FY 2004 and 2004/2005 FY 2004 and 2004/2005 CFPSA NPF BudgetsCFPSA NPF Budgets

NPP BoD

22 Jan 04

NON-PUBLIC PROPERTY BOARD OF DIRECTORS

Document # 58b/04

CONSEIL D’ADMINISTRATION DES BIENS NON PUBLICS

FY 2004 and 2004/2005 FY 2004 and 2004/2005 CFPSA NPF BudgetsCFPSA NPF BudgetsPresentation OutlinePresentation Outline

Revised Budget Format Public Funded Programs NPF Funded Services, Operations, Programs and

Distributions New Requirements NPF Component Budgets

– CFCF

– SISIP Financial Services

– CANEX

– Bases/Wings & Messes

Summary of Recommendations

Proposed Revised Budget Format Proposed Revised Budget Format

Separates Public Funded programs from NPF funded programs

Focuses on key NPF decision requirements

– NPF program delivery elements and costs

– Sources of funds

– New funding requirements

– Discretionary limits

Increased transparency

– Services, operations, programs, distributions

– NPF component financial statements

– Relationships between sources of funds, consumers of services, beneficiaries

Assess impact of decisions on bases/wings

Budget ElementsBudget Elements

NPF Funded Services, Operations, Programs and Distributions

Public Funded Programs delivered by/through CFPSA/NPF

NPF Component Financial Statements

– CFCF, SISIP Financial Services, CANEX, Base/Wing Funds and Messes

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and DistributionsPrograms and Distributions

Services

Provided to ‘all’ NPF programs and activities

Represent a direct cost of doing business

Include NPF accounting, IM/IT services, HR mgmt services, and Consolidated Insurance Program (CIP) directly attributable to users

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and Distributions (cont’d)Programs and Distributions (cont’d)

Operations

Include Pres & CEO’ office operations, Internal Audit and Review, Personnel Support Program HQ operations, corporate IM/IT requirements and CIP related to national infrastructure

Represent an indirect cost of doing business

Programs

include sports grants, CISM, Sports Banquet and Volunteers Recognition Program

Distributions

include Capital Projects, Grants to Bases/Wings, Grants to Small Units, PSP Grant, contributions to CFPAF and write-offs

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and Distributions (cont’d)Programs and Distributions (cont’d)

Sources of Funds

CFCF

SISIP Proper

CANEX

Base/Wing Funds/Messes

Proposed Revised Budget Format - Proposed Revised Budget Format - RecommendationRecommendation

Accept revised budget format

Public Funded ProgramsPublic Funded Programs($000)

FY 04/05Sources of Funds FY 03/04 FY 04/05 (incl new)

C 108 – Military Family Support 18,861.4 18,861.4 18,861.4

C 109 – Personnel Support Program 52,421.4 57,385.2 57,385.2

Other 850.0 850.0 850.0

Total 72,132.8 77,096.6 77,096.6

Program Delivery Costs

Military Family Support 18,861.4 18,861.4 18,861.4

Personnel Support Program 53,073.0 58,283.5 59,179.2

Other 612.1 617.9 617.9

Total 72,546.5 77,762.8 78,658.5

Net Surplus/(Deficit) (413.7) (666.2) (1,561.9)

Public Funded Programs Public Funded Programs

Delivered by CFPSA/NPF on cost recovery basis – no NPF profit (loss)

Income/losses attributable to ‘employers costs’– Difference accrues to balance sheet, capital

account

Treated as ‘flow through’ funds Statement reflects deliverables identified in

VCDS 3/96, DCDS 3/00 For NPP BoD information

Public Funded Programs - Public Funded Programs - RecommendationRecommendation

Note Public Funded Programs Budget Revenues and Expenses Statements

SISIP Financial Services – PublicSISIP Financial Services – PublicSISIP – Treasury Board Supported PlansSISIP – Treasury Board Supported Plans

Budget ProposalBudget Proposal

($000)

Budget Proj Yr End Budget2003 2003 2004

Revenues 61,976 64,443 67,551

Operating Expenses 59,476 92,456 85,859

Operating Income/(Loss) 2,500 (28,013) (18,308)

