1. FY 2004 and 2004/2005 CFPSA NPF Budgets NPP BoD 22 Jan 04

2. FY 2004 and 2004/2005 CFPSA NPF Budgets Presentation Outline l Revised Budget Format l Public Funded Programs l NPF Funded Services, Operations, Programs and Distributions l New Requirements l NPF Component Budgets –CFCF –SISIP Financial Services –CANEX –Bases/Wings & Messes l Summary of Recommendations

3. Proposed Revised Budget Format l Separates Public Funded programs from NPF funded programs l Focuses on key NPF decision requirements –NPF program delivery elements and costs –Sources of funds –New funding requirements –Discretionary limits l Increased transparency –Services, operations, programs, distributions –NPF component financial statements –Relationships between sources of funds, consumers of services, beneficiaries l Assess impact of decisions on bases/wings

4. Budget Elements l NPF Funded Services, Operations, Programs and Distributions l Public Funded Programs delivered by/through CFPSA/NPF l NPF Component Financial Statements –CFCF, SISIP Financial Services, CANEX, Base/Wing Funds and Messes

5. NPF Funded Services, Operations, Programs and Distributions Services l Provided to ‘all’ NPF programs and activities l Represent a direct cost of doing business l Include NPF accounting, IM/IT services, HR mgmt services, and Consolidated Insurance Program (CIP) directly attributable to users

6. NPF Funded Services, Operations, Programs and Distributions (cont’d) Operations l Include Pres & CEO’ office operations, Internal Audit and Review, Personnel Support Program HQ operations, corporate IM/IT requirements and CIP related to national infrastructure l Represent an indirect cost of doing business Programs l include sports grants, CISM, Sports Banquet and Volunteers Recognition Program Distributions l include Capital Projects, Grants to Bases/Wings, Grants to Small Units, PSP Grant, contributions to CFPAF and write- offs

7. NPF Funded Services, Operations, Programs and Distributions (cont’d) Sources of Funds l CFCF l SISIP Proper l CANEX l Base/Wing Funds/Messes

8. Proposed Revised Budget Format - Recommendation l Accept revised budget format

9. Public Funded Programs ($000) FY 04/05 Sources of FundsFY 03/04FY 04/05(incl new) C 108 – Military Family Support18,861.418,861.418,861.4 C 109 – Personnel Support Program52,421.457,385.257,385.2 Other850.0850.0850.0 Total72,132.877,096.677,096.6 Program Delivery Costs Military Family Support18,861.418,861.418,861.4 Personnel Support Program53,073.058,283.559,179.2 Other612.1617.9617.9 Total72,546.577,762.878,658.5 Net Surplus/(Deficit)(413.7)(666.2)(1,561.9)

10. Public Funded Programs l Delivered by CFPSA/NPF on cost recovery basis – no NPF profit (loss) l Income/losses attributable to ‘employers costs’ –Difference accrues to balance sheet, capital account l Treated as ‘flow through’ funds l Statement reflects deliverables identified in VCDS 3/96, DCDS 3/00 l For NPP BoD information

11. Public Funded Programs - Recommendation l Note Public Funded Programs Budget Revenues and Expenses Statements

12. SISIP Financial Services – Public SISIP – Treasury Board Supported Plans Budget Proposal ($000) BudgetProj Yr EndBudget 200320032004 Revenues61,97664,44367,551 Operating Expenses59,47692,45685,859 Operating Income/(Loss)2,500(28,013)(18,308) Extraordinary Items--- Net Income/(Loss)2,500(28,013)(18,308)

13. SISIP Financial Services - Public Recommendation l Note the SISIP – Treasury Board Supported Plans FY 2004 Budget Proposal

14. NPF Funded Services, Operations, Programs and Distributions Budget Proposals ($000) 04/0504/05 03/04Status QuoAll Reqmts Services6,421.86,557.37,298.2 Operations3,050.33,309.44,174.8 Programs498.5498.5973.5 Distributions20,777.019,097.019,247.0 Total30,747.629,462.231,693.5

15. NPF Funded Services, Operations, Programs and Distributions Budget Proposals - Recommendation l Approve Services, Operations, Programs and Distributions, including new requirements budget

16. NPF Funded Services, Operations, Programs and Distributions Proposed Sources of Funds ($000)04/05 03/04‘Status Quo’All Reqmts CANEX6,256.76,153.96,382.7 SISIP13,062.812,920.113,414.6 CFCF8,860.77,561.88,514.7 Bases/Wings2,322.42,601.42,664.0 Europe--473.6 Other245.0225.0243.9 Total30,747.629,462.231,693.5

17. NPF Funded Services, Operations, Programs and Distributions Sources of Funds - Recommendation l Approve the Sources of Funds distributions, including funding for new requirements

18. New Requirements Recurring Costs – New Funding not Required * Acctg and HR Europe$473,633 Acctg SISIP$19,571 CANEX IM/IT$228,816 $722,020 * Public Funds required for implementation

19. New Requirements (cont’d) Non-Recurring Costs – Funding not Required Pension Admin System$18,907

20. New Requirements (cont’d) Recurring Costs – Funding Required *Cyborg Enhancements$12,700 *IM/IT Network Depcn23,800 *Employment Equity50,500 ERM10,000 *EAP46,000 CIP Premium Insurance15,000 CEO’s Office95,000 Human Rights/Harassment Prevention65,000 PSP Sponsorship65,000 CFPSA Video Prodn30,000 CF Youth Program475,000 Assistance to Small Units150,000 $1,038,000 * Requires Public Funds

