TREASURY BOARD OF CANADA SECRETARIAT

http://www.tbs-sct.gc.ca/index_e.asp

2003-2004 Estimates - A Report on Plans and Priorities

Approved

http://www.tbs-sct.gc.ca/est-pre/20032004/jus-jus/jus-jusr34_e.asp?printable=True

______________________________________

Martin Cauchon

Minister of Justice and Attorney General of Canada

http://www.tbs-sct.gc.ca/est-pre/20032004/Jus-Jus/Jus-Jusr34_e.asp#FirearmsProgram

Firearms Program

	*2003 -04*	*2004-05*	*2005-06*
*Planned Spending*	$113.1 million	$94.9 million	$75.7 million

Note 1: Above planned spending amounts reflect the plan of action announced by the Minister of Justice on February 21, 2003. Declining planned spending is based on: steady state of licensing intake; implementation of ASD; administration efficiency measures and the passage of C-10A by the start of the 03-04 fiscal year.

Note 2: The Alternate Service Delivery contractor has indicated that the scope of work to achieve certification exceeds the estimated efforts, due to unanticipated requirements. The additional work may cost as much as $15 million and is not included in the planned spending. The scope of this work and the potential costs are currently being reviewed by the government contract authority, Public Works and Government Services Canada.

The government remains committed to the Canadian Firearms Program (CFP), which includes licensing of firearms owners and registration of firearms and will continue to aim to keep firearms from those who should not have them, while encouraging safe and responsible gun use by legitimate firearm owners. As of mid-January 2003, over 1.9 million firearm owners in Canada have been licensed, with almost 6 million guns registered. (A fuller description of the Canadian Firearms Program can be found at http://www.cfc-ccaf.gc.ca)

The Canadian Firearms Program is a multi-departmental multi-jurisdictional program for which the Department of Justice has lead responsibility. The Department of Justice operates the electronic Canadian Firearms Registry System (CFRS). It also administers the Chief Firearms Officer responsibilities in British Columbia, Alberta, Saskatchewan, Manitoba, Newfoundland and Labrador, Yukon, Northwest Territories and Nunavut. Justice also funds the National Weapons Enforcement Support Team (NWEST).The Royal Canadian Mounted Police operates the Canadian Police Information Centre, which interfaces with CFRS and the Canada Customs and Revenue Agency is responsible for administering elements of the firearms program at Canada's borders. These federal activities are funded through the Canadian Firearms Program.The provinces of Nova Scotia, New Brunswick, Prince Edward Island, Quebec and Ontario administer the Chief Firearms Officer function within their own jurisdictions in a manner consistent with the Firearms Act and the direction from their governments. These provincial operations are also funded by the Government of Canada in accordance with contribution agreements.The Canadian Firearms Centre also works with Aboriginal and other community organizations to ensure that compliance with the legislation is facilitated for all program clients.

The 2002 Auditor General's Report raised a number of concerns about the management and administration of the Program. The government accepted the Auditor General's recommendations and asked an external expert, Raymond Hession, to assess the current systems, procedures, and controls within the CFP, and to recommend improvements to its operational efficiency and cost-effectiveness. Following the tabling of Mr. Hession's report in Parliament in January 2003, the Minister of Justice presented a plan of action on February 21, 2003, based on the recommendations in this report.

The Action Plan is a blueprint for lowering costs and improving management, enhancing service delivery, and increasing transparency and accountability.

Each of these objectives will be specifically advanced by the following activities:

Reducing costs and improving management by:

Moving the National Weapons Enforcement Support Team to the RCMP, to align enforcement operations;
Streamlining and consolidating headquarter operations
Consolidating processing sites
Creating a Continuous Improvement Plan to generate ongoing efficiencies
Establishing national work performance measurements and cost standards for opt-inand out-out jurisdictions
Limiting computer system changes to those that are necessary to improve program efficiency.

Enhancing service to the public by:

Extending Internet registration
Ensuring easy access to 1-800 telephone information services
Processing registration applications within 30 days of receipt
Implementing a targeted outreach program to help firearm owners comply with licensing and registration

Strengthening accountability and transparency by:

Tabling an annual report to Parliament that provides full financial and performance information on the program
Hiring a Comptroller
Creating an annual audit and evaluation plan for all major program components, in support of the development, over time, of an overall risk management framework for the program.

