The National Defence Act (Sections 2 and 38 – 41) vests Non-Public Property (NPP) with the Chief of the Defence Staff (CDS), Base / Wing Commanders and Unit Commanding Officers to be used for the benefit of serving and former Canadian Armed Forces personnel and their families.
Non-Public Property is "not unlike a trust" with the CDS having the fiduciary responsibility to act like a trustee and serving and former CAF members being the named beneficiaries. Base / Wing / Unit / Ship Commanding Officers are responsible and accountable for the governance of the Base / Wing / Unit / Ship Funds at their respective location.
The CDS established the NPP Board as an advisory board
comprised of the commanders of the Army, Navy, Air Force and other individuals to assist him in his NPP responsibilities.
The CDS has delegated the Managing Director of NPP with the responsibility for the daily administration of NPP. Under the present administrative structure, the Managing Director of NPP responsibility is borne by the Director General Morale and Welfare Services (DGMWS).
The CDS has also assigned the functions of the Chief Executive Officer of the Staff of the Non-Public Funds, Canadian Forces to the DGMWS. The Staff of the Non-Public Funds, Canadian Forces was established as a Separate Agency within the public administration of the Government of Canada and is included in Schedule V: Separate Agencies to the Financial Administration Act.
The collective NPP activities including those of the Staff of the Non-Public Funds, Canadian Forces and those delegated to NPP by the Department of National Defence through Alternative Service Delivery and other tasking mechanisms are managed by the administrative construct known as the Canadian Forces Morale and Welfare Services (CFMWS).
A comprehensive NPP accountability framework exists that consists of a number of: Treasury Board Secretariat memoranda; Queen's Regulations & Orders; CDS Instructions; Defence Administrative Orders and Directives; Canadian Forces Administrative Orders; Canadian Armed Forces Publications and internal CFMWS policies. The framework reflects the requirements of Canadian Generally Accepted Accounting Principles (GAAP) and the principles of prudence and probity upon which the Government of Canada's public accountability framework is based.