Extraordinary Items - - -

Net Income/(Loss) 2,500 (28,013) (18,308)

SISIP Financial Services - Public SISIP Financial Services - Public RecommendationRecommendation

Note the SISIP – Treasury Board Supported Plans FY 2004 Budget Proposal

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and DistributionsPrograms and Distributions

Budget ProposalsBudget Proposals

($000)

04/05 04/0503/04 Status Quo All Reqmts

Services 6,421.8 6,557.3 7,298.2

Operations 3,050.3 3,309.4 4,174.8

Programs 498.5 498.5 973.5

Distributions 20,777.0 19,097.0 19,247.0

Total 30,747.6 29,462.2 31,693.5

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and Distributions Budget Programs and Distributions Budget

Proposals - RecommendationProposals - Recommendation

Approve Services, Operations, Programs and Distributions, including new requirements budget

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and Distributions Programs and Distributions Proposed Sources of FundsProposed Sources of Funds

($000)

04/05 04/0503/04 ‘Status Quo’ All Reqmts

CANEX 6,256.7 6,153.9 6,382.7

SISIP 13,062.8 12,920.1 13,414.6

CFCF 8,860.7 7,561.8 8,514.7

Bases/Wings 2,322.4 2,601.4 2,664.0

Europe - - 473.6

Other 245.0 225.0 243.9

Total 30,747.6 29,462.2 31,693.5

NPF Funded Services, Operations, NPF Funded Services, Operations, Programs and Distributions Programs and Distributions

Sources of Funds - RecommendationSources of Funds - Recommendation

Approve the Sources of Funds distributions, including funding for new requirements

New RequirementsNew 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

New Requirements (cont’d)New Requirements (cont’d)

Non-Recurring Costs – Funding not Required

Pension Admin System $18,907

New Requirements (cont’d)New Requirements (cont’d)

Recurring Costs – Funding Required* Cyborg Enhancements $12,700* IM/IT Network Depcn 23,800* Employment Equity 50,500

ERM 10,000* EAP 46,000

CIP Premium Insurance 15,000CEO’s Office 95,000Human Rights/Harassment Prevention 65,000PSP Sponsorship 65,000CFPSA Video Prodn 30,000CF Youth Program 475,000Assistance to Small Units 150,000

$1,038,000* Requires Public Funds

New Requirements (cont’d)New Requirements (cont’d)

Non-Recurring Costs – Funding Required

* Acctg Nationalization $102,400

Payroll Streamlining 126,000

* Cyborg Enhancements 4,000

Startop Relocation 130,000

* Employment Equity 40,000

NPP Partnerships 25,000

Infrastructure Needs Study 25,000

$452,400

* Requires Public Funds

New Requirements – New Requirements – SummarySummary

$NPF Public

Recurring, no new funds 722,020 -

Non-recurring, no new funds 18,907 -

Recurring, new funds 1,038,000 338,700

Non-recurring, new funds 452,400 559,000

Total new funds 1,490,400 895,700

New Requirements - New Requirements - RecommendationsRecommendations

Note items not requiring new funds and approve for inclusion in budget pending any enabling action

Approve new funding requirements contingent on Public Funds forthcoming where required and approve for inclusion in budget, pending any enabling action

NPF Component StatementsNPF Component Statements

CFCF

SISIP Financial Services

– SISIP Proper

– CFPAF

CANEX

Base/Wing Funds & Messes

CFCF – Proposed BudgetCFCF – Proposed Budget($000)

FY 04/05FY 03/04 FY 04/05 (incl new)

Operating Revenue 7,725.0 7,745.0 7,745.0

Operating Expenses 3,361.6 3,419.4 3,419.4

Operating Income 4,363.4 4,325.6 4,325.6

Contribution to Svcs & Ops 3,256.3 2,716.3 3,519.2

Contribution to Pgms & Dist 5,125.5 4,355.5 4,505.5

CFCF Surplus/(Deficit) (4,018.4) (2,746.2) (3,699.1)

