1. Services offered by Canadian Forces Morale and Welfare Services (CFMWS) Presentation at the National Defence Comptroller’s Conference Ottawa, 4 February 2015 Commodore Mark B. Watson DGMWS

2. Introduction Organization and background Vision Programs, services, and initiatives 2 Agenda

3. Approximately 5,600 “Staff of the Non-Public Funds, Canadian Forces” – Number varies due to casual employment, esp. in summer – 2,125 full time, 1,066 part time, 2,395 casual – 40% CAF affiliation (Retired and/or Family) 253 Canadian Armed Forces members 153 National Defence public servants 1,000 at MFRCs (locally employed) Plus many, many volunteers 3 Defence Team – Morale & Welfare

4. CFMWS 5,600 to 6,000 Employees Canadian Coast Guard Canadian Security Intelligence Service (CSIS) Citi Bank Nav Canada 4,500 3,311 5,000 4 Defence Team – Morale & Welfare

5. Organizational View 5

6. CFMWS Delivery Model Managing Director NPP – Overarching role for NPP delivered through NPP Accountability Framework NDA mandate – benefit serving and retired CF members and dependents TB Assigned mandate “DND Good Employer Responsibilities” (1969) Department assigned mandate – ASD 1996 CEO Staff of the NPF, CF – FAA Schedule V, part of the Federal Public Administration – NPF Pension Plan and Group Benefit Plan Director General Morale and Welfare Services – CMP Level 2 – Delivered through the Public Accountability Framework – MFSP Program through Fund C108 – PSP Programs designed as ASD by VCDS 3/96 funded through Fund C109 – Casualty Support Management funding through operating budget – DEM funded through Fund C134 6

7. Public Support to MW Programs APS 110 – “May” Versus “Shall” Dec 07 - NPP Board in Dec 07: – The NPP Board directed that there is no provision for NPP to make up Public funding shortfalls Dec 12 – CDS (Foreward to CFPFSS Strategy): – NPP is not to be expended to off-set Public funding reductions without the CDS’ authority If BComd does not provide Public support, then the program must cease If BComd reduces the Public support, then the activity must be adjusted to meet new support level 7

8. NPP Accountability Framework NPP is not part of DND “Administrative constructs” created by either the CDS or by Base, Wing, or Unit Commanders NPP orgs are legally, “Her Majesty in right of Canada”, as represented by the CDS/CO in his/her NPP capacity through (name of organization) Implications – deal with the private sector as Her Majesty; deal with the Crown through MoUs or SLAs; cannot enter into a contract with the Crown “public” Provides flexibility for the Chief of Defence Staff to dynamically respond to MW Services requirements while maintaining rigorous accountability 8

9. NPP Accountability Framework (cont’d) National and local governance CDS Delegation of Authorities for the Financial Administration of NPP supported by a requirement to pass a NPP Certification Course NPP Letter of Financial Management Attestation NPP Contracting Policy NPP Travel and Relocation Policy Accounting Policy, Sponsorship and Donation Policy, etc…. National entities are externally audited CRS is responsible for the audit of NPP within the CF Compliance and Assurance Team Consolidated Insurance Program NPP Fraud Prevention Handbook and Questionnaire 9

10. Full governance assigned to CDS Authorities delegated to DGMWS as Managing Director of NPP NPP Board serves as an advisory board: – Provides stakeholder input to CDS – Strategic plans, policies and direction – NPP investments – Approval of audited financial statements NPP Board and AFC engagement is key – NPP is a “Chain of Command” responsibility 10 NPP Governance

11. $4.11M 11 (FY 13/14) Operational Funding

12. Fiscal Resources NPP net worth / publicly funded expenditures FY 2013-14 12 Public Funds

13. Make CFMWS one of the strongest military Morale and Welfare organizations in the Western world by providing programs that provide widest possible benefits to the greatest number of serving and former service personnel and their families: One Community, One Million Strong 13 My Vision

14. One Community, One Million Strong Serving Members (Reg. & Res.)130K Families of Serving Members144K Former Members595K Dependants of Former Members350K Other Eligible Members150K 1 MILLION 14

