays due to adverse weather and limited transportation to the remote area. Completed all planned hydrographic product and service requirements associated with the construction of the Pangnirtung Harbour. Further hydrographic work is planned following construction of the Pangnirtung Harbour facility. Completed all required bathymetric data collection in the Atlantic, 97% of the data for the western Arctic, and 67% of the required data for the eastern Arctic in support of Canada's evidence submission to the United Nations delimiting Canada's extended continental shelf. Exceptionally poor weather accounted for delays in data collection in the eastern Arctic. Designated Tarium Niryutait as a Marine Protected Area in August 2010 and working toward the designation of the Paulatuk Area of Interest as a Marine Protected Area in 2012. Provided support for the Beaufort Sea Large Oceans Management Area. Discussions with Regional Coordinating Committee on the feasibility of an office, which would be composed of partners under the Beaufort Sea Partnership, are underway. A final decision on the need for this office is pending. Completed the Phase I objectives of the Arctic Ocean Review project, which included, an analysis of the status and trends in the Arctic marine environment; a review of global and regional measures in place for the conservation and sustainable use of the Arctic; the development of a communications and outreach plan; the convening of an International Arctic Experts Workshop; and the production of a Phase I report for review by Arctic Council Ministers.

Regulatory Improvement (Streamlining) Contributing to … • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Revised
Key Accomplishments Participated on all Major Projects Management Office committees to improve the whole-of-government approach to regulatory review and approval and contributed significantly to the improvement of environmental regulatory processes. Developed a Practitioner's Guide to writing Fisheries Act Authorizations to improve consistency in program delivery across Canada and continued to work toward a renewed Guide to Habitat Compensation which will improve transparency in decision-making and provide more clarity to project proponents.

Implementing e-Navigation in Canada Contributing to … • Safe and Accessible Waterways	Performance Rating:
	Priority Type: New
Key Accomplishments Completed the final draft of a federal vision for e-Navigation, in collaboration with Transport Canada, Environment Canada, and the Canadian Hydrographic Service, which includes a high-level implementation plan, guiding principles, and a user-needs matrix.

People Management Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Ongoing
Key Accomplishments Reduced the average time it takes to staff a position from 152 days to 129 days by implementing the 'Fast-track Staffing' process, which has improved the processing of high-volume, routine administrative staffing transactions, allowing more strategic allocation of human resources; for example, senior human resource advisors now have more time to deal with more complex and strategic issues. Addressed future leadership needs by: Continuing to improve the tools and processes for executive performance and talent management; Implementing a new Executive Leadership Development Framework; Implementing a new Learning Roadmap for Managers; and Leading the government-wide Accelerated Economist Training Program Recruitment Campaign. Increased the representation of women, visible minorities, Aboriginal Peoples, and persons with disabilities by almost 4%, falling just short of the 5% target. Through the Employment Systems Review being conducted in 2011, DFO will work to identify any barriers which may be impeding employment for designated group members. Results of the Employment Systems Review will be integrated into a revised Departmental Employment Equity Management Action Plan which will be implemented in 2011 and span three years. Developed a national departmental action plan in response to the Public Service Employee Survey and started reporting on progress achieved.

Asset Management Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Previously committed to
Key Accomplishments Developed an action plan, including measures and timelines regarding data integrity, to meet requirements for real property reporting in an effort to satisfy requirements for certification on the Directory of Federal Real Property. Delivered several policies on real property to support DFO's programs and legal requirements, including the Petroleum Storage Tanks Environmental Management Plan, DFO Parking Policy and National Guidelines, Isolated Posts and Crown Housing Directives, the Heritage Lighthouse Protection Act Strategy, and Heritage Lighthouse Protection Act Implementation Guide for Regional Practitioners. Received approval from Treasury Board Secretariat for the Five-year Investment Plan for the Management of Real Property Assets. Initiated the development of a new information system that will provide relevant, accurate, and timely information for the management of real property. Several factors have delayed full deployment of the system to August 2012. Assessed 1,076 sites for contamination and performed remediation/risk management activities at 215 sites (these amounts include activities funded through Canada's Economic Action Plan).

Information Management Contributing to … • Safe and Accessible Waterways • Sustainable Fisheries and Aquaculture • Healthy and Productive Aquatic Ecosystems	Performance Rating:
	Priority Type: Previously committed to
Key Accomplishments Started implementation of the 2009 Treasury Board Secretariat Policy on Evaluation; currently on track for full implementation by March 31, 2013. Started implementation of the Information Management Strategy. The work to date has resulted in a 15% increase in the number of documents stored in official repositories; a 23% increase in the take-up of the Records, Documents and Information Management System; and a 10% increase in the use of the virtual library. Started implementation of a new process for responding to the annual update of the departmental Infosource chapter that uses the approved departmental Program Activity Architecture as a framework and follows the new functional approach required by Treasury Board Secretariat. Completed initial steps and conducted some pilot projects to establish a more efficient process to help programs document and describe their information holdings.

Risk Analysis

With continued support from senior management, the Department advanced its efforts to integrate risk management into decision-making processes and business practices at both the program and corporate levels during 2010-11.

2010-11 Accomplishments

Corporate Risk Governance

• A new governance structure was established where Directors General were designated Offices of Primary Interest for managing corporate risks.
• An advocate at the Assistant Deputy Minister level was named to serve alongside the Chief Financial Officer as a senior management mentor for the risk management function.
• The Departmental Legal Risk Management Committee was created in line with Treasury Board Secretariat's inter-departmental legal risk management initiative.

Risk Management Activity

• The Corporate Risk Profile (CRP) went through its first complete review, at both mid-year and year-end. The mid-year review on the status of controls of corporate risks was completed and presented to the Departmental Audit Committee in January 2011.
• Risk management was integrated into the departmental business planning process for 2011-12. This was the first time that business plans, including the identification of risks and risk mitigation strategies, were prepared for program activities using the Program Activity Architecture. In the past, business plans were prepared for each sector and region. This was also the first time that risks associated with investment plan projects were included in business plans.
• Risk profiles for nine program activities (as indicated in the 2011-12 Report on Plans and Priorities¹³) were completed over the course of the year.
• The risk management framework for the Department's Economic Action Plan continued to be implemented, and advice and consultation were provided on risk identification, mitigation and reporting.

Training and Communications

• A full-day Integrated Risk Management (IRM) workshop was held by the Departmental Management and Departmental Audit Committees to discuss the future direction of IRM.
• Information and training plenary sessions were held for Directors General to discuss their roles and responsibilities in regard to IRM.
• A two-day training session was held for the IRM Co-ordinators Network with participation from all sectors and regions.

While both the IRM processes and the corporate risk deliverables have improved from previous years, there is a need for further enhancement and refinement, in particular, for tracking and monitoring risks and for identifying how risk management affects performance.

Departmental Corporate Risks for 2010-11

At the beginning of the year, the Department identified eight horizontal corporate risks (see table below) that may have affected DFO's ability to deliver its outcomes, had they materialized.

From the risks identified, the Physical Infrastructure risk was noted as showing the greatest potential severity to the organization. Both the mid-year and year-end reviews attested that this risk materialized during the year and affected several programs. Three other notable risks were identified as having materialized during the year: Legal and Compliance, Human Capital, and Information for Decision-making.

All four risks have now been transferred to the Corporate Risk Profile for 2011-12. Mitigation actions undertaken to counter these risks include the establishment of a new Real Property Task Force and the revamped Investment Planning strategy (for Physical Infrastructure), Legal Risk Management Committee (for Legal and Compliance), national Human Resources Strategy (for Human Capital) and the Information Management Strategy (for Information for Decision- making).

A new risk related to climate change was noted, particularly by the science-based programs, and it too was added to the Corporate Risk Profile for 2011-12. Few programs identified risks relating to Stakeholder Expectations and Partnering and Collaboration as their main risks. These two have now been merged into a new risk, Third Party Reliance, and transferred to the Corporate Risk Profile 2011-12 as a non-mission-critical risk.

The table below lists the risks and their risk statements, identifies whether the risks materialized, and specifies how they affected program outcomes and related strategic outcomes if they did materialize.

