Analysis of Programs by Strategic Outcome - 2014-15 Departmental Performance Report - Treasury Board of Canada Secretariat

Performance Measurement

The World Bank’s Government Effectiveness indicator is an index that captures perceptions about the quality of public services, the quality of the civil service, and the degree of its independence from political pressure. This indicator also measures the quality of policy formulation and implementation, and the credibility of the government’s commitment to these policies. In 2014, the last ranking released, Canada ranked 9th among the 34 OECD countries for this indicator. While the result represents a decrease from 2012 when Canada ranked 6th, it remains on target, and Canada retains its position in the 95th percentile of all countries measured. Canada’s lower ranking reflects improvements in government effectiveness in other OECD countries, rather than a drop in Canada’s effectiveness.

Performance Analysis and Lessons Learned

To improve management practices in the Government of Canada, the Secretariat introduced significant changes to the Management Frameworks program in 2014–15, including renewing the Management Accountability Framework (MAF) and launching the Internal Red Tape Reduction initiative.

The Secretariat uses the MAF to gain a broad perspective on the state of management practices and performance in the federal government and to monitor key areas of policy compliance and implementation. Following broad-based government-wide engagement, a renewed MAF was launched in 2014–15. The renewed assessment process provides analysis relating to departmental management practices and policy compliance, as well as performance outcomes and other results.

More details on performance in key policy areas will be discussed in the associated sub-programs. Following are a few high-level results related to this performance indicator:

• Integrated risk management: All departments and agencies assessed demonstrated that they had integrated risk management practices. This confirms that risk management is a well-established practice across the Government of Canada.
• Management of security: Of the 20 departments and agencies assessed in this category, the majority had established governance processes for all security activity areas. While overall performance is improving in this area, the maturity level of security management practices remains generally low and varies considerably among federal organizations.
• Citizen-focused service: On average, 17 per cent of external and internal enterprise services were e-enabled for the 11 departments assessed in this category.
• Information management and information technology: The maturity level of IT stewardship varied considerably among federal organizations, but overall performance in this area improved. Recordkeeping maturity remained generally low, though some progress has been made.

The Secretariat launched the Blueprint 2020 Internal Red Tape Reduction initiative. Public servants who engaged in the Blueprint 2020 exercise reported that many rules and processes are overly complex, that they are developed from the top down and in isolation, and that they tend to lack coherence and consistency. The Secretariat recognizes that as a large, complex organization, the federal government needs internal controls and rules to ensure sound stewardship and accountability; however, these rules and processes must be reasonable and must improve the experience of those who are obliged to adhere to them. The Secretariat established a tiger team to take a bottom-up approach to identifying issues and deriving solutions.

In 2014–15, the Secretariat also initiated a review of the Treasury Board policy suite. The objective of the review is to ensure that individual rules and requirements are proportional to the problems they are meant to address; that they align within the policy suite; and that they are cost-effective for departments and agencies to implement, comply with, and report on.

Sub-Program 1.1.1: Strategic Management and Governance

Through the Strategic Management and Governance sub-program, the Secretariat provides leadership across the Government of Canada to establish a broad management agenda and promote strategic approaches to cross-cutting policy issues on public sector management. Policy centres and federal institutions receive advice and support to maintain the integrity of the suite of Treasury Board policies and review and refine policy instruments to ensure they reflect government priorities, achieve management goals, appropriately manage risk and impose minimal administrative burden.

Sub-program 1.1.1 also identifies new and emerging management and governance issues; promotes increased productivity and innovation in management practices; advances modern reporting; and develops efficient, cost-effective approaches to planning, risk management and oversight and to strengthening the government's operating environment.

Actual spending and FTEs aligned with planned spending and FTEs.

Sub-Program 1.1.2: Sound Management and Decision Making

Through the Sound Management and Decision Making sub-program, the Secretariat provides independent strategic advice, guidance and support to federal organizations for implementing and applying Treasury Board policies, government priorities, risk-management strategies and performance management in support of sound decision making.

Sub-program 1.1.2 includes the Secretariat’s advice and guidance on resource allocation, risks and policy compliance, provided to departments and agencies during the due diligence review of Treasury Board submissions.