The plan's objectives will also be advanced by seeking input from Parliamentarians, stakeholders and the public on how to improve program design and delivery; and by creating a Program Advisory Committee to seek expert advice on cost reductions, quality of service and the continuous improvement plan.

It should be noted that full implementation of the plan depends on passage of Bill C-10A by the beginning of the 03-04 fiscal year, as well as associated regulations thereafter. In addition to the impact on ASD, there are a number of elements within Bill C-10A that would provide for cost savings, without compromising public safety. These include provisions to conduct more types of lower cost electronic transactions and transitional provisions to permit the extension of license expiry dates to allow 'load-leveling'. Renewal of firearms licenses without load leveling will have a clear impact on the program's financial needs as all licenses will come up for renewal at the same time.

Lastly, a plan is being developed to transfer the Program to the portfolio of the Solicitor General of Canada, with a target date of April 1, 2003.

In addition to the restructuring of the CFP, the Department has initiated efforts to report on the full federal government costs of the Program in the upcoming Departmental Performance Report. Reporting on full Program costs to the government will require a close partnership with Treasury Board and with the other government organizations involved in the administration of the Program. The Canadian Firearms Centre proposes to use the chart shown on the next page to disclose the total past CFP expenditures as well as projected costs to the Canadian Firearms Centre and to the federal government as a whole, for the next three years. The chart will also include the past and projected revenues from the Program.

Long Term Benefits
Non-violent character of Canada is maintained Responsible and accountable gun ownership in Canada Health and personal safety of Canadians are preserved Criminal use of firearms is prevented Firearms suicides and accidents are prevented Firearm licensing and registration is managed efficiently and effectively Police has access to critical information to investigate, trace firearms and to identify any illegal activities Firearm crime is reduced and dealt with by combining screening, tracking and sentencing (See Note 1 below)	Measures of success: Number of revoked and refused licenses; percentage of firearm owners complying with registration; waiting period from application to issuance of registration certificate; number of registered firearms; public support for program; reduction in firearm accidents, robberies and homicides; reduction of missing and stolen firearms; frequency with which police rely on on-line registry *(See Note 2 below)*
Strategy
· Review the Canadian Firearms Program (CFP) to make it more efficient, cost-effective and client-oriented, including simplifying compliance requirements and streamlining administrative and systems processes.
Activities
Act on all of the recommendations in the Auditor General's report, including preparing an annual report and audit plan to be tabled in Parliament; working with Treasury Board, attempt to obtain program-related costs of other government departments; and implementing activity-based costing. Implement all aspects of the Action Plan, and, subject to Parliament's approval of Bill C-10A and any consequential regulations, finalize development and implementation of alternative service delivery. Continue to process applications for gun registration and issues licenses to legitimate gun owners.
Risks / Challenges	Lessons Learned
Maintain public confidence in the benefits of the Program. Implementation plan announced February 2003. Obtain full cost information from partner organizations and provinces involved in the administration of Program. Clarify responsibility for Program performance management. Address technology risk of assessing capacity and performance impacts of volume surges and growth. Passage and adoption of Bill C-10A and related regulations are dependent on the will of Parliament.	Provide Parliament with more meaningful, complete, accurate and up-to-date financial and management information. Administrative practices need to be refined to improve costing, measurement and reporting of Program activities.

Note 1: The long term benefits of the Program are not necessarily a direct correlation to many of the activities to be undertaken by the Program in the upcoming fiscal-year. However, over the longer term, CFP activities should impact and contribute towards many public safety benefits.

