Integrated Human Resource and Business Plan 2018

Table of Contents


Financial resources

Canadian Coast Guard ship at the dock in Tadoussac, Quebec.

The Canadian Coast Guard’s 2018 Integrated Human Resources and Business Plan budget outlines how and where the Agency plans to allocate resources to meet the service expectations and deliver on mandate commitments.

With unprecedented investments received from the federal budget, Coast Guard will be focusing a significant portion of its budget on implementing its contributions to the Oceans Protection Plan (OPP) while also focusing on making significant investments in its assets and more importantly, its members. More specifically, the Agency will be able to:

  • Provide the certification training needed to perform tasks;
  • Augment the vessel refurbishment program that will allow for fewer unplanned program days due to corrective maintenance; and
  • Increase regional capacity to support the delivery of core mandated programs.

The budget in this section is presented in terms of the operation, capital and grants and contributions allocations.

To easily understand the impacts of recent federal investments, the budget is further divided into special allocations like the OPP, the Federal Infrastructure Initiative, the World Class Tanker Safety System, the Fleet Renewal Plan and increases to departmental resource levels to achieve the mandate.

Canadian Coast Guard’s 2018 Integrated Human Resources and Business Plan budget
2018-19 ($M) 2019-20 ($M) 2020-21 ($M)
Operating 782.7 811.8 813.7

Reference Levels

627.3 660.2 661.6

Additional reference level funding

63.1 63.1 63.1

Oceans Protection Plan

87.8 85.1 85.6

World Class Tanker Safety System

4.5 3.4 3.4
Capital 401.2 297.3 252.7

Reference Levels

28.9 35.0 35.0

Comprehensive Review

54.6 87.7 108.9

Fleet Renewal Plan

224.5 111.8 63.8

Oceans Protection Plan

79.6 44.2 45.0

Federal Infrastructure Initiative

10.0 18.6 -

World Class Tanker Safety System

3.6 - -
Grants and Contributions 10.1 10.1 10.2

Reference Levels

5.3 5.2 5.3

Oceans Protection Plan

3.3 3.4 3.4

World Class Tanker Safety System

1.5 1.5 1.5

Revenues

Approximately $39 million of Coast Guard’s annual operating reference level budget is funded by revenues from commercial ships (e.g. cargo vessels, cruise ships, etc.) through the marine services fees: the Marine Navigation Fee recovers a portion of costs for aids to navigation and vessel traffic services; the Icebreaking Fee recovers a portion of costs for route assistance, channels maintenance and ice information services; and the Dredging Fee recovers costs for dredging services in the St Lawrence River between the Port of Montreal and l'Isle-aux-Coudres.

The Budget Process

One of the organization’s greatest strengths is its ability to manage its budget and finances effectively despite its geographically diverse structure and complex operational mandate. As a Special Operating Agency within Fisheries and Oceans Canada (DFO), Coast Guard is provided with a budget allocation it must manage itself to maximize efficiencies of operations and services to Canadians.

To accomplish this feat, the Agency utilizes an activity based budgeting method to allocate its resources in line with the highest national priorities. Due to the complexity of its various programs and business requirements, cost drivers can differ immensely which causes challenges in prioritizing allocations. To facilitate the process, the budget is divided in several operating, capital and grants and contributions envelopes.

The Investment Plan

The Investment Plan identifies DFO’s proposed investments in the areas of the Coast Guard Fleet and Fleet Systems, Coast Guard Program Infrastructure, Small Craft Harbour’s (SCH), Real Property (RP), Information Management & Information Technology (IM/IT) Science, and Ecosystems and Fisheries Management (EFM), as well as acquired services.

This is the Departments’ third inception of the Investment Plan under the Treasury Board (TB) Policy on Investment Planning – Assets and Acquired Services. The Investment Plan provides TB, the Treasury Board of Canada Secretariat and departmental Deputy Heads with information on departmental capacity to manage projects, and the risk and complexity levels of those projects. In this way, project approval authorities are delegated from TB to departments based on the level of risk and complexity of particular investment projects and the project management capacity of the department.

In addition to summarizing DFO’s planned investments for the coming five year period, the Investment Plan outlines the planning process and associated governance that DFO uses to manage its portfolio of investments.

2018 Operating Budget and Financial Overview.

The Agency plans its annual operations using five distinct budget envelopes to facilitate the prioritization and allocation of its budget. Each envelop uses sophisticated national processes each with their own independent set of principles and cost drivers to identify budget needs; however, allocations decisions for all of them are made by a national budget committee and ultimately by the Coast Guard’s Management Board.

Operating budget
Budget Envelope 2018-19 Spending Plan ($M)
Fleet Operations 290.6
Shore-Based Personnel 237.9
Shore-Based Operating 107.4
Shore-Based Asset Maintenance 17.4
Vessel Maintenance 71.1
Oceans Protection Plan 85.1
Total Spending Plan 809.5

The approved spending plan is approximately $26.8 million more than the available budget; a planned over programming strategy the Agency put in place at the beginning of the year to minimize the risk of fiscal year budget lapses.

Fleet Operations

Budget plans for vessel crew members, fuel and provisions are developed annually based on the number of operational assets and program requirements. The budget for this envelope is supplemented each year with contributions from programs from DFO sectors such as Ecosystems and Oceans Science, and Ecosystems and Fisheries Management, as well as other government departments.