It also includes the Secretariat’s MAF activities, which set out the Treasury Board’s expectations for good public service management. MAF is an integrated assessment tool that helps managers, deputy heads and central agencies assess progress and strengthen accountability for management results through indicators and measures that gauge performance over time. This sub-program captures the strategic direction and continuous evolution of MAF, which is informed by the management expectations set out in other sub-programs of the Secretariat’s PAA [Program Alignment Architecture].

Actual spending aligned with planned spending. Actual FTEs were less than planned FTEs because planned FTEs were revised to align with ongoing salary budgets.

Sub-Program 1.1.3: Service Modernization

Through the Service Modernization sub-program, the Secretariat provides direction and oversight to federal organizations to enhance internal and external service delivery efficiency and to improve service experiences and outcomes for individuals, businesses and employees.

Sub-program 1.1.3 works to promote client-centred service; build operational efficiency through a whole-of-government approach to service delivery; develop a culture of collaboration and service excellence; integrate multi-channel service delivery through effective use of modern technology; and enable the effective use of online technologies, including social media and collaborative technologies. This is accomplished through research, analysis, development and maintenance of policies and related policy instruments, community engagement, and leadership.

The authority for this sub-program is the Financial Administration Act.

Actual spending and FTEs were higher than planned spending and FTEs, mainly due to an in-year increase in funding to support the Web Renewal initiative.

Sub-Program 1.1.4: Information Management, Access and Privacy

Through the Information Management, Access and Privacy sub-program, the Secretariat seeks to ensure the continual improvement of the management of information across the Government of Canada by providing strategic direction and leadership to federal institutions on record keeping, business intelligence, data management, web content management, access to information, and privacy protection.

Sub-program 1.1.4 is focused on ensuring that information is safeguarded as a public trust and managed as a strategic asset. It further seeks to ensure that information is open to the public whenever possible, that Canadians can exercise their right to access and reuse information, and that personal information is protected against unauthorized collection, use and disclosure. The sub-program's objectives are accomplished by developing and maintaining policy instruments, encouraging collaboration between government institutions, monitoring and overseeing activities, providing leadership, and working with partners. This includes community development, learning and outreach activities.

The authority for this sub-program comes from the Financial Administration Act, the Access to Information Act and the Privacy Act.

Actual spending and FTEs were higher than planned spending and FTEs, mainly due to internal reallocations made during the year to support Open Government.

Sub-Program 1.1.5: Management of Information Technology

Through the Management of Information Technology sub-program, the Secretariat provides federal organizations with strategic direction and leadership on the management of information technology (IT). Its whole-of-government strategies focus on standardizing, consolidating and re-engineering IT systems to enable effective program and service delivery. The Secretariat also optimizes Government of Canada IT investments through effective management and governance of IT-enabled projects, and supports Shared Services Canada, a centralized department that provides email, data centre and network services to the largest departments in the Government of Canada.

Sub-program 1.1.5 objectives are achieved through IT frameworks, policies, directives and standards, such as the Treasury Board Information Technology Standards (TBITS), that guide Government of Canada institutions in implementing specific technical issues. The Secretariat monitors departmental implementation of this sub-program through oversight, evaluation, and reporting activities, including a challenge function that seeks to ensure best value in IT and web investments on behalf of taxpayers.

The authority for this program is the Financial Administration Act.

Actual spending was higher than planned spending due to internal adjustments made at the beginning of the fiscal year to realign resources between the Management of Information Technology and Government Security sub-programs.

Sub-Program 1.1.6: Government Security

Through the Government Security sub-program, the Secretariat contributes to improving the Government of Canada's security by supporting departmental and government-wide security management to protect information, assets, individuals and services against internal and external threats. Sub-program 1.1.6 focuses on governance, departmental security management (including cyber security), identity management, individual security screening, physical security, security of information and information technology, security in contracting, and the continuity of government operations and services. These activities enable effective and efficient management of security within departments and throughout government.