Key Corporate Risk (Corporate Risk Profile 2009)	Link to Departmental Priority	Risk Mitigation Measures in 2010-11 Report on Plans and Priorities (RPP)	Performance Summary and Analysis
Human Capital DFO may be unable to attract, develop and retain sufficiently qualified human resources to deliver on its mandate.	• People Management • Information Management	DFO will equip managers to fully address human capital risks impacting their delivery of policies and programs in support of DFO's mandate by identifying gaps in the recruitment, development, promotion, and retention of employees and ensuring access to appropriate guidance and tools.	• Four program activities, under all three strategic outcomes, identified this risk in their list of top three risks. • Three program activities indicated that this risk materialized during the year. Some programs re-focused and re-prioritized work to adjust to increasing staff turnover due to either an aging and retiring workforce or due to insufficient human resource capacity to effectively manage operations. Several program activities contended with delayed timelines for deliverables. • The main drivers for this risk continue to be an aging workforce and funding pressures. This risk was deemed "Tentatively Controlled" from a corporate perspective during the mid-year risk review in January 2011. This risk has now been transferred to the Corporate Risk Profile 2011-12, and it will be managed by those program activities where the risk continues to be an area of focus.
Information for Decision-making Sufficient and appropriate information may not be available on a timely basis to support decision-making.	• Information Management • Asset Management	DFO will use an Information Management Strategic Plan to implement an enterprise approach to information management and will improve the management of information across the Department.	• Four program activities under two strategic outcomes, Sustainable Fisheries and Aquaculture and Healthy and Productive Aquatic Ecosystems, identified this risk in their list of top three risks. • This risk was deemed "Tentatively Controlled" from a corporate perspective during the mid-year risk review. This risk has now been transferred to the Corporate Risk Profile 2011-12, and it will be managed by those program activities where the risk continues to be an area of focus.
Organizational Adaptability DFO may be unable to effectively adapt to emerging priorities, directions and environmental conditions.	• All Departmental Priorities	DFO will monitor and assess strategies developed by sectors to address emerging priorities and directions and continue to bolster its planning activities and regional committee work.	•None of the program activites identified this risk in their list of top three risks at the year-end review.  • This risk was deemed "Tentatively Controlled" from a corporate perspective during the mid-year risk review. This risk has now been merged into a new risk in the Corporate Risk Profile 2011-12, under Strategic Alignment, which better articulates this risk.
Internal Alignment Activities, accountabilities and resources within DFO may not be optimally aligned to meet objectives.	• No link specified in 2010-11 RPP	DFO will continue to use a risk-based process that analyzes departmental funding pressures, activities, and accountabilities to better align resources and priorities.	• Three program activities under the Healthy and Productive Aquatic Ecosystems strategic outcome identified this risk in their list of top three risks. • This risk was deemed "Controlled" from a corporate perspective during the mid-year risk review. Two program activities indicated that this risk materialized during the year. • This risk has now been merged into a new risk in the Corporate Risk Profile 2011-12, under Strategic Alignment, which better articulates this risk.
Physical Infrastructure DFO may be unable to invest in or maintain the infrastructure necessary to achieve its objectives.	• Economic Action Plan • Fleet Renewal • Asset Management	DFO will establish senior management accountabilities for asset management and develop a system to provide comprehensive and integrated asset information to ensure that investment planning will maintain DFO's physical infrastructure.	• Two program activities under two strategic outcomes, Safe and Accessible Waterways and Sustainable Fisheries and Aquaculture, identified this risk in their list of top three risks. • This risk was the only risk deemed "Attention Required" from a corporate perspective during the mid-year risk review. Several regions and sectors later indicated that this risk materialized during the year with repercussions on several fronts, including negative ratings for affected harbours and the inaccessibility of much-needed infrastructure by Science programs, compromising the delivery of the advice needed to support decision-making. This risk was considered a pressing concern for the regions because of funding pressures. • This risk has been transferred to the Corporate Risk Profile 2011-12. During the prioritization of corporate risks for 2011-12, this risk was assessed as having the highest severity rating for the Department.
Stakeholder Expectations DFO may be unable to manage expectations and maintain the confidence of stakeholder groups, the public, media and elected officials.	• Globally Competitive Fisheries • Regulatory Streamlining • Information Management • International Leadership	DFO will assess communications and consultation mechanisms as well as outreach efforts. DFO will assess learning and training strategies to foster more consistent core messages on priorities and strategic directions.	• None of the program activities identified this risk in their list of top three risks at the year-end review. • However, some program activities identified risks such as Legal and Compliance, Human Capital, Information for Decision-Making, and Internal Alignment as affecting Stakeholder Expectations over the year. • This risk has now been merged into a new risk in the Corporate Risk Profile 2011-12, under Third Party Reliance, which better articulates this risk.
Partnering and Collaboration DFO may be unable to create and sustain effective partnerships, or there will be failures on the part of third parties on which DFO relies.	• Northern Strategy • Globally Competitive Fisheries • Regulatory Streamlining • Information Management	DFO has begun to review and assess all types of collaborative arrangements that it has with organizations.	• None of the program activities identified this risk in their list of top three risks at the year-end review. • However, some program activities identified risks such as Legal and Compliance, Human Capital, Information for Decision-Making, and Internal Alignment as affecting Partnering and Collaboration over the year. • This risk has now been merged into a new risk in the Corporate Risk Profile 2011-12, under Third Party Reliance, which better articulates this risk.
Legal and Compliance DFO may be successfully challenged before the courts, resulting in either significant financial liability or negative effects on DFO’s legislative or regulatory authorities, and DFO may not be able to ensure public compliance with its legislation and regulations.	• No link specified in 2010-11 RPP	The Department will develop and assess a complete, Department-wide inventory of key mitigation measures for this risk	• The Species at Risk Management Program, under the Healthy and Productive Aquatic Ecosystems strategic outcome, identified this risk in its list of top three risks. • The program activity stated that this risk made meeting the Department's legal obligations under the Species at Risk Act unfeasible because of capacity and human resources issues. • This risk was deemed "Tentatively Controlled" from a corporate perspective during the mid-year risk review. This risk remains in the Corporate Risk Profile 2011-12. During the prioritization of corporate risks for 2011-12, this risk was assessed as having the third-highest severity rating for the Department.
Additional Risks Identified: Climate Change	• Not identified for 2010-11	Not identified for 2010-11	• While not identified as a corporate risk in the Corporate Risk Profile 2010-11, two program activities identified this risk as being in their list of top three risks. • Science for Safe and Accessible Waterways and Science for Healthy and Productive Aquatic Ecosystems have indicated that changes to ocean conditions and aquatic ecosystems resulting from climate change have challenged the Department's ability to deliver results against program outcomes. • This risk has been transferred to the Corporate Risk Profile for 2011-12 and included in a broader risk statement that encompasses hazard- or crisis- type risk for which climate change may be a driver. This risk will be managed by those program activities where the risk continues to be an area of focus.

Summary of Performance

Financial Resources for 2010-11 ($ millions)

Planned Spending	Total Authorities	Actual Spending
1,992.2	2,073.1	1,992.9

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
11,025	11,001	-24

($ millions)

Safe and Accessible Waterways

Performance Indicators	Targets	2010-11 Performance
Percentage of Canadian public reporting confidence in the safety of the marine transportation system in Canada	90% by March 31, 2011	This result was to be derived from a Transport Canada survey of public opinion. However, because of a moratorium on syndicated studies pending centralized negotiations between Public Works and Government Services Canada and private-sector contractors, CCG was not able to evaluate its 2010-11 performance on this expected result.
Percentage of core fishing harbours with performance ratings of fair, good, or very good	70% by March 31, 2011	70%

Program Activity	2009-10	2010-11				Alignment to Government of Canada Outcomes
	Actual Spending	Main Estimates	Planned Spending	Total Authorities	Actual Spending
Canadian Coast Guard	736.1	725.9	732.6	758.3	742.8	Safe and Secure communities
Small Craft Harbours	221.0	205.3	221.7	213.1	206.4	Strong Economic Growth
Science for Safe and Accessible Waterways	40.2	38.9	38.9	40.0	39.3	Innovative and Knowledge-based Economy
Total	997.4	970.0	993.2	1,011.5	988.5

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

($ millions)

Sustainable Fisheries and Aquaculture

Performance Indicators	Targets	2010-11 Performance
Year-over-year improvement in management and conservation of major stocks to support sustainable fisheries, as evidenced in growth of the sustainability index	Baseline of 5.4/10 with target of 2% increase for 2010 to 5.5/10 and additional 2% increase to 5.6/10 for 2011	5.5/10 (It should be noted that the number of stocks covered by the Fisheries Checklist has increased from 120 to 136 major stocks.)
Year-over-year improvement in the social, economic and environmental sustainability of the Canadian aquaculture sector, as evidenced by a reduced regulatory burden, increased regulatory effectiveness, increased transparency, increased availability of scientific information, increased industry investment in innovation and certification projects and the development of sector-specific program and operational policy direction.	Development of a national data collection program and sustainability reporting process	The Reporting to Canadians draft was ready but the release was delayed because of the need for more collaborative work.
	Implementation of Regulatory Program in British Columbia and possibly nationally	The new federal Pacific Aquaculture Regulations came into effect in December 2010. There has been no direction to scale up the British Columbia regulatory program nationally.

