Part III - Departmental Performance Report (DPR)

2011–12 Estimates

The Honourable Vic Toews, P.C., Q.C., M.P.
Minister of Public Safety

• Section I: Organizational Overview
  • Raison d'être
  • Responsibilities
  • Strategic Outcome and Program Activity Architecture
  • Organizational Priorities
  • Risk Analysis
  • Summary of Performance
  • Expenditure Profile
  • Estimates by Vote
• Section II: Analysis of Program Activities by Strategic Outcome
  • Strategic Outcome and Supporting Program Activities
  • Program Activity: Risk Assessment
  • Program Activity: Secure and Trusted Partnerships
  • Program Activity: Admissibility Determination
  • Program Activity: Criminal Investigations
  • Program Activity: Immigration Enforcement
  • Program Activity: Recourse
  • Program Activity: Revenue and Trade Management
  • Internal Services
• Section III: Supplementary Information
  • Financial Highlights
  • Financial Statements
  • List of Supplementary Information Tables
• Section IV: Other Items of Interest
  • Organizational Contact Information

Message From the Minister

The Honourable Vic Toews, P.C., Q.C., M.P.
Minister of Public Safety

As Minister of Public Safety, I am pleased to present to Parliament the Canada Border Services Agency’s (CBSA) 2011–12 Departmental Performance Report.

The CBSA is the Government of Canada agency responsible for providing integrated border services across the functions of customs, immigration enforcement, and food, plant and animal inspection, which, taken together, provides security and promotes our economy.

In 2011–12, our government undertook a number of innovative measures to keep the Agency moving forward and ensure it is able to deliver on its commitment to excellence. To help strengthen immigration enforcement, the Agency created the “Wanted by the CBSA” web page, which features the names and photos of individuals who are inadmissible to Canada and have failed to make their whereabouts known to immigration authorities. In many cases they arrived in Canada illegally by misrepresenting themselves, and then compounded their wrongdoing by shielding themselves from immigration authorities, and from the Canadian public. Since the launch of this initiative, the CBSA has been able to locate and remove many of these persons from Canada thanks to tips from the public. As part of its overall enforcement responsibilities, the CBSA removed more than 16,000 persons who were inadmissible to Canada, and seized approximately $1.6 billion worth of illegal drugs and over 4,000  prohibited weapons, including firearms, before they found their way into our communities.

Last year also saw the announcement by Prime Minister Harper and President Obama of the Beyond the Border Action Plan on Perimeter Security and Economic Competitiveness, which will speed up legitimate trade and travel across our shared border while strengthening our mutual security. We have met a number of early commitments contained in the Beyond the Border Action Plan, and will continue to implement its various initiatives over the course of the year. The CBSA also continued to implement its Change Agenda to help ensure continued success in realizing its vision of an integrated border agency that is recognized for service excellence in ensuring Canada’s security and prosperity.

I am proud to be Minister responsible for organization that is central to the safety and security of Canada. As the CBSA approaches its 10th anniversary, it can look back on its achievements with a great deal of satisfaction.

The Honourable Vic Toews, P.C., Q.C., M.P.
Minister of Public Safety

Section I: Organizational Overview

Raison d'être

The Canada Border Services Agency (CBSA) provides integrated border services that support national security priorities and facilitate the free flow of people and goods, including food, plants, animals and related products across the border.

Responsibilities

Created in 2003, the CBSA is an integral part of the Public Safety Portfolio, which is responsible for integrated national security, emergency management, law enforcement, corrections, crime prevention and border management operations. Specific responsibilities include the following:

• administering legislation that governs legitimate trade and travel.
• detaining people who may pose a threat to Canada;
• identifying and removing people who are inadmissible to Canada, including those involved in terrorism, organized crime, war crimes or crimes against humanity;
• interdicting illegal goods entering or leaving Canada;
• protecting food safety, plant and animal health, and Canada’s resource base;
• promoting Canadian economic benefits by administering trade legislation and agreements, including the enforcement of trade remedies that protect Canadian industry from the injurious effects of dumped and subsidized imported goods;
• administering a fair and impartial redress mechanism; and
• collecting applicable duties and taxes on imported goods.

 

 

Strategic Outcome and Program Activity Architecture

The CBSA’s strategic outcome and Program Activity Architecture for 2011–12 is shown below.

High resolution (jpg, 115 KB)

Explanation of Changes

The CBSA’s Program Activity Architecture was revised for 2011–12 to establish a single strategic outcome for the Agency and to present a more comprehensive inventory of the Agency’s programs, in accordance with Treasury Board policy. The majority of changes for 2011–12 were implemented at the program sub-activity level:

• Risk Assessment sub-activities were redeveloped to reflect specific expected results;
• Admissibility Determination sub-activities were developed by transportation mode for ease of resource allocation;
• the Criminal Investigations Program was moved from a sub-activity level to a program activitity level and does not have any sub-activities of its own;
• Immigration Enforcement sub-activities were developed to reflect the logical flow of the program;
• Recourse sub-activities were removed as they were found to contribute to the same expected result; and
• Revenue and Trade Management sub-activities were updated.

Organizational Priorities

Summary of Progress Against Priorities

Priority	Type	Program Activities
Inadmissible people and goods are denied entry to or removed from Canada.	Previously committed to	Risk Assessment Criminal Investigations Immigration Enforcement
In 2011–12, the Agency made significant progress against its priority to ensure that “inadmissible people and goods are denied entry to or removed from Canada.” This priority consists of two distinct pillars: “pushing the border out” and strengthening the Agency’s enforcement capacity. In 2011–12, the CBSA undertook a number of important steps to “push the border out.” For example, resources within the CBSA’s International Network of Liaison Officers were realigned to better carry out the CBSA’s mandate abroad, while the Agency began to implement the National Targeting Centre at home. The National Targeting Centre will result in a centralized targeting model that allows the CBSA to better identify and mitigate threats before they reach the border. With regard to improving the Agency’s enforcement capacity, 2011–12 was a milestone year for the CBSA. In 2011–12, the Agency facilitated the largest number of removals since its inception in 2003, and increased the total volume of removals for the fifth consecutive year, with a total of 16,511 inadmissible persons removed from Canada, of which 1,914 (or 12%) were high‑priority criminal removals. Furthermore, the Agency also strengthened the security of the border by: carrying out critical policy work related to refugee reform, admissibility review, and human smuggling; launching the “Wanted by the CBSA” web page; and contributing to the Government of Canada’s migrant vessel prevention strategy.

 

Priority	Type	Program Activities
The Agency’s programs and services are delivered consistently within established service standards across Canada to provide predictability of outcomes for people and goods seeking entry to Canada.	Previously committed to	Secure and Trusted Partnerships Admissibility Determination Recourse
In 2011–12, the CBSA largely maintained its service standards, even during peak periods, despite increases in volumes of travellers and goods at the largest ports of entry. For example, in all modes of transportation, nearly one hundred million travellers were processed at primary inspection across Canada in 2011–12. This represents a traffic increase of 7.8% in comparison to 2010–11. This was accomplished through the development and use of innovative technological advances as well as through better planning and more efficient allocation of resources at the country’s busiest ports of entry (e.g. implementation of the National Peak Period Strategy). Finally, 2011–12 saw the CBSA deliver on a substantial agenda with regard to the development and negotiation of 28 of the 32 initiatives in the Beyond the Border Action Plan that have an impact on the Agency or that require the Agency’s participation. In fact, the Agency took the lead in 10 of the Beyond the Border deliverables, advanced a further seven and contributed to 11 more in which the Agency shared an interest with other government departments. More specifically, the CBSA supported the Chief Negotiator in the negotiation process, worked in partnership with key domestic and U.S. stakeholders throughout the development of the Action Plan, and ensured that the necessary plans and processes were in place at the CBSA to proceed with the implementation.

 

Priority	Type	Program Activities
The Agency is managed to optimize program delivery, and has clear and well-communicated goals and expectations.	Ongoing	Revenue and Trade Management Internal Services
In 2011–12, the Agency made significant progress towards ensuring that it is managed to optimize program delivery, and has clear and well-communicated goals and expectations. The implementation of the Accounts Receivable Ledger system, which will modernize the assessment, revenue and trade management program, was advanced to the application development stage. The Agency’s decision making was enhanced through the completion of the Enterprise Risk Profile and subsequent Risk Response Strategy, the launch of quarterly performance reporting, and the continued implementation of the Functional Management Model. In support of this priority, the Agency also improved its human resources practices and technological responsiveness and sustainability. In 2011–12, the Agency finalized the Training and Learning Priorities Framework, which aligns and tracks training and learning activities and associated costs with Agency-wide priorities. The CBSA also successfully implemented year one, and part of year two, of an Integrated Human Resources and Business Planning capability. A Strategic Technology Plan was developed to mitigate risks related to aging information technology used in critical systems.

 

Risk Analysis

Operating Environment

The CBSA’s operating environment in 2011–12 was dominated by the work undertaken on two major transformational initiatives: Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness and the Agency’s multi-year Change Agenda. The important work done over the past year on these initiatives has laid the foundation to transform the Agency and to better meet the needs of Canadians.

In December 2011, the Prime Minister of Canada and the President of the United States of America signed an action plan arising from the declaration Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness. The Beyond the Border Action Plan signaled a strong commitment to further harmonize travel and trade facilitation and strengthen the security efforts between the two countries. Throughout 2011–12, the CBSA played an active role in the development, negotiation, and early advancement of the Action Plan.

The CBSA’s Change Agenda, a multi-year transformational initiative launched in 2009, concentrates on setting the foundation for a more dynamic, responsive and service-oriented organization. Promoting a culture of service excellence, the Change Agenda’s activities are centred on three themes: frontline service delivery, people management, and management excellence. During 2011–12, the Agency continued to make change a reality through key accomplishments such as the development of a Service Improvement Plan, the launch of a new officer induction, recruitment, and training program, and the ongoing implementation of the Functional Management Model.

The Agency also modernized and streamlined its business processes in 2011–12, by seeking ways to improve the effectiveness and efficiency of its programs and services. This represented an important transformational challenge for the CBSA—to deliver programs in a more cost‑effective manner, while maintaining the same level of service excellence and innovation, and ensuring a more secure and timely flow of legitimate people and goods.