The objectives of this sub-program are accomplished through developing and maintaining policy instruments; enabling the security community by providing guidance and sharing best practices; encouraging collaboration between departments; monitoring and overseeing security activities; providing leadership and working with partners; developing a cyber-authentication renewal and federating identity program in support of service modernization; and supporting Government of Canada strategic security initiatives, including initiatives related to Canada's Cyber Security Strategy.

The authority for this program derives from the Financial Administration Act.

Actual spending and FTEs were lower than planned spending and FTEs, due to internal adjustments made at the beginning of the fiscal year to reallocate resources from the Government Security sub-program to the Management of Information Technology sub-program.

Sub-Program 1.1.7: Communications and Corporate Identity

Through the Communications and Corporate Identity sub-program, the Secretariat helps Government of Canada departments and agencies effectively manage communications and corporate identity within their organizations. Sub-program 1.1.7 is necessary to ensure that federal organizations inform the public of government policies, programs, services and initiatives; consider the public's views and needs in their development; and visually identify government assets and activities through the official symbols of the Government of Canada.

To meet these goals, the Secretariat proposes government-wide policy direction to Treasury Board ministers, implements approved policy instruments, examines the extent to which departments are in compliance with key policy requirements, and takes corrective measures to address compliance issues. To assist compliance with policy requirements, the Secretariat provides policy interpretation, advice and outreach to all government departments and agencies, in particular to communications staff.

The legislative authority for this program is section 7 of the Financial Administration Act.

Actual spending was higher than planned spending, mainly due to paylist expenditures. Actual FTEs aligned with planned FTEs.

Sub-Program 1.1.8: Regulatory Management

Through the Regulatory Management sub-program, the Secretariat supports the Treasury Board as a committee of ministers in considering Governor in Council regulations and orders. Regulation is one of the key instruments to advance the government's policy agenda and to fulfill statutory responsibilities through a number of acts to protect the health, safety and security of Canadians, their environment and economy. Regulations must be developed and implemented in a way that reduces burden on business, makes it easier to do business with regulators, and improves service and predictability for all stakeholders. Canada's regulatory policy is the Cabinet Directive on Regulatory Management.

The Secretariat supports the Treasury Board for the continuum of regulatory development, implementation and monitoring through its three main business lines: 1) Challenge function—regulatory proposals are reviewed on a submission-by-submission basis to ensure quality design; 2) Policy leadership—guidelines and tools are developed to assist departments in complying with the directive when preparing regulatory submissions, including new requirements related to systemic regulatory reforms; and 3) Oversight—ongoing monitoring and reporting of regulatory system performance to support red tape reduction efforts.

Actual spending was lower than planned spending, mainly due to project delays. Actual FTEs aligned with planned FTEs.

Performance Analysis and Lessons Learned

Effective people management was evaluated as part of the renewed MAF assessment process, which replaced aggregate ratings (described in the performance indicators above) with more detailed analysis and specific measures for official languages and values and ethics.

The assessment identified a number of areas of strength in people management:

• Representation and recruitment of all four employment equity designated groups exceeded the workforce availability.
• The first year’s implementation of the new Directive on Performance Management progressed well. Almost all employees government-wide had documented performance objectives (94.68 per cent). The majority (90.85 per cent) had mid-year conversations on performance, and 85.13 per cent of employees were rated and assessed at year-end.
• The results of the 2014 Public Service Employee Survey (PSES) confirmed that most employees government-wide felt they are treated with respect; liked their job; and had the information, training, and equipment they need for a safe and healthy workplace.
• Almost all organizations met the requirements of the Policy on Conflict of Interest and Post-Employment and the Policy on Official Languages.
• The employee turnover remained low across large and small departments and agencies.

Areas for improvement in people management were also identified:

• The 2014 PSES results showed that employee perceptions of harassment and discrimination in the workplace were significantly less positive than in 2011. Fewer than half of employees felt they could initiate a formal recourse process without fear of reprisal.
• Confidence in senior management remained low; fewer than half of employees believed that senior management makes effective and timely decisions, and even fewer believed that unsatisfactory performance is managed effectively.
• Promotions for Aboriginal persons and persons with disabilities were low, and their turnover was high compared with other federal government employees.
• The time it takes to staff key positions and track sick leave trends was also identified as an area for improvement.