Program Activity	2009-10	2010-11				Alignment to Government of Canada Outcomes
	Actual Spending	Main Estimates	Planned Spending	Total Authorities	Actual Spending
Fisheries and Aquaculture Management	339.6	349.0	350.2	372.9	356.2	Strong Economic Growth
Science for Sustainable Fisheries and Aquaculture	134.9	140.0	140.0	146.7	133.7	Innovative and Knowledge-based Economy
Total	474.5	489.0	490.2	519.6	490.0

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

($ millions)

Healthy and Productive Aquatic Ecosystems

Performance Indicators	Targets	2010-11 Performance
Percentage of Canadian aquatic ecosystems where the risk to ecosystem health and productivity has been assessed as medium or low	To be determined – baseline value to be measured in 2010	Data for this indicator is unavailable. As a proxy, program activity results have been used to assess performance against targets. Results range from mostly met to exceeded.

Program Activity	2009-10	2010-11				Alignment to Government of Canada Outcomes
	ActualSpending	Main Estimates	Planned Spending	Total Authorities	Actual Spending
Oceans Management	15.8	15.9	15.9	15.8	14.6	Clean and Healthy Environment
Habitat Management	62.0	59.7	59.7	60.4	53.0	Clean and Healthy Environment
Species at Risk Management	21.8	23.0	23.0	23.8	22.1	Clean and Healthy Environment
Science for Healthy and Productive Aquatic Ecosystems	60.9	56.0	56.0	57.1	53.4	Innovative and Knowledge-based Economy
Total	160.6	154.7	154.7	157.1	143.2

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

($ millions)

Internal Services

Program Activity	2009-10	2010-11
	Actual Spending	Main Estimates	Planned Spending	Total Authorities	Actual Spending
Internal Services	348.8	354.0	354.0	384.8	371.2
Total	348.8	354.0	354.0	384.8	371.2

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

Expenditure Profile

Departmental Spending Trend

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The Department's total actual spending for 2010-11 was $1,992.9 million. Spending over the past two years has been relatively consistent. The increase in spending in 2009-10 and 2010-11 over the 2008-09 spending was due to increased spending authorities under Canada's Economic Action Plan.

The difference between Main Estimates and Total Authorities is largely due to additional funds received from the Operating Budget Carry Forward and Supplementary Estimates. The Supplementary Estimates funding was for items such as a small craft harbour in Pangnirtung, fleet and maritime services for the Canadian Coast Guard, and the establishment and implementation of the new federal Pacific Aquaculture Regulations in British Columbia.

Approximately 75% of the variance between Total Authorities and Actual Spending, after reimbursement for cash-managed items, will be spent in future years so the authorities will not be lost to the Department. The remaining variance, representing approximately 1% of total departmental authorities, will be lapsed.

Canada's Economic Action Plan

Canada's Economic Action Plan (EAP) allocated close to $12 billion in new infrastructure funding over two years to create jobs across Canada and to ensure that Canada emerges from the economic downturn with a more modern and greener infrastructure. DFO received the following funding in 2010 11 as part of the government's EAP.

EAP Initiative	Summary of Performance	2010-11 ($ millions)
		Planned Spending	Actual Spending	Actual Spending, including contributions to Employee Benefit Plans
Canadian Coast Guard Shipbuilding and Repair	• Five vessel life extensions completed • 35 vessel refits completed • 60 small craft built and delivered • 16 Environmental Response Barges delivered with 14 to be delivered by fall 2011 • Five 47-foot Search and Rescue Motor Lifeboats completed • Work continues on three In-shore science vessels to be delivered by fall 2011	85.0	92.81	93.0
Small Craft Harbours	• 220 repair and maintenance projects completed • 8 engineering only and 6 early planning stage projects completed1 • 38 projects currently underway to be completed by fall 2011	97.72	86.31	93.6
Pangnirtung Harbour	• Phase 1 to be completed by summer 2011 • Phase 2 contract has been awarded with construction to begin in summer 2011	10.0	6.93
Federal Laboratories	• 57 sub-projects in the laboratories were completed • One sub-project is 98% complete (will be completed in July 2011)	24.5	24.1	24.1
Federal Contaminated Sites Action Plan	• 1,296 sites assessed for contamination • 79 sites had remediation and risk management projects completed • Provided expert support for the management of federal contaminated sites	8.24	12.45	12.9
Total		225.4	222.5	223.5

Note: Because of rounding, figures may not add to the totals shown.
¹ 2009-10, Small Craft Harbours spent $8 million in unused funding from Canadian Coast Guard and $2.6 million of unused funding from Pangnirtung Harbour. This funding was returned to Canadian Coast Guard and Pangnirtung Harbour in 2010-11.
² Small Craft Harbour 2010-11 planned spending includes $0.6 million in Employee Benefit Plan contributions and Public Works and Government Services Canada accommodation.
³ Pangnirtung Harbour has carried forward $5.8 million of unused 2010-11 funding for use in 2011-12.
⁴ An error was discovered after the finalization of the 2010-11 Main Estimates, which resulted in an increase of $4.3 million for the Federal Contaminated Sites Action Plan EAP budget.
⁵ In 2010-11, the program management funding normally provided by the Federal Contaminated Sites Action Plan was instead funded through the Economic Action Plan, accounting for the increase in Actual Spending.

Additional information on Canada's Economic Action Plan is available at http://www.actionplan.gc.ca/eng/index.asp.

Economic Action Plan Spending

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Estimates by Vote

Information on our organizational votes or statutory expenditures is available in the 2010-11 Public Accounts of Canada (Volume II). This publication is available at http://www.tpsgc-pwgsc.gc.ca/recgon/txt/72-eng.html.

Section II: Analysis of Program Activities by Strategic Outcome

An overall performance rating has been assigned to each expected result based on the following:

Performance Rating Legend

If this percentage of expected performance is achieved…	The performance rating is defined as…	The performance rating is shown graphically as…
More than 100%	Exceeded
100%	Met All
80 to 99%	Mostly Met
60 to 79%	Somewhat Met
Less than 60%	Not Met

Strategic Outcome #1 - Safe and Accessible Waterways

Program Activity 1: Canadian Coast Guard

Description from Main Estimates: The Canadian Coast Guard (CCG) provides civilian marine services (vessels, aircraft, expertise, personnel and infrastructure) to deliver its own programs (Aids to Navigation, Waterways Management, Marine Communications and Traffic Services, Environmental Response, Icebreaking, Search and Rescue), and on behalf of other federal government departments or in support of federal agencies and organizations in the achievement of their own specific Government of Canada maritime priorities. CCG provides support to other parts of Fisheries and Oceans Canada (Science and Conservation and Protection), the Department of National Defence, Environment Canada, the Royal Canadian Mounted Police, Foreign Affairs and International Trade, and Transport Canada among others.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
732.6	758.3	742.8	4,838	4,903	+65

Note: FTE data does not include students and cadets.

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Safe, economical, and efficient movement of maritime traffic in Canadian waters	Number of vessel movements facilitated through the provision of CCG maritime safety services (maintain a 3-year average)	848,734 by March 31, 2011	582,194
Civilian fleet operationally ready to deliver Government of Canada programs and maintain a federal presence	Satisfaction rate (percentage) of CCG meeting GOC requirements for an operationally ready fleet	80% by March 31, 2011	Government of Canada had access to an operationally ready civilian fleet that maintained a federal presence on Canadian waters.

Performance Highlights

• Continued efforts to procure new vessels and undertake major vessel repairs to improve the Canadian Coast Guard's capacity to deliver its programs and services.
• Created an Arctic Vision for CCG programs that includes objectives for the next 5, 15, and 30 years.
• Finalized the baseline requirements for the replacement of CCGS Louis S. St-Laurent with a new more capable polar icebreaker. Delivery of the new vessel is on track for 2017.
• Continued to play a leadership role in the implementation of e-Navigation in Canadian waters, which is expected to significantly enhance marine safety, have positive economic benefits, and increase environmental protection.
• Delivered equipment packages designed to improve the Canadian Coast Guard's capacity to respond to oil spills in the Arctic.

Performance Summary and Analysis

The Canadian Coast Guard's focus in 2010-11 continued to be to ensure that it has a skilled, qualified, and representative workforce; to deliver on fleet procurement and repair processes already under way; and to play a leadership role in the implementation of e-Navigation and in the development of a strategic DFO/CCG Arctic Vision.

The Coast Guard facilitated over half a million vessel movements through the provision of maritime safety services to provide safe, economical, and efficient movement of maritime traffic in Canadian waters. Although this figure appears to be short of the target, the introduction of a new electronic data collection system and a change in the reporting method used for registered ferry movements (only first and last daily trips are reported) explain the large variance from last year. These data issues will be resolved in the 2012-13 reporting period.

Canada's Economic Action Plan … Provided $175 million over two years to the Canadian Coast Guard to purchase new vessels and to repair and refit existing vessels. New vessels include 60 small boats, 16 Environmental Response Barges, and five 47-foot Search and Rescue Motor Lifeboats. Work continues on 14 additional Environmental Response Barges and three In-shore Science Vessels to be delivered in late 2011. Vessel life extensions have been completed on five vessels, giving them another 10 years of service life. Refits on another 35 vessels have been completed to increase availability and reliability. In 2010-11, $92.8 million was spent on EAP initiatives, including $8.0 million repaid from a 2009-10 loan to Small Craft Harbours. Additional information on these initiatives can be found at http://www.actionplan.gc.ca/ eng/index.asp.

