Standing Committee on Public Safety and National Security: 2019 to 2020 Supplementary Estimates (B) and 2020 to 2021 Main Estimates (February 26, 2020)
Main Estimates Financial Notes

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Financial overview 2020-2021 main estimates

Key messages

The total funding sought in the Main Estimates for 2020-21 is $2,207.3M. This represents a $80.0M increase or 3.8% over the previous year.

Anticipated Authorities: $2,207.3M – 2020-21 Main Estimates

Summary of net annual change in main estimates by program/initiative

Increases in the 2020-21 Main Estimates are mainly due to:

• $75.0M to implement and maintain CBSA’s Assessment and Revenue Management (CARM) project
• $17.3M to enhance the operational response related to Gun and Gang Violence
• $16.1M in adjustments to the employee benefit plan
• $14.8M increase due to the updated timelines for the National Immigration Detention Framework
• $12.3M to implement amendments to the Secure Air Travel Act (SATA) and introduce a framework for the Passenger Protect Program (PPP)

The increases in the 2020-21 Main Estimates are offset by the following decreases and are mainly due to:

• $21.0M reduction for Modernizing Canada’s Border Operations
• $17.5M to support Canada’s Immigration Levels Plan
• $10.3M for the sunsetting of the Postal Modernization Initiative
• $10.0M reduction of the Agency’s capital base funding
• $7.9M reduction to protect the Integrity of Canada’s Borders and Asylum System

Breakdown of anticipated authorities by vote

Funding for the Canada Border Services Agency Assessment and Revenue Management (CARM) [Redacted]

Key messages (CARM)

• The Mains over Mains net increase of [Redacted] is attributable to the implementation stage of this multi-year project.
• The Canada Border Services Agency Assessment and Revenue Management (CARM) project will enable modern, fair and fiscally responsible trade, helping to ensure that Canada keeps pace with global trade enablement advancements.
• CARM will reduce administrative burden for importers and other trade partners; increase Government of Canada revenues; and increase the Canada Border Services Agency’s efficiency, offering a net benefit over costs of $1.1 billion within ten years of implementation.
• CARM also addresses concerns raised by both the Auditor General and the Public Accounts Committee in 2009 with regard to the adequacy and integrity of the Agency’s tax revenue accounting and reporting systems.

Overview (CARM):

In March 2019, CARM realized a crucial project milestone when they received the Treasury Board approval necessary to complete the remaining stages of the project – granting the authorities to shift from design to implementation, and iteratively onto managed services for each release (with the final release currently scheduled for summer 2021).

CARM will leverage cloud hosting, which brings greater agility and end-to-end responsibility to the vendor. This strategy supports the Government of Canada’s IT Strategic Plan which requires departments to examine cloud options for business solutions. Pursuing a cloud computing model offers technical advantages that can increase business and IT agility, flexibility and performance.

Recognizing the mission-critical nature of the CARM system, the CBSA has established dedicated leadership for the project. With the appointment of a Vice-President and full executive leadership team for CARM, the CBSA is ensuring extensive day-to-day executive-level oversight and rigour to ensure the successful delivery of the project.

Once fully implemented, CARM’s central features will:

• simplify the overall importing process;
• provide a modern interface for importing into Canada;
• give importers self-service access to their own information;
• reduce the cost of importing into Canada;
• improve consistency in trade rules and decisions; and
• strengthen compliance verification and fraud detection.

In March 2019, CARM received Treasury Board approval to proceed to the Implementation and Managed Services Stage.

Initiative to take action against gun and gang violence: $17.3M

Key messages (Commercial and Trade Branch)

The Mains over Mains net increase is $17.3 million for the Canada Services Agency to enhance the operational response related to Guns and Gangs Violence.

The Guns and Gangs initiative is a horizontal initiative led by Public Safety, in partnership with the CBSA and the RCMP designed to:

• enhance CBSA’s capacity to stem the flow of inadmissible travellers and illegal firearms entering Canada at vulnerable points of entry;
• prevent smuggling of firearms in the highest risk modes, which are highway, air and postal; and
• implement automated screening system for all inbound air travellers. This will enhance detection of known high-risk travellers engaged in significant transnational organised crime or terrorist group activity prior to arrival in Canada.