Sub-Program 1.2.1: Direction Setting

Through the Direction Setting sub-program, the Secretariat ensures that organizations of the core public administration receive high-quality advice, guidance and support for people management and related policy instruments.

Sub-program 1.2.1 includes developing and implementing strategic frameworks; establishing, assessing and monitoring performance expectations; and establishing risk-based policies in areas of employer responsibility.

This sub-program is supported by research, forecasting and business intelligence to enable evidence-based decision making.

Actual spending and FTEs largely aligned with planned spending and FTEs.

Sub-Program 1.2.2: Enabling Infrastructure.

Through the Enabling Infrastructure sub-program, the Secretariat guides and supports deputy heads’ collective responsibility for putting in place efficient and effective people management through common business processes, information systems, best practice tools and sound data.

The objectives of sub-program 1.2.2 are achieved by strengthening the existing governance of human resources management; championing the human resources functional community; and establishing a broad engagement strategy to facilitate a shift in human resources practices, behaviours and relationships, while leveraging Web 2.0 technology. Defining a common way to deliver human resources services throughout the Government of Canada will establish a comprehensive blueprint for deriving data architecture and definitions.

The Secretariat builds on this foundation by maximizing investments made in information technology solutions for modernizing human resources services and programs and by increasing its capacity to define, capture and measure business intelligence, and understand the perceptions and needs of public servants.

Actual spending and FTEs were lower than planned spending and FTEs, mainly due to the transfer of programs to the Canada School of Public Service.

Sub-Program 1.2.3: Comprehensive Management of Compensation

Through the Comprehensive Management of Compensation sub-program, the Secretariat provides advice to the Treasury Board, the Department of Finance Canada, the Privy Council Office and other federal organizations in support of the Treasury Board’s management office, employer and budgeting roles.

Comprehensive compensation management encompasses wages and other cash compensation, including pay equity and equitable compensation. It involves establishing and maintaining public service pensions and benefits and other non-monetary forms of compensation, such as terms and conditions of employment and other related workplace policies.

The Secretariat develops plans and strategies related to total compensation through collective bargaining; external, independent advisory committees; and active stakeholder engagement with organizations, bargaining agents and separate agencies, the Canadian Armed Forces and the Royal Canadian Mounted Police (RCMP). This allows the Government of Canada to appropriately recruit and retain its workforce. To support consistency and results, the Secretariat performs an oversight and performance management function in applying its workforce policies to ensure program delivery standards for all employees, including executives.

Actual spending was higher than planned spending, mainly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. Actual FTEs were lower than planned FTEs mainly due to delays related to the administration of the Public Service Superannuation Act.

Performance Analysis and Lessons Learned

The Policy on Management, Resources and Results Structures supports evidence-based decision making through the development of a common government-wide approach to identifying programs and to collecting, managing, and reporting on financial and non-financial information related to those programs.

As a result of MAF renewal, the Secretariat replaced aggregate ratings for managing for results (described in the performance indicators above) with a more tailored analysis. The 2014–15 MAF assessment process indicated that federal organizations’ Program Alignment Architectures and Performance Measurement Frameworks comply with the Policy on Management, Resources and Results Structures and are being used for planning, reporting, managing for results, and trend analysis. The Secretariat continued to work with organizations to further improve the overall quality of Program Alignment Architectures and Performance Measurement Frameworks.

The Policy on Evaluation supports the collection of credible, neutral evidence about the relevance and performance of direct program spending. Such information is used to improve policies and programs, to manage expenditures, to provide advice for Cabinet decisions, and to report to the public.

As a result of MAF renewal, the assessment of the evaluation function as part of the MAF was placed on hold. Nonetheless, the performance of the government-wide evaluation function was monitored through the Annual Report on the Health of the Evaluation Function. In general, it was found that organizations complied with the Policy on Evaluation and demonstrated acceptable evaluation coverage, quality and use. The Secretariat continued to work with organizations to improve the collection of performance measurement data needed to support the evaluation of program effectiveness, efficiency and economy.