Lessons Learned

The December 2010 audit by the Commissioner of the Environment and Sustainable Development on oil spills from ships was critical of the Coast Guard's preparedness to respond to marine pollution incidents in Canada's waters. The report identified significant gaps, particularly related to updated risk assessments, equipment, and the readiness capacity of the Coast Guard. The Canadian Coast Guard agrees with the recommendations from the Commissioner's audit, which confirmed the findings of a similar departmental internal audit of the Environmental Response program, completed in May 2010. The Coast Guard has begun to address the recommendations of both audits, and is developing a regular reporting process to the Commissioner on progress made in addressing his recommendations.

In 2010-11, evaluations were completed for the Aids to Navigation program, the Waterways Management program, and the Icebreaking Services program. These evaluations provided several recommendations, including the development and implementation of a performance measurement strategy. The Aids to Navigation program evaluation also indicated that the program would benefit from national standardization of data collection and entry, and suggested studying the possibility of automating lightstations. The Waterways Management program evaluation recommended the Canadian Coast Guard communicate to users the survey status of its mandated channels and that the Coast Guard and DFO Real Property collaboratively develop and implement a maintenance and/or refurbishment plan for its marine structures. The Icebreaking Services program was encouraged to continue supporting its complementary services, such as the MARINFO website (http://www.marinfo.gc.ca), and its partnership agreements, such as those with Canadian Ice Services and the United States Coast Guard. Management Action Plans to address all recommendations have been developed and are monitored by the Departmental Evaluation Committee to ensure that the recommendations are being implemented.

Program Audit … An audit of the Marine Communications and Traffic Services Program was completed in 2010-11 and is available at http://www.dfo-mpo.gc.ca/ae-ve/audits-verifications/10-11/6B211-eng.htm.

Program Evaluation … Aids to Navigation Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b129-eng.htm Waterways Management Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b140-eng.htm Icebreaking Services Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b123-eng.htm

Program Sub-activities

Canadian Coast Guard is delivered through ten sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Program Activity 2: Small Craft Harbours

Description from Main Estimates: The Small Craft Harbours Program directly, or indirectly through Harbour Authorities, operates and maintains a network of harbours, critical to the fishing industry, that is open, safe and in good repair. These harbours are necessary for the effective operation of the commercial fisheries that contribute to the Canadian economy, directly support employment and that indirectly create tens of thousands jobs, many in rural and isolated parts of Canada.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
221.7	213.1	206.4	191	185	-6

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
A network of harbours critical for Canada's commercial fishing industry that is open, safe, and in good repair	Percentage of core fishing harbours with performance ratings of fair, good or very good	70% by March 31, 2011	70%
	Percentage of facilities at core fishing harbours in fair, good or very good condition	80% by March 31, 2011	73%
	Percentage of recreational and non-core harbours divested	5% of remaining divestiture candidates to be divested in 2010-11	18%

Small Craft Harbours throughout Canada

Performance Highlights

• Repaired or undertook maintenance projects at over 200 core fishing harbours. Of the 272 projects, 220 were completed, 38 were nearly completed, and 14 reached the engineering and/or planning stages. Because some costs exceeded original estimates during implementation, the Small Craft Harbours program implemented a mitigation strategy, including scope adjustment and deferral of work to future years. Projects will be completed with funding from the Program's regular budget.
• Completed 80% of Phase 1 construction work for a small craft harbour in Pangnirtung, Nunavut and awarded the contract for Phase 2. Phase 1 is expected to be complete in early 2011-12 while all construction is expected to be complete by the summer of 2013. The project has experienced delays due to adverse weather and limited transportation to the remote area.
• Divested 65 sites in year three of the four-year Divestiture of Non-Core Harbours Program. In total, the program has divested 79 sites, with the goal of divesting 75-95 harbours after four years.
• Implemented portions of the Small Craft Harbours functional review including work associated with the development of National Model Work Descriptions. Some delays were experienced because of the acute need to mobilize program resources to deliver initiatives under Canada's Economic Action Plan.

Performance Summary and Analysis

Small Craft Harbours continued to focus on the delivery of Canada's Economic Action Plan in 2010-11, including the construction of a fishing harbour in Pangnirtung, Nunavut, as well as the repair and maintenance of core commercial fishing harbours. With the help of the economic stimulus funding received as part of Canada's Economic Action Plan, 70% of core fishing harbours received performance ratings of fair, good, or very good, meeting Small Craft Harbours' target for 2010-11. With regard to facilities at core fishing harbours, 73% are in fair, good, or very good condition, just below the 80% target for 2010-11. These targets were met or nearly met despite a series of storms in late 2010 that caused damage to facilities and fishing harbours in over 250 communities. Small Craft Harbours completed the divestiture of 65 sites in 2010-11 — the equivalent of 18% of the remaining recreational and non-core harbours to be divested and exceeding the target of 5%. This substantial improvement in performance is largely the result of completing 42 minor sites in the Pacific Region, which was made possible with temporary resources provided by the Divestiture of Non-core Harbours Program.

Canada's Economic Action Plan … Provided the Small Craft Harbours Accelerated Infrastructure Program with $200 million over two years to repair, maintain, and dredge over 200 core commercial fishing harbours located across Canada. Of this, $86.3 million was spent on projects in 2010-11 and $10.6 million was used to repay 2009-10 loans from Canadian Coast Guard and the Pangnirtung Harbour project. Additional information on this initiative can be found at http://www.actionplan.gc.ca/initiatives/eng/index.asp?mode=2&initiativeID=22. Small Craft Harbours also received $17 million to accelerate the construction of a fishing harbour in Pangnirtung, Nunavut, $10 million of which was to be spent in 2010-11. Pangnirtung received an additional $2.8 million from Small Craft Harbour Harbours as repayment for a 2009-10 loan. In 2010-11, $6.9 million was spent on this project, with $5.8 million of unused funds being carried forward for use in 2011-12. Additional information on this initiative can be found at http://www.actionplan.gc.ca/initiatives/eng/index.asp?mode=2&initiativeID=18.

Lessons Learned

In 2010-11, a number of Small Craft Harbours repair and maintenance projects were completed significantly above or below the estimated value. As a result, Small Craft Harbours recognizes there is a need to strengthen the planning process to ensure better accuracy of estimates in the future. In regard to the divestiture of recreational and non-core harbours, Small Craft Harbours recognizes that although a large number of sites were divested this year, the remaining sites are more difficult and costly to complete, and many will require environmental remediation. These challenges may affect the number of sites divested in 2011 12.

Program Evaluation … Small Craft Harbours Divestiture Class Grant Program (http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b138-eng.htm) The report found that the program was relevant and effective and made no recommendations.

Program Activity 3: Science for Safe and Accessible Waterways

Description from Main Estimates: This program provides scientific research, monitoring, advice, products and services and data management to ensure departmental and federal policies, programs, decisions, and regulations associated with safe, secure, and accessible waterways are informed by science advice. The science is provided through a network of research facilities, in collaboration with other government departments, private sector, academia and international organizations.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
38.9	40.0	39.3	297	288	-9

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Stakeholders have the information to safely navigate Canada's waterways	Number of navigational digital and paper products sold	Maintain current unit sales levels or achieve a net increase in products sold	64% decrease in digital products sold and 5% increase in paper products sold, in comparison with 2009-10

Performance Highlights

• Completed 14 of the 23 new charts required to service the Kitimat and Prince Rupert areas of British Columbia, making it possible for deep-draught vessels to safely navigate in this area of Canada's Pacific coast. Completion of the required work will take several years.
• Continued efforts to synchronize the production, availability, and maintenance of its paper and digital charts.
• Continued to improve the digital product and distribution model, including improvements to the registration service and the web-based digital product update service. Fourteen new Raster Navigational Charts and 65 new Electronic Navigational Charts were made available for public access.

Performance Summary and Analysis

The way Canadian and international mariners use technology continues to shape the navigational products and services provided by the Canadian Hydrographic Service (CHS), including the way in which those products and services are delivered. Between 2007-08 and 2009-10, the overall number of paper hydrographic charts and publications sold declined by approximately 20%, while the number of digital hydrographic charts and products increased by almost 25%. CHS expected that the sale of paper products would continue to decline annually and that the sale of digital products would continue to experience large double-digit growth rates. Contrary to the recent trend, the sale of paper products increased slightly in 2010-11 and the sale of digital products appears to have decreased. The reasons for this apparent reversal in trend is not known at this time; however, the purchase of CHS products and data through licensed global service providers and the reselling of hydrographic data in private-sector value-added products is not currently captured by the above performance indicator. In 2010-11, one international global service provider alone sold over 90,000 paper charts for Canadian waterways. These alternative sources and alternative uses of information in the marketplace should be considered when trying to understand the trend in the use of CHS products and data.