Even with the substantial challenges brought by the Beyond the Border Action Plan, the Change Agenda and the current environment of fiscal restraint, the CBSA consistently delivered on its programs and services across the country in 2011–12, ensuring the safe and efficient flow of goods and people across the border. Notable enforcement successes for the Agency include $1.6 billion in drug seizures; 4,380 prohibited weapons seized, including firearms; $27 million in currency seized; and the removal of a record number of inadmissible people: 16,511, 12% of whom were high-priority criminals. At the same time, the Agency largely  maintained its high service standards, even during peak periods, through better planning and a more efficient allocation of resources at its busiest ports of entry.

Enterprise Risk Management in 2011–12

The CBSA takes a proactive approach to managing risk by engaging the entire Agency in the Enterprise Risk Management process. The launch of the CBSA’s first full Enterprise Risk Profile (ERP) cycle in 2011, was a notable achievement. The bi-annual ERP identifies and ranks the top risks to the Agency’s achievement of its strategic objectives. The goal is to strengthen the Agency’s resilience to its changing environment by providing senior management with the risk‑based information needed to make better-informed decisions. Following the completion of the 2011 ERP, the Agency developed tailored Risk Response Strategies that outline the mitigation plans for each of the risks that were assigned a response of “Mitigate.” These Risk Response Strategies outline the CBSA’s risk mitigation plan for each of the risks.

The table below identifies the enterprise risks that were actively mitigated in 2011–12. The table is organized in order of risk exposure level, which is the amount of risk remaining after taking existing controls into consideration. The risks identified below are being mitigated through the implementation of the Risk Response Strategies and the improvement of existing controls, or the addition of new controls.

Risk	Exposure Level*	Significant Mitigation Activities in 2011–12
Business Risks
Irregular Migration	High	Completed the drafting of the Information Sharing Annex of the Citizenship and Immigration Canada–CBSA Memorandum of Understanding (MOU) Enhanced joint border management through Binational Port Operations Committees
Terrorism	High	Implemented Phase 2 (Rail) and Phase 3 (Freight Forwarders) of eManifest Completed the drafting of the Information Sharing Annex of the Citizenship and Immigration Canada–CBSA MOU
Immigration Enforcement	High	Continued to reduce the backlog of failed refugee claimants in the removals working inventory Launched and expanded the “Wanted by the CBSA” program Developed the Assisted Voluntary Return and Reintegration pilot program Completed the drafting of the Information Sharing Annex of the Citizenship and Immigration Canada–CBSA MOU
Strategic Exports	Medium	Advanced the development of an internal funding strategy for a new electronic export reporting system
Contraband	Medium	Drafted the new Targeting Business Model Began the implementation of the National Targeting Centre Implemented Phase 2 (Rail) and Phase 3 (Freight Forwarders) of eManifest
Enabling Risks
Information Management	High	Approved the Change Management and Communications Strategy Published Information Management Guidelines and Policy Developed a Performance Management Framework and key indicators Developed the Agency Functional File Classification Plan
Information Technology Systems	Medium	Approved the Information Technology Strategic Technology Plan Developed a draft Stakeholders Engagement Strategy
Targeting	Medium	Drafted the new Targeting Business Model Centralized Halifax, Edmonton, Ottawa, Winnipeg and Calgary air passenger targeting Began the implementation of the National Targeting Centre Established Canada-U.S. Targeting Officer exchange program
Management of Border Programs	Medium	Continued to improve the Border Risk Management Plan as a means of communicating national priorities to the regions Began to implement the new Functional Management Model Began to develop program strategies and Resource Allocation Models (RAMs)
Human Resources	Medium	Began the development of the Leadership Development Framework and Leadership Development curriculum Redesigned the current border services officer recruitment program and ensured alignment with the long-term development program Launched the new border services officer national recruitment process
Information Security	Medium	Hired additional Integrity Monitoring staff and began developing Information Security Monitoring Strategy
Resource Optimization	Medium	Discussed regional resource management resources, skill sets and abilities as part of the development and roll-out of the Resource Allocation Model Presented and approved approach to allocate budget at the functional level Completed forecasting training tools for the Consolidated Monthly Projection and Analysis System (COMPAS) and provided training to all users
Organizational Responsiveness	Medium	Established three additional Service Improvement Working Groups: marine, postal, and trade Developed and implemented the 2011 Summer Action Plan Completed Client Satisfaction Survey Strategy
Ethical Conduct	Low	Mandatory shift reports by superintendents to port managers Random rotation of daily roster assignments Increased physical supervision of inspection activities and 24/7 management presence

* The risk exposure level is based on the Executive Committee’s evaluation of the likelihood and impact of each risk in the ERP.

Recognizing that the context that drives risks is not static, the CBSA is introducing measures to monitor its enterprise risks on a regular basis. In this way, the ERP, in conjunction with the monitoring and reporting strategy, contributes to an ongoing dialogue of risks in the operating environment.

Summary of Performance

Total Financial and Human Resources

The tables below provide a summary of the Agency’s overall performance and demonstrate linkages between resources and results. It depicts the CBSA’s total financial resources, total authorities and actual spending for the 2011–12 fiscal year, in addition to a summary of the total planned and actual human resources for the Agency.

2011–12 Financial Resources ($ thousands)

Financial Resources for 2011–12
Planned Spending	Total Authorities1	Actual Spending1
1,870,512	2,108,551	1,835,297

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.

2011–12 Human Resources (full-time equivalents)

Human Resources for 2011–12
Planned	Actual	Difference*
13,975	14,833	(858)

* Planned Financial Resources and Human Resources are based on current annual reference levels and estimated planned items in the Report on Plans and Priorities; while actual Financial Resources and Human Resources are based on final amounts reported at the end of each fiscal year in the Departmental Performance Report. These variances between planned and actual amounts (including by program activity) can result from new Treasury Board submissions approved in Supplementary Estimates during the fiscal year.

The difference between Planned Spending and Total Authorities in 2011–12 was $238 million due to Supplementary Estimates and additional statutory funding. Total Authorities of $2,108.6 million consisted of Main Estimates, Operating and Capital Carry Forward from 2010–11 to 2011–12, Supplementary Estimates and additional statutory funding. This was offset by the transfer of funding to Shared Services Canada. The Supplementary Estimates items contributing to the increase in Total Authorities were as follows: funding for the ongoing implementation of the harmonized sales tax, mass arrival of migrant vessel Sun Sea, human smuggling, anti-money laundering and anti-terrorist financing, temporary resident biometrics, frontline operations, and the modernization of trade and revenue processes and systems.

There was a difference of $273.3 million between Total Authorities of $2,108.6 million and actual spending of $1,835.3 million. This comprised a $156.6-million lapse in operating expenditures associated with delays in the Accounts Receivable Ledger, Refugee Reform, eManifest and Arming initiatives; a $116.4-million lapse in capital expenditures related mainly to delays in the Accounts Receivable Ledger, Arming, Refugee Reform, Biometrics, Detection Technology and Small Port Replacement initiatives; and a $0.2-million lapse related to other statutory items.

Progress Toward Strategic Outcome

Strategic Outcome: International trade and travel is facilitated across Canada’s border and Canada’s population is protected from border-related risks.

Performance Indicators	Targets	Targets
N/A	N/A	N/A

Performance Summary, Excluding Internal Services

Program Activity	2010–11 Actual Spending2	2011–12 ($ thousands)				Alignment to Government of Canada Outcomes
		Main Estimates	Planned Spending	Total Authorities1	Actual Spending1
Risk Assessment	118,419	165,017	166,170	175,239	117,258	A safe and secure world through international co-operation
Secure and Trusted Partnerships	32,389	67,143	67,402	70,600	33,247	A safe and secure world through international co-operation
Admissibility Determination	662,137	645,811	653,423	694,539	582,713	A safe and secure Canada
Criminal Investigations	19,983	24,030	24,030	24,987	27,185	A safe and secure Canada
Immigration Enforcement	91,489	158,707	158,707	183,845	150,516	A safe and secure Canada
Recourse	11,132	8,999	10,311	11,400	12,674	A fair and secure marketplace
Revenue and Trade Management	68,384	64,154	72,004	73,933	75,965	A fair and secure marketplace
Total Spending	1,003,933	1,133,861	1,152,047	1,234,543	999,558

Performance Summary for Internal Services

Program Activity	2010–11 Actual Spending2	2011–12 ($ thousands)
		Main Estimates	Planned Spending	Total Authorities1	Actual Spending1
Internal Services	691,619	712,594	718,465	874,008	835,738
Total – Internal Services	691,619	712,594	718,465	874,008	835,738
Total	1,695,552	1,846,455	1,870,512	2,108,551	1,835,297

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.
² The 2010–11 Actual Spending figures have been restated to reflect the new Program Activity Architecture structure. Any minor differences are due to rounding.

Contribution to the Federal Sustainable Development Strategy

With the introduction of the Federal Sustainable Development Strategy, the Government of Canada has adopted an approach to environmental decision making that is more integrated, transparent and accountable. This comprehensive strategy ensures that Canada is moving in a single direction to achieve its environmental goals.

The CBSA has two program activities that contribute to two environmental themes of the Federal Sustainable Development Strategy:

Sustainable Development Theme	Program Activity
Theme I Addressing Climate Change and Air Quality	N/A
Theme II Maintaining Water Quality and Availability	N/A
Theme III Protecting Nature	Admissibility Determination
Theme IV Shrinking the Environmental Footprint - Begining with Government	Internal Services

More information on the Agency’s contributions to Themes III and IV, as denoted by their respective visual identifier, can be found in Section II.

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, the CBSA evaluated applicable proposals and plans for significant environmental effects. In addition, each proposal was evaluated alongside the goals and targets of the Federal Sustainable Development Strategy to determine its impact on Canada’s environmental priorities.

For information on the CBSA’s sustainable development goals and targets, refer to the Agency’s Sustainable Development Strategy 2011–2013. For a broader perspective on the Government of Canada’s commitment to the environment, refer to the Federal Sustainable Development Strategy.

Expenditure Profile

The graph below compares the Agency’s actual and planned spending from 2007–08 to 2014–15. For each fiscal year, the graph illustrates the relationship between Total Spending and Planned Spending.

As presented in the graph above, the Agency had Planned Spending of $1,870.5 million, Total Spending of $1,835.3 million and Total Spending on Canada Economic Action Plan (CEAP) of $44.5 million in 2011–12.

