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

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results.

Performance Measurement

Performance Indicator Target Actual Result
Canada’s ranking in The World Bank’s Worldwide Governance Indicators for the third indicator, “Government Effectiveness” Top 10 among Organisation for Economic Co-operation and Development (OECD) member countries The World Bank’s Worldwide Governance Indicators rank Canada 9th among 34 OECD countries for government effectiveness

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.

Program 1.1: Management Frameworks

The Management Frameworks program establishes principles for sound governance and management in the Government of Canada by helping ministers set government-wide policy direction in targeted areas. These areas include service and program modernization, information management, information technology, security, communications and regulatory management.

This program achieves its results by communicating clear expectations for deputy heads and by adopting principles-based approaches and risk-informed oversight. Working with departments, agencies and functional communities (e.g., regulation, information technology, security), the Secretariat provides leadership, oversight, assessment and guidance in areas related to management policy and regulatory development, compliance and performance reporting. This work also includes responding to emerging public sector management issues and promoting informed risk-taking, innovation, cost-effectiveness, efficiency, transparency and accountability.

This program is underpinned by a broad set of enabling legislation, including the Financial Administration Act and the Federal Accountability Act.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
51,725,463 51,725,463 57,678,755 54,481,225 2,755,762
2014– Human Resources (full-time equivalents [FTEs])
Planned Actual Difference
(actual minus planned)
382 385 3

The difference between planned spending and total authorities available for use is mainly due to additional funding received during the year for the Web Renewal initiative and Open Government, and this program’s portion of a one-time transition payment for salary in arrears for the Secretariat’s employees. The Web Renewal initiative and Open Government accounted for most of the increase in actual expenditures over planned expenditures. The increase was offset by project delays within the program and a transfer of funds to Industry Canada for the Canadian Open Data Experience, to promote the use of government data to develop consumer-friendly applications. Actual FTEs aligned with planned FTEs.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Sound governance and management in the Government of Canada Percentage of departments and agencies that obtained at least an “acceptable” MAF rating for citizen-focused service, management of security, integrated risk management, information management, and information technology management Not available No longer applicable due to changes in the MAF methodology. See narrative below.

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–, 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–. 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–, 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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
3,922,779 3,552,266 -370,513
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
35 30 -5

Actual spending and FTEs aligned with planned spending and FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Federal institutions are equipped with policy instruments to meet their accountabilities and achieve results Percentage of active policy instruments that meet or exceed expected maturity milestones 100% Not applicable. See narrative below.
Performance Analysis and Lessons Learned

Maturity milestones refer to the four stages that Treasury Board policy instruments undergo as they are implemented: awareness, adoption, achieving results and optimization. The Secretariat monitors policy implementation in various ways, including through five-year policy reviews, horizontal audits and the annual MAF assessment.

In 2013–, the Secretariat committed to working with organizations to develop performance indicators that gauge the effectiveness of policy implementation. The expectation was to link maturity milestones to the five-year review requirements to give departments an overall status update on the amendments identified in their five-year reviews.

During 2014–, however, the Secretariat decided to undertake a more in-depth review of the Treasury Board policy suite as a whole. Due to this change in direction, maturity milestones are no longer an appropriate indicator of performance, and the above indicator cannot be reported on.

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].

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
14,067,476 13,724,446 -343,030
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
106 93 -13

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

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Advice and direction provided to departments and agencies supports sound management and decision making within departments and agencies Percentage of a representative group of deputy heads in agreement that the advice and direction provided by the Secretariat supports sound management and decision making 80% 94%
Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for use of information for decision making Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

Deputy heads from 29 departments and agencies provided feedback on the Secretariat’s advice and challenge function, and on the alternative approaches that were provided to address the challenges faced by their organizations. The Secretariat exceeded its target for this indicator, with 94 per cent of deputy heads saying that the Secretariat’s advice and direction met their needs. This represents a 19-percentage-point increase from last year’s results. In particular, deputy heads noted improvements to the Guidance for the Preparation of Treasury Board Submissions and in the capacity of the Secretariat’s analysts to engage with departments.

Other sub-program activities were focused on the renewal of the annual MAF assessment process following broad-based engagement with deputy heads and departments. The aim of the MAF renewal was to reduce the reporting burden of departments and agencies and to improve the information about management practices and performance available to deputy heads and the Secretariat.