Activity 1 - Illicit Guns in Postal Facilities: $1.3 million

Investment in Dual View X-ray technology and Automated Threat Detection Software/Network at the postal centres [Redacted]. This will allow the Agency to process all mail in a consistent, efficient, and non-intrusive manner.

Activity 2 - Detecting Firearms - Detector Dog Teams: $0.6 million

Continue the work being undertaken by the 5 newly trained firearms detector dog teams at select Ports of Entry.

Activity 3 – Construction and Maintenance of an All-Weather Facility: $5.6 million

Initiate work in order to proceed with the planning and construction of the All-Weather Facility. This will increase the Agency’s capacity for training and kennelling in a controlled and safe environment.

Activity 4 - Transnational Organized Crime Threat Identification - Interpol: $1.8 million

Initiate a feasibility study to automate the CBSA’s Interpol query capabilities to enhance risk assessment of individuals entering Canada. Work will begin by developing a project plan for a feasibility study in order to implement the full automation.

Activity 5 - Advanced Vehicle Concealment Techniques Course: $0.1 million

Test pilot the newly developed national training product to train in the identification and interdiction of crime guns and weapons for the CBSA/ Public Safety partners. Assessment of the current training module will be undertaken and the Agency will be establishing a pilot for the new training course in advance of full implementation.

Activity 6 - Air Cargo Security: $20.1 million

Expand use of hand-held and pallet sized x-ray technology and contraband tool outfitted mobile examination trucks (COMETs) into the Air mode at select major airports [Redacted]. Procurement of detection technology equipment will be undertaken.

Adjustments to the employee benefit plan: $16.1M

Key messages (FCMB)

For planning purposes, beginning April 1, 2019 the employee benefit plans (EBP) for all new initiatives must be calculated at 27% of salary based on Treasury Board Secretariat (TBS) instructions.

In finalizing the Annual Reference Level Update (ARLU)/Main Estimates, TBS generates a technical adjustment to bring the final EBP amount in line with the established rate for that year. This year’s rate is 14.8% compared to last year’s rate of 15.3%.

The adjustment to the EBP resulted in an overall increase of $16.1 million for the CBSA.

Overview (FCMB)

The statutory item "Employee Benefit Plans" includes costs to the government for the employer's matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, Death Benefits and the Employment Insurance accounts.

EBP must be calculated at 27% of the Personnel and/or Personnel-Capital for all new initiatives included in the ARLU/Main Estimates. However, in finalizing the ARLU/Main Estimates, TBS generates a technical adjustment to bring the final EBP amount in line with the established rate for the current exercise. For the 2020-2021 ARLU, the EBP rate was established at 14.8%.

National immigration detention framework: $14.8M

Key messages (Programs Branch)

The Mains over Mains net increase of $14.8 million for 2020-21 is attributable to the updated timelines for the National Immigration Detention Framework.

In 2018-19, the CBSA received approval for a reprofile of $26.9M to future years to complete core deliverables, specificially to complete the construction of the Immigration Holding Centres (IHC) in British Columbia (BC) and Quebec.

Funding associated with the ongoing maintenance and close out of the existing inadequate BC IHC is reprofiled to 2019-2020 to enable closure of the project upon completion of construction of the new facility targeted for Summer 2019.

Funding associated with the Quebec IHC is reprofiled through to fiscal 2021-22 to support the construction of the new facility and close out of the existing inadequate facility.

• Construction was originally forecast to begin in the fall of 2018 with an occupancy date of March 2020.
• Construction began in August 2019 and the projected completion date is summer 2021, extending the project timeline by 15 months. The extended timeline is attributed to a delay in securing a final site placement decision in 2016-17, the decontamination of the site and the hiring of a consultant firm to complete the construction drawings.

Secure air travel act and passenger protection program: $12.3M

Key messages

The CBSA is seeking $12.3 million in 2020-2021 (excluding EBP, PSPC accommodation costs and SSC costs) to create a secure, government-controlled system to screen international inbound, international outbound and domestic passenger manifests against the Secure Air Travel Act (SATA “No-Fly”) and the Canadian Travel Number (CTN “Redress”) lists as part of the Enhanced Passenger Protect Program (PPP).