Agency Actual Spending has increased by 27% over the past five years, for a net increase of $386.6 million, with totals of $1,448.7 million in 2007–08, $1,647.6 million in 2008­–09, $1,641.0 million in 2009–10, $1,695.6 million in 2010–11, and $1,835.3 million in 2011–12. The increase from 2010–11 to 2011–12 is primarily due to the following items: realignment between fiscal years, consistent with the Economic and Fiscal Statement actions to improve spending projections; improvement of the CBSA’s program integrity; implementation of Bill C‑31, an Act to amend the Immigration and Refugee Protection Act; arming of officers at the border and addressing work-alone situations; the eManifest initiative; implementation of the Accounts Receivable Ledger project; and modernization of three ports of entry in British Columbia (Kingsgate, Pacific Highway, Abbotsford-Huntingdon) and one in Ontario (Prescott).

Conversely, Agency Planned Spending declined by 13% from 2011–12 to 2014–15, with amounts of $1,870.5 million in 2011–12, $1,776 million in 2012–13, $1,666.2 million in 2013–14, and $1,620.7 million in 2014–15.

Estimates by Vote

For information on the CBSA’s organizational Votes and/or statutory expenditures, please see the Public Accounts of Canada 2012 (Volume II). An electronic version of the Public Accountsis available on the Public Works and Government Services Canada website, Public Accounts of Canada 2012.

Section II: Analysis of Program Activities by Strategic Outcome

The Canada Border Services Agency (CBSA) has one strategic outcome supported by seven program activities. The strategic outcome and seven supporting program activities focus on the Agency’s mandate and responsibility to support Canada’s national security priorities, and facilitate the movement of legitimate people and goods, including food, plants and animals, across the border.

Strategic Outcome and Supporting Program Activities

Strategic Outcome:	International trade and travel is facilitated across Canada’s border and Canada’s population is protected from border-related risks.
Description:	The strategic outcome focuses on the Agency’s mandate and responsibility to support Canada's national security priorities, while facilitating the legitimate cross‑border movement of people and goods, including food, plants, animals and related products.
Supporting Program Activities1:	Risk Assessment Secure and Trusted Partnerships Admissibility Determination Criminal Investigations Immigration Enforcement Recourse Revenue and Trade Management

¹ Program activity descriptions outlined in this Report have been taken from 2012–13 Main Estimates and therefore differ from those contained in the CBSA 2011–12 Report on Plans and Priorities.

Program Activity: Risk Assessment

The Risk Assessment program activity “pushes the border out” by seeking to identify high-risk people, goods and conveyances as early as possible in the travel and trade continuum to prevent inadmissible people and goods from entering Canada. This benefits the travelling public and the trade community by enabling the Agency to focus its examination and interdiction activities on high-risk people and goods, thereby facilitating the entry of low-risk travellers and goods. The Agency uses automated risk assessment systems and intelligence to identify potential risks to the security and safety of people and goods.

Program Activity: Risk Assessment

2011–12 Financial Resources ($ thousands)			2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities 1	Actual Spending 1	Planned	Actual	Difference
166,170	175,239	117,258	1,022	1,111	(89)
Expected Result		Performance Indicators		Target	Actual Result
People and shipments2 seeking to enter Canada that may pose a threat are intercepted prior to their arrival in Canada.		Percentage of screened people3 who may pose a threat that are intercepted prior to their arrival in Canada.		70%	71%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.
² Shipments screened through the Accelerated Commercial Release Operations Support System or TITAN. A
 performance indicator and a target for screened shipments are being developed.
³ Travellers screened through an electronic risk assessment system.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

Supporting Initiative: Improve capacity for interdiction and/or seizure of inadmissible goods and removal of inadmissible people

• Implement improvements to the international operations network

The CBSA has an international footprint that includes two counsellors (Washington and Brussels), three intelligence liaison officers (Washington, London and Canberra) and 57 liaison officers in 48 locations throughout the world. The majority of this network plays a critical role in a range of pre‑border activities in matters of irregular migration, national security, intelligence, fraud detection and supply chain security. The network also assists in post-border activities through supporting investigations, removals, reporting and liaison.

In 2011–12, the CBSA initiated and implemented a risk-based approach to realign its international network to better position the Agency to mitigate, prevent and respond to evolving international threats. In 2011–12, the Agency strategically reallocated its resources within the Middle East to better fulfill the CBSA’s mandate. The Agency also strengthened its capacity to respond to the threat of marine migrant smuggling originating in South and East Asia and Africa by increasing resources in key regional locations. The CBSA continues to work with its Public Safety Portfolio partners  and the Department of Foreign Affairs and International Trade to coordinate these initiatives.

• Implement customs controlled areas to more effectively respond to internal conspiracies and organized crime at ports of entry

A customs controlled area is a designated area where domestic workers and departing domestic travellers are more likely to come into contact with international travellers and goods not yet cleared by the CBSA. Under the 2009 amendments to the Customs Act, CBSA officers were given the legal authority to question, examine and search people and goods, both within customs controlled areas and at exit points. Regulations that specify how that authority will be administered were pre-published in the Canada Gazette,Part I, in November, 2010. Customs controlled areas will improve the security of Canadians as they will act as a deterrent to internal conspiracies at ports of entry and help mitigate the risks posed by organized crime and national security threats. They will also help the CBSA interdict contraband and other illegal items before they reach Canadian communities.

In 2011–12, the Agency undertook several initiatives to determine the best approach for instituting the first customs controlled areas at Canada’s three largest airports: Pearson International Airport (Toronto), Pierre Elliott Trudeau International Airport (Montréal), and Vancouver International Airport. Unfortunately due to a number of external reasons. CBSA was unable to fulfill this commitment on time. The new regulations will be put in place as soon as possible. The training of officers will start immediately after the regulations are approved.

• Postal modernization – develop the design of new processes for risk assessment and processing of importations in postal stream

The CBSA and Canada Post are currently working together to modernize the assessment and processing of international mail through technological advances and a revised business model. The CBSA’s end-state vision of the Postal Modernization Initiative is to align the Postal Program with other Agency programs that leverage advance electronic data in support of targeting and risk assessment principles, while addressing and upgrading the antiquated systems and infrastructure currently in place at the three CBSA mail centres in Vancouver, Montréal and Toronto. 
In 2011–12, the CBSA continued to move forward with the implementation of the Postal Modernization Initiative through a number of key activities. These activities include establishing requirements for a new information technology system as well as a rating system; testing detection technologies for implementation in the modernized postal facilities; and developing communication material for use by the Agency’s Postal Operations Service Improvement Working Group.

Supporting Initiative: Enhance capacity for pre-arrival risk assessment

• Continue development and implementation of eManifest

The third phase of the Advance Commercial Information Program is the eManifest initiative, which will change the commercial import process to reflect the CBSA’s integrated risk management approach and to keep pace with the changing global environment.

In 2011–12, the CBSA successfully implemented the eManifest Portal for all highway carriers. The eManifest Portal allows the trade community to electronically transmit pre-arrival information to the CBSA through a secure Internet site. The Portal was developed primarily for small- to medium-sized enterprises to facilitate their compliance, and ease the transition from paper reporting to pre-arrival electronic data transmission. The CBSA uses advance information to screen goods that are destined to Canada or transiting to the United States.

In May 2012, the CBSA deployed systems functionality for rail carriers to provide advance cargo and conveyance data on commercial goods coming into Canada. This uses the newly developed Multi-Modal Manifest, which offers enhanced features to support the flow of goods.

• Targeting – develop new program structure, framework and business model

Targeting is the identification of potential high-risk people, goods and conveyances. The CBSA uses advanced technology and intelligence products to identify people, goods or conveyances that may pose a risk to national security and public safety priorities before they arrive in Canada. The establishment of the National Targeting Centre (NTC) is an important component of the CBSA response to a number of internal and external reviews, audits and reports recommending improvements to the way the CBSA delivers its Targeting Program, to make it more effective and less costly.

In 2011–12, the Agency completed the organizational design for the new centralized NTC and drafted the new Targeting Business Model. The NTC increases the Agency’s national risk response capacity by developing stronger partnerships between the targeting and intelligence communities within Canada and abroad. The new Targeting Business Model has further improved the Targeting Program by centralizing and better integrating critical targeting activities used to identify people, goods and/or conveyances posing threats to Canadians. In January 2012, air passenger targeting performed at the Edmonton, Ottawa, and Halifax airports was transitioned to the NTC as part of the test phase for implementation of the centralized model into the National Targeting Centre. The transition of the remaining airports for air passenger targeting is currently underway and set for completion in 2012–13. Air Cargo, Marine Cargo, and Marine Vessel and Crew will also be transitioned from regional units into the NTC prior to the end of the 2012–13 fiscal year.

In 2011–12, the Agency also implemented a number of related targeting initiatives, which included the development and delivery of the pilots for the Foundations of Targeting and Air Passenger Targeting training courses; and holding regional workshops to solicit best practices and provide information on the new targeting business model. The Targeting Program participated in outreach to regional operations including responding to enquiries concerning the implementation of the NTC and targeting business model, and discussing the Targeting Program communications strategy. In March 2012, a targeting officer job description was approved and classified, and came into effect on April 1, 2012.

Lessons Learned:

Throughout 2011–12, as part of the Postal Modernization Initiative, key stakeholders were consulted to identify issues/concerns within the existing postal environment and seek opportunities to improve and modernize the process in the future. These stakeholders will continue to be engaged and consulted throughout the initiative to ensure that key objectives are met. These objectives include the introduction of electronic data into the postal process; implementation of an automated rating system; and leveraging Agency risk assessment systems. The successful delivery of this initiative will allow the Agency to pursue new and more effective ways of intercepting high-risk goods, while adopting policies and processes that efficiently facilitate the movement of low-risk goods across international borders.

The 2007 October Report of the Auditor General of Canada, Chapter 5 “Keeping the Border Open and Secure” and the Agency’s Pre-Arrival Targeting Evaluation Study both determined that the historical methods of managing the Agency's Targeting Program could be improved and streamlined. As a result, the Agency has focused on streamlining the Targeting Program’s procedures and processes through the development of a national policy, mode-specific procedures, and the development and delivery of targeting officer training courses. Consolidation of targeting activities for optimal operational program delivery continued with the transition to the NTC effective April 1, 2012.