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Lessons Learned

CHS will continue to monitor the apparent trend reversal in the sale of digital and paper navigational products and attempt to quantify the extent to which CHS information is used via non-traditional outlets. Should the trend continue, CHS will more closely examine the possible reasons for this unexpected reversal to ensure that official navigational products are meeting the needs of today's mariners.

A lack of hydrographic data in critical areas can create a risk to safe navigation, coastal communities, and Canadians in general. Keeping the existing portfolio of hydrographic products and services up-to-date and creating new products to service areas of emerging importance (e.g., Arctic, Asia-Pacific Gateway), while making these products and services accessible in a technological environment that continues to innovate, requires a risk-based approach to the management of the overall portfolio of hydrographic products and services. Given the proven utility of the risk-based approach to support the management of the portfolio, the Canadian Hydrographic Service will continue to refine and adjust its risk-based framework to improve its usefulness as a tool in decision-making.

Program Sub-activities

Science for Safe and Accessible Waterways is delivered through two sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Strategic Outcome #2 - Sustainable Fisheries and Aquaculture

Program Activity 1: Fisheries and Aquaculture Management

Description from Main Estimates: The overall goal of fisheries and aquaculture management is the conservation of Canada's fisheries resources to ensure sustainable resource utilization through close collaboration with resource users and stakeholders based on shared stewardship. Fisheries and Aquaculture Management contributes to international fisheries conservation negotiations and relations, shared management of interception fisheries in international waters, management of the Aboriginal, commercial, recreational fishing in the coastal waters of Canada's three oceans and creating the conditions for a vibrant and innovative aquaculture industry and for an economically prosperous fishing sector as a whole.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
350.2	372.9	356.2	1,594	1,633	+39

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Sustainable fisheries and aquaculture	Year-over-year improvement in the management and conservation of stocks to support sustainable fisheries, as evidenced in the growth of the sustainability index	Baseline of 5.4/10 with target of 2% increase for 2010 and additional 2% increase for 2011	5.5/10*

* It should be noted that the number of stocks covered by the Fisheries Checklist has increased from 120 to 136 major stocks.

Performance Highlights

• Developed and implemented Integrated Fisheries Management Plans for 68 of 136 major stocks (50%) on the 2010-11 Fisheries Checklist; this is an increase from the 41.7% coverage achieved in 2009-10.
• Promoted shared stewardship of fisheries through participation in numerous advisory committees and a new Integrated Fisheries Management Plan template that encourages consultations with industry when determining fishery objectives.
• Published five sector strategy plans for the sustainable development of aquaculture that were endorsed by the Canadian Council of Fisheries and Aquaculture Ministers in November 2010.
• Improved and restored approximately 198,000 m2 of fish habitat and supported 49 habitat improvement projects through the Salmonid Enhancement Program.
• Continued to place emphasis on promoting compliance with legislation, regulations, and management measures through education and shared stewardship programs.
• Delivered fishing licences in a timely manner and continued to improve processes. Collected all fisheries data required and began to implement system improvements.
• Undertook major case and special investigations involving both the east and west coasts. Major case management and intelligence software solutions have been identified. Field access by Fishery Officers is being developed, along with a new national inspection database to enhance inspection information accessibility across the country.
• Redeveloped the Aboriginal Contribution Agreement to a common template and produced a Recipient Capacity Assessment Tool that staff and recipient organizations were trained to use.
• Adopted changes to licensing policies to increase the capacity for industry to self-adjust in response to economic viability problems. For example, the Policy on the Issuance of Licences to Companies has been announced to enable greater opportunities for economic prosperity for Canada's inshore Atlantic and Quebec fisheries.
• Promoted and influenced sustainable regional fisheries management and healthy global marine ecosystems by:
  • Contributing to negotiations for a new regulated fisheries management area in the high seas of the North Pacific Ocean, thereby advancing Canadian objectives of marine conservation and protection while creating the potential for fisheries resources in the region;
  • Launching a comprehensive, basin-wide, bi-national Asian carp risk assessment to combat the threat posed by invasive Asian carp to the Great Lakes; and
  • Playing a strong role in helping members of the Northwest Atlantic Fisheries Organization (NAFO) continue with the closures of six vulnerable marine ecosystems in the NAFO Regulatory Area and the adoption of a number of plans and frameworks supporting proper management of shrimp, Greenland halibut, American Plaice, and cod.
• Contributed to the growth of international trade through renewal of DFO's sustainable seafood website, presence at leading global trade shows, engagement of stakeholders in Canada's sustainable seafood management regime, and engagement with ecocertification and ecolabelling organizations.

Performance Summary and Analysis

In 2010-11, Fisheries and Aquaculture Management was focused on advancing the following priorities: the Northern Strategy, International Leadership, and Globally Competitive Fisheries. Also, various elements of the Sustainable Fisheries Framework¹⁴ were consulted on and implemented, such as the Precautionary Approach and the Ecosystems Approach.

To protect our fisheries and remain globally competitive, Fisheries and Aquaculture Management is expected to produce sustainable fisheries and aquaculture through improvements in the management and conservation of fish stocks. Progress in this area is measured by increases in the sustainability index compared to the baseline level of 5.4/10 (measured in 2008-09). For 2010-11, the sustainability index was 5.5. This is an increase from the score of 5.4 that was achieved in 2008-09 and 2009-10. It should be noted that in 2010-11, checklists were completed for an additional 16 stocks compared to 2009-10.

Lessons Learned

Fisheries and Aquaculture Management has noted that changes in the sustainability index do not always accurately reflect changes in the management and conservation of stocks. The list of stocks and checklist questions for a given year must be defined and remain unchanged to accurately measure changes in the index. Starting in 2011, the fisheries stock list and checklist questions will be defined and set for four years to allow for year-over-year comparison.

Since aquaculture management is a shared jurisdiction between federal and provincial/territorial governments, partnerships between the governments are key to promoting sustainable and competitive aquaculture. However, building federal-provincial partnerships is complex and requires time. This reality has caused delays in delivering some aquaculture program activities, notably the release of the sustainability report and the development of the fish health regulations.

In 2010-11, evaluations were completed for the International Fisheries Conservation program and the Conservation and Protection program, and several recommendations were made. The evaluation of the International Fisheries Conservation program recommended that the program develop a performance measurement strategy, continue to explore new partnerships with key countries, continue to sustain its bilateral and multilateral partnerships, and engage Regional Fisheries Management Organizations on capacity and compliance issues. The Conservation and Protection program evaluation recommendations included the need for national direction in the area of education and shared stewardship. The evaluation also recommended the development and implementation of a plan to guide the program's direction in major cases and special investigations and the exploration of options to increase efficiency and address workload concerns. Management Action Plans to address all recommendations have been developed and are monitored by the Departmental Evaluation Committee to ensure that the recommendations are being implemented.

Program Evaluation … International Fisheries Conservation Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b121-eng.htm Conservation and Protection Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b142-eng.htm

Program Sub-activities

Fisheries and Aquaculture Management is delivered through six sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Program Activity 2: Science for Sustainable Fisheries and Aquaculture

Description from Main Estimates: Provision of advice and recommendations based on scientific research and monitoring, as well as the provision of products and services and the management of data on Canada's oceans and resources. This ensures departmental and federal policies, programs, decisions, and regulations associated with sustainable fisheries and aquaculture are informed by scientific knowledge. The science is provided through a network of research facilities, in collaboration with other government departments, private sector, academia and international organizations.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
140.0	146.7	133.7	927	952	+25

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Comprehensive understanding of aquatic resources for decision-makers to help ensure sustainable fisheries and aquaculture	Number of Canadian publications on sustainable fisheries and aquaculture that are authored/co-authored by DFO Science	Maintain 5-year average (2006-11)	196 published papers were produced on sustainable fisheries and aquaculture in 2009; this is below the 5-year average of 217 papers*
	Number of DFO Science publications on sustainable fisheries and aquaculture that are cited	Maintain 5-year average (2006-11)	Average number of citations to papers published on sustainable fisheries and aquaculture between 2005 and 2009 was 477 per year. Between 2004 and 2008, DFO Science papers were cited more often than the world average.*
	Number of Canadian Science Advisory Secretariat (CSAS) publications on sustainable fisheries and aquaculture that are posted on the CSAS website	Maintain 5-year average (2006-11)	Produced 130 CSAS publications that are posted on the DFO website; approximately 19% below the 5 year average of 160

* Source: Science Metrix Inc.