Overview

Building upon investments made to pre-screen air travellers for the purpose of its own programs, the CBSA will develop, operate and maintain the PPP Centralized Screening solution and will onboard air carriers to the solution in support of Public Safety and Transport Canada’s aviation security mandate.

The long term outcomes of this investment are enhanced national security through centralized screening; and, increased fairness through an automated redress system.

The planning phase was completed within scope, budget and schedule on March 31, 2019. The Centralized Screening solution will be delivered in multiple releases beginning in fall 2020. Air carrier onboarding will begin in fall 2020 and is expected to be completed by March 2023.

Funding for modernizing Canada’s border operations: ($21.0M)

Key messages

The Mains over Mains net decrease for Modernizing Canada’s Border Operations is $21.0 million (from $135.0 million in 2019-20 to $114.0 million in 2020-21).

This multi-year funding will enable the Agency to keep pace with international partners in border management and enforcement, while ensuring that the CBSA remains responsive to the ongoing needs of cross border trade, traveler facilitation and targeting.

Of this multi-year funding, the CBSA is seeking $114.0 million in 2020-2021. This funding will enable the CBSA to deliver on its core mandate, strengthen the Agency’s financial management and enable the CBSA to leverage data analytics to focus resources on areas of higher or unknown risk.

Overview

The funding of $114.0 million in 2020-21 is part of a multi-year effort to support:

A stable baseline in the delivery of Agency’s core responsibilities of border management and border enforcement ($95.5 million). This includes ensuring that the front-line has the tools to perform day-to-day operations. Funding supporting a stable baseline has been confirmed for the Agency up to fiscal year 2020-21.

Strengthened financial management inclusive of efforts towards efficiencies in its business processes, continuous improvements in the planning and management of the CBSA’s investments in assets (inclusive of IT systems and custodial real property responsibilities) and an enhanced revenue generation over the fair collection of taxes and duties on imported goods ($7.0 million).

Advances towards making the best use of technology, data and intelligence. As shown by international partners, a strengthened use of data analytics can help expedite the flow of legitimate goods and people at the border, and enhance the ability to identify cargo and travellers presenting risks to national security and public health ($11.5 million).

Postal modernization initiative

Key messages

The Mains over Mains net decrease of $10.3 million relates to the sunsetting of the Postal Modernization Initiative.

The Postal Modernization Initiative (PMI) was undertaken to update and streamline processing of postal imports CBSA Mail Centres in Vancouver, Toronto and Montreal.

Upgrades include both infrastructure and IT systems so that the CBSA can address operational inefficiencies and improve risk management capabilities by interdicting contraband and collecting duties and taxes in the postal mode.

By implementing the PMI in parallel to the Canada Post Corporation’s (CPC) own Postal Transformation Project, it not only allows the CBSA to resolve operational deficiencies in the short-term, but benefits the government through immediate and sustained savings.

It is important to note that the CBSA is dependent on CPC timeline approval to move forward on implementation.

Overview

Through the Postal Program, the CBSA is obligated to screen all incoming mail. To carry out this work, the CBSA has been co-located since 1992 in Canada Post Corporation (CPC) facilities (currently Montréal, Toronto and Vancouver). Driven by the need to address outdated infrastructure and systems, the CPC initiated their $1.9 billion Postal Transformation (PT) Project in 2006 to modernize the domestic and international postal network.

Budget 2012 provided the CBSA with funding for its own PMI which had three key objectives: address identified security gaps; automate labour intensive rating activities; and fund the project through anticipated savings. At the time, the projected implementation dates for each of the CBSA Mail Centres were January 2014 (Vancouver), February 2015 (Toronto), and May 2015 (Montréal).

Since that time, the CPC has delayed implementation of all three sites. Vancouver was implemented with only a slight delay from January 2014 to May 2014 and introduced electronic data into the mail stream; two new IT systems to support automated rating (for duties and taxes); and risk assessment functions to enhance postal processing; as well as the brand new Pacific Processing Centre. The CBSA and CPC Presidents met in June 2017 and agreed on a new timeline of 2019 to initiate incremental improvements in Toronto and Montreal to enable the CBSA to capitalize upon its investments in the automated systems.