Program Activity: Secure and Trusted Partnerships

Through the Secure and Trusted Partnerships program activity, the CBSA works closely with clients, other government departments and international border management partners to enhance trade chain and traveller security while providing pre-approved, low-risk travellers and traders with streamlined and efficient border processes. The CBSA develops and administers programs and cooperative agreements with its partners to ensure alignment with international standards (e.g. World Customs Organization SAFE Framework of Standards) and promotes best practices in global border management. By increasing membership in trusted traveller and trader programs, the CBSA is able to improve its capacity to mitigate risk in advance and focus examination efforts on identifying travellers and traders of unknown or higher risk.

Program Activity: Secure and Trusted Partnerships

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1		Actual Spending1	Planned	Actual	Difference
67,402	70,600		33,247	861	381	480
Expected Result		Performance Indicator			Targets	Actual Results
Increased membership in trusted traveller and trader programs.		Percentage change in the number of members in the trusted traveller and trader programs.			10 – 15%	26%
Increased capacity to focus on unknown or high-risk people and goods at the ports of entry.		Percentage of trusted traveller and trader passages out of all passages.			TBD	5%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Improve capacity for interdiction and/or seizure of inadmissible goods and removal of inadmissible people

• Supporting Initiative: Improve capacity for interdiction and/or seizure of inadmissible goods and removal of inadmissible people

In 2011–12, the CBSA and U.S. Customs and Border Protection (CBP) finalized the establishment of the Cooperative Border Management Framework. The framework comprised three pillars: information sharing; policy and program harmonization; and shared infrastructure. The Cooperative Border Management Framework has since been superseded following the December 2011 announcement of the Beyond the Border Action Plan. The three pillars of the Cooperative Border Management Framework are now part of the wider Beyond the Border Action Plan.

In 2011–12, under the original information sharing pillar of the Cooperative Border Management Framework, the CBSA forged ahead in the development of a number of projects that involve information sharing with the United States. For example, as part of the Canada-U.S. Intelligence and Information Sharing for National Security and Law Enforcement Purposes Initiative, the CBSA participated with CBP and other U.S. national security and intelligence partners in four bilateral meetings to develop a shared understanding of each other’s legislation, policies and practices. These bilateral meetings have also helped to identify and initiate efforts to expose inefficiencies and improve information sharing within the national security forum and establish a mechanism to ensure a continued dialogue on national security information sharing.

Under the policy and program harmonization pillar and the Beyond the Border Action Plan, in 2011–12, the CBSA and CBP continued the work related to the harmonization of the Partners in Protection (PIP) and Customs-Trade Partnership Against Terrorism (C-TPAT) programs. In addition, the CBSA recognized NEXUS members for trusted traveller lanes at passenger pre‑board screening points for flights from Canada to the U.S. and provided access to pre-board screening in U.S. preclearance areas at eight Canadian international airports. The Agency also implemented a joint marketing campaign and “enrolment blitz” to promote trusted traveller programs, and implemented an expedited renewal process that allows the interview to be waived for NEXUS members who remain low risk. The CBSA, in conjunction with CBP, also developed a plan to expand NEXUS lanes, booths and access to the lanes at jointly identified ports of entry to accommodate the expected increase in NEXUS membership.

Finally, in 2011–12, under the Beyond the Border Small and Remote Ports Initiative, the CBSA and CBP continued to work on establishing joint border management facilities through the bilateral discussions of the Small Ports Working Group. The CBSA will not close any small ports. Work continues towards the development of consensus recommendations for small and remote ports of entry. The final Joint Action Plan will be published by June 30, 2013.

Supporting Initiative: Expand trusted programs membership and benefits

The CBSA offers a suite of trusted trader programs (including Free and Secure Trade, Customs Self Assessment, Partners in Protection and Partners in Compliance) to enhance the integrity of the trade chain while providing expedited border clearance. It also offers trusted traveller programs, including NEXUS and CANPASS, which are designed to expedite the border clearance of low‑risk, pre-approved travellers.

Trusted Traveller Programs

In 2011–12, the CBSA completed an in-depth review of the NEXUS program.  Work is currently underway to implement the recommendations, which will reduce duplication, increase effectiveness and efficiency, and enhance client service and program benefits.

In support of commitments made under the Beyond the Border Action Plan, the CBSA expanded NEXUS membership benefits by collaborating with the Canadian Air Transport Security Authority (CATSA) and Transport Canada to expand the Trusted Traveller CATSA Security Line (TTCSL) to US Preclearance Areas at eight international airports across the country; and launched a joint CBSA and US CBP outreach campaign.

The Agency continued to work with international partners to identify opportunities for bilateral trusted traveller programs.  Throughout 2011–12, the CBSA worked closely with its counterparts in the Netherlands on the design of a bilateral trusted traveller program and continues to advance development of the program.  CBSA continues to ensure that such programs will align with the vision of the Beyond the Border Action Plan.

In keeping with the theme to offer programs to low-risk travellers, the CBSA committed to developing an implementation plan for the Canadian pilot of the Asia-Pacific Economic Cooperation (APEC) Business Traveller’s Card scheme during summer 2012 and work progresses to finalize the plan by early fall 2012.  This pilot will provide Canadian business travellers who are members of the NEXUS program, access to special service lanes when travelling abroad to participating APEC economies.

Trusted Trader Programs

In 2011–12, the Agency developed a Trusted Trader Strategy to integrate existing trusted trader programs as well as increase its benefits to members. The strategy was developed, in part, through consultation with industry stakeholders to ensure that benefits are extended to all program members. With the launch of the Beyond the Border Action Plan, the Trusted Trader Strategy was reviewed and updated to better align the various trusted trader initiatives. As part of this review, a comparison of existing PIP and C-TPAT benefits was undertaken to determine the feasibility of harmonizing the two programs. The review was completed in 2011–12 and an analysis conducted identified current and possible future benefits of a harmonized process. Finally, in 2011–12, the CBSA and CBP jointly identified companies requiring revalidations and have begun to recognize site validations performed by the opposite program.

Support Transport Canada in the implementation of the Air Cargo Security Program

Transport Canada is leading the implementation of Canada’s Air Cargo Security Program. The program allows security screening to take place at the most cost-effective location along the supply chain and ensures that screened cargo can remain secure from the start of the air shipment process until the carrier accepts and places it on board an aircraft. Such a supply chain security system allows air carriers to accept screened cargo from Air Cargo Security Program participants without a need for last-minute rescreening at the airport. When fully implemented, the program will help to reduce airport congestion by streamlining the processing and screening of low-risk legitimate cargo, and will lower the cost of compliance with air cargo security regulations.

In 2011–12, the CBSA continued to engage and collaborate with Transport Canada to fulfill obligations under the Air Cargo Security Program. The Air Cargo Security Interoperability Working Group was created and it currently meets on a quarterly basis.

Lessons Learned:

Over the last year, as trusted trader programs began to work more closely together, it became apparent that fragmented processes led to some duplication of effort and inefficiencies. To address these areas of concern, trusted trader programs have adopted a common framework with  CBP to align their trusted trader programs and member benefits and to increase membership both at home and abroad. As part of this, an announcement was made that the CBSA’s Partners in Protection and CBP’s Customs-Trade Partnership Against Terrorism programs would harmonize. Harmonization will enable a single application to both programs, streamline policies and procedures where possible, and enable the programs to recognize their counterpart’s decisions, resulting in less duplication of efforts. To provide members with this option as soon as possible, the Agency has adopted a phased approach to the harmonization of PIP and C-TPAT beginning with the harmonization of highway carriers.

The primary objective of the Air Cargo Security Program is to develop a comprehensive air cargo security regime in Canada that is in line with international partners and that will mitigate the risks associated with the introduction of explosives in cargo or mail and the use of cargo aircraft as weapons. Supply chain programs continue to be developed to identify low-risk cargo and to screen high-risk and targeted cargo. In developing such programs, the Agency has learned that it is essential to maintain regular working relationships with its Transport Canada partners to further identify opportunities to improve its ability to mitigate threats within the supply chain. The Agency’s participation in the Interoperability Working Group allows it to focus on analyzing opportunities for interoperability with Transport Canada. Engagement at the international level is also of importance. Working groups, such as the World Customs Organization Technical Experts Working Group on Air Cargo Security, enable the Agency to align its processes with those of other international partners, where possible. 

Program Activity: Admissibility Determination

Through the Admissibility Determination program activity, the CBSA develops, maintains and administers the policies, regulations, procedures and partnerships that enable border services officers to intercept people and goods that are inadmissible to Canada and to process legitimate people and goods seeking entry into Canada within established service standards. In addition, the Agency develops, maintains and administers the policies, regulations, procedures and partnerships to control the export of goods from Canada.

In the traveller stream, border services officers question people upon arrival to determine if they and their personal goods meet the requirements of applicable legislation and regulations to enter Canada. Border services officers will then make a decision to grant entry or refer a person for further processing (e.g. payment of duties and taxes, issuance of a document), and/or for a physical examination.

In the commercial stream, carriers and importers are required to provide information to the CBSA at or prior to arrival in Canada. Border services officers review the status of pre-arrival decisions and/or the provided accompanying documentation to determine whether the goods meet the requirements of applicable legislation and regulations to enter Canada. Based on this determination, a border services officer may refer the goods for further processing, examination and/or scientific or engineering analysis. Upon further examination, goods may be seized or penalties imposed.With some exceptions, all goods being exported from Canada must be reported “in writing” to the CBSA.

Program Activity: Admissibility Determination

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1		Actual Spending1	Planned	Actual	Difference
653,423	694,539		582,713	6,331	6,228	103
Expected Results		Performance Indicators			Targets	Actual Results
People and goods that are inadmissible to Canada are intercepted at ports of entry or within Canada. Export shipments that do not meet all requirements under the program legislation are intercepted/seized.		Percentage of examined people who are inadmissible and/or arrested.*			2 – 3%	5%
		Percentage of examined goods (commercial shipments) that are seized.*			0.30% 2	0.30%
		Percentage of examined export shipments that are intercepted and/or seized.			3 – 8%	7%3

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.
² Please note that in order to better reflect the actual number of seizures conducted, the CBSA has amended the target that was developed for the indicator “% of examined goods that are seized” in 2011–12, which originally was 10-12%, to 0.30% to reflect the true definition of this indicator. The initial target was based on the number of enforcement actions resulting from an examination, rather than the number of seizures resulting from an examination. Enforcements actions include levying of a sanction, seizing goods, ascertaining forfeiture, detaining or arresting a person, or any like occurrence.
³ This includes export shipments that were subject to an administrative monetary penalty.
* This includes examined people/goods who have been referred to secondary processing for additional examination to determine their admissibility and their goods’ admissibility into Canada.