In 2014–, a total of 37 large departments and agencies and 23 small departments and agencies were assessed through the renewed MAF assessment process. Rather than providing ratings, the assessment provided analysis relating to departmental management practices and policy compliance, as well as performance outcomes and other results. Final 2014– results were released to deputy heads through tailored departmental reports that included analysis and comparative information, allowing organizations to gauge their results. A government-wide report was also released that provided analysis of trends observed across the key areas of management assessed.

Follow-up discussions with deputy heads confirmed that the renewed MAF assessment process provided valuable information and useful reports that management teams could discuss. While deputy heads noted improvements to both the process and the results, they also identified a need to further refine the methodology to ensure accurate and comparable data.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
3,150,476 5,843,742 2,693,266
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
31 48 17

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.

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Departments and agencies are equipped with knowledge and guidance to implement sound service and Web 2.0 management practices Percentage of planned policy activities completed 80% 97%
Performance Analysis and Lessons Learned

The Secretariat exceeded its target for completion of planned policy activities to promote client-centred service, foster a culture of collaboration and service excellence, and enable the effective use of online technologies, including social media and collaborative technologies. The Secretariat completed several planned policy activities, notably the publication of the Guideline on Service Management to support the implementation of the new Policy on Service. It also developed and implemented government-wide guidance for the use of internal and external online collaborative technologies such as social media platforms.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,279,166 8,792,727 1,513,561
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
58 66 8

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

Performance Results
Expected Result Performance Indicators Targets Actual Results
Institutions are equipped with knowledge and guidance to safeguard information as a public trust, and manage it as a strategic asset Percentage of planned policy activities completed 75% 80%
Performance Analysis and Lessons Learned

The Secretariat exceeded its target for completion of planned policy activities to make it easier for Canadians to access government information and their personal information.

As committed to in Canada's Action Plan on Open Government 2014–, the Secretariat published the Directive on Open Government.

The Secretariat also published the Directive on Privacy Practices and guidance on information management (IM) practices to support the management of instant messages and email. Amendments to the Access to Information Manual were nearly completed, and amendments to the Privacy Manual were initiated. The Secretariat also revised the Recordkeeping Assessment Tool that was used to support the first round of the renewed MAF assessment, and developed an IM performance indicator tool that will be tested in 2015–.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
5,997,281 8,335,606 2,338,325
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
53 63 10

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.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Program roadmaps for back office IT applications are approved Percentage of five-year roadmaps approved 50% 97.5%
Departments and agencies are equipped to move toward standardization and consolidation of the Government of Canada's web presence and IT solutions Percentage of departmental IT plans that address Government of Canada IT modernization priority initiatives 50% 84%
Percentage of planned policy activities completed 75% 71%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat ensured that federal organizations continued to streamline and modernize core back office IT applications by exceeding its target for bringing organizations in line with IT modernization priority initiatives.

Back office transformation was advanced. The Secretariat exceeded its approval target for five-year roadmaps, developing and approving back office IT application plans for human resources, financial management and interoperabilityFootnote 3. A five-year roadmap for GCDOCS, the official document and records management solution for the Government of Canada, was also developed.

In 2014–, the Secretariat launched an in-depth review of the Treasury Board policy suite as a whole, including IT policy. During the year, an adjustment to the planned policy activities for 2014– was made to align with this review, leading to a gap between the original targets established in the Report on Plans and Priorities (RPP) and the year-end results.

The Secretariat advanced many planned policy activities, including drafting guidance on architecture review board operations, IT planning, application portfolio management, and IT expenditure reporting. In addition, the Secretariat established and launched a process to develop the first GC-integrated IT Plan, and published two IT policy implementation notices that provided government departments with direction on the secure use of portable data storage devices and on the disposal of Windows XP devices.

To implement its Web Renewal initiative, the Secretariat developed and implemented specifications for standardizing and consolidating departmental website content to Canada.ca, the new web presence for the Government of Canada. This initiative aims to help deliver easy online access to government information and services.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
11,382,125 8,818,357 -2,563,768
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
56 45 -11

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.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies are equipped with knowledge, direction and guidance to implement and evolve sound security management practices Percentage of planned policy activities completed 75% 68%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat launched an in-depth review of the Treasury Board policy suite as a whole, including government security policy. During the year, an adjustment to the planned policy activities for 2014– was made to align with this review, leading to a gap between the original targets established in the RPP and the year-end results.

The Secretariat continued to revise the suite of government security policy instruments to enable efficient and effective security modernization. As part of the broad review of the policy suite, the mandatory requirements of the Policy on Government Security and its subordinate directives and standard were scrutinized to identify areas that could be simplified, and the security policy architecture was revised. Draft revised instruments were developed in consultation with the security community.

