Standing Committee on Public Safety and National Security: 2020 to 2021 Main Estimates and Supplementary Estimates (B) (November 25, 2020)
Main Estimates financial notes

CBSA financial overview 2020 to 2021 Main Estimates

Key messages

The total funding sought in the Main Estimates for 2020 to 2021 is $2,207.3 million. This represents a $80.0 million increase or 3.8% over the previous year.

Anticipated authorities: $2,207.3 million – 2020 to 2021 Main Estimates

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

Increases in the 2020 to 2021 Main Estimates are mainly due to:

• $75.0 million to implement and maintain CBSA's Assessment and Revenue Management (CARM) project
• $17.3 million to enhance the operational response related to Gun and Gang Violence
• $16.1 million in adjustments to the employee benefit plan
• $14.8 million increase due to the updated timelines for the National Immigration Detention Framework
• $12.3 million 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 to 2021 Main Estimates are offset by the following decreases and are mainly due to:

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

Numbers may not add due to rounding

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
• 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: $17.3 million

Key messages (Commercial and Trade Branch)

The Mains over Mains net increase is $17.3 million for the Canada Border 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
• implement automated screening system for all inbound air travellers. This will enhance detection of known high-risk travellers engaged in significant transnational organized 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: $16.1 million

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 to 2021 ARLU, the EBP rate was established at 14.8%.

National Immigration Detention Framework: $14.8 million

Key messages (Programs Branch)

The Mains over Mains net increase of $14.8 million for 2020 to 2021 is attributable to the updated timelines for the National Immigration Detention Framework.

In 2018 to 2019, 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 to 2020 to enable closure of the project upon completion of construction of the new facility targeted for Summer 2019. This was completed March 9, 2020

Funding associated with the Quebec IHC is reprofiled through to fiscal 2021 to 2022 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 to 2017, the decontamination of the site and the hiring of a consultant firm to complete the construction drawings

Numbers may not balance due to rounding

Secure Air Travel Act and Passenger Protection Program: $12.3 million

Key messages

The CBSA is seeking $12.3 million in 2020 to 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: $21.0 million

Key messages

The Mains over Mains net decrease for Modernizing Canada's Border Operations is $21.0 million (from $135.0 million in 2019 to 2020 to $114.0 million in 2020 to 2021).

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 to 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 to 2021 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 to 2021.

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).

Funding to support the Immigration Levels Plan: ($17.5 million year over year decrease)

Key messages

As detailed in the 2019 Annual Report to Parliament on Immigration, the Government of Canada has committed to welcoming 341,000 immigrants in calendar year 2020, up from 330,800 admissions in 2019.

The Canada Border Services Agency (CBSA) plays an essential role in supporting the Immigration Program - from initial security screening, to admissibility determination and processing at the ports of entry, and inland enforcement for those who become ineligible to hold permanent resident status. In light of the Government's long-term goals for immigration growth, the CBSA requires incremental funding in line with the 2020 increases in targeted immigration levels.

In 2019 to 2020, the CBSA required substantial investment to deliver on the Government's 2019 target, an additional 20,800 admissions above the 2018 target.

As the Government's current target for growth in 2020 is 10,200 admissions above the 2019 target, the CBSA's funding level has been adjusted proportionally. The Mains over Mains net decrease is $17.5 million for the CBSA , taking into account the different funding profiles for CBSA activities, for example Force Generation costs are front-end loaded.

Overview

The Immigration Levels Plan is led by Immigration, Refugees and Citizenship Canada (IRCC) in conjunction with the Public Safety portfolio, Shared Services Canada (SSC), the Immigration Refugee Board (IRB), provincial governments, and other service delivery partners, and determines the number of new permanent residents to be admitted to Canada each year.

The CBSA's role in administration and enforcement of Canada's Immigration Program includes:

• security screening to inform IRCC officer decisions on the issuance of visas
• verification of identity and assistance to partners prior to a Permanent Resident coming to Canada (for example, airlines, local authorities and airports)
• processing of new PRs when they arrive at a Canadian port of entry through verification of applicant identity and compliance with legislative and regulatory requirements for admissibility to Canada
• immigration enforcement within Canada, including investigations, detentions and potential removals of individuals who are deemed inadmissible pursuant to the Immigration and Refugee Protection Act (IRPA)

In December 2019, Treasury Board approved funding levels for all partners to support the delivery of the 2020 target of 341,000 admissions, building on the 2018 to 2020 Multi-Year Levels Plan that committed to welcoming 340,000 admissions in 2020.