Selected Enforcement Statistics **	2011–2012 Performance	2010–2011 Performance
Drug seizures	10,187	10,039
Prohibited weapons seized, including firearms	4,380	4,649
Tobacco seizures	2,308	2,831
Value of currency seized (value is approximate in $ thousands)	27,000	28,000
Meat, meat products, animals and animal products interceptions	31,311	30,745
Soil, plants and plant products interceptions	15,182	16,104

** The number of seizures vary year to year du to a number of external factors outsidethe CBSA control of special note, while the total number of prohibited weapons seized decreased in 2011-12 relative to 2010-11, the number of firearms seized increased during this period.

Contribution to Sustainable Development – Admissibility Determination Program Activity

The Admissibility Determination program activity contributes to Theme III of the Federal Sustainable Development Strategy – Protecting Nature. The Food, Plant and Animal Program within this program activity plays a vital role in preventing and managing the risks associated with the introduction of invasive alien species. In partnership with other key departments and agencies, the CBSA coordinates a rapid and effective response to the threat posed by invasive alien species to our nation’s ecosystems and resource-based economies.

For more information on how the CBSA is managing threats to ecosystems, refer to the CBSA’s Sustainable Development Strategy Performance Report 2011–2013.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Improve service consistency

• Service Strategy and commitments – implement and monitor service standards and strengthen engagement with stakeholders

In 2009, the CBSA developed and implemented a new Service Strategy. The goal of the Strategy was to strengthen the CBSA’s culture of service, simplify and streamline how the CBSA and clients interact, and increase the CBSA’s accountability through the development of additional service standards and performance measures that can be reported on a regular basis. The Service Strategy includes the development of a service commitment, service web page and an Enhanced Complaint Mechanism, and sets out a uniform approach for designing or refining programs and policies that will ensure greater engagement with business and industry.

To further support the Service Strategy, the frontline service delivery pillar of the Change Agenda included six commitments with a focus on client service excellence to better understand the needs of the Agency’s clients. Subsequently, five Service Improvement Working Groups (SIWGs) in the Land, Air, Postal, Marine and Trade streams were created to identify and move forward many initiatives which will improve service and promote the national consistency of service delivery.

In fiscal year 2011–12, the five SIWGs implemented measures to enhance levels of client service including: developing and implementing the Holiday Period Postal Operations Action Plan to manage backlogs normally experienced during the peak holiday season; launching social media products including corporate accounts for Facebook, Twitter, YouTube and Rich Site Summary (RSS) feeds to improve interactions with clients; releasing a video for use by airlines and airport authorities that informs travellers of what to expect when arriving in Canada; releasing an information brochure to inform travellers of what to expect if they are referred for secondary inspection; expanding the Automated Border Clearance program to Pierre Elliott Trudeau International Airport; developing a new recruitment and training program; engaging employees on the Change Agenda by conducting information meetings across the Agency to further instill a culture of service excellence; and developing an online training course “Developing CBSA Service Standards” for all CBSA employees.

Also in 2011–12, the Agency developed and launched a service standard training curriculum that enables Agency staff to develop and enhance service standards. The new service standards have also been incorporated into the CBSA’s Agency Performance Report and are used to inform decision making, thereby strengthening the Agency’s ability to report on its performance to Parliament and to Canadians.

To further complement and coordinate the work done by the SIWGs, an Operations Branch Service Improvement Plan for 2012–13 was created. This plan incorporates the priority initiatives of the five working groups, as well as Change Agenda initiatives in which Operations Branch plays a lead role, into one comprehensive plan. This plan will be the cornerstone of client service improvement for the coming year.

• Maximize resource utilization at ports of entry and establish port profiles to ensure resources are in place to meet volume demands

Throughout 2011–12, the CBSA developed port profiles of selected ports of entry and postal offices to maximize the use of resources at the busiest ports of entry. Three postal, nine airport, 10 marine and 27 land border profiles were completed and uploaded to the Agency’s Port Profiles wiki. The port profiles will assist the Agency in ensuring that ports of entry receive the appropriate resources based on their respective workloads. The port profiles will also be used to identify and mitigate risks as well as to assess the situation posed by each of the ports’ particular volumes, mode of traffic, and infrastructure.

In 2011–12, the Agency also committed to develop a Resource Modeling Framework to analyze resources and identify efficiencies, effectiveness, business costs and potential resource reallocations; however, it was decided that the Agency would no longer develop the framework. Instead this activity was replaced by the Resource Allocation Model (RAM) process. The RAM process allocates resources based on indicators and drivers that impact costs (both direct and indirect), expected workloads (volumes), and performance measures (targets and service standards).The RAMs are designed to introduce a transparent and consistent means of allocating resources to program activities based on the use of performance measures and other evidentiary indicators.

Finally, in 2011–12, the Agency conducted a cost centre review and finalized and disseminated activity types for use in fiscal year 2012–13. This information will be used as a baseline for confirming and/or validating resource allocations within program areas.

• Upgrade port of entry infrastructure

In 2011–12, the CBSA successfully completed the land border infrastructure projects that were announced under the umbrella of the Government of Canada’s Economic Action Plan. Report on progress is provided  in the Canada’s Economic Action Plan section of this report.

In addition to the completion of the Economic Action Plan projects, construction has begun on the port redevelopment projects at Goodlands, Lyleton and Coulter in Manitoba as well as on the installation of five new traveller primary inspection lanes at Pacific Highway in British Columbia.

The replacement and expansion of the port facilities at Aldergrove, B.C. remain a priority. The Agency has initiated planning for the redevelopment of the port of entry infrastructure; however, its completion is pending resolution of the current land exchange negotiations that must be finalized prior to completing the required geotechnical investigations and the development of final site plans.

Program Activity: Criminal Investigations

Under the Criminal Investigations program activity, the CBSA protects the integrity of border-related legislation and contributes to public safety and Canada’s economic security by investigating and pursuing the prosecution of travellers, importers, exporters and/or other persons who commit criminal offences in contravention of Canada’s border-related legislation.

CBSA investigators review potential border legislation violations and gather evidence using a variety of investigative techniques, including search warrants and production orders. These violations include criminal offences under the Customs Act, Immigration and Refugee Protection Act, various food, plant and animal legislation, and other border-related legislation. In conjunction with the Public Prosecution Service of Canada, the CBSA pursues the prosecution of individuals or business entities who violate Canada’s border-related legislation.

Program Activity: Criminal Investigations

2011–12 Financial Resources ($ thousands)			2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1	Actual Spending1	Planned	Actual	Difference
24,030	24,987	27,185	280	278	2
Expected Results		Performance Indicators		Targets	Actual Results
People who commit criminal offences in violation of Canada’s border-related legislation are investigated and prosecuted.		Percentage of criminal prosecutions that result in a conviction.		85%	93%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–2012 Public Accounts.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Improve capacity for interdiction and/or seizure of inadmissible goods and removal of inadmissible people

• Develop management tools to refocus criminal investigations activity on the cases of highest risk

In 2011–12, in response to the recommendations of an internal evaluation of the Criminal Investigations Program, the CBSA conducted a diagnostic review of the Criminal Investigations Program, which resulted in the development of a Go Forward Strategy and Action Plan. The review made recommendations to improve the program’s priority-setting process and the development of tools to ensure priorities are related to areas posing the highest risk. Through this initiative, the Agency has implemented a risk-based, priority‑setting process that is aligned with Government of Canada and CBSA priorities, and also takes into account input from partners such as Citizenship and Immigration Canada.

In 2011–12, the Agency developed and implemented tools to assist regional investigations units in selecting cases from their inventories that fall within these high-priority, high-risk areas. The tools include new prosecution thresholds and a new Referral Policy and National Priorities for Criminal Investigations Directive. This directive communicates to frontline staff thresholds for referrals to Criminal Investigations and establishes national high-risk priority offences that will take precedence. In addition, intelligence analysts have now been embedded in Criminal Investigations offices in every region in order to improve efficiency/productivity. Together, these new criminal investigations tools will enable the CBSA to monitor results and ensure that the highest-risk cases are selected and that investigative resources are invested in the highest-risk areas.

Lessons Learned:

In 2011–12, the Criminal Investigations Program noted a lack of performance measurement data to gauge the effectiveness of referrals to the program. To mitigate this issue, the program developed new Performance Measurement Indicators and has committed to monitoring the results quarterly, addressing any negative trends that arise. The baseline performance information will serve to identify when resource pressures are impacting program results and provide the Agency with the opportunity to strategically align its resources to mitigate the impact. Another lesson learned identified by the Criminal Investigations Program is that demand for forensic searches on digital devices is outstripping its existing capacity to examine advanced technology crossing the border. The Computer Search and Evidence Recovery Program used by the Criminal Investigations Program, for example, continues to function as a critical forensic search service in support of the Agency’s mandate. Increasingly, however, the program is challenged by the rising volume and variety of digital device examinations and the cost of maintaining its capacity to handle new technologies.

Program Activity: Immigration Enforcement

The Immigration Enforcement program activity determines whether foreign nationals and permanent residents who are or may be inadmissible to Canada are identified and investigated, detained, monitored and/or removed from Canada.

Foreign nationals and permanent residents of Canada believed to be inadmissible are investigated and may have a report written against them by a CBSA inland enforcement officer. Depending on the type of inadmissibility, the merits of the report are reviewed by either a Minister’s Delegate or an independent decision maker at the Immigration and Refugee Board of Canada, where a CBSA hearings officer represents the Minister of Public Safety. Subsequent to this review, a removal order may be issued against the foreign national or permanent resident in question. Removal orders issued against refugee claimants are conditional and do not come into force until the claim is abandoned, withdrawn or denied by the Immigration and Refugee Board of Canada.