Note 2: Level of activity and results achieved for each of the measure of success are regularly updated and available on the CFP Web Site http://www.cfc-ccaf.gc.ca

Firearms Program
Full Federal Government Cost History / Planned Spending

*ORGANIZATION*	PAST SPENDING (1996- March 2002) ($ million)	FORECAST SPENDING 2002-2003	PLANNED SPENDING ($ million)			TOTAL ACTUAL AND PLANNED EXPENDITURES
*ORGANIZATION*	PAST SPENDING (1996- March 2002) ($ million)	FORECAST SPENDING 2002-2003	2003- 2004	2004- 2005	2005- 2006	TOTAL ACTUAL AND PLANNED EXPENDITURES
*Department of Justice - Direct Costs* *Costs reimbursed to Other Government Departments - Direct Costs:* Canadian Customs and Revenue Agency Royal Canadian Mounted Police Human Resources Development Canada Public works and Government Services	549.1 13.6 91.7 32.7 1.2	100.0	113.1	94.9	75.7	932.8
*Sub-total (costs reported by Department of Justice)*	688.3	100.0	113.1	94.9	75.7	1,072.0
*Department of Justice - Indirect costs* not charged to Firearms Program but included in the total departmental costs
*Other Federal Government costs not included*
Solicitor General Canada
Correctional Services Canada
Human Resources Development Canada
Royal Canadian Mounted Police
Office of Information Commissioner
Office of the Privacy Commissioner
National Parole Board
Department of Foreign Affairs and International Trade
Public Works & Government Services Canada
Canadian Customs and Revenue Agency
TOTAL PROGRAM COST
*Revenues generated by program*	58.7	12.5	16.3	23.5	35.2	146.2
NET PROGRAM COST

5.1 Details on Major Capital Project Spending - Canadian Firearms Centre

Concept development work for the Canadian Firearms Registration System (CFRS) started in December 1995 when the Canadian Firearms Program was established with the passage of the Firearms Act (C-68). The intent of the work was to develop and establish, in a timely manner, an effective firearms registration, licensing and program management system.

Preliminary Project Approval:

On April 2, 1998 Treasury Board granted Preliminary Project Approval (PPA) for the development of the Canadian Firearms Registration System (CFRS). In granting PPA, Treasury Board noted that the CFRS project was to adhere to TB's Enhanced Management Framework with respect to aspects of the project related to Information Technology.

Effective Project Approval:

On May 28, 1998 Treasury Board granted Effective Project Approval to the Canadian Firearms Registration System (CFRS). Project activities which were deemed to be time limited tasks necessary to put the infrastructures in place for the new firearms control measures, received EPA from TB. On-going program activity components related to the new firearms measures such as policy development, program administration, system maintenance, and management services were not considered part of the CFRS project and subsequently did not require EPA approval.

Delegated Authority:

Contracts were awarded to EDS/System House for the development, implementation and support of the CFRS project through PWGSC as contracting authority. Contract amendments were also handled through PWGSC.

($ millions)

Current Estimated Total Contract Value

Forecast Spending to March 31, 2003

Planning Spending 2003-04

Canadian Firearms Registration System (CFRS)

149.5

142.6

5.2 Summary of Transfer Payments

($ millions)	Forecast Spending 2002-2003	Planned Spending 2003-2004	Planned Spending 2004-05	Planned Spending 2005-06
Grants Law and Policy	44.7	51.4	50.6	50.6
Total Grants	44.7	51.4	50.6	50.6
Contributions Law and Policy	407.5	411.4	405.6	385.1
Total Contributions	407.5	411.4	405.6	385.1

Total Grants and Contributions	452.2	462.8	456.2	435.7

Objective

The Department of Justice is committed to ensuring that Canada is a fair, just and law-abiding society with an accessible, equitable, efficient and effective national system of justice. The Department uses a variety of programs that involve grants and contributions to test new approaches to improving Canada's justice system and to help in developing, promoting and implementing legislation, policies, programs and services.

Expected Results

The Department's grants and contributions resources are used, in part, to develop strategic policy and legislative responses to justice issues and to help implement policies and legislation. This is achieved in several ways. For example, the Department enters into long-term funding arrangements with provinces and territories to support its policy directions through public legal education and information, legal aid, youth justice, and Native Courtworker services. In addition, the Department provides project-based funding through such programs as the crime prevention and Aboriginal justice strategies, victims of crime and family violence initiatives, and the Justice Partnership and Innovation Program. (See sections on "Enhancing security for Canadians" and "Ensuring a relevant, accessible, fair justice system", described earlier in this document, for more information on some of these programs).