The CBSA is dependent on the CPC Postal Transformation Project for its own modernization plan for both Toronto and Montréal, and cannot complete its own activities independently. As such, until the CPC provides information on their ability to modernize their facilities, the Agency will not be able to complete the upgrades in Toronto and Montreal. A reprofile of remaining project funding was submitted, and this funding was moved to 2019-20 so that the funds would be available when required. The remaining funding will be used for modernizing the Toronto and Montreal facilities.

Canada Border Services agency’s capital base: ($10.0 million)

Key messages

The Mains over Mains net decrease in CBSA’s capital base is ($10.0M).

The Postal Modernization Initiative (PMI) was undertaken to update and streamline processing of postal imports CBSA Mail Centres in Vancouver, Toronto and Montreal.

Starting in 2020-21, for a 7-year period, the Agency’s Capital A-Base is being reduced by $10.0M per year.

In 2009, as part of the Government’s economic stimulus effort, $70M of future CBSA appropriations were accelerated, to be returned to the Fiscal Framework at the level of $10.0M per year over the period 2020-21 to 2026-27.

Overview

In 2009, as part of the Government’s economic stimulus effort, $70M of future CBSA appropriations were accelerated, to be returned to the Fiscal Framework at the level of $10M per year over the period 2020-21 to 2026-27.

Integrity of Canada’s Borders & Asylum System including Irregular Migration ($7.9M)

Key messages

The Mains over Mains net decrease is $7.9 million

Overview

Immigration, Refugees and Citizenship Canada (IRCC), the Immigration and Refugee Board (IRB), the Royal Canadian Mounted Police (RCMP) the Canadian Security Intelligence Service (CSIS) and the CBSA received funding over 2 years to support security operations at the Canada-United States (U.S.) border to enhance the Government of Canada’s capacity to process an increased number of asylum claimants, and implement measures to deter irregular migration.

It is currently assumed that federal partners, including the CBSA, are resourced to process up to 26,000 refugee claimants annually based on available A-base funding (22,500 claims per year) and ongoing funding received for the Mexico Visa Lift initiative (3,500 claims per year).

The arrival of unprecedented numbers of irregular migrants in 2017 imposed great challenges across the asylum system, government departments were required to redirect resources to address this challenge. These arrivals are particularly challenging as the number of asylum seekers entering Canada is unpredictable as it is affected by numerous factors such as global migration patterns, political instability and conflict.

The arrival of irregular migrants has continued. In 2018, a total of 55,695 refugee claims were received. Of this, a total of 19,419 claims were from persons who entered Canada between the ports of entry (irregular migrants).

In 2020-21, this funding will support CBSA activities related to irregular migration, primarily post-border operational and policy activities. Post-border activities include representing the Minister at hearings before the IRB and conducting immigration enforcement activities, up to and including the removal of failed refugee claimants and inadmissible persons from Canada.

CBSA allocations to Date

Canada Border Services Agency - authorities and expenditures (2015-16 to 2020-21)

Notes:

TB Vote 15: Compensation Adjustments (TB Vote 15) - Funding for adjustments made to terms and conditions of service or employment of the federal public administration as a result of collective bargaining

TB Vote 30: Paylist Requirements (TB Vote 30) - Funding to meet legal requirements of the employer such as parental and maternity leave, entitlements upon cessation of service or employment

TB Vote 40: Authority granted to the Treasury Board to supplement, in support of initiatives announced in the Budget of February 27, 2018, any appropriation for the fiscal year, including to allow for the provision of new grants or for any increase to the amount of a grant that is listed in any of the Estimates for the fiscal year, as long as the expenditures made possible are not otherwise provided for and are within the legal mandates of the departments or other organizations for which they are made.

Budget 2019: Budget 2019 funding received through the Budget Implementation Vote, in addition to the regular 2019-20 Main Estimates.

Other Adjustments: Government Wide Initiatives and Workload Migration and Budget 2019 Adjustments (EBP).

Statutory Adjustments: Adjustments for Contributions to employee benefit plans, Spending of proceeds from the disposal of surplus Crown assets and Refunds of amounts credited to revenues in previous years

FTEs and Funding Profile

Regions

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Taxes & Duties

Document navigation for "SECU: 2019 to 2020 Supplementary Estimates (B) and 2020 to 2021 Main Estimates (February 26, 2020)"

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Date modified:

2020-06-27