HSE's director for Scotland and northern England, David Snowball, said: "HSE's investigation has confirmed that primary failings during the activity amplified a number of significant underlying organisational failures. In particular, there was evidence of poor planning, leadership and execution of the exercise, coupled with inadequate oversight, procurement, monitoring and training arrangements. These all contributed to the events that took place.
"Together with the considerable failings of Major George McCallum, who was in charge of this activity and played a significant role in its planning, assessment and implementation, what should have been an enjoyable and exciting experience resulted in tragedy."
The MoD cannot face prosecution in the same way as non-Government bodies. Crown Censures are agreed procedures applicable to Crown employers in lieu of criminal proceedings.
Last year, Major McCallum, 52, admitted a charge under the Health and Safety at Work Act in relation to the incident. He was fined £5,000 at Inverness Sheriff Court.
Kaylee's parents, Derek and Lesley McIntosh, issued a statement through their lawyer describing the censure as "window dressing". The statement read: "We are not convinced that a similar accident couldn't happen today. There were rules in place that ought to have prevented Kaylee's death, so what's the point of making more rules that individuals don't bother to follow?"