2020–21 Departmental Results Report - Treasury Board of Canada Secretariat

Description

• Review spending proposals and authorities
• Review existing and proposed government programs for efficiency, effectiveness and relevance
• Provide information to Parliament and Canadians on government spending

Results

In 2020–21, TBS aimed to achieve two results related to its spending oversight responsibility:

1. Treasury Board proposals contain information that helps Cabinet ministers make decisions
2. Reporting on government spending is clear

The following provides details on those results.

Gender-based analysis plus

In carrying out its core responsibility of spending oversight in 2020–21, TBS helped incorporate GBA Plus into government decision-making by:

• reviewing proposals submitted for Treasury Board approval to make sure they:
  • take into account the needs, priorities and interests of different groups
  • include plans for collecting data and reporting on the impacts in terms of gender and diversity of the proposed program
• as required under the Canadian Gender Budgeting Act, making available to the public analysis of impacts in terms of gender and diversity of Government of Canada expenditure programs through supplementary information tables to Departmental Results Reports
• helping departments improve the quality of their analyses by:
  • offering learning resources and events to support the sharing of best practices in GBA Plus
  • publishing competencies for heads of evaluation and heads of performance measurement
  • distributing guidance on how to meet the requirements of the Policy on Results that relate to GBA Plus
• partnering with Statistics Canada to study women‑owned businesses that access business innovation and growth support programs

2030 Agenda for Sustainable Development

In 2020–21, in fulfilling its core responsibility of spending oversight, TBS contributed to Canada’s implementation of the 2030 Agenda by working with the Privy Council Office, the Department of Finance Canada, and Women and Gender Equality Canada, to support Employment and Social Development Canada in developing an overall federal implementation plan for the United Nations Sustainable Development Goals (SDGs).

In addition, TBS reviewed departments’ Treasury Board submissions and provided guidance on how to ensure that proposed initiatives take into account the requirements of the SDGs.

For example, TBS made sure that proposals:

• met strategic environmental assessment requirements
• took into account potential impacts on climate change and identified any need to adapt as a result of those impacts
• aligned with the Greening Government Strategy

Through this work, TBS contributed to SDG 13.3 (improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning).

Description

• Lead government‑wide initiatives
• Develop policies and set the strategic direction for government administration related to:
  • service delivery
  • access to government information
  • the management of assets, finances, information; and technology

Results

In 2020–21, TBS aimed to achieve four results in exercising its administrative leadership responsibility:

1. Government service delivery is digitally enabled and meets the needs of Canadians
2. Canadians have timely access to government information
3. Government promotes good asset and financial management
4. Government demonstrates leadership in making its operations low‑carbon

The following provides details on those results.

Gender‑based analysis plus

In carrying out its core responsibility of administrative leadership in 2020–21, TBS helped incorporate GBA Plus into government decision-making by:

• producing resources and tools to support the initial implementation of the Policy Direction to Modernize the Government of Canada’s Sex and Gender Information Practices, which pertains to the collection of gender information on administrative forms. Departments can now access these resources and tools through Women and Gender Equality Canada
• developing an accessibility hub to centralize information and learning resources that departments can use to improve accessibility and to make their workplaces and services more inclusive for persons with disabilities
• leading and co-organizing events that reached tens of thousands of public servants, equipping them to remove barriers in the workplace and in the services they provide
• investing in innovative and experimental ideas, projects and initiatives through the Centralized Enabling Workplace Fund, which aims to improve workplace accommodation practices and remove systemic barriers that create a need for individual accommodation
• ensuring that services delivered to Canadians in partnership with other federal departments, such as COVID Alert and the COVID-19 Benefits Finder, involved numerous rounds of direct research and testing with a wide range of potential users of those services, including people who self-reported as non-white or non‑European

Experimentation

In November 2018, in partnership with Public Services and Procurement Canada (PSPC) and National Defence, TBS launched a pilot project to assess the impact of using risk‑based contracting approvals rather than the dollar‑based thresholds set in the Contracting Policy.