Program Activity: Immigration Enforcement

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1		Actual Spending1	Planned	Actual	Difference
158,707	183,845		150,516	1,118	962	156
Expected Result		Performance Indicators			Targets	Actual Results
Foreign nationals and permanent residents in Canada who are inadmissible are identified for enforcement action.		Number of foreign nationals and permanent residents in Canada identified as being inadmissible.			145,000 – 160,000	153,606
Immigration enforcement actions are focused on high-priority foreign nationals and permanent residents who pose a safety and/or security risk to Canada.		Difference between the percentage of high-priority cases2 among all removals and the percentage of high-priority cases in the removal-ready inventory3.			4%	5%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.
² Foreign nationals and permanent residents who pose a safety and/or security risk or threat to Canada.
³ Cases in the removals inventory that consist of removal orders that are potentially enforceable.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Improve timeliness of removals for failed refugee claimants

Reforming the refugee determination system has been identified as a Government of Canada priority. Refugee Reform will provide more timely protection to those who need it and support the more timely removal of those who are determined not to be refugees. Under the reformed system, the objective is to remove failed refugee claimants within 12 months of a final negative refugee determination made by the Immigration and Refugee Board of Canada.

To support this objective, the Agency received funding to increase the number of removals of failed refugee claimants by a total of 4,200 cases over a three-year period (2010–11 to 2012–13). The CBSA’s regional offices have employed 60 new inland enforcement officers to build the necessary capacity to meet the 4,200 removal target. To maximize operational and cost effectiveness, the CBSA balanced the use of internal and external staffing processes, which has increased operational capacity and built maximum flexibility in dealing with sunsetting funding. Through these processes the CBSA hired 60 officers to support refugee reform. To date, the CBSA has reached its objective to remove 4,232 additional failed refugee claimants, well in advance of the March 2013 deadline.

In 2011–12, the CBSA finalized negotiations with the International Organization for Migration for the development and implementation of the Assisted Voluntary Return and Reintegration (AVRR) pilot program. The AVRR pilot program will encourage timely voluntary returns by providing failed refugee claimants, including those in the current system, with an alternative to enforced removal after a final negative decision on their refugee claim. The program allows eligible failed refugee claimants to return to their home countries with greater support, dignity and anonymity. Significant consultation was undertaken with key stakeholder groups, and system and reporting requirements were defined to ensure that the pilot program can be monitored and evaluated. To help the pilot program realize its full potential, the CBSA also expanded the program to include eligible unsuccessful refugee claimants being processed under the current system and returning to any country in the world.

In 2011–12, the CBSA also undertook a number of immigration enforcement related activities. These activities include implementing an action plan to streamline the warrant inventory, engaging foreign embassies and government departments in a dialogue leading to increased communication and the issuance of travel documents from difficult-to-remove countries, and efforts to establish information-sharing agreements with other government departments and provincial governments.

Finally, in 2011–12, the Agency launched the “Wanted by the CBSA” web page. This initiative has been very successful in the short time it has operated. Since its implementation, the CBSA has received over 250 tips from the public, which to date has resulted in the apprehension of 26 individuals, the removal of 19 individuals, and the identification of five individuals located abroad.

Lessons Learned:

During the 2011–2012 fiscal year, the Agency was very successful in achieving all milestones and key targets associated with the refugee reform initiative. The success is directly linked with the functional management that was instituted for the initiative, including governance, financial management, performance tracking, risk and issue management.

To continue and expand on the success of 2011–2012, the Agency is implementing the same approach to other immigration enforcement initiatives and program areas. As such, clear performance targets will be established and linked to budget allocations for all program areas within immigration enforcement, regular monitoring and reporting will be in place and the governance structure will be used to manage issues and risks.

Program Activity: Recourse

The Recourse program activity provides the business community and individuals with an accessible mechanism to seek an impartial review of service-related complaints, program decisions and enforcement actions taken by the CBSA. This program activity ensures that their decisions are fair, transparent and accurately reflect the Agency’s policies and the Acts administered by the CBSA.

Individuals can complete a written submission if they disagree with an enforcement action or a program decision made by the CBSA or wish to submit a complaint or compliment about services. Clients are provided with a timely acknowledgement of their correspondence, before CBSA officials conduct a thorough review, taking into consideration the legislation administered by the Agency, CBSA policies, the client’s point of view and, where necessary, technical opinions from CBSA experts or legal advice from the Department of Justice Canada. Individuals who are not satisfied with the CBSA’s review can appeal to the appropriate court, tribunal or external review body.

The Recourse Program also facilitates the review of external complaints of discrimination filed with the Canadian Human Rights Commission and assists the Department of Justice Canada representing the Agency on appeals to the Federal Court, various tribunals and other external bodies.

Program Activity: Recourse

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1		Actual Spending1	Planned	Actual	Difference
10,311	11,400		12,674	109	130	(21)
Expected Result		Performance Indicators			Targets	Actual Results
Timely review of decisions made in support of border-related legislation.		Percentage of reviews acknowledged within 30 days of receipt.			85%	77%
Decisions rendered by Recourse are consistent with border-related legislation.		Percentage of Recourse decisions upheld by the courts or tribunals.			85%	85%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitments made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Improve service consistency

• Reduce the backlog of enforcement appeals

Through the Recourse program activity, the CBSA reviews enforcement decisions. The analysis of complaints and appeals related to CBSA decisions can identify systemic problems in service delivery and potential areas for improvement. In 2011–12, the Agency established a formal feedback process to ensure that both program areas and operations are provided with timely and relevant information from Recourse decisions in an effort to improve the overall efficiency and effectiveness of its operations. Statistical analysis of Recourse decisions are now provided to program areas on a weekly basis so the information can be used to determine if additional policy direction is required. In addition, copies of all second-level decisions on trusted traveller files are sent to the program areas for their review and action.

• Reduce the backlog of enforcement appeals

The 2011–12 Report on Plans and Priorities noted that there was an outstanding inventory of approximately 4,000 enforcement appeals and that the CBSA would devote additional resources to reduce both the number and the age of the existing caseload over a four-year period. The Agency committed to the goal that no workable appeal in the inventory would be more than two years old and that no more than 2,500 appeals would be outstanding at any one time.

In 2011–12, the CBSA was successful in reducing the backlog of enforcement appeals. The goal was surpassed, as more than 500 appeals older than two years and/or nearing two years of age were completed during the fiscal year. Since April 2011, the number of undecided appeals of more than two years was reduced from 272 to 93, well below the targeted 20% of total undecided appeals. This outcome is directly attributed to the creation of a temporary team of appeals officers. The additional goal of ensuring that no more than 2,500 appeals would be outstanding at any one time was also met and exceeded as the inventory now stands at 2,207 files.

Lessons Learned:

In 2009 the Recourse Program became responsible for accepting and storing security bonds from clients who need to pay or secure any duty owing before filing their appeal. This service was previously provided by Tax Services Offices of the Canada Revenue Agency. An internal evaluation found that the roles and responsibilities associated with this function were not clearly understood by the officers within the Recourse Program. Consequently, new policies and procedures have been developed and will be implemented within the year in order to ensure national consistency.

During interviews with regional CBSA managers and staff the evaluation noted that national trends in both enforcement and trade appeals may not reflect regional differences, and that region-specific information is needed to help identify any policy, procedures and training adjustments required to reduce the rate of appeals. In response, the Recourse Program has undertaken to develop and improve the analysis of trends in enforcement and trade appeals and provide feedback at both the national and regional levels.

While the evaluation found consistency in the delivery of the Recourse Program, industry association stakeholders interviewed suggested that providing a list of frequently asked questions about the Recourse Program and process on the CBSA website would be helpful and enhance program accessibility and transparency. As a result, a working group was formed with the Communications Directorate to review and amend the Recourse Program content on the CBSA website to ensure that the appeals process and requirements are clearly described and that it is easy to find the information.

The evaluation also determined that file processing times include significant periods where recourse officers are waiting for documents, information or correspondence, which can lead to lengthy delays. In an effort to improve both the efficiency and effectiveness of the program, process re-engineering exercises have been undertaken in each of the activity lines. Once completed, it is expected that the recommendations will result in improved service levels that will be reflected in new service standards and performance measures.

Program Activity: Revenue and Trade Management

The Revenue and Trade Management program activity ensures that duties and taxes owed to the Government of Canada are collected in compliance with Canadian trade and imports reporting requirements. For the purposes of this program description, “duties” means any duties or taxes levied or imposed on imported goods under certain Acts that the CBSA is responsible for administering. This program activity administers international and regional trade agreements and domestic legislation and regulations governing trade in commercial goods. Through its work on free trade negotiations, it helps to strengthen international rules related to trade and open new markets for Canadians.

Program Activity: Revenue and Trade Management

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities1		Actual Spending1	Planned	Actual	Difference
72,004	73,933		75,965	838	884	(46)
Expected Result		Performance Indicators			Targets	Actual results
Duties and taxes owed to the Government of Canada are collected in accordance with trade policies.		Amount of revenues collected by the CBSA in the form of duties and taxes in accordance with associated trade policies.			$25.2 billion	$25.6 billion
Successful negotiation of the CBSA-related provisions within the customs procedures and trade facilitation chapters of Canada’s new free trade agreements.		For all free trade agreements under negotiation, the percentage rate at which successful negotiations of the CBSA-related provisions within the customs procedures and trade facilitation chapters were completed within the performance standards and timelines established by the lead department.			100%	100%

¹ Total Authorities and Actual Spending are based on what is published in the 2011–12 Public Accounts.

Performance Summary and Analysis of Program Activity

The CBSA achieved the following progress against the commitment made in its 2011–12 Report on Plans and Priorities.

2011–12 Planning Highlights

Supporting Initiative: Advance the implementation of the Accounts Receivable Ledger

The Accounts Receivable Ledger (ARL) is the first phase of the CBSA Assessment and Revenue Management system. The ARL aims to strengthen the Agency’s financial controls framework and reporting structure, and replace obsolete and technologically unsustainable accounts receivable systems. The Ledger aims to reduce the need to perform reconciliations and analysis to ensure the accuracy of financial information. It is a fully integrated, client-based accounting system that will, when fully implemented, enable the CBSA’s commercial clients to electronically retrieve tax and duties statements on imports via a secure website, and to make electronic payments.