21. New Requirements (cont’d) Non-Recurring Costs – Funding Required * Acctg Nationalization$102,400 Payroll Streamlining126,000 * Cyborg Enhancements4,000 Startop Relocation130,000 * Employment Equity40,000 NPP Partnerships25,000 Infrastructure Needs Study25,000 $452,400 * Requires Public Funds

22. New Requirements – Summary $ NPFPublic Recurring, no new funds722,020- Non-recurring, no new funds 18,907- Recurring, new funds 1,038,000338,700 Non-recurring, new funds 452,400559,000 Total new funds1,490,400895,700

23. New Requirements - Recommendations l Note items not requiring new funds and approve for inclusion in budget pending any enabling action l Approve new funding requirements contingent on Public Funds forthcoming where required and approve for inclusion in budget, pending any enabling action

24. NPF Component Statements l CFCF l SISIP Financial Services –SISIP Proper –CFPAF l CANEX l Base/Wing Funds & Messes

25. CFCF – Proposed Budget ($000) FY 04/05 FY 03/04FY 04/05(incl new) Operating Revenue7,725.07,745.07,745.0 Operating Expenses3,361.63,419.43,419.4 Operating Income4,363.44,325.64,325.6 Contribution to Svcs & Ops3,256.32,716.33,519.2 Contribution to Pgms & Dist5,125.54,355.54,505.5 CFCF Surplus/(Deficit)(4,018.4)(2,746.2)(3,699.1) Adjusted Surplus/(Deficit) Before Recap Payment981.61,253.8300.9 Net Public Flow Throughs(413.8)(666.2)(1,561.9) Net NPF Flow Throughs000 Net Income/(Loss)(4,432.2)(3,412.5)(5,261.0)

26. CFCF Budget Proposal - Recommendation l Approve the CFCF Proposed Budget for FY 04/05 based on including the new funding requirements

27. SISIP Financial Services – NPF SISIP Proper Budget Proposal ($000) BudgetProj Yr EndBudget 200320032004 Revenues50,86553,82451,023 Operating Expenses33,61838,20041,468 Operating Income17,24715,6249,555 Extraordinary Items11,69611,80013,961 Net Income/(Loss)5,5513,824(4,406) Adjusted Net Income/(Loss) Before Recap Payment15,55113,8245,394

28. SISIP Financial Services – NPF CFPAF Budget Proposal BudgetProj Yr EndBudget 200320032004 Revenues$853,803$881,254$876,189 Operating Expenses843,862857,102874,517 Operating Income/(Loss)9,94124,1521,672 Extraordinary Items-30,792- Net Income/(Loss)$9,941($6,640)$1,672

29. SISIP Financial Services - NPF Recommendations l Approve the SISIP Proper FY 2004 Budget l Approve the CFPAF FY 2004 Budget

30. CANEX Budget Proposal ($000) BudgetProj Yr EndBudget 03/0403/0404/05 Total Sales137,682134,400133,157 Operating Revenue37,83637,32237,903 Operating Expenses27,45926,61029,104 Income from Operations10,37710,7128,799 HQ Revenue4,3934,7944,929 HQ Expenses8,6278,8408,161 Income before Royalties6,1436,6655,566 Royalties4,9704,8404,901 Gas Bar Decommissioning-270- Net Earnings/(Deficit)1,1731,555665

31. CANEX Budget Proposal Recommendation l Approve the CANEX FY 04/05 Budget

32. Base/Wing Funds & Messes Budget Impacts $ FY 03/04FY 04/05 Cost of Services Provided$3,070,079$3,131,712 User Fees and CIP Levies 2,258,8312,612,324 Difference811,248519,388

33. Base/Wing Funds & Messes Budget Impacts Recommendations l Approve increasing Base/Wing user fees to bring them in line with the cost of services, to be phased in over 3 yrs, commencing FY 04/05 l Approve discontinuing CIP Levies on CANEX and Mess sales l Note full CIP Costs related to Ottawa Self- Help Housing to be recovered starting FY 04/05

34. Summary of Recommendations l Accept revised budget format l Note the Public Funded Programs Budget Revenues and Expenses Statement l Note the SISIP – Treasury Board Supported Plans FY 2004 Budget Proposal l Approve the Services, Operations, Programs and Distributions, including new requirements, budget l Approve the Sources of Funds distribution, including funding for new requirements l Note new requirements items not requiring new funds and approve for ‘inclusion’ in budget pending any enabling action l Approve new funding requirements contingent on Public Funds forthcoming where required, and approve for inclusion in budget, pending any enabling action

35. Summary of Recommendations (cont’d) l Approve the CFCF Proposed Budget for FY 04/05 based on including the new funding requirements l Approve the SISIP Proper FY 2004 Budget l Approve the CFPAF FY 2004 Budget l Approve the CANEX FY 04/05 Budget l Approve increasing Base/Wing user fees to bring them in line with the cost of services, to be phased in over 3 years commencing FY 04/05 l Approve discontinuing CIP levies on CANEX and Mess sales l Note full CIP costs related to Ottawa Self-Help Housing to be recovered starting FY 04/05