Among other things, these funds promote experimental projects and research in areas of interest to the Department and Canadians, helping to gather information and experience relevant to current and future departmental and governmental policy priorities. These projects assist the Department in responding to an ever-changing legal environment.

Table 5.2.1:

Transfer Payments by Business Line

($ dollars)	Forecast Spending 2002-03	Planned Spending 2003-2004	Planned Spending 2004-05	Planned Spending 2005-06
GRANTS

Law and Policy

Uniform Law Conference of Canada - Administration Grant	18,170	18,170	18,170	18,170
Institut international de droit d'expression française (IDEF)	1,140	1,140	1,140	1,140
Legal Studies for Aboriginal Peoples Program	0	0	0	0
Canadian Association of Chiefs of Police for the Law Amendments Committee	12,274	12,274	12,274	12,274
British Institute of International and Comparative Law	7,220	7,220	7,220	7,220
Hague Academy of International Law	8,620	8,620	8,620	8,620
Canadian Human Rights Foundation	26,600	26,600	26,600	26,600
National Judicial Institute	268,345	268,345	268,345	268,345
Canadian Society of Forensic Science	38,600	38,600	38,600	38,600
Canadian Association of Provincial Court Judges	100,000	100,000	100,000	100,000
Aboriginal Justice Strategy	170,000	150,000	100,000	75,000
Grants to individuals, non-profit professional organizations, societies or associations, other non-profit organizations, and educational institutions for policy, program development or training with respect to child-centred family law	50,000	50,000	50,000	50,000
Grants in support of the Justice Partnership and Innovation Fund	510,631	510,631	510,631	510,631
Grants to individuals, non-profit organizations, societies or associations, other non-profit organizations and institutions for activities in support of the Victims of Crime Initiative	500,000	500,000	500,000	500,000
Grants in support of the Youth Justice Renewal Fund	5,511,441	2,968,657	2,210,900	2,210,900
Grants in Support of Legal Aid research	300,000	0	0	0
Grants in support of the Safer Communities Initiative	37,132,561	46,168,061	46,168,061	46,168,061
Official Languages Initiatives	0	600,000	600,000	600,000
Total grants	44,655,602	51,428,318	50,620,561	50,595,561

	Forecast Spending 2002-03	Planned Spending 2003-2004	Planned Spending 2004-05	Planned Spending 2005-06
CONTRIBUTIONS

Law and Policy

Native Courtworker Program and other Native Projects	4,833,240	4,833,240	4,833,240	4,833,240
Contributions to the provinces to assist in the operation of legal aid systems	102,577,507	123,827,507	123,827,507	123,827,507
Contributions to the provinces and territories in support of youth justice services	196,515,059	195,702,596	188,652,100	178,685,747
Youth justice intensive rehabilitative custody and supervision program	1,475,000	4,897,100	9,906,500	14,925,250
Contributions to provinces/territories for the Canadian Firearms Program	19,239,000	18,000,000	18,000,000	10,390,330
Contributions under the Justice Partnership and Innovation Fund	2,791,143	2,101,592	2,055,345	2,055,018
Contributions under the Aboriginal Justice Strategy Fund	7,400,000	7,400,000	7,350,000	7,325,000
Contributions under the Child-Centred Family Justice Fund	17,442,586	15,950,000	15,950,000	12,000,027
Contributions for activities in support of the Family Violence Initiative	400,000	0	0	0
Contributions to support the implementation of official languages requirements under the Contraventions Act	2,610,395	2,610,395	2,610,395	2,610,395
Contributions in support of the Safer Communities Initiative	13,134,392	11,207,531	11,207,531	11,042,531
Contributions for Access to Justice Services to the Territories (being Legal Aid, Aboriginal Court work and Public Legal Education and Information Services)	3,859,716	3,359,716	3,359,716	3,359,716
Contributions in support of the Youth Justice Renewal Fund	21,395,500	14,694,400	10,890,500	5,327,600
Contributions for the Victims of Crime Initiative	1,425,000	1,425,000	1,425,000	1,425,000
Contributions to the province of British Columbia for the Air India Trial	11,511,117	3,800,000	0	0
Contributions in support of legal aid research	900,000	0	0	0
Official Languages Initiatives		1,600,000	5,500,000	7,300,000
Total contributions	407,509,655	411,409,077	405,567,834	385,107,361

Total grants and contributions	452,165,257	462,837,395	456,188,395	435,702,922

5.3 Source of Respendable and Non-respendable Revenue

Non-Respendable Revenue

($ millions)	Forecast Revenue 2002-2003	Planned Revenue 2003-2004	Planned Revenue 2004-2005	Planned Revenue 2005-2006
Government Client Services Business Line
· Fines and Forfeitures	0.4	0.4	0.4	0.4

Administration Business Line
· Central Registry of Divorce Proceedings	0.8	0.8	0.8	0.8
· Rent from Dwellings and Utilities	0.1	0.1	0.1	0.1
· Miscellaneous Revenues	0.7	0.7	0.7	0.7

Law and Policy Business Line
· Firearms Program *	12.5	16.3	23.5	35.2
· Family Order and Agreements Enforcement Assistance Program	1.7	1.7	1.7	1.7

Total Non-respendable Revenue	16.2	20.0	27.2	38.9

* Revenues were estimated on the basis of historical volumes of activities involving issuance of licenses (new and renewals) transfers (retail sales and newly manufactured) and the import/export of firearms (individuals and business).

5.4 Net Cost of Program for the Estimates Year (2003-04)

($ millions)	Total
Net Planned Spending (Gross Budgetary and Non-budgetary Main Estimates plus Adjustments)	990.4
Plus: Services Received without Charge Accommodation provided by Public Works and Government Services Canada (PWGSC) Contributions covering employees' share of insurance premiums and expenditures paid by Treasury Board Secretariat Workman's compensation coverage provided by Human Resources Canada	37.9 12.8 0.1 _____ 50.8
Less: Non-respendable Revenue	20.0
2003-2004 Net cost of program	1,021.2

5.5 Alternative Service Delivery - Canadian Firearms Centre

Contribution to organization

Status of ASD proposal

Implementation Date

Contact

A contract was awarded to a partnership between CGI Group Inc. and BDP Business Data Services Limited, a unit of the Business Services Division of First Service Corporation for the solution realization phase of the Alternative Service Delivery project including the development, implementation, acceptance testing, and solution certification.

Letting of second component of contract for the delivery by the contractor of: ongoing operations covering application processing, call centre administration, and technology provision and maintenance (including hardware and software support, user training and application support) is conditional upon Treasury Board Secretariat concurrence.

A contract amendment for the solution realization phase was issued in January 2003 to modify the Service effective date from January 9, 2003 to June 30, 2003.

Implementation by January 1, 2004 if Bill C-10A and its Regulations are passed by Parliament by December 31, 2003 or sooner.

Lyne Deshaies
Manager,
Alternative Service Delivery Management

Telephone:
(613) 946-1666

Fax: (613) 941-1991

e-mail:
lyne.deshaies@justice.gc.ca

5.6 Major Regulatory Initiatives - Canadian Firearms Centre

Legislation and Regulations

Planned Results

The Department of Justice introduced amendments to the Firearms Act (Bill C-10A) and the Criminal Code that:

Aim to facilitate public compliance with the Firearms Program;
Improve the administrative efficiency of the Act and reduce costs; and
Meet new international obligations.

Passage of Bill C-10A and associated Regulations will:

Enable introduction of a staggered renewal application process (load leveling);
Permit issuance of licenses, registration certificates and authorizations by electronic means;
Establish a pre-application process for importation by non-residents; and
Consolidate administrative responsibilities.

The Alternative Service Delivery (ASD) model that the Canadian Firearms Centre is developing is dependant on the passage of C-10A and its Regulations.

Passage of Bill C-10A and its Regulations will enable the Firearms Program:

Better alignment of administrative responsibility and authority with establishment of a Commissioner of Firearms and transfer of the Registrar from RCMP;
Simplified license renewal process through load-leveling;
Streamlined import-export requirements, including a pre-processing option for non-residents;
Enabling enhanced use of new technology (ASD) to serve clients better and reduce service delivery costs;
Meeting new international obligations, in particular the marking of imports and regulation of parts; and
Avoidance of additional administrative burden such as extending grandfathering of some handguns.