15. “Comptroller” from a functional perspective Key role is providing advice to the chain of command in regard to: – appropriate use of NPP – sustainability of NPP operations (based on a specified Public/NPP share – no authority to use NPP to offset a Public responsibility) – public Support to NPP – support the requirement for additional training and education through various means to mitigate erosion of NPP knowledge – elimination of unregulated activities – proper use of NPP representational expenses – ensuring that CANEX First Right of Refusal is respected 15

16. Hot topics for Comptrollers – NPP Perspective Implementation of the NPP Accounting Information System “PROPHET” scheduled to launch 1 April 2015 Reserve Project (to bring CFMWS services to Reserve Units) NPP Funding Distribution to Bases - CANEX/SISIP Dividend Charitable Status and NPP Organizations Reduction in Public Support by SSC (we have not been spared) Sponsorship and Donation 16

17. Comptrollers – NPP Ambassador We need you to promote our shared Vision of “One Community one Million Strong” We need you to promote that a public dollar toward Morale and Welfare/NPP is a dollar well spent – breakdown barriers the sustainability of Morale and Welfare/NPP is at stake We need you to promote that a purchase at CANEX or at SISIP represents an investment in NPP with a return to the community 17

18. Comptrollers – NPP Ambassador We also need you to remind stakeholders that significant savings were harvested back in 1996 when CFPSA was created – this included the conversion of military positions to NPF employees. These NPF employees are now delivering the Public Morale and Welfares Programs that otherwise would be delivered by military members. Central funding for these NPF employees is within CMP baseline. According to VCDS 3/96, all other local costs are a local public responsibility 18

19. Morale and Welfare Services Directory Choose the description that best matches you from the list of categories. View the full catalogue of CFMWS services that may benefit you and follow the links to learn more. Answers one simple question: What services are available to YOU? 19 Visit: www.cfmws.com/YourServices

20. PSP by the numbers Fitness 94,527 FORCE evaluations (as of 31 March 2014) 8 Regional Adapted Fitness Specialists supporting over 500 JPSU clients Human Performance 1,534 CAF Personnel took part in the development and validation of FORCE Nearly 5,000 surveys administered to better understand what could help CAF Personnel get more active Health Promotion 3,900 courses offered 23,600 participants Sports Over 20,000 Intersection sport competitors 91 Regional competitions – 3,500+ competitors 18 National competitions – 1,800 competitors Recreation and Speciality Interest 6,000+ Recreation activities 100,000+ Recreation participants 325 DND facilities involved Messes 175 Reg Forces Messes 280 Res Forces Messes Newspapers 250,000 readers 85,000 copies distributed Golf 14 locations across Canada Community Gateway Website 139,000+ monthly visits 328,000+ page views 20

21. PSP – FORCE Visit: www.cfmws.com/forceprogram 21

22. PSP – DFIT.CA Introduce Reactive Interface and Mobile Site (Fall 2014) Focus on fitness required for operations Exercise Prescription for FORCE Evaluation 22

23. Access to: Golf: 14 locations across Canada and 7 social clubs using civilian courses Marinas and Sailing: 8 locations Campgrounds & Cabins: 5 locations Rod and Gun Clubs: 7 locations across Canada Horseback Riding: 4 locations across Canada Curling: 7 locations across Canada Skeet Shooting: 5 locations across Canada www.cfmws.com/en/AboutUs/PSP/specialtyinterest 23 PSP Specialty Interest Activities

24. 24 Commercial Services SISIP Financial Services Term life insurance plans including Long Term Disability (LTD) and Vocational Rehabilitation Program (VRP) – no exclusions for war, dangerous occupations, hobbies, volunteer activities or sports; – 140,351 lives insured under SISIP plans ($29.034B in coverage, $44.3M paid to beneficiaries) – 94,420 members protected under LTD ($138.85M paid out when combined with the VRP) Accidental Dismemberment Insurance Plan –covers injuries or illness attributable to military service; Financial Planning – personalized recommendations, investment advice to assist clients in achieving their financial goals (7,344 clients in 2013 with assets of $292.8M invested); Canadian Forces Group Retirement Savings Plan – a “do-it-yourself”, on-line investment and savings option (3,421 clients in 2013 with $137.8M invested); Financial Counselling – free, confidential support in the resolution of serious financial distress, with access to CFPAF loans and grants and other SOT programs; Personal Financial Management Education – courses for recruits and officer cadets.

25. Comparative costs: SISIP Financial ServicesIndustry Standard Financial Planning (No commission) $6 - $12/month (depending on rank) Includes one free income tax return Approximately $100/hour 1 or 1% - 3% of assets under management 2 $59 for one basic income tax return 3 Financial Counselling (Confidential) Free Approximately $120 4 / session or enrollment Fee of 15% of total debt + monthly charge of $50 + cancellation fee 5 Insurance ($100,000 in coverage / 25 year old male / non-smoker) $6/month Varies $11 - $13 /month 6 1 CBC News (April 2012) / MoneySense Magazine (October 2012) 2 moneysense.ca – Where to find a fee-only Financial Planner 3 H&R Block 4 Credit Canada 5 debtfreesolutions.ca – Consumer Credit Counselling sample contract 6 Compulife Software Inc. 25 Commercial Services SISIP Financial Services

26. 26 Commercial Services CANEX Operates 39 Outlets on Bases/Wings across Canada – 10 Retail – 8 SuperMarts (2 with petroleum) – 18 ExpressMarts (5 with petroleum) – 2 Grocery – 1 LiquorMart Sales of $130M in FY 13/14 Over 3.95M customer transactions annually 180 Concessions offering additional goods/services

27. 27 Commercial Services CANEX No Interest Credit Plan: 12, 24 or 36 month plans (No money down, not even the taxes), 12 month payment plan: no hidden handling or administration fees (24 months: 2% ; 36 months: 3%) National vendor partnerships: Tim Hortons, ARAMARK (Food Services), OK Tire, Pizza Pizza, Subway Initiatives: CANEX.ca - Online Sales/E-retailing – Launching an online E-retailing platform this Fall to augment existing store operations TACTIX Boutiques with Kit Shops and Pride of Association merchandise – Elite line of clothing and accoutrements

28. 24 Integrated Personnel Support Centres across Canada: Personnel support through multi-disciplinary staff and linkages to VAC, SISIP, PSP, MFRC and Base/Wing agencies Responsive to Commanding Officers Return to Duty Program: 895 personnel on the program, 657 personnel assisted in their transition, and 208 personnel returned to full time duty. National Return to Duty averages: approximately 24% (FY 2013-2014) Casualty Administration and Advocacy: Home adaptations/special needs equipment, vehicle adaptations, home assistance ; Assistance through Funds Peer Support: Operational Stress Injury Social Support (OSISS), Soldier On, Injured Soldier Network, Helping Others by Providing Empathy (HOPE) Outreach & Education: Average 100 briefings a month across the country, training of approx 1,100 Designated Assistants per year 28 Joint Personnel Support Unit (JPSU)

29. Posted to JPSU1,739 Supported by JPSU (but not posted) 4,037 Total5,776 29 Personnel currently being tracked by JPSU Joint Personnel Support Unit (JPSU)

30. 30 Transition Services National Coordination of all Career Transition activities: – Second Career Assistance Network seminars, – Medical seminars, Long Term Planning seminars – Career Transition Workshops – Transition support and programs specific to ill & injured, – Publications/tools that support transition counselling. Liaise with other organizations: VAC, ESDC, PS Commission, SISIP-LTD & VRP, Industry, Academia, Accreditation bodies and others. Canada Company – Military Employment Transition (MET) Program A one-stop self-directed web-portal for all things related to transition for serving and retired military members. Serving as a bridge between business and community leaders and the CAF/VAC. Includes Corporate Canada employers, Entrepreneurship, Education, Franchising opportunities and transition tools for members and employers. 137 Military Friendly employers, such as Amazon, BMO Financial Group, CN, Coca-Cola Canada, Royal Bank of Canada, Shell Canada, Sobeys Inc., Suncor Energy, Etc.