Performance Highlights

• Improved the guidance on Techniques for the Provision of Advice in Information-Poor Situations under the Technical Expertise in Stock Assessments (TESA) initiative. The objectives were to review the state-of-the-art in assessment and management approaches for information-poor fisheries; review case studies of information-poor fisheries to determine what assessment approaches are useful for providing management advice; produce a decision tree that includes guidelines and assessment/management tools for various data-poor situations; and describe the types of advice that can be produced, and what the uncertainties will be, in various data-poor situations.
• Contributed to the Natural Sciences and Engineering Research Council-funded Canadian Integrated Multitrophic Aquaculture Network as a member of the Steering Committee. In this capacity, provided advice and direction from a national regulatory perspective on the development of the program, communication, and budgeting. In addition, 64 Aquaculture Collaborative Research and Development projects were undertaken in 2010-11. These projects increased the level of collaborative research and development activity between the aquaculture industry and the Department.
• Assisted with the implementation of the New Substances Notification Regulations (Organisms) by providing guidance in response to stakeholder inquiries on regulatory requirements and process. In addition, participated in an Environment Canada-led regulatory consultation on the review of these regulations to provide science-based advice on appropriate regulatory approaches for fish biotechnology.
• Responded to aquaculture-related requests for priority regulatory research and communicated the results to the responsible federal regulatory authority. Undertook eleven regulatory research projects were undertaken in 2010-11.
• Initiated a bi-national (Canada and the United States) risk assessment of Asian carp to provide scientific advice on key areas within the Great Lakes basin that are most vulnerable to invasion and identify routes where they could enter the Canadian side of the lake system.

Performance Summary and Analysis

In 2009 (the most recent year for which data is available), DFO Science produced 196 papers on sustainable fisheries and aquaculture (source: Science-Metrix Inc). This represents a decrease of approximately 10% when compared with the Department's five-year average. Approximately 67% of these papers were written in collaboration with other key players in Canada's research community (e.g., universities and the private sector). On average, DFO papers accounted for approximately 19% of Canadian papers on sustainable fisheries and aquaculture between 2005 and 2009. DFO Science papers on sustainable fisheries and aquaculture consistently received an above-average number of citations relative to the average number of citations received by world papers between 2004 and 2008, which demonstrates the utility of the publications.

The Canadian Science Advisory Secretariat (CSAS) coordinates the peer review of scientific issues for the Department. In 2010-11, CSAS produced 130 publications (science advisory reports, research documents, proceedings, and science responses) in response to advisory needs associated with the Sustainable Fisheries and Aquaculture strategic outcome. Although this appears to represent a significant decrease in advice, it reflects a reallocation of science advice to support the increased advisory needs in support of the Healthy and Productive Aquatic Ecosystems strategic outcome. Overall, the total number of CSAS publications (278) in support of both strategic outcomes is well above the five-year average of 233 publications, demonstrating a strong contribution to the body of scientific knowledge. These publications are available on the Canadian Science Advisory Secretariat website.¹⁵

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Lessons Learned

In 2010-11, an evaluation of the Fisheries Resource Science Program was completed. Recommendations included that the program identify options to address the challenge of moving toward a complex ecosystem-based approach, as well as options to address gaps in skills and achieve further efficiencies. Management Action Plans to address all recommendations have been developed and are monitored by the Departmental Evaluation Committee to ensure the recommendations are being implemented.

In recent years, the breadth of science advice provided by the Department's science program has gone far beyond the longstanding requirement to assess the status of the fisheries resource in support of sustainable fisheries and aquaculture. The requirement for advice to support the Department's other two outcomes, Healthy and Productive Aquatic Ecosystems and Safe and Accessible Waterways, has grown considerably. Ten years ago, requests to the Department's CSAS for formal science advice on aquatic species at risk was minimal. Today, 30% of the advisory publications produced by CSAS are in direct support of requirements associated with the management of species at risk. This overall growth has required that program efficiencies be found (e.g., multi-species versus single-species stock surveys) and that risk-informed choices be made with regard to which requests for science advice are serviced within a given fiscal year.

Program Evaluation … Fisheries Resource Science Program http://www.dfo-mpo.gc.ca/ae-ve/evaluations/10-11/6b139-eng.htm

Program Sub-activities

Science for Sustainable Fisheries and Aquaculture is delivered through six sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Strategic Outcome #3 - Healthy and Productive Aquatic Ecosystems

Program Activity 1: Oceans Management

Description from Main Estimates: Oceans Management involves the conservation and sustainable use of Canada's oceans in collaboration with other levels of government, Aboriginal organizations and other non-government stakeholders through the development and implementation of objectives-based integrated oceans management plans and the application of marine conservation tools. Modern oceans management arrangements deal with a number of challenges including oceans health, marine habitat loss, declining biodiversity, growing demands for access to ocean resources and regulatory and jurisdictional complexities.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
15.9	15.8	14.6	131	113	-18

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Oceans activities are managed in a manner consistent with sustainable development	Percentage of priority ocean ecosystems where ecosystem integrity is maintained or improved	100% by March 31, 2017	Data for these indicators is unavailable; as a proxy, sub-activity results have been used to assess performance.
	Contribution of marine-based industries to GDP	Contribution of marine-based industries to Gross Domestic Product remains stable or increases by March 31, 2017

Performance Highlights

• Facilitated information access and exchange, informed decision-making, and enhanced oceans planning and management by:
  • Providing secretariat support to an interdepartmental committee on oceans to coordinate and align federal government planning and action on oceans issues;
  • Convening two meetings of the Directors' General Interdepartmental Committee on Oceans;
  • Managing an online interdepartmental forum to facilitate exchange of information among federal oceans planners; and
  • Working with provincial and territorial counterparts through a national level Oceans Task Group as well as five regional committees on oceans management.
• Completed integrated management plans for two of the five Large Ocean Management Areas.
• Designated Tarium Niryutait as a Marine Protected Area¹⁶ in August 2010. Four Areas of Interest (Hecate Strait Sponge Reefs, Race Rocks, Paulatuk, and Laurentian Channel) are being considered for future designation as Marine Protected Areas (designation is anticipated by 2013).
• Developed knowledge of the conservation, social, economic, and governance aspects of defined marine areas and increased awareness of the effects oceans activities can have on such areas by:
  • Completing Socio-Economic and Cultural Overview and Assessment (SECOA) reports for two Large Ocean Management Areas (Gulf of St. Laurence and Pacific North Coast);
  • Completing an assessment of the availability and quality of SECOA-related data sources and a series of background reports on the State of the Gulf of Maine; and
  • Continuing efforts to collect and refine ecological and socio-economic information into Geographic Information Systems in support of improved decision-making.

Performance Summary and Analysis

Significant progress has been achieved in advancing integrated management, as demonstrated through continued collaboration with other federal, provincial, and territorial governments, Aboriginal groups, and other stakeholders, and the completion and announcement of the Beaufort Sea Integrated Management Plan in August 2010.

The designation of the Tarium Niryutait Marine Protected Area in August 2010 continues Oceans Management's work toward achieving a target of six new Marine Protected Areas. Looking forward, seven Areas of Interest may also be designated as Marine Protected Areas as part of the commitments made under the Health of the Oceans Initiative. In addition, drafting and public consultations have been completed on the National Framework for Canada's Network of Marine Protected Areas in collaboration with federal-provincial-territorial government partner agencies.

Lessons Learned

The Oceans Management program depends on the capacity of partners to support and implement integrated management plans, corresponding objectives and monitoring strategies to achieve its expected results. Delays or inability on the part of partners can hinder the achievement of some results.

Program Sub-activities

Oceans Management is delivered through two sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Program Activity 2: Habitat Management

Description from Main Estimates: In collaboration with others, Habitat Management involves conserving and protecting fish and fish habitat from the impacts of activities occurring in and around fresh and marine fish-bearing waters, and improving (restoring and developing) fish habitat through the administration of the habitat protection provisions of the Fisheries Act, providing advice on related provisions of the Act, and the application of non-regulatory activities. It also involves conducting environmental assessments prior to regulatory decisions listed in the Law List Regulations of the Canadian Environmental Assessment Act and participating in other environmental assessment regimes. These activities are performed in a manner consistent with the Species at Risk Act; the Policy for the Management of Fish Habitat and other operational policies; consultation with Aboriginal groups; the goals and principles of sustainable development; and the policies and priorities of the federal government.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
59.7	60.4	53.0	516	434	-82*

* The difference between Planned and Actual FTEs is due to attrition, delays in staffing, and the reallocation of FTEs to address operational requirements.

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Healthy and productive fish habitat available to sustain the production of fish species and populations that Canadians value	Percentage of inspected projects that conform with the terms and conditions of operational statements, formal advice in writing, and Fisheries Act authorizations	70% by March 31, 2011	94%

Performance Highlights

• Provided formal advice to proponents of over 4,000 development projects to ensure that adequate measures are in place to protect fish and to ensure that appropriate monitoring studies are undertaken.
• Observed a 94% conformity rate for all completed and monitored undertakings occurring in and around water.
• Implemented the Guide to Writing Fisheries Act Authorizations to help improve timeliness and consistency and developed a Quality Management Framework to support continuous improvement to operational policies and practices.
• Maintained formal relationships with the Canadian Electricity Association, as well as conservation and environmental non-government organizations. Continued to support open dialogue with other key stakeholders who have interests in natural resource management.