The Secretariat published a renewed Standard on Security Screening and finalized the draft Guideline on Identity Assurance. The Secretariat continued to demonstrate leadership and to openly engage the security community, providing guidance and leading practices, and fostering collaboration.

The Secretariat also advanced work on the Enterprise Security Architecture, which is focused on providing standardized solutions for cost-effective, resilient and secure IT services. This work was undertaken in collaboration with Communications Security Establishment Canada and Shared Services Canada.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
753,653 843,332 89,679
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
9 7 -2

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

Performance Results
Expected Result Performance Indicators Targets Actual Results
Communications and corporate identity are effectively managed within departments in a manner consistent with the Communications Policy of the Government of Canada and the Federal Identity Program Policy Percentage of departments in compliance with selected requirements of the Communications Policy of the Government of Canada and the Federal Identity Program Policy, and their related instruments 80% 80%
Performance Analysis and Lessons Learned

Government departments met performance expectations set by the Secretariat in the area of communications and corporate identity. The compliance level attained provides a snapshot of the extent to which institutions effectively managed communications and corporate identity requirements.

Government-wide monitoring of selected requirements of the Communications Policy of the Government of Canada and the Federal Identity Program Policy was based on evidence submitted by organizations or available in the public domain. The increased compliance rate over the previous year (74 per cent) reflects outreach efforts by the policy centre and the common service organizations at Public Works and Government Service Canada, and shows that departments are knowledgeable about their obligations under the policy requirements selected for 2014–.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
5,172,507 4,570,750 -601,757
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
34 34 0

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

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Regulations approved by the Governor in Council address risks and limit new administrative burden on business via application of the reconciliation requirement of the One-for-One Rule Percentage of regulations approved by the Governor in Council that address risks while controlling administrative burden on business through the One-for-One Rule 90% 100%
Performance Analysis and Lessons Learned

The Secretariat achieved its performance expectations in the area of regulatory management. Federal organizations continued to offset administrative burden on business and eliminate regulations in accordance with the One-for-One Rule, while designing regulations that address risk. From 2012 until , the One-for-One Rule resulted in a net annual reduction of roughly $23.5 million in administrative burden on business, and an estimated annual savings of more than 340,000 hours in time spent dealing with regulatory red tape.

Other regulatory reforms also played an important role in addressing business irritants and controlling administrative burden arising from regulation. In 2014–, the Administrative Burden Baseline count was introduced. Departments and agencies were required to count their regulatory requirements and post the counts online. The baseline was established on time and will be updated annually.

Results on implementing all Red Tape Reduction Action Plan reforms were reported in the Annual Scorecard Report. At the end of , the Red Tape Reduction Act (Bill C-21) was being studied by the Standing Senate Committee on National Finance. It was subsequently passed by the Senate and received royal assent, giving the force of law to the One-for-One Rule.

Program 1.2: People ManagementFootnote 4

The People Management program supports activities of the Treasury Board in its role as the employer of the core public administration. The program’s primary objectives are to lead people management and promote leadership excellence, to support human resources infrastructure and to ensure the appropriate degree of consistency in people management across the public service. In certain instances, activities extend beyond the core public administration to separate agencies, members of the Royal Canadian Mounted Police and the Canadian Armed Forces, locally engaged staff, students and appropriation-dependent Crown corporations.

To support deputy heads and provide Parliament and Canadians with a clear view of the overall state of people management, this program enables the development and implementation of direction-setting strategic frameworks and policies for classification, executive management, official languages, and values and ethics; the establishment of people management indicators, measures, oversight and monitoring; and the collection and analysis of reliable and consistent data regarding the public service. This program enables prudent fiscal management of resources in the areas of classification, total compensation (collective bargaining, wages and salaries, terms and conditions of employment, pensions and benefits) and labour relations, and it supports departments in implementing decisions by the Government of Canada regarding expenditures and programs.

Responsibilities in areas other than classification and labour relations are shared with the Expenditure Management program. The People Management program is underpinned by a number of pieces of legislation, which are identified in the Policy Framework for People Management and the Policy Framework for the Management of Compensation.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
64,550,201 64,550,201 139,264,938 128,785,777 64,235,576
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
451 404 -47

The difference between planned spending and total authorities available for use is mainly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. Payouts made for the same settlement account for most of the difference between actual and planned spending, offset by a decrease in revenue related to the administration of the Public Service Superannuation Act and to frozen funds earmarked for Charter challenges. Actual FTEs were lower than planