DND neglects to spend $1B - Macleans.ca
 

DND neglects to spend $1B

Department will have to return most of funds to treasury


 

The Department of National Defence did not spend more than $1.5 billion of its $21 billion budget for the 2010-11 fiscal year. Most of that sum will go back to government coffers, save for $444 million that DND will be allowed to carry over. The lapse in funds has been chalked up to poor management practices and a lack of procurement staff to oversee the funds allocated to proposed equipment purchases, the Ottawa Citizen reports. Similarly, in 2009-10, DND lapsed $1.18 billion in funds. In a 2009 report, auditor general Sheila Fraser pointed to inadequate financial management and monitoring of resources.

Ottawa Citizen


 
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DND neglects to spend $1B

  1. "The lapse in funds has been chalked up to poor management practices and a lack of procurement staff to oversee the funds allocated to proposed equipment purchases, the Ottawa Citizen reports"____Clearly they are not providing enough top flight limo services to the top brass. [ sarc on]

  2. hmm spending money… NOT HARD PEOPLE… buy some new boats, airplanes and helicopters… ITS PRETTY FREAKING EASY.

  3. I always wonder about this type of thing. When a government agency *doesn't* use its entire budget, shouldn't we reward them for being thrifty with the public purse? On the other hand though, just letting them keep the money doesn't seem the most useful thing for the public either.

    • DND started FY 10/11 with the goal of saving 5% of their budget, ie: return it to government. They were not the only department told to seek savings across the board and they did it which shows good management. Those working within the department were aware of this before April 1, 2010.

      The Citizen, well, being based in Ottawa does not mean they have a clue of what is going on in Ottawa.

  4. The lapse in funds has been chalked up to poor management practices…

    Only in government can we call completing operations in a fiscal year with fewer expenses "poor management."

    If DND really needed something and just couldn't get around to ordering it because of incompetence, that's one thing. If the brass took a good look at the procurement list and said "Y'know, we really don't need six hundred of these widgets, because two hundred will do us just fine." that's what we pay them to do.

    It reminds me of stories of government bureaucrats running around looking for something frivolous to spend buckets of cash on before year end so as not to have a budget cut the next year.

    And people wonder why some folk think small government might be a good idea…

  5. Didn't spend 1.5 of 21 billion. That's a nickle out of a dollar. Not bad, considering how difficult military purchases are to make.

  6. Someone saves money in government and they get lambasted? Sounds duly odd at time people are expected to cut costs.

    The Auditor General maybe concerned however that some cost savings are short sighted and could lead to increased long term costs (maintenance).

  7. It would appear that in this case, Ms Fraser was not all that clued in.

  8. Sheila Fraser pointed to inadequate financial management and monitoring of resources. I thought Hillier was gone.

  9. so, The CPC found their first billion, not to find 4 more for 2012

  10. Its called fiscal responsibility. Instead of going on a spending spree DND is giving back the money it saved from the budgeted items.

    Get a grip.