In short, the ARL will produce more accurate financial information, simplify the process for trade clients, and modernize revenue collection and management.

In 2011–12, the Agency completed the Business Use Cases for ARL, which outlines the services, tasks and functions in the Ledger, and identifies its end users. In March 2012, the CBSA completed the ARL SAP (Systems, Application and Processes) blueprint sessions, which aim at strengthening financial controls. The CBSA completed numerous consultations and technical sessions with the trade community to confirm that the ARL design and the alignment of billing periods and payment dates were feasible. The ARL system is now in its application development stage, with the project plans having been endorsed by both the Chief Information Officers of the Canada Revenue Agency and Treasury Board Secretariat.

Internal Services

Internal Services is a group of related activities and resources that is administered to support the needs of programs and other corporate obligations of an organization. The main activities are governance and management support (management and oversight, communications, legal services), resource management services (human resources management, financial management, information management, information technology, travel, and other administration services) and asset management services (real property, materiel, acquisitions). The CBSA’s Internal Services supports the achievement of the Agency’s strategic outcome.

Internal Services

2011–12 Financial Resources ($ thousands)			2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities 1	Actual Spending 1	Planned	Actual	Difference*
718,465	874,008	835,738	3,416	4,859	(1,443)

¹ Total Authorities and Actual Spending are based on what is published in the 2011–2012 Public Accounts.
* Planned Financial Resources and Human Resources are based on current annual reference levels and estimated planned items in the Report on Plans and Priorities; while actual Financial Resources and Human Resources are based on final amounts reported at the end of each fiscal year in the Departmental Performance Report. Variance between the planned and actual amounts can result from new Treasury Board submissions approved in Supplementary Estimates during the fiscal year.

Contribution to Sustainable Development – Internal Services Program Activity

Internal Services plays a significant role in helping the Agency meet its commitments under Theme IV of the Federal Sustainable Development targets – Shrinking the Environmental Footprint – Beginning with Government. This theme comprises targets all sharing the goal of greening government operations.

The Agency has made important achievements in all priority areas, including: green buildings, greenhouse gas emissions, electronic and electrical waste, printing units, paper consumption, green meetings and green procurement.

For details on the CBSA’s activities related to these targets areas, refer to the CBSA’s Sustainable Development Strategy Performance Report 2011–2013.

2011–12 Planning Highlights

Supporting Initiative: Establish structures and processes to support improved management oversight

• Continue to functionalize program activity streams

In 2009–10, the CBSA launched its four-year Change Agenda, an ambitious transformational initiative to improve program design and delivery and promote strong resource management capabilities, including effective financial planning, budgeting and monitoring. As part of this initiative, the CBSA has begun implementing a functional management model.

In 2011–12, the CBSA made significant strides in maturing functional management. Key successes include the implementation of a functional budgetary regime for Agency programs; the continued development of resource allocation models for all program activities; the introduction of quarterly performance monitoring and reporting through the Agency’s Performance Report; and the launch of a comprehensive suite of Management Tools to support managers in entrenching program management excellence.

• Employ risk management consistently and systemically

In 2011–12, the CBSA completed its first comprehensive Enterprise Risk Profile (ERP). The ERP was a key input for senior management’s annual Agency priority-setting exercise. Risk considerations were also subsequently embedded in the Agency’s first annual Integrated Business Planning process; activities to address the 14 ERP risks assigned a risk response of “Mitigate” were identified in the Integrated Business Plans. Upon receipt of these plans,  ERP Risk Response Strategies (a supplement to the ERP) were developed for the first time and provided clear steps pertaining to risk mitigation.

The CBSA also continued to build risk management capacity through a number of important initiatives. In Fall 2011, the Agency launched a one-day risk management course for managers and executives. The course was designed to guide managers through the CBSA risk management process, allowing them to develop their skills to effectively manage risks in support of enhanced decision making. To date, 11 training sessions have been held (including three in the regions). The Agency also developed and piloted an online learning tool for all CBSA employees that will increase employees’ awareness and understanding of the Agency’s risk management process and its related concepts.

Supporting Initiative: Improve human resources practices to support the recruitment and retention of staff

• Develop a long-term workforce development strategy

A long-term workforce development strategy provides a framework for career management of human resources across functional areas from recruitment to career development to training and learning. The CBSA is undertaking this initiative to better define its workforce in light of its future needs, the demographic changes shaping the Canadian labour market, and the importance of workforce development to the health and vitality of an organization. As part of this strategy, the CBSA will define the training requirements of its workforce across functional streams through the establishment of national training standards, as well as adapt recruitment and training and learning accordingly. This will improve the Agency’s performance by aligning recruitment activities to workforce development priorities, optimizing the use of training and learning investments, and providing better guidance to employees on expectations and requirements for career advancement.

In 2011–12, the Agency developed the Training and Learning Priorities Framework. This framework was developed to align and track training and learning activities and associated costs to Agency-wide priorities as well as the functional management model. Along with the framework, the Agency also implemented many substantial supporting initiatives. The largest of these was the development of the Officer Induction Training Program, which includes a national recruitment process, a revamped residential training program, an emphasis on new assessment tools, a national assignment model offering the flexibility to post new CBSA officers to any office in Canada, and a structured developmental program following graduation.

• Improve transactional service delivery

In 2011–12, the CBSA continued to modernize its human resources business processes by reviewing its classification and staffing functions, as well as by developing an integrated resourcing plan for classification and staffing actions at Headquarters. Specifically, the Agency completed and introduced a number of Human Resources (HR) initiatives to strengthen the relationship between transactional HR advisors and their clients. These initiatives include completing Tactical Staffing Plans (TSPs) in both Headquarters and the regions, developing Service Level Agreements for staffing processes, instituting a new client-focused organizational structure that is consistent with the functional management model, finalizing and reviewing 80 of 127 national work descriptions, and drafting a comprehensive Human Resources Strategy for Beyond the Border Action Plan initiatives.

Finally, in 2011–12, the CBSA successfully implemented year one, and part of year two, of an Integrated HR and Business Planning capability. This included: refining Agency-wide HR priorities, supporting the successful completion of 100% of the TSPs, developing service agreements with branch executives, demonstrating staffing planning capability and results to the Public Service Commission to address the Commission’s audit concerns with the TSPs and integrated planning methodology, supporting the development of the HR strategy and implementation plans related to budget decisions, and completing the variance analysis of TSPs against actual staffing planning results to the Public Service Commission as committed under the CBSA’s annual 2011–12 Departmental Staffing Accountability Report to the Commission.

• Enhance training and learning activities, including talent management

The construction project for the CBSA’s main training campus (National Defensive Tactics Training Facility) in Rigaud, Quebec proceeded on schedule in 2011–12 and was completed in the summer of 2012. This new state-of-the-art facility will provide defensive tactics training with a 36-lane firing range and six simulators. These facilities will provide sufficient capacity and infrastructure to deliver the new CBSA Officer Induction Training Program, which includes a significant arming component, as well as the delivery of arming training for existing officers. The main campus will also be a key location for other CBSA training deliveries, and provide the appropriate setting to support external partnerships, including our commitment defined in the letter of intent signed between the CBSA and the Royal Canadian Mounted Police and Correctional Services Canada to expand cooperation across the Public Safety Portfolio and begin sharing training facilities related to core firearms training.

In 2011–12, the Agency designed and implemented a training fenced funding initiative that includes the establishment of training fenced funds centres for capturing training spending to come into effect on April 1, 2012. This initiative is instrumental in allowing the organization to track and monitor training and learning spending with the objective to better align this spending to the organization’s obligations and priorities. The CBSA also established a new functional table (Training and Learning) to set strategic and functional direction through clearly defined outcomes and priorities, as well as review both performance and expenditures of the program area.

Finally, the CBSA conducted an assessment on the effectiveness of the Agency’s Talent Management Program and used the results to develop a Talent Management Dashboard, demographic analytics and a series of management reports that identified key leadership competencies progression in tandem with career progression. Finally, recommendations and a roadmap going forward were also completed to inform ongoing efforts to mature the CBSA’s Talent Management Program.

• Ensure CBSA employees uphold the highest standards of integrity and professionalism in their conduct and activities

In 2011–12, the CBSA continued the delivery of ethics awareness sessions to CBSA staff. The CBSA also developed new ethics training and awareness products, including manager and employee toolkits and awareness sessions designed specifically for managers. These products are currently being amended to reflect changes to the CBSA Code of Conduct resulting from the tabling of the new Values and Ethics Code for the Public Sector and they will be introduced in January 2013. In addition, the CBSA introduced a robust Values and Ethics series of modules for recruits attending the Officer Induction Training Program.

Through the Integrity and Professional Standards Strategy, in 2011–12 the CBSA introduced a number of initiatives, including: the establishment of a Professional Integrity Program that provides a coordinated and efficient method of addressing integrity-related gaps within the Agency; the enhancement of system tools to enable the detection of misuse or unauthorized access of CBSA systems and databases by employees; and the continued delivery of mandatory Security Awareness Training to ensure that all employees are informed of their responsibilities in regard to safeguarding of personnel, information and assets.

In addition, in 2011–12 the CBSA received the approval of the Privacy Commissioner to enhance the Personnel Security Screening Standard through the use of the Integrity Questionnaires and Interviews, Psychological Ethical Testing and the Internal and External Database Checks. Finally, the Agency’s departmental security officer sent a memorandum to the senior management of the CBSA, reminding them of their duty to refer all incidents or allegations of employee misconduct to the Security and Professional Standards Directorate as soon as an incident occurs or a complaint is received.

Supporting Initiative: Improve technological responsiveness and sustainability

• Develop plan to replace aging technology

In 2011–12, the Agency developed a strategy to mitigate risks related to aging information technology used in critical systems (the Strategic Technology Plan). Phase one of the plan’s implementation began in February 2012. The development of this strategy responds to a risk identified in the Agency’s Enterprise Risk Profile with respect to system technology and sufficiency as well as to the Auditor General’s 2010 Spring Report. The Strategic Technology Plan has and will continue to identify the various business initiatives over the next five years that can be leveraged to address the Agency’s business applications.