Normally, PSPC has to seek Treasury Board approval for all defence contracts above its contracting limits, regardless of the risk and complexity of a particular contract. Under the pilot project, the Minister of Public Services and Procurement can enter into and amend defence contracts and contractual arrangements if they have low risk and low or medium complexity but exceed the Minister’s current approval limits.

The pilot project was completed in April 2020. The project was evaluated and was found to have achieved its objectives. According to the evaluation, the contracts considered under the pilot were appropriately identified as low risk and of low or medium complexity.

Given the positive results of the evaluation, the pilot has been extended to March 2025. The extension will allow for an assessment of more contracts and of the longer-term impacts of the approach. The results of the pilot will be used to make a recommendation on permanent changes to the Contracting Policy.

2030 Agenda for Sustainable Development

In 2020–21, in fulfilling its core responsibility of administrative leadership, TBS contributed to Canada’s implementation of the 2030 Agenda by, among other things:

• updating the Greening Government Strategy, which includes more ambitious targets for reducing the government’s greenhouse gas emissions for real property and conventional fleet by 40% below 2005 levels by 2025 instead of by 2030 and for eliminating all emissions associated with government operations in order to achieve net‑zero carbon by 2050. These efforts supported SDG 13: to take urgent action to combat climate change and its impacts
• publishing guidance on green fleet procurement, which supported SDG 12.7: to promote public procurement practices that are sustainable, in accordance with national policies and priorities
• working with departments to improve government service delivery by, for example, accelerating progress to create a single online window for all government services and to set new performance standards. These efforts supported SDG 16: to promote just, peaceful and inclusive societies

Financial, human resources and performance information for the Treasury Board of Canada Secretariat’s Program Inventory is available in GC InfoBase.

Description

• Develop policies and set the strategic direction for people management in the public service
• Manage total compensation (including pensions and benefits) and labour relations
• Undertake initiatives to improve performance in support of recruitment and retention

Results

In 2020–21, TBS aimed to achieve three results in relation to its employer responsibility:

1. Public service attracts and retains a skilled and diverse workforce
2. The workplace is healthy, safe and inclusive
3. Terms and conditions of employment are fairly negotiated

The following provides details on those results.

Gender‑based analysis plus

In carrying out its core responsibility of employer in 2020–21, TBS helped incorporate GBA Plus into government decision-making by:

• working with Employment and Social Development Canada’s Office for Disability Issues, with Women and Gender Equality Canada and with the Canada School of Public Service to strengthen GBA Plus by clarifying information on the accessibility and disability inclusion lens that is to be used when developing policies, programs and initiatives in the Government of Canada
• creating and publishing templates for creating Word documents and PowerPoint presentations that meet accessibility standards so that materials are inclusive by default

In collaboration with Women and Gender Equality Canada, a GBA plus training session was given to a number of TBS executives to increase the use of GBA plus when developing and implementing policies on people management.

Experimentation

In September 2020, TBS launched the Self‑Identification Modernization Project to help increase the accuracy, depth and breadth of employment equity data across government. The project explored ways to reduce the stigma associated with self‑identification. Following extensive research and consultations, a new questionnaire was designed with employees from various diversity networks. Preliminary testing shows that the new form has increased intent to self‑identify.

2030 Agenda for Sustainable Development

In 2020–21, in fulfilling its core responsibility of employer, TBS contributed to Canada’s implementation of the 2030 Agenda by:

• continuing to work with departments to increase representation of women and members of other minority groups in leadership positions. This work supports SDG 5: to ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision‑making in political, economic and public life
• working with departments to better address and prevent harassment and violence in the public service, which is helping advance:
  • SDG 10: to ensure equal opportunity and reduce inequalities of outcome, including through eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and actions in this regard
  • SDG 16: to significantly reduce all forms of violence

Financial, human resources and performance information for the Treasury Board of Canada Secretariat’s Program Inventory is available in GC InfoBase.

Description

• Develop and oversee policies to promote good regulatory practices
• Review proposed regulations to ensure they adhere to the requirements of government policy
• Advance regulatory cooperation across jurisdictions

Results

In 2020–21, TBS aimed to achieve two results in exercising its regulatory oversight responsibility:

1. Government regulatory practices and processes are open, transparent and informed by evidence
2. Regulatory cooperation among jurisdictions is advanced

The following provides details on those results.

Gender‑based analysis plus

In carrying out its core responsibility of regulatory oversight in 2020–21, TBS helped incorporate GBA Plus into government decision-making by providing guidance to departments on the GBA Plus they are required to undertake when developing regulatory proposals.

Experimentation

The Centre for Regulatory Innovation:

• promotes a whole-of-government approach to conducting regulatory experiments
• provides monitoring and guidance to departments that are conducting experiments

In 2020–21, the centre supported three multi‑year regulatory experiments through the Regulatory Experimentation Expense Fund:

• a project with Innovation, Science and Economic Development Canada on digital credentials to test different approaches to helping regulators and businesses become more proficient with digital credentials technologies
• a project with Environment and Climate Change Canada to experiment with stakeholder consultation to make the supply chain for chemicals in products in Canada more transparent
• a project with Competition Bureau Canada to help use sources of publicly available information to more efficiently and effectively identify anticompetitive mergers that may be avoiding antitrust scrutiny in Canada

2030 Agenda for Sustainable Development

In 2020–21, as part of fulfilling its core responsibility of regulatory oversight, TBS contributed to Canada’s implementation of the 2030 Agenda by continuing to help departments implement the Cabinet Directive on Regulation. The directive has increased analytical rigour by strengthening environmental impact analysis requirements in regulatory development. This aligns with SDG target 13.3: to improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction, and early warning.

Financial, human resources and performance information for the Treasury Board of Canada Secretariat’s Program Inventory is available in GC InfoBase.

Description

Internal Services are those groups of related activities and resources that the federal government considers to be services in support of programs and/or required to meet corporate obligations of an organization. Internal Services refers to the activities and resources of the 10 distinct service categories that support Program delivery in the organization, regardless of the Internal Services delivery model in a department. The 10 service categories are:

• Acquisition Management Services
• Communication Services
• Financial Management Services
• Human Resources Management Services
• Information Management Services
• Information Technology Services
• Legal Services
• Material Management Services
• Management and Oversight Services
• Real Property Management Services

In 2020–21, TBS allocated 27.7% of its planned operating spending and 28.4% of its planned full‑time equivalents to Internal Services in support of its four core responsibilities.

TBS is a knowledge‑based organization that is committed to developing and maintaining a high‑performing workforce. In 2020–21, TBS’s Internal Services:

• improved internal forecasting processes to provide more timely, reliable data to support program delivery and to better inform senior management decisions
• researched, assessed and used new sources of data on the workforce, and created interactive key performance indicator dashboards to support timely, results‑based decision-making
• fully integrated cloud‑based Microsoft 365 and installed collaboration tools such as OneDrive, Microsoft Teams and Microsoft Planner on tablets and on mobile devices to make it easier for employees to work remotely
• ensured that employees have the equipment and tools they need to work remotely during the COVID‑19 pandemic
• conducted a monthly analysis of data on procurement, accommodations and translation services to inform management decision‑making and to improve client service
• identified, through the annual performance and talent management process, high‑performing employees who have leadership potential and provided them with advancement or learning opportunities
• identified skill and knowledge gaps and succession planning needs in each sector, and tailored learning plans to help fill those gaps in specific sectors and organization‑wide
• nominated executives to participate in the annual Executive Leadership Development Program

TBS fostered a healthy and respectful workplace by:

• helping employees and managers deal with pay and benefit issues:
  • it monitored the timeliness of data entry for human resources files to ensure accurate pay for employees and worked closely with the Pay Centre to identify and escalate priority files
  • it made sure the human resources system was updated to avoid pay issues 
• implementing the departmental action plan on wellness by, among other things:
  • providing online training sessions for managers and employees to respond to mental health and wellness needs, such as those relating to the COVID‑19 pandemic
  • redesigning the wellness section of the TBS InfoSite to:
    • make it more accessible and user-friendly
    • provide employees and managers with timely and relevant resources
    • add sections on the COVID‑19 pandemic
• implementing the departmental action plan on harassment prevention, including:
  • meeting the requirements of the new Work Place Harassment and Violence Prevention Regulations by implementing a new departmental policy, updating emergency procedures, enhancing support measures for employees, introducing mandatory training, and implementing a new complaint‑resolution process
  • creating a page on the TBS intranet site on harassment, discrimination and violence
  • forming the Respect and Inclusion Support Services team in the Office of the Ombud, Ethics and Conflict Resolution to help employees who are experiencing harassment, discrimination or violence in the workplace
  • promoting support services that help employees who are experiencing harassment, discrimination and violence and that help managers restore safe and healthy workplaces
  • establishing a multidisciplinary approach to handling harassment, discrimination and violence
  • conducting a consultation on the systemic risk factors that lead to harassment and creating a tool to help leadership teams discuss the ones that apply to their workplace
  • designing and delivering sessions for managers on psychological safety in the workplace
  • offering training on emotional intelligence to all employees

According to the results of the 2020 Public Service Employee Survey, TBS is improving in the following areas relating to Internal Services. It also did better than the overall public service in these areas.

• 77% of employees said they have confidence in the senior management of the department, up from 74% in 2019 and higher than the overall public service result of 68% 
• 66% of employees said senior management makes timely and effective decisions, up from 63% in 2019 and higher than the overall public service result of 60%
• 83% of employees agree that their department does a good job of raising awareness of mental health in the workplace, up from 76% in 2019 and higher than the overall public service result of 81%
• 71% of employees said they would describe their workplace as being psychologically healthy, up from 69% in 2019 and higher than the overall public service result of 68%
• 78% of employees feel they would be supported by their department if they proposed a new idea, up from 74% in 2019 and higher than the overall public service result of 68% 
• 89% of employees feel that the department treats them with respect, slightly higher than the 2019 result of 88% and higher than the overall public service result of 85%
• 74% of TBS employees said their department works hard to create a workplace that prevents harassment, the same as in 2019 and higher than the overall public service result of 71%
• 60% of employees said they feel satisfied with how matters of harassment are resolved in their organization, up from 53% in 2019 and higher than the overall public service result of 56%

On the matter of respect for individual differences, TBS’s 2020 survey results improved slightly from 2019 (from 81% to 82%) but are below TBS’s best results from the 2018 survey (84%).

The 2020 Public Service Employee Survey also asked employees whether, since the beginning of the COVID‑19 pandemic, their department has clearly communicated available mental health resources. At TBS, 84% of employees said the department had clearly communicated these resources, the same result as for the overall public service. This question was new, so the result cannot be compared with the previous year’s results.

Departmental spending breakdown

In 2020–21, TBS’s total spending was $3,230.8 million. Figure 1 shows a breakdown of spending, by category. The largest share of spending (89%) was for public service employer payments, which TBS makes as employer for the core public administration. The balance (11%) was for TBS program expenditures.

Figure 1 - Text version

Departmental spending breakdown

2020-21 TBS Actual spending by category

Vote	Amount	%
TBS’s operations (Vote 1) (Vote 1 + EBP + Ministers’ Allowance)	340.8	11%
Public service employer payments (Vote 20) Vote 20 + PSSA + Payments for the Pay Equity Settlement)	$2,890.0	89%
Total	$3,230.8	100%

Figure 2 shows a breakdown of TBS’s spending of $2,890.0 million in public service employer payments (Vote 20).

These payments include the employer’s share of employee and pensioner benefit plans, provincial health care premiums and other payroll taxes, as well as statutory payments, which relate mostly to pensions.

Figure 2 - Text version

2020-21 TBS Public Service Employer Payments and various statutory items actual spending

Items	Amount	%
Public Service Health Care Plan	$1,026	36%
Life and disability insurance	$813	28%
Provincial payroll taxes, health care premiums and other	$703	24%
Dental care plans	$348	12%
Total Vote 20	$2,890	100%

Figure 3 shows TBS’s program expenditures over time. Program expenditures include operating costs such as TBS employees’ salaries, non-salary costs to deliver programs, and statutory payments relating to the employer’s contributions to TBS employees’ benefit plans.