Sub-Program 1.3.1: Results-Based Expenditure Management

Through the Results-Based Expenditure Management sub-program, the Secretariat aims to ensure that program spending focuses on results, provides value for taxpayers’ money, and aligns with government priorities.

The Secretariat undertakes outreach activities, provides guidance and assesses performance so that federal organizations are equipped with the knowledge, tools and resources needed to manage for results. The Secretariat also supports reviews of government spending to drive excellence in program performance and services to Canadians, and to ensure value for money.

The Policy on Management, Resources and Results Structures and the Policy on Evaluation underpin this sub-program.

Actual spending aligned with planned spending. Actual FTEs were lower than planned FTEs, mainly due to staffing delays.

Sub-Program 1.3.2: Expenditure Management Advice and Reporting

Through the Expenditure Management Advice and Reporting sub-program, the Secretariat supports sound decision making by providing reliable, detailed and timely information and by reporting on spending and resource allocation.

In support of the Treasury Board’s budget management role in the government-wide expenditure cycle (i.e., expenditure planning, resource allocation and decision making), the Secretariat provides independent analysis and advice to the Treasury Board and exercises a challenge function for expenditure and other proposals from federal organizations.

The Secretariat also develops departmental and whole-of-government views of expenditure management and provides support during the annual budget process, as well as advice on access to the Treasury Board’s Central Votes and management reserve. The Secretariat leads the process for obtaining parliamentary approval of appropriation acts by preparing the government’s Main and Supplementary Estimates for tabling in the House of Commons; explaining Estimates requirements to parliamentary committees; and providing ongoing guidance and strategic advice to government departments and agencies in preparing their Reports on Plans and Priorities and Departmental Performance Reports.

This sub-program also includes reporting to Parliament and Canadians more broadly at the whole-of-government level.

Actual spending aligned with planned spending. Actual FTEs were lower than planned FTEs to align with ongoing salary budgets.

Sub-Program 1.3.3: Compensation Expenditure Management

Through the Compensation Expenditure Management sub-program, the Secretariat provides advice to the Treasury Board, the Department of Finance Canada, the Privy Council Office and other federal organizations in support of the Treasury Board’s role in managing total compensation expenditures across the federal government. This role includes identifying total compensation and pensions and benefits cost pressures.

The Secretariat develops analysis and recommendations for managing compensation, including wages and other cash compensation, pensions and insurance benefits, and paid time off. As part of this sub-program, the Secretariat also provides advice on managing the compensation reserve.

Actual spending and FTEs largely aligned with planned spending and FTEs.

Performance Analysis and Lessons Learned

Canadians and parliamentarians expect timely, reliable information on how the government spends public funds to achieve results. The Secretariat continued to help prepare accurate financial information for the Public Accounts of Canada and The Fiscal Monitor, in support of greater transparency and accountability.

As a result of MAF renewal, the assessment of the internal audit function as part of the MAF was placed on hold. The MAF continues to assess financial management and the management of acquired services and assets.

For financial management, the renewed MAF assessment process indicated that, as a whole, the total number of errors identified in the financial information submitted to the Receiver General and the Secretariat for the Public Accounts of Canada declined in comparison with the previous two years. The financial information used in preparing the Public Accounts of Canada and The Fiscal Monitor was reported in a timely manner by the vast majority of government organizations. The Secretariat also continued its focus on chief financial officer (CFO) talent management. The majority of departments and agencies that hired new CFOs consulted the Secretariat in the appointment process.

Regarding internal audit, practice inspections demonstrated the maturity and strength of the internal audit function across the Government of Canada. The performance narrative for sub-program 1.4.2: Internal Audit provides more detailed information on the performance of this aspect of the Financial Management program.

The renewed MAF results for the management of acquired services and assets demonstrated that departments adopted key policy requirements in the areas of investment planning, project management, procurement, real property, and materiel management.

Sub-Program 1.4.1: Financial Management, Oversight and Reporting

Through the Financial Management, Oversight and Reporting sub-program, the Secretariat seeks to strengthen financial management, oversight of financial performance in departments and agencies, and financial reporting in the Government of Canada. The Secretariat establishes performance expectations for effective financial management and assists departments and agencies in achieving these expectations.