• Implement Data Centre upgrades and develop plan for Data Centre recovery

As the Information Technology (IT) footprint for the Agency expands and the dependency on reliable infrastructure becomes increasingy more critical to the CBSA border services operations, the facilities (including the building, electrical power and air conditioning) that house the Agency’s IT equipment must be expanded and upgraded. In 2011–2012, the CBSA began to upgrade the power and cooling capacity at its data centre facilities. These upgrades will ensure that sufficient capacity is available in either data centre to operate the CBSA business systems should one data centre become unavailable.

The Agency has also begun a multi-year project to improve the overall availability and resilience of its IT systems. With the creation of Shared Services Canada (SSC), the management of e-mail, data centres and networks are being transitioned to SSC’s oversight. The transition of the functional management in these domains is ongoing and is expected to take several years to complete. The Data Centre Recovery Project involves establishing a timely recovery capability of IT services in the event of a major disaster at the data centres operated by SSC on behalf of the CBSA. In 2011–2012, the CBSA completed the mirroring of mainframe data to its alternate data centre, which decreased the CBSA’s time required to recover from a service outage. The Data Centre Recovery project continues to work on decreasing recovery times for critical systems. The final outcome will be the capability to ensure near-continuous delivery of critical CBSA IT services. The implementation of upgrades and the multi-year recovery project respond to risk identified in the Agency’s Enterprise Risk Profile.

Impacts on Financial and Human Resources Resulting from the Establishment of Shared Services Canada

2011–12 Financial Resources ($ millions)
	Planned Spending	Total Authorities*
Net transfer post Orders in Council** to Shared Services Canada	-	37.1
2011–12 Human Resources
	Planned	Actual
Deemed to Shared Services Canada	-	48

* Total authorities, as presented in the “2011–12 Financial Resources” table (and other relevant tables) in the “Summary of Performance” section, is the net of any transfers to Shared Services Canada. Actual spending does not include expenditures incurred on behalf of Shared Services Canada as of the Order in Council date.
** Pursuant to section 31.1 of the Financial Administration Act and Orders in Council P.C. 2011-0881, P.C. 2011-0877 and P.C. 2011-1297, this amount was deemed to have been appropriated to Shared Services Canada, which resulted in a reduction in the appropriation for  the CBSA.

Canada's Economic Action Plan

Budget 2009 identified $80 million for the CBSA for accelerated infrastructure projects. This spending is included under the Admissibility Determination program activity. In 2011–12, the CBSA successfully completed the land border infrastructure projects that had been announced under the umbrella of the Government of Canada’s Economic Action Plan. These initiatives include: the expansion, modernization and redevelopment of the port of entry facilities at Kingsgate, British Columbia and Prescott, Ontario; the construction and expansion of the commercial examination facilities at Pacific Highway and Abbotsford-Huntingdon in British Columbia; the construction of an additional commercial primary inspection lane to increase processing capacity at Abbotsford-Huntingdon; and the completion of the additional staff residential housing units in Beaver Creek, Yukon.

The modernization and expansion of these port of entry facilities improved border security and facilitated traffic flow at the border as well as provided the infrastructure necessary for the implementation of expedited traveller and commercial programs.

Canada’s Economic Action Plan

2011–12 Financial Resources ($ thousands)				2011–12 Human Resources (full-time equivalents)
Planned Spending	Total Authorities	Actual Spending		Planned	Actual	Difference
57,300	57,300	44,470		-	-	-
Expected Results			Performance Indicators		Targets		Results
Upgrade infrastructure at three ports of entry in British Columbia (Kingsgate, Pacific Highway and Abbotsford-Huntingdon) and one in Ontario (Prescott). $30 million in 2010–11 and $36 million in 2011–12.			Expansion and modernization of commercial processing capacity at Pacific Highway and Huntingdon, B.C. Replacement of port of entry examination infrastructure at Prescott, Ontario and Kingsgate, B.C.		100% completion by March 2012		Complete

 

Section III: Supplementary Information

Financial Highlights

For financial reporting purposes, the activities of the Agency have been divided into two sets of financial statements: Agency Activities and Administered Activities. The financial statements for Agency Activities include those operational revenues and expenses that are managed by the Agency and used in running the organization. The financial statements for Administered Activities include those net revenues that are administered for entities other than the Agency, such as the federal government, a province or territory, another group or organization. The purpose of the distinction between Agency and Administered activities is to facilitate, among other things, the assessment of the administrative efficiency of the Agency in achieving its mandate.

The tables and charts presented below are drawn from the Agency’s financial statements. The Agency’s financial statements are prepared in accordance with Treasury Board Accounting Standards, which are based on Canadian Public Sector Accounting Standards. The financial information on authorities and departmental performance presented in the previous two sections of the Departmental Performance Report, on the other hand, is primarily based on cash flow requirements. Consequently, the Agency’s operating results presented in this section (and in the financial statements) may differ from that presented in the previous sections. The reconciliation is provided in Note 3 of the financial statements.

Comparative figures have been reclassified to conform to the current year's presentation. The 2010–11 amounts for the Agency Activity financial statements have been restated according to the revised Treasury Board Accounting Standard (TBAS) 1.2: Departmental and Agency Financial Statements, which is effective for financial reporting of fiscal years ending March 31, 2012 and later.

Agency Activities

Condensed Statement of Financial Position (Unaudited)
As at March 31, 2012
($ thousands)

	Change %	2011–12	2010–11
Total net liabilities	2.2%	420,705	411,692
Total net financial assets	13.3%	103,611	91,426
Departmental net debt	-1.0%	317,094	320,266
Total non-financial assets	27.7%	589,058	461,256
Departmental net financial position	92.9%	271,964	140,990

The increase of 13.3% in total net financial assets is mainly attributable to an increase of $13 million in Due from Consolidated Revenue Fund (CRF). Also the increase in Due from CRF is mainly because of timing difference in salary payment at year-end from CRF. The increase of 27.7% in total non-financial assets is related to an increase of $129 million in tangible capital assets, which in turn is attributable to an increase in assets under construction related mainly to eManifest. eManifest is the third phase of the Advance Commercial Information (ACI) Program aiming to change the commercial import process to reflect the Agency's integrated risk management approach and to keep pace with the changing global environment. The change in net financial position reflects the changes in assets and liabilities.

Condensed Statement of Operations and Departmental Net Financial Position (Unaudited)
For the Year Ended March 31, 2012
($ thousands)

	Change %	2011–12	2010–11
Total expenses	1.8%	1,877,490	1,844,007
Total revenues	-4.8%	11,999	12,600
Net cost of operations before government funding and transfers	1.9%	1,865,491	1,831,407
Departmental net financial position	92.9%	271,964	140,990

The change in net financial position is a result of the change in expenses, revenues and government funding and transfers.

The expenses shown above include the expenses (except bad debts associated with the administered revenues) of the Administered Activities of the Agency. The assets, liabilities and revenues of the Administered Activities are shown separately below.

Administered Activities

Condensed Statement of Administered Assets and Liabilities
For the period ended March 31, 2012
($ thousands)

	Change %	2011–12	2010–11
Total administered assets	7.2%	3,305,513	3,084,691
Total administered liabilities	40.3%	297,351	211,929
Net amount due to the Consolidated Revenue Fund (CRF) on behalf of the Government of Canada	4.7%	3,008,162	2,872,762
Total administered liabilities and net amount due to the CRF on behalf of the Government of Canada	7.2%	3,305,513	3,084,691

 

Condensed Statement of Administered Revenues
For the period ending Year March 31, 2012
($ thousands)

	Change %	2011–12	2010–11
Total tax revenues	8.2%	25,113,359	23,199,697
Total non-tax revenues	43.7%	24,388	16,975
Less: bad debts	628.9%	53,146	-10,049
Net results	8.0%	25,084,601	23,226,721

Financial Highlights Charts – Agency Activities

Tangible capital assets represent the largest portion at $576 million (84 percent) of total assets.

Employee future benefits represent the largest portion at $229 million (55 percent) of total liabilities.

The program activities included in the category “Other” are: Secure and Trusted Partnerships, Criminal Investigations, and Recourse.

For Secure and Trusted Partnerships, the main source of revenue is from registration fees of NEXUS, a joint Canada-U.S. program that simplifies border crossings for pre-approved, low-risk travellers.

For Revenue and Trade Management, the revenues are from various services the Agency provides such as food inspection and other border services, collection of Provincial tax and levies, and operation of customs bonded warehouses.

Financial Highlights Charts – Administered Activities

As per the Administered Activity financial statements, total assets were $3,305 million at the end of 2011–12, an increase of $221 million (7.2 percent) over the total assets of $3,084 million for 2010–11. Cash and taxes receivable represent the largest portion at $3,274 million (99 percent) of total assets.

Administered total liabilities were $297 million at the end of 2011–12, an increase of $85 million (40 percent) over the total liabilities of $212 million for 2010–11. Amounts payable to other federal government departments and agencies represent the largest portion of liabilities at $274 million (92 percent) of total liabilities.

Revenues reported within the Administered Activity financial statements were $25,138 million for 2011–12, an increase of $1,922 million (8 percent) over the total revenues of $23,216 million for 2010–11. Most of the revenues, $19,927 million (79 percent) were generated from excise taxes on imported goods.

Financial Statements

The CBSA’s financial statements are available on the Agency’s website at
 http://www.cbsa-asfc.gc.ca/agency/reports-rapports/menu-eng.html#fs-ef.

List of Supplementary Information Tables

All electronic supplementary information tables found in the CBSA’s 2011–12 Departmental Performance Report can be found on the Treasury Board of Canada Secretariat website.

• Sources of Respendable and Non-Respendable Revenue
• User Fees Reporting
• Status Report on Projects Operating with Specific Treasury Board Approval
• Status Report on Major Crown/Transformational Projects
• Green Procurement
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluation

Section IV: Other Items of Interest

Organizational Contact Information

For more information on the Canada Border Services Agency (CBSA) and its activities, please visit the CBSA’s website at http://www.cbsa-asfc.gc.ca. Links to other websites of interest are provided below.

• Canada Revenue Agency website
• Canadian Food Inspection Agency website
• Canadian Security Intelligence Service website
• Citizenship and Immigration Canada website
• Department of Finance Canada website
• Foreign Affairs and International Trade Canada website
• Health Canada website
• Immigration and Refugee Board of Canada website
• Public Safety Canada website
• Royal Canadian Mounted Police website
• Transport Canada website