Figure 3 - Text version

Departmental spending trends for program expenditures (Vote 1)

Fiscal year	Total	Voted	Statutory
2018–19	309,210,365	279,801,932	29,408,433
2019–20	340,756,700	308,427,143	32,329,557
2020–21	340,753,173	304,869,575	35,883,598
2021–22	312,403,878	281,146,231	31,257,647
2022–23	274,964,332	246,892,426	28,071,906
2023–24	271,008,686	243,154,485	27,854,201

As shown in Figure 3, TBS’s program expenditures increased by $31.5 million from 2018–19 to 2019–20 as Budget 2018 initiatives continued and Budget 2019 initiatives started. Budget 2019 initiatives include:

• Stabilization of the Government of Canada’s Pay System (Phoenix)
• Workload Migration and Cloud Enablement initiative
• Funding for the Office of Public Service Accessibility and Centralized Enabling Workplace Fund
• Funding for the implementation of proactive pay equity in the federal public service
• Centre for Regulatory Innovation
• Funding to increase the participation of Inuit firms in the bidding process for government contracts and business opportunities in the Nunavut Settlement Area

TBS’s program expenditures decreased slightly, from 2019–20 to 2020–21 as Budget 2019 initiatives continued.

For 2021–22 to 2023–24, total planned spending for TBS’s core responsibilities is projected to decrease because the following programs sunsetted at the end of 2020–21. Some of these programs may be subject to the renewal process.

• Stabilization of the Government of Canada’s Pay System (Phoenix)
• Transfers from contributing organizations for the Government of Canada Financial and Materiel Management Solution project
• Office of Public Service Accessibility
• Regulatory Reviews
• White Class Action settlement (reprofile from 2019–20 to 2020–21)
• Employee Wellness Support Program (reprofile from 2019–20 to 2020–21)
• Online Regulatory Consultation System
• Program and Administrative Services (PA) Group Modernization

Figure 4 shows TBS’s spending on public service employer payments and statutory items, over time, for the core public administration.

Figure 4 - Text version

Departmental spending trends for public service employer payments (Vote 20) and various statutory items

Fiscal year	Total	Voted	Statutory
2018–19	5,846,647,079	2,739,639,373	3,107,007,706
2019–20	2,633,550,368	2,633,550,311	57
2020–21	2,890,026,563	2,889,612,806	413,757
2021–22	3,048,606,955	3,048,119,626	487,329
2022–23	3,194,056,318	3,193,568,994	487,324
2023–24	3,355,814,980	3,355,327,657	487,323

As shown in Figure 4, actual spending on public service employer payments decreased by $3.2 billion from 2018–19 to 2019–20. The decrease is mainly attributable to the one-time statutory payment of $3.1 billion in 2018–19 to the Public Service Superannuation Account and a decrease of $372.7 million in employer payments related to the Service Income Security Insurance Plan after the program was transferred from TBS to National Defence on April 1, 2019. The decrease is slightly offset by higher public service employer payments due to fluctuations in price and volume.

The $256.5 million increase in actual spending from 2019–20 to 2020–21 stems mainly from lump-sum payments and from a 20% increase in premiums under the public service disability insurance plan, both of which were made to help restore the financial health of the plan.

Actual spending in 2020–21 for public service employer payments is $718.8 million higher than planned spending of $2.2 billion because of additional funding required for the public service insurance plans and for the public service disability insurance plan. Planned spending for 2021–22 and beyond has increased as a result.

Together, government-wide funds (central votes 5, 10, 15, 25, 30 and 35), which the Treasury Board approves for transfer to other federal organizations for items such as government contingencies, government‑wide initiatives, compensation requirements, operating and capital budget carry forward, and paylist expenditures; and public service employer payments (Vote 20) represented the largest portion of TBS’s planned spending in 2020–21. Of that portion, 62% pertained to government‑wide funds and 38% pertained to public service employer payments. TBS’s total funding available for use in its reference levels was reduced accordingly.

As shown in the “Budgetary performance summary for core responsibilities and Internal Services” table, total planned spending is expected to increase by $1 billion in 2021–22. This increase is the result of funding announced in 2020–21 for the public service insurance plans and for the public service disability insurance plan.