Performance Summary and Analysis

In 2010-11, Habitat Management continued to focus on regulatory improvements and the delivery of environmental assessments under Canada's Economic Action Plan. Habitat Management also remained vigilant in its goal of maintaining healthy and productive fish habitats capable of sustaining the production of fish species and populations that Canadians value. To ensure the availability of healthy and productive habitat, Habitat Management examined projects to verify those involved were conforming to the terms and conditions of operational statements, formal advice in writing, and Fisheries Act authorizations. In total, 94% of inspected projects conformed to the requirements listed above, surpassing the 2010-11 target of 70%.

Lessons Learned

Although Habitat Management was able to greatly surpass its performance target for 2010-11, the expected level of compliance was under-estimated. This under-estimate is attributed tonot having enough data when the target was set. Once the data set is near completion, the goal will be adjusted accordingly.

Program Sub-activities

Habitat Management is delivered through four sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Program Activity 3: Species at Risk Management

Description from Main Estimates: 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. This program activity involves developing recovery strategies, action plans and management plans for all aquatic species; promoting recovery implementation and monitoring of marine and anadromous (moving between fresh and salt water) species over which the federal government has exclusive jurisdiction; and promoting freshwater species for which certain provinces have specific delegated responsibilities related to fisheries management through regulations under the Fisheries Act.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
23.0	23.8	22.1	104	144	+40*

* The difference between Planned and Actual FTEs can be explained by the reallocation of FTEs to address operational requirements.

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Endangered or threatened aquatic species in Canada are managed to prevent them from becoming extinct	Percentage of listed species for which conservation and protection measures and objectives are identified (as stipulated in the Species at Risk Act)	80% in 2010-11 100% in 2011-12	100%

Performance Highlights

• Developed various guidance documents for delivery of the program. Began development of data management systems to enable results-based reporting.
• Supported the Standing Committee on Environmental and Sustainable Development's parliamentary review of the Species at Risk Act (SARA) by:
  • Providing information and analysis regarding SARA implementation;
  • Advising DFO officials appearing before the Committee;
  • Analyzing evidence submitted by various parties to the Committee; and
  • Ensuring issues related to aquatic species were reflected in all of the above.

Performance Summary and Analysis

Species at Risk Management's focus in 2010-11 continued to be managing and delivering species at risk programs to enhance healthy and productive aquatic ecosystems, habitats, and species. Part of this focus includes ensuring that endangered or threatened aquatic species in Canada are managed to prevent them from becoming extinct. Species at Risk Management has determined that conservation and protection measures and objectives have been identified for 100% of aquatic species listed under the Species at Risk Act (SARA). This greatly surpassed the target of 80% for 2010-11.

Although the program remains focused on managing and delivering the Species at Risk program, resource shortages have meant that despite some improvement and best efforts, the program is still not able to address 100% of its legal obligations under SARA; one third of mandatory recovery documents are still not being developed within legislated timelines.

Lessons Learned

The results achieved indicate that this program continues to make improvements in meeting both its program objectives and legal obligations. Ongoing review and revision of existing processes will ensure that the program is successful in meeting all of its objectives.

Program Sub-activities

Species at Risk Management is delivered through three sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Program Activity 4: Science for Healthy and Productive Aquatic Ecosystems

Description from Main Estimates: This program provides research, monitoring, advice, products and services and data management to ensure departmental and federal policies, programs, decisions, and regulations associated with the integrated management of Canada's oceans and fish habitat resources are informed by science advice. The science is undertaken through a network of research facilities, in collaboration with other government departments, private sector, academia and international organizations.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
56.0	57.1	53.4	489	440	-49*

* The difference between Planned and Actual FTEs can be explained by attrition and the increase in Actual FTEs reported under Science for Sustainable Fisheries and Aquaculture.

Performance Measurement

Expected Results	Performance Indicators	Targets	Performance Status	Performance Rating
Comprehensive understanding of living aquatic ecosystem function for decision-makers to help ensure healthy and productive aquatic ecosystems	Number of Canadian publications on aquatic ecosystem function that are authored/co-authored by DFO Science	Maintain 5-year average (2006-11)	183 published papers were produced in 2009, slightly below the 5-year average of 191*
	Number of DFO Science publications on aquatic ecosystem function that are cited	Maintain 5-year average (2006-11)	Average number of citations of papers published on aquatic ecosystems between 2005 and 2009 was 497 per year (between 2004 and 2008, DFO Science papers were cited more often than the world average 4 years out of the 5)*
	Number of Canadian Science Advisory Secretariat (CSAS) publications on aquatic ecosystem function that are posted on the DFO Science website	Maintain 5-year average (2006-11)	Produced 148 CSAS publications that are posted on the DFO Science website, approximately 50% above the 5 year average of 74

* Source: Science-Metrix Inc.

Performance Highlights

• Provided advice in support of decision-making requirements related to the impacts of development on fish habitat and mitigation measures by:
  • Developing a comprehensive bibliography and drafting pathways of effects diagrams describing the potential impacts of renewable energy extraction, including wind, wave and tidal power, on the marine environment. These diagrams will be examined in a CSAS peer-review meeting this fiscal year.
  • Completing a research document summarizing the impacts of ship-generated noise on aquatic environments, including fish, invertebrates, and marine mammals. This document will be reviewed through a CSAS peer-review this year.
  • Holding two joint workshops involving scientists and Habitat managers to identify knowledge gaps and research needs, leading to a workplan to develop monitoring protocols for mitigation and compensation measures.
• Improved ocean forecasting capabilities with the development of a global ice-ocean forecasting system based on the Nucleus for European Modelling of the Ocean¹⁷ modelling framework and advanced work on a second model that integrates sea surface temperature, ice analysis, and Canadian Meteorological Centre data.
• Improved our knowledge of hypoxia and ocean acidification by completing Phase 1 of the Climate Change Science Initiative. This knowledge is being applied to the management of the fishery (e.g., snow crab/hypoxia) and policy issues (e.g., Arctic Council Ocean Acidification Assessment). Similarly, the Department continues to provide scientific advice to Environment Canada in its lead role as representatives to the London Convention/London Protocol. Internationally, the London Convention and London Protocol are regarded as the global instruments with the appropriate authority to manage ocean fertilization.

Performance Summary and Analysis

In 2009 (the most recent year for which data is available), DFO Science produced 183 papers on aquatic ecoystems; this represents a slight decrease of approximately 4% when compared with the Department's five-year average. Approximately 58% of these papers were written in collaboration with other key players in Canada's research community (e.g., universities and the private sector). An indication of the value of the Department's contribution to the state of knowledge on aquatic ecosystems is the number of citations to its papers relative to the average number of citations received by world papers on the subject. Between 2004 and 2008, DFO Science papers on aquatic ecosystems were cited more often than the world average 4 years out of the 5.¹⁸

Canadian Science Advisory Secretariat (CSAS) coordinates the peer review of scientific issues for DFO. In 2010-11, CSAS produced and posted on the Internet 148 publications (science advisory reports, research documents, proceedings, and science responses) in response to advisory needs identified by internal clients. These publications are available on the CSAS website. As evidenced by the graph, science support to decision-making requirements associated with the Department's Healthy and Productive Aquatic Ecosystems strategic outcome continues¹⁹ to increase. This represents a 70% increase since 2006-07 and is approximately 50% above the five-year average of 74 publications. This increase reflects, among other things, the diversification of advisory requirements associated with the Oceans Act and the Species at Risk Act, as well as the Science program's ongoing transition to a multi-discplinary ecosystem-science-based approach.

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Lessons Learned

Balancing the requirements for science advice in support of the Department's longstanding mandate (e.g., the Fisheries Act) and more recent legislation (e.g., Oceans Act, Species at Risk Act) is a challenge. This emphasizes the need for a systematic, risk-based approach to priority-setting in determining which advisory requests are serviced in a given fiscal year.

Program Sub-activities

Science for Healthy and Productive Aquatic Ecosystems is delivered through four sub-activities, as indicated in the Program Activity Architecture. Performance information for these sub-activities is available on the DFO website (http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/toc-tdm-eng.html).

Internal Services

Description from Main Estimates: 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 (including Safety and Security Services and Office of Environmental Coordination); 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.