Through the 2020 to 2021 Main Estimates, the CBSA will be allocated $35.8 million (excluding EBP, PSPC accommodation costs and Shared Services Canada costs) to undertake activities concerning the 341,000 admissions.

In 2019 to 2020, the CBSA required substantial investment to deliver on the Government's 2019 target which was an additional 20,800 admissions above the 2018 target. As the Government's current target for growth in 2020 is only 10,200 admissions above the 2019 target, the CBSA's overall funding level reflects the decrease in incremental growth projected for 2020. The Mains over Mains net decrease is $17.5 million for the CBSA.

Note: Main Estimates only

Activity 1: Pre-Arrival – Immigration Security Screening & International Operations

Immigration, Refugees and Citizenship Canada (IRCC) processes permanent resident applicants outside of Canada. The Canada Border Services Agency (CBSA), working in collaboration with IRCC, performs security screening of permanent resident referrals from IRCC. Based upon the results of the security screening, the CBSA provides recommendations back to IRCC to inform final decisions on applications. CBSA Liaison Officers working overseas provide advice and training to airlines and foreign governments on fraudulent document and imposter detection and intercept irregular travelers attempting to travel to Canada. The funding the CBSA receives in the Main Estimates will be used for the security screening function and international operations, which directly supports national security priorities and facilitates the flow of people into Canada.

Activity 2: Arrival in Canada – Border Processing

The CBSA's Border Services Officers process new permanent residents when they arrive in Canada by performing functions such as verifying the person's identity, establishing that the applicant complies with all relevant legal requirements, and determining admissibility at the time of entry. The funding the CBSA receives in the Main Estimates will be used for the workload increase in permanent resident arrivals. Activity 2 supports national security priorities and facilitates the flow of people and goods across the border.

Activity 3: Post Arrival in Canada – Intelligence and Enforcement

The CBSA's Intelligence and Enforcement Program is responsible for inland enforcement activities related to permanent residents who subsequently lose their PR status for any reason including, for example, a failure to abide by residency requirements or a conviction for a serious criminal offence in Canada. The inland enforcement program conducts investigations, represents the Minister at admissibility and detention review hearings, detains persons who pose a danger or flight risk, and removes individuals who have been found inadmissible to Canada and issued removal orders. The increased funding sought via the Supplementary Estimates B process will fund CBSA enforcement activities associated with the incremental increase to 2019 admission levels that would otherwise remain unfunded. These activities support the objectives of the Immigration and Refugee Protection Act as they relate to public safety and security.

Activity 4: Force Generation & Information Technology

The CBSA's Force Generation Program provides for the recruitment, training, and on-the-job coaching of new front-line officers including, but not limited to, border services officers and enforcement and intelligence officers. It is responsive to CBSA business requirements and provides for new officers to address front-line attrition rates. Activities comprise: in-residence training at the CBSA College (including the delivery of classroom, scenario, use-of-force, and firearms training, and room and board at the College); probationary placement during a developmental period at a Port of Entry (including officer relocation and travel); development of national training standards for border services officers; and ongoing recertification activities.

Activity 5: Supporting Activities & Corporate Support

Supporting activities and corporate support funding from the Main Estimates ensures that the CBSA has the office space and other resources required to support incremental efforts in the functions of audit, evaluation, contracting and procurement, corporate security, access to information, privacy and gender-based analysis. Support activities and corporate support assists the CBSA to carry out national security priorities and facilitate the flow of people and goods across the border.

Postal Modernization Initiative: $10.3 million

Key messages (Commercial and Trade)

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 at 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 Montreal, and cannot complete its own activities independently. The Toronto Exchange Office implementation is currently on schedule for completion in August 2021 and the implementation for the Montreal Exchange Office is currently scheduled for March 2022.

A reprofile of remaining project funding was submitted, and this funding was moved to 2019 to 2020 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 ($10.0 million).

Starting in 2020 to 2021, for a 7-year period, the Agency's Capital A-Base is being reduced by $10.0 million per year.

In 2009, as part of the Government's economic stimulus effort, $70 million of future CBSA appropriations were accelerated, to be returned to the Fiscal Framework at the level of $10.0 million per year over the period 2020-2021 to 2026-2027.

Overview

In 2009, as part of the Government's economic stimulus effort, $70 million of future CBSA appropriations were accelerated, to be returned to the Fiscal Framework at the level of $10 million per year over the period 2020-2021 to 2026-2027.

Integrity of Canada's Borders and Asylum System including Irregular Migration: ($7.9 million)

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 to 2021, 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.