Adjusted Surplus/(Deficit) Before Recap Payment 981.6 1,253.8 300.9

Net Public Flow Throughs (413.8) (666.2) (1,561.9)

Net NPF Flow Throughs 0 0 0

Net Income/(Loss) (4,432.2) (3,412.5) (5,261.0)

CFCF Budget Proposal - CFCF Budget Proposal - RecommendationRecommendation

Approve the CFCF Proposed Budget for FY 04/05 based on including the new funding requirements

SISIP Financial Services – NPFSISIP Financial Services – NPFSISIP Proper Budget ProposalSISIP Proper Budget Proposal

($000)

Budget Proj Yr End Budget2003 2003 2004

Revenues 50,865 53,824 51,023

Operating Expenses 33,618 38,200 41,468

Operating Income 17,247 15,624 9,555

Extraordinary Items 11,696 11,800 13,961

Net Income/(Loss) 5,551 3,824 (4,406)

Adjusted Net Income/(Loss)Before Recap Payment 15,551 13,824 5,394

SISIP Financial Services – NPFSISIP Financial Services – NPFCFPAF Budget ProposalCFPAF Budget Proposal

Budget Proj Yr End Budget2003 2003 2004

Revenues $853,803 $881,254 $876,189

Operating Expenses 843,862 857,102 874,517

Operating Income/(Loss) 9,941 24,152 1,672

Extraordinary Items - 30,792 -

Net Income/(Loss) $9,941 ($6,640) $1,672

SISIP Financial Services - NPF SISIP Financial Services - NPF RecommendationsRecommendations

Approve the SISIP Proper FY 2004 Budget

Approve the CFPAF FY 2004 Budget

CANEX Budget ProposalCANEX Budget Proposal

($000)Budget Proj Yr End Budget

03/04 03/04 04/05

Total Sales 137,682 134,400 133,157

Operating Revenue 37,836 37,322 37,903

Operating Expenses 27,459 26,610 29,104

Income from Operations 10,377 10,712 8,799

HQ Revenue 4,393 4,794 4,929

HQ Expenses 8,627 8,840 8,161

Income before Royalties 6,143 6,665 5,566

Royalties 4,970 4,840 4,901

Gas Bar Decommissioning - 270 -

Net Earnings/(Deficit) 1,173 1,555 665

CANEX Budget Proposal CANEX Budget Proposal RecommendationRecommendation

Approve the CANEX FY 04/05 Budget

Base/Wing Funds & MessesBase/Wing Funds & MessesBudget ImpactsBudget Impacts

$FY 03/04 FY 04/05

Cost of Services Provided $3,070,079 $3,131,712

User Fees and CIP Levies 2,258,831 2,612,324

Difference 811,248 519,388

Base/Wing Funds & Messes Base/Wing Funds & Messes Budget ImpactsBudget Impacts

RecommendationsRecommendations

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

Approve discontinuing CIP Levies on CANEX and Mess sales

Note full CIP Costs related to Ottawa Self-Help Housing to be recovered starting FY 04/05

Summary of RecommendationsSummary of Recommendations

Accept revised budget format

Note the Public Funded Programs Budget Revenues and Expenses Statement

Note the SISIP – Treasury Board Supported Plans FY 2004 Budget Proposal

Approve the Services, Operations, Programs and Distributions, including new requirements, budget

Approve the Sources of Funds distribution, including funding for new requirements

Note new requirements items not requiring new funds and approve for ‘inclusion’ in budget pending any enabling action

Approve new funding requirements contingent on Public Funds forthcoming where required, and approve for inclusion in budget, pending any enabling action

Summary of Recommendations Summary of Recommendations (cont’d)(cont’d)

Approve the CFCF Proposed Budget for FY 04/05 based on including the new funding requirements

Approve the SISIP Proper FY 2004 Budget

Approve the CFPAF FY 2004 Budget

Approve the CANEX FY 04/05 Budget

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

Approve discontinuing CIP levies on CANEX and Mess sales

Note full CIP costs related to Ottawa Self-Help Housing to be recovered starting FY 04/05