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Finance DivisionFinance Division

 A Brief History of Non-Public Funds (NPF)

Non-Public Funds have existed since WWII. The first NPF outlets were messes and canteens for soldiers serving on the war front.

Prior to 1968, each Base/Station/Unit was responsible for running its own NPF activities. In 1968 the Director General Personnel Services (DGPS) was formed to administer NPF across the newly-unified Canadian Forces. The Canadian Forces Central Fund (CFCF) was also established in 1968 to provide a centralized fund from which to provide financial assistance to Bases/Wings/Units for personnel support programs and facilities.

In 1996 Canadian Forces Personnel Support Agency (CFPSA) assumed the guardianship of NPF activities.

 The Purpose of Non-Public Funds

Treasury Board guidelines state: "A reasonable level of goods, services and recreational facilities should be available to CF personnel in their areas of service. Where those levels are inadequate, the Department's responsibility as an employer is to ensure their availability where practical and desirable through a system of Non-Public Fund organizations."

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 NPF Board of Directors

The NPF Board of Directors provides the overall strategic direction for all activities associated with personnel support programs and non-public funds. The Board financially oversees all the operation of the CFPSA, approves policies for the operation of PSP/NPF activities and provides policy direction for the Canadian Forces Central Fund.

Members include: Chief of Defence Staff (CDS) as chairman; the Vice Chief of Defence Staff (VCDS); the Deputy Chief of Defence Staff (DCDS); Assistant Deputy Minister Human Resources- Military (ADM HR-Mil); Chief of the Maritime Staff (CMS); Chief of the Land Staff (CLS); Chief of the Air Staff (CAS); Chief of Reserves and Cadets (CRC); Assistant Deputy Minister (Finance and Corporate Services); the DND/CF Legal Advisor; Canadian Forces Chief Warrant Officer (CFCWO) and the Command Chief Warrant Officers from the Army, Navy and Air Force.

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 NPF Activities

  • Base Fund

Base/Wing Commanders are responsible for their respective Base Funds. The Base Fund supports all sport, recreation and community activities and special interest activities such as golf and curling clubs for the use of CF personnel and their families. Base Fund income originates from CANEX operations, gross bar sales in messes, curling, golf clubs and other facilities, and base activities such as club fund raising initiatives, charities, grants for libraries, physical fitness programs and bands.

  • The Canadian Forces Central Fund (CFCF)

The Canadian Forces Central Fund (CFCF) provides financial assistance to bases, stations, ships and other units in establishing and improving messes, merchandising, recreational and social facilities for the morale and well-being of members of the Canadian Forces and their families.

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 Major programs sponsored by the CFCF include:

  • The Canadian Forces Personnel Assistance Fund (CFPAF)

 The Canadian Forces Personnel Assistance Fund (CFPAF) provides financial assistance to serving and former members of the CF and their families through four programs: the Minor Disbursement Program, Self -Improvement Loan Program, Financial Distress Program and the Educational Assistance Program. Existing loans to individuals totals approximately $15 million.

  • The NPF Consolidated Insurance Program (CIP)

 The NPF CIP provides insurance coverage to all NPF activities of the Canadian Forces Regular Force through the purchase of central policies, including the following: property; commercial general liability, automobile, umbrella and excess liability, environmental impairment liability directors and officers and group accident covering property losses and liability claims.

  • Re-capitalization Program

 NPF contributed $81 million to the $162 million construction program to improve PSP infrastructure across the Canadian Forces. From 1998-2001, this program included the construction or renovation of gymnasia, arenas, swimming pools and community centres in the military community.

  • Canadian Forces Central Fund Loans

 Loans are available to military bases for working capital, furnishings and equipment and construction of PSP facilities. Loan terms vary from six months to 20 years at a fixed interest rate.

  • NPF Accounting Services

 The Finance Division of the CFPSA provides accounting, cash management and financial support services to NPF organizations across the CF, including CANEX. There are national accounting offices for accounts receivable, accounts payable, fixed assets, payroll, and financial reporting and 24 Bases and Wings supported through a nationalized system.

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