31. Prince’s Charities-Operation Entrepreneur: Based In Business (BIB) with Memorial University, Enactus and Canadian Youth Business Foundation Prospect: Forces @ Work: Sustainable Job Placement Pilot Project H2H: Helmets to Hardhats Association of Canadian Community Colleges (ACCC) The Canadian Franchise Association: Military Veterans Program Forum for International Trade Training (FITT) In addition to previously mentioned programs and services, the following are specifically for ill and injured members of the Reg and Res force: Vocational Rehabilitation Program-Serving Members (VRPSM) Priority Hiring-Public Service Integrated Transition Plan 31 Transition Services

32. To contribute to the well-being of military families, enabling a mission-ready force that protects Canadians and Canadian interests across the country and around the world. Military Family Services manages: Military Family Services Program, including funding and oversight of Military Family Resource Centres Family Information Line and www.familyforce.ca Children’s Education Managements, including the education compensation and benefits requirements of military members with children Issues that arise and affect military families as a result of conditions of service of serving personnel 32 Military Family Services

33. Support for serving members (Regular and Reserve) and their families who face issues that arise due to conditions of service (i.e. mobility, separation, risk) Mental health support Child care Access to health care Spousal employment 33 Military Family Services Community integration Transition support Education transitions Special needs of loved ones

34. 34 Military Family Resource Centres – On Base, In Person 32 in Canada, with programs and services in the United States and Europe Third party, non-profit organizations located on Bases/Wings/Units or through outreach programs Provide services in both official languages Family Information Line (FIL) – Informed, Connected and Supported 1-800-866-4546 – Now 24/7 service, confidential, bilingual, information and supportive counselling 1642 calls made to the FIL, 3769 calls to the automated system that has deployment information (2013) www.FamilyForce.ca – For and about Canadian military families A portal to all MFRCs for local information, useful general information of interest to all Canadian military families 387,294 visits to the FamilyForce site, 242,253 total unique visitors (2013) Military Family Services

35. Military Families Fund − > 2,000 members annually receive individual/program support Soldier On Fund − Physical fitness supported for > 900 ill/injured members Hospital Comforts Fund − ~300 serving members annually receive support in hospital Operation Santa Claus − Deployed members (~2,600) receive a holiday gift package Boomer’s Legacy − “Helping our Soldiers Help Others” at home and abroad 35 Support Our Troops Programs

36. Examples: Army Run: Generated almost $1M in funds for the MFF and Soldier On during the past 4 years (2011-2014) Graham Group Charity Golf Tournament: Golf tournament held in 2011 and 2012, generated almost $100K for the MFF Royal Canadian Mint – Highway of Heroes Collector Coin: Operated two coin campaigns to highlight the CAF and the sacrifices of military members and their families, collectively generated $200K for the MFF. Honourable PM Stephen Harper – History of Hockey book: Released Fall 2013, all proceeds to MFF. Winnipeg Jets True North Foundation: Will donate $75K to the MFF/Soldier On yearly for the next 10 years. Canadian Tire Corporation: Donated $150K in sports equipment to support Base/Wing Recreation Programs 36 Support Our Troops Program

37. Supports former and currently serving members with a mental or physical injury/illness to adopt an active lifestyle through sport and recreation Over $2.3M has been disbursed to provide access to equipment, training and events allowing participants to: – learn a new sport such as skiing, horseback riding, fly fishing, and kayaking; – train with and compete against soldiers with similar injuries and illnesses from other nations; and – push their physical and mental limits through participation in regional and national sporting events. $3.5M has been raised by donations from Canadians, corporations and other organizations 37 Soldier On Fund

38. Soldier On Program Forecasted Major Events 2015 38 Soldier On National Ski Camp (Mt Washington, BC) – Feb 3 rd Annual Allied Winter Sports Camp (Whistler, BC) – Feb Soldier On Taekwondo Camp (Edmonton, AB) – Mar Soldier On Cycling Camp (Montreal, QC) – Apr Saddle Up Soldier On – RCMP (Ottawa, ON) – May Soldier On National Golf Camp (GTA, ON) – May UK Help for Heroes Big Battle Field Bike Ride (FRA/UK) – Jun Soldier On National Fishing Camp (New Brunswick) – Jun St Andrews Legacy Golf (Scotland) – May/Jul/Aug Soldier On Range Camp (Meaford, ON) – Sep Canada Army Run (Ottawa, ON) – Sep Soldier On Trek (AB/BC) – Oct Soldier On Scuba (Halifax, NS) – Nov