The Secretariat provides advice on the interpretation of financial policy instruments, clarifies the roles and responsibilities of policy stakeholders, monitors compliance with policy instruments, and reviews government financial statements to ensure they comply with accounting standards. It also provides enabling functions, community development and capacity building.

These activities are ultimately intended to improve the financial management function across government, as well as the quality and timeliness of the financial information provided to parliamentarians and Canadians on the state of government-wide financial results.

Actual spending was higher than planned spending, mainly due to the creation of the Costing Centre of Expertise. Actual FTEs largely aligned with planned FTEs.

Sub-Program 1.4.2: Internal Audit

Through the Internal Audit sub-program, the Secretariat provides leadership in applying the internal audit function across government and promotes independent audit assurance through internal audit practices. The Secretariat establishes performance expectations for effective internal audit. It assists departments and agencies in achieving these expectations by providing them with advice on the interpretation of the Policy on Internal Audit, clarifying the roles and responsibilities of policy stakeholders and monitoring compliance.

To further strengthen the internal audit function government-wide, the Secretariat promotes professionalism and capacity building in the internal audit community and supports the recruitment, appointment and development of external audit committee members. The Secretariat also leads horizontal audits in large departments and agencies; performs horizontal and core control audits in small departments and agencies; and, since April 2012, provides internal audit services to the regional development agencies.

The Secretariat performs this work to increase and strengthen stewardship, accountability, risk management, governance and internal controls within departments and agencies across the federal government.

Actual spending was lower than planned spending, mainly due to internal adjustments made during the year to support the Costing Centre of Expertise. Actual FTEs aligned with planned FTEs.

Sub-Program 1.4.3: Assets and Acquired Services

Through the Assets and Acquired Services sub-program, the Secretariat monitors performance on the management of real property, materiel, procurement, projects and investment planning. The Secretariat provides leadership and oversight to inform decision making by ministers and officials in central agencies and departments. It develops and implements Treasury Board’s policies to support efficient management of public assets and acquired services.

To help departments achieve performance expectations, the Secretariat provides advice on the interpretation of policies and standards, monitors compliance and facilitates capacity development within the relevant functional communities.

Actual spending was lower than planned spending largely due to an in-year transfer of expenditures to Internal Services for maintenance and support of the Directory of Federal Real Property and the Federal Contaminated Sites Directory. Actual FTEs largely aligned with planned FTEs.

Performance Analysis and Lessons Learned

Planned spending included $4.4 billion for government-wide funds in Treasury Board Votes 5, 10, 25, 30 and 33, and $2.7 billion for public service employer payments for Vote 20 and for payments made under the Public Service Pension Adjustment Act.

Total authorities available for use for Votes 5, 10, 25, 30, and 33 totaled roughly $2.0 billion at the end of the fiscal year. The Secretariat received approximately $4.4 billion in the Main Estimates and $0.6 billion in-year through the Supplementary Estimates. The Secretariat's actual spending included $2.9 billion in Treasury Board Vote 20 for public service employer payments and statutory payments under the Public Service Pension Adjustment Act, and for employer contributions made under the Public Service Superannuation Act.

Performance Analysis and Lessons Learned

In 2014–15, the Secretariat completed a number of internal initiatives to better support programs and meet corporate obligations more effectively.

The Secretariat finalized planning for its move in 2015–16 to new office accommodations, with a view to consolidating and reducing office space. It also implemented technologies to support collaboration and a mobile and connected workforce.

After a comprehensive review process, the Secretariat renewed its governance structure. The new structure provides oversight over the department’s project and resourcing issues, as well as over government-wide policy issues. Its internal processes make effective use of new technology to transition from paper-based meeting materials to electronic formats such as tablets.

In addition, the Secretariat unified multiple transformation initiatives, including Blueprint 2020 initiatives, under “This is TBS,” to create a more collaborative, open and agile organization with better enabling technologies and reduced office space.

The Secretariat renewed its Strategic Outcome, Program Alignment Architecture and Performance Measurement Framework to better support resource alignment and management for results.