Shore-Based Personnel

Budget plans for salaries are defined by nationally consistent organizational charts which define the requirement for shore-based members’ salaries, overtime and other personnel costs.

Shore-Based Operating

Budget requirements are defined through detailed work plans on an annual basis using standard rates and common cost drivers to ensure consistency and accuracy.

Shore-Based Asset Maintenance

Budget requirements are identified using nationally consistent asset lifecycle management principles to define specific maintenance work packages for all shore-based (e.g., non-vessel) assets.

Vessel Maintenance and Refits

Similar to the shore-based asset maintenance program, all vessel maintenance refit periods and life-cycle management activities are determined following nationally consistent work planning principles.

Regional Budgets

Being a decentralized organization operationally, the budget is further distributed across the country to maximize accountability and strives for results in each region.

Regional budget distribution

Atlantic Central and Arctic College National Capital Region Western
26.7 25.1 2.4 29.6 16.3

Capital Budget and financial Overview

Coast Guard plans its capital spending through a five-year capital plan which is revised annually. The plan is organized and categorized under 2 departmental centres of expertise: Fleet and Fleet Systems and Coast Guard Program Infrastructure.

The annual project-based capital plan is developed using a robust planning process in which projects are eventually prioritized and approved by the Coast Guard Management Board. Decisions are made based on governmental, departmental and internal strategic program priorities to address capability gaps where they exist. The spending plan for the next 3 years is detailed in the table below.

Capital budget
Capital Spending Plan 2018-19 ($M) 2019-20 ($M) 2020-21 ($M)
Fleet and Fleet Systems Centre of Expertise 573.8 857.2 506.6

Vessel and Helicopter Procurement

411.0 717.6 461.7

Vessel Life Extension and Mid-Life Modernization

96.5 62.3 38.5

Vessel Refurbishment

43.7 66.1 -

Federal Infrastructure

6.4 - -

Small Craft Acquisitions

4.0 4.0 4.0

Kitsilano

3.2 - -

Fleet Systems

9.0 7.2 2.5
Coast Guard Program Infrastructure Centre of Expertise 121.1 83.2 78.8

New Program Infrastructure

22.3 22.3 22.3

Refurbishment of Program Infrastructure

16.9 15.9 12.8

Oceans Protection Plan

76.7 41.1 40.9

World Class Tanker Safety System

5.2 3.9 2.8
Total 694.8 940.3 585.4

The capital spending plan also leverages the use of over-programming; a business strategy that maximizes investments within a fiscal year while avoiding unplanned year-end lapses. Experience has consistently shown that despite best efforts, internal and external project management factors often lead to project delays, and over-programming allows Coast Guard to mitigate the impact of those delays on the health and reliability of its assets. If required, Canadian Coast Guard will seek additional capital funding through a Treasury Board submissions.

Fleet and Fleet Systems Centre of Expertise

This centre of expertise focuses on Fleet assets required to deliver many of the Government of Canada’s civilian on-water programs. The current fleet consists of 140 operational vessels, 22 operational helicopters and approximately 1,600 small craft and other assets such as essential fleet information technology systems necessary to operate the fleet safely and effectively.

Coast Guard Program Infrastructure Center of Expertise

This centre of expertise focuses on non-vessel assets that are the backbone of many Coast Guard services. The asset base consists of 6,597 assets with a total replacement cost of approximately $1.5 billion. These assets include moveable, fixed and operational information technology assets to serve all Coast Guard programs including Marine Navigation, Marine Communication and Traffic Services, Search and Rescue (SAR) Services, Environmental Response Services, Shore-Based Asset Readiness, Maritime Security and the Coast Guard College. In 2017-2018, the Coast Guard approved a spending plan of $19 million over its allocated budgets.

Grants and Contribution Budget and Financial Overview

Budget is available every year for contribution agreements to permit the Canadian Coast Guard Auxiliary (CCGA) associations to carry out authorized activities related to maritime (SAR) operations and preventions, and other safety related activities. The agreements are approved annually through consultations with auxiliary associations.

The OPP also included important contribution budgets to undertake critical stakeholder engagement activities including the negotiation and drafting of a sixth contribution agreement for the new Arctic CCGA region. These activities are planned in accordance with the OPP.

The World Class Tanker Safety System Contribution program is in place for coastal Indigenous community applicants to purchase emergency response capable equipment and to train, insure, exercise and reimburse eligible activities of the new community units as official members of the Auxiliary, enhancing the federal SAR response capacity.

Grant and contribution budget
Grants & Contributions 2018-19 ($M) 2019-20 ($M) 2020-21 ($M)
Canadian Coast Guard Auxiliary 5.3 5.3 5.3

Royal Canadian Marine Search and Rescue

1.1 1.1 1.1

Central & Arctic

0.7 0.7 0.7

Québec

0.7 0.7 0.7

Maritimes

0.8 0.8 0.8

Newfoundland & Labrador

0.8 0.8 0.8

Arctic Expansion

0.3 0.3 0.3

Insurance

0.9 0.9 0.9
Other 4.8 4.9 4.9

World Class Tanker Safety System

1.5 1.5 1.5

Oceans Protection Plan

3.3 3.4 3.4
Aerial view of a Canadian Coast Guard helicopter.
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