Actual spending increased by $256.5 million from 2019–20 to 2020–21. The increase is mainly attributable to Budget 2018 funding provided in 2019–20 for public service employer payments to meet price and volume fluctuations.

The decrease in actual spending of $3.2 billion from 2018–19 to 2019–20 is also mainly the result of the one-time statutory payment of $3.1 billion to the Public Service Superannuation Account.

Financial statements

TBS’s financial statements (unaudited) for the year ended March 31, 2021, are available on the departmental website.

Financial statement highlights

The highlights presented in this section are drawn from TBS’s financial statements. The financial statements were prepared using Government of Canada accounting policies, which are based on Canadian public sector accounting standards.

The figures provided in this section were prepared on an accrual basis; the figures in the other sections were prepared on an expenditure basis. The difference between the figures in the different sections is the result of accrual entries, such as the recognition of services provided without charge by other government departments, the acquisition of tangible capital assets and related amortization expenses, and accrued liability adjustments.

TBS’s total expenses of $3,213 million consist of:

• public service employer payments ($2,853 million in 2020–21 and $2,609 million in
  2019–20), which TBS makes as the employer for the core public administration^{Footnote 18}
• departmental program expenses ($360 million in 2020–21 and in 2019–20)

The $244 million (8.2%) increase in total expenses from 2019–20 to 2020–21 is due to an increase in public service employer payments that stems mainly from lump-sum payments and from a 20% increase in premiums under the public service disability insurance plan, both of which were made to help restore the financial health of the plan.

The $726 million difference between planned and actual results for 2020–21 total expenses is due to a $691 million increase in public service employer payments and a $35 million increase in departmental program expenses. These increases are primarily due to Budget 2018 and Budget 2019 funding that sunsetted at the end of 2019–20 and that was subsequently renewed for public service employer payments and for departmental initiatives such as the Canadian Digital Service, the stabilization of the pay system (Phoenix) and the development of the next generation human resources and pay system, as well as funding subsequently transferred to TBS from other government departments for various shared-cost initiatives.

TBS’s total revenues consist mainly of recovered costs it incurs:

• for the administration of the Public Service Pension Plan
• to provide other government departments with internal support services related to shared financial and human resources management systems, accounting and mail services

The increase of $2.4 million in total revenues from 2019–20 to 2020–21 is mainly due to the recovery of one-time costs incurred for the triennial valuation of the Public Service Pension Plan and for enhancements to the shared financial and human resources management systems.

TBS’s assets consist mainly of accounts receivable from other government departments to pay for their share of employer contributions to employee benefit plans, as well as amounts due from the Consolidated Revenue Fund that may be disbursed without further charges to TBS’s authorities. The increase of $187 million in total net financial assets from 2019–20 to 2020–21 is mostly the result of an increase in accounts receivable related to employer contributions to employee benefit plans.

TBS’s liabilities consist mainly of accounts payable to other government departments and agencies related to employer contributions to employee benefit plans, accrued employee claims for benefits under the public service health and dental care plans, and amounts due to the Consolidated Revenue Fund for accounts receivable previously credited to TBS’s authorities. The increase of $163 million in total liabilities from 2019–20 to 2020–21 is mostly due to an increase in accounts payable set up in 2020–21 for provincial payroll taxes and employer contributions to employee benefit plans.

Departmental net financial assets is the difference between total net financial assets and total liabilities and represents mainly accrued revenues to be credited to authorities in future years upon receipt, partially offset by accrued liabilities to be paid from authorities in future years as they become due. The increase of $24 million from 2019–20 to 2020–21 stems mainly from an increase in accrued revenues related to contributions to group insurance plans from plan members and from certain organizations.

TBS’s non‑financial assets consist mainly of tangible capital assets. The increase of $23 million from 2019–20 to 2020–21 is mostly due to the capitalization of software development costs related to the financial management transformation initiative.

The departmental net financial position has increased by $47 million because of the $24 million increase in departmental net financial assets and the $23 million increase in total non‑financial assets.