Financial and Human Resources for 2010-11

Financial Resources ($ millions)			Human Resources (FTEs)
Planned Spending	Total Authorities	Actual Spending	Planned	Actual	Difference
354.0	384.9	371.2	1,937	1,908	-29

Performance Highlights

• Improved overall ratings for Round VIII of the Management Accountability Framework ²⁰(three Areas of Management were rated Strong, 11 were rated Acceptable, and one was rated Opportunity for Improvement).
• Continued implementation of the 2009 Policy on Evaluation, which is on its way to full implementation by March 31, 2013, as per the Policy's requirements.
• Received Treasury Board approval for DFO's Policy on Investment Planning in February 2011, and implemented essential management practices to support effective investment planning and management of projects. DFO's efforts in the investment planning area were recognized by Treasury Board Secretariat when DFO received the highest rating given for an Organizational Project Management Capacity Assessment.
• Implemented the One-Pass Planning process, which integrates business planning and a number of other planning processes (including human resources, risk management, and investment planning) into a single synchronized process. This has resulted in a more streamlined and simplified process with better alignment of current and future business needs.
• Provided human resource support to the Canadian Coast Guard in its move toward standardizing organizations across the country, and to DFO sectors in implementing national structures.
• Consolidated Internet gateways, resulting in improvements in the security and infrastructure of information technology.
• Continued to use Government of Canada shared services including signing a new wireless services contract that will potentially create savings of more than $700,000 annually for the Department.
• Conducted a successful pilot of desktop video-conferencing that will allow the Department to put in place an implementation schedule for this efficiency-enhancing and environmentally-beneficial technology.

Canada's Economic Action Plan … Provided funding to address deferred maintenance by replacing, repairing, and upgrading building components in major and minor laboratory facilities to support research programs and activities. DFO received $38 million over two years for this initiative, $24.1 million of which was spent in 2010-11. This initiative is led by Treasury Board Secretariat. Additional information on this initiative can be found at http://www.actionplan.gc.ca/initiatives/eng/index.asp?mode=2&initiativeID=143. Provided funding to conduct site assessment and remediation/risk management activities on federal contaminated sites under the accelerated Federal Contaminated Sites Action Plan, an initiative led by Environment Canada. DFO received $21.5 million over two years to accelerate its work for this initiative, of which $12.4 million was spent in 2010-11. Additional information on this initiative can be found at http://www.actionplan.gc.ca/initiatives/eng/index.asp?mode=2&initiativeID=25.

Performance Summary and Analysis

Each year, Treasury Board Secretariat (TBS) assesses the management performance of government departments through the Management Accountability Framework (http://www.tbs-sct.gc.ca/maf-crg/index-eng.asp). In Round VIII of the Management Accountability Framework (MAF) assessment, DFO achieved a rating of Strong for three of the 15 areas of management assessed: Values-based Leadership, Internal Audit, and Information Technology. One area of management was rated as opportunity for Improvement: Asset Management. The remaining 11 areas of management received ratings of Acceptable.

DFO's performance has improved in four areas since Round VII: Values-Based Leadership and Organizational Culture, Effectiveness of Internal Audit Function, Quality and Use of Evaluation and Citizen-focused Service.

TBS identified two areas for particular focus over the next year: Effectiveness of Asset Management and Quality and Use of Performance Information.

Lessons Learned

In response to its MAF assessment, DFO has developed work plans to address all recommendations and opportunities identified by TBS. In accordance with TBS's request, DFO will be focusing on Effectiveness of Asset Management and Quality and Use of Performance Information.

Section III: Supplementary Information

Financial Highlights

The financial information presented is intended to serve as a general overview of Fisheries and Oceans' financial position and operations.

Condensed Statement of Financial Position
As at March 31, 2011 ($ thousands)

	% Change	2010-11	2009-10
Total Assets	5.6%	2,919,249	2,764,569
Total Liabilities	5.8%	674,663	637,565*
Equity of Canada	5.5%	2,244,586	2,127,004*
Total	5.6%	2,919,249	2,764,569

* Re-stated

Condensed Statement of Operations
For the year ended March 31, 2011 ($ thousands)

	% Change	2010-11	2009-10
Total Expenses	2.4%	2,034,161	1,985,815
Total Revenues	-5.4%	93,322	98,690*
Net Cost of Operations	2.8%	1,940,839	1,887,125

* Re-stated

Under Canada's Economic Action Plan (EAP), Fisheries and Oceans Canada has invested over two years in projects and programs such as Small Crafts Harbours, Canadian Coast Guard, and laboratories and science facilities. The EAP caused a significant but temporary increase in activity for the Department in 2009-10 and 2010-11. Much of the investment under this initiative is reflected in DFO's financial statements. The increase in assets, liabilities, and expenses is mainly associated with Canada's Economic Action Plan.

Total assets were $2,919 million at the end of 2010-11, an increase of $155 million or 5.6% over the previous year's total assets of $2,765 million. Tangible Capital Assets comprised 88% of total assets.

Total liabilities were approximately $675 million at the end of 2010-11, an increase of 5.8% when compared to the previous year.

Total expenses were $2,034 million at the end of 2010-11, an increase of 2.4% when compared to the previous year.

Financial Statements

For more information, see DFO's financial statements at http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/fin-eng.html.

List of Supplementary Information Tables

All electronic supplementary information tables found in the 2010-11 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat's website at: http://www.tbs-sct.gc.ca/dpr-rmr/2010-2011/index-eng.asp.

• Details on Transfer Payment Programs
• Green Procurement
• Horizontal Initiatives
• Internal Audits and Evaluations
• Sources of Respendable and Non-Respendable Revenue
• Status Report on Major Crown Projects
• Summary of Capital Spending by Program Activity
• Up-front Multi-year Funding
• User Fees

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Section IV: Other Items of Interest

Website References

Fisheries and Oceans Canada
Aboriginal Fisheries	http://www.dfo-mpo.gc.ca/fm-gp/aboriginal-autochtones/index-eng.htm
Aboriginal Inland Habitat Program	http://www.dfo-mpo.gc.ca/fm-gp/aboriginal-autochtones/aihp-paghri-eng.htm
Aquatic Species at Risk	http://www.dfo-mpo.gc.ca/species-especes/index-eng.htm
Awards and Recognition	http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/awr-pxr-eng.html
Canadian Coast Guard	http://www.ccg-gcc.gc.ca/eng/CCG/Home
Compliance and Enforcement	http://www.dfo-mpo.gc.ca/fm-gp/enf-loi/index-eng.htm
e-Navigation	http://www.ccg-gcc.gc.ca/e0004411
Financial Statements	http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/fin-eng.html
Fisheries Management	http://www.dfo-mpo.gc.ca/fm-gp/index-eng.htm
Marine Protected Areas	http://www.dfo-mpo.gc.ca/oceans/marineareas-zonesmarines/mpa-zpm/index-eng.htm
National Aquaculture Strategic Action Plan Initiative	http://www.dfo-mpo.gc.ca/aquaculture/lib-bib/nasapi-inpasa/index-eng.htm
Organizational Structure	http://www.dfo-mpo.gc.ca/us-nous/organisation-eng.htm
Performance Information for Program Sub-activities	http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/dpr-rmr-eng.html
Precautionary Approach	http://www.dfo-mpo.gc.ca/fm-gp/peches-fisheries/fish-ren-peche/sff-cpd/precaution-eng.htm
Regional Contributions	http://www.dfo-mpo.gc.ca/dpr-rmr/2010-11/rcs-src-eng.html
Salmonid Enhancement Program	http://www.pac.dfo-mpo.gc.ca/sep-pmvs/index-eng.htm
Science Program	http://www.dfo-mpo.gc.ca/science/index-eng.htm
Small Craft Harbours	http://www.dfo-mpo.gc.ca/sch-ppb/home-accueil-eng.htm
Sustainable Fisheries Framework	http://www.dfo-mpo.gc.ca/fm-gp/sustainable-durable/fisheries-peches/framework-eng.htm
Working near Water	http://www.dfo-mpo.gc.ca/habitat/habitat-eng.htm
Crown Corporation
Freshwater Fish Marketing Corporation	http://www.freshwaterfish.com/
Government of Canada
2010-11 Main Estimates	http://www.tbs-sct.gc.ca/est-pre/20102011/me-bpd/toc-tdm-eng.asp
Canadian Environmental Assessment Agency	http://www.ceaa.gc.ca/default.asp?lang=En&n=A4C57835-1
Canadian Shellfish Sanitation Program	http://www.inspection.gc.ca/english/fssa/fispoi/csspccsme.shtml
Government of Canada Outcome Areas	http://www.tbs-sct.gc.ca/ppg-cpr/frame-cadre-eng.aspx
Report of the Standing Committee on Fisheries and Oceans	http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=4308453&Language=E&Mode=1&Parl=40&Ses=2
Supplementary Tables	http://www.tbs-sct.gc.ca/rpp/2011-2012/info/info-eng.asp

Contact for further information

Fisheries and Oceans Canada
Communications Branch
200 Kent Street
13th Floor, Station 13E228
Ottawa, Ontario
K1A 0E6

Telephone:  613-993-0999
Facsimile:  613-990-1866
Email:  info@dfo-mpo.gc.ca

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