39. Financial assistance in the form of low interest loans and/or grants: Minor Disbursement Program ($33K to 194 members)* Grants up to $200 (on a once per lifetime basis) to relieve temporary distress or to promote well-being. Education Assistance Loan Program ($1.9M to 476 members)* Loans ($1,2k to $4k per year, max $16k per student) to assist eligible serving members, former members and their recognized dependants to obtain a post-secondary education (full-time studies). Self Improvement Loan Program ($7.5M to 2,208 members)* Financial assistance through small loans ($1k-$5k) to assist in emergency situations such as: compassionate travel, urgent home and car repairs, minor renovation projects, etc. Financial Distress Program ($1.1M to 154 members)* Grants and loans when warranted by distress or other qualifying circumstances. The lifetime maximum for assistance is $5,000 for a grant and $25,000 for a loan. Access to the fund is normally through an agent of the fund, Veteran Affairs Canada, SISIP Financial Counsellors or designated Base/Wing Program Administrators Eligibility to make an application does not guarantee approval Each request adjudicated against specific criteria before a decision is rendered *data based on calendar year 2012 39 Canadian Forces Personnel Assistance Fund

40. The SOT Summer Camps provide an opportunity for children of military families to escape from the stressors of military life, with priority given to children of deployed personnel. In summer 2014, more than 570 children of military members enjoyed a complimentary week at Camp Maple Leaf, Muskoka Woods, and other camps across the country. The Military Families Fund has unwritten the cost of camp registrations. 40 SOT Summer Camps

41. Launched in January 2012 Program is available to CAF members (former and currently serving) who have sustained an injury or illness while serving in a Special Duty Area/Operation and who are in receipt of a VAC benefit as a result Eligible members may apply for 1-week of accommodation at one of Shell Vacations Club’s 26 properties in Canada, the US and Mexico More than 150 CAF members/families have benefited from this program 41 Vacations for Veterans Program

42. SOT programs / funds attracting significant contributions from Canadians – Individual donations of dollars and products / services – Proceeds from third party events – Contributions from events / campaigns held by charitable organizations e.g.: True Patriot Love, Canada Company and Wounded Warrior As number and complexity of events increases – There are greater demands for DND/CAF support – There is little adherence to policy provisions and – There are diminishing efforts to align with CAF priorities Some external organizations competing with internal NPP “charities” 42 NPP Outreach

43. SOT Program / Third Party Outreach DGMWS is the CAF OPI: Registering organizational events Coordinating to avoid duplication and scheduling conflicts Assisting in staffing requests for public support, military equipment and/or personnel Approving the use of any official logos and/or images within their promotional materials Assisting with senior CAF representation at key events Concluding MOUs for complex relationships/partnerships Providing feedback on the success of donations 43

44. Key relationship with BMO, Bank of Montreal Personal Banking: Saves the current 10,000 members approximately $1 million in banking fees every year Customized Mortgage Plans and Student Line of Credit: Highly competitive rates ABM/ATM: Over 900 branches and 2681 ATMs across Canada so that you can easily receive uninterrupted service as you move SOT MasterCard: Contributed over $200,000 to morale and welfare programs and services since the inception of the Program Sponsorship: Army Run and many local programs Canadian Defence Community Banking (CDCB) 44

45. Official discount program of the CF Members can save at more than 26,000 locations locally, nationally and worldwide Categories: Accommodations, Attractions, Entertainment, Dining, Recreation, Services, Shops, Travel & Transportation, House & Home CF R&R Club: Linked to US Armed Forces Vacation Club 3,500 accommodations in 80 countries starting at $369 USD per week Cruise lines, airlines, and 3,000 US golf courses Visit: www.cfappreciation.ca 45 CF Appreciation Program

46. CF R&R Club – Examples: Visit: www.cfappreciation.ca Silver Lake Resort, Kissimmee, Florida 7 nights/$369 USD Barnsdale Country Club Rutland, England 7 nights/$369 USD Wyndham Ka'eo Kai Kauai, Hawaii 7 nights/$369 USD 46 CF Appreciation Program

47. Confirms that an individual is a member of our One Community – One Million Strong Provides access to MW programs, services and facilities Over 115,000 CFOne Cards issued Multi-phased approach Phase 1: (22 Oct 13) access to the CANEX Loyalty Program and CF Appreciation Program Future Phases: expanded to include access to select PSP programs and services; administration of mess fees, access to clubs and activities, as well as other MW services. 47 CFOne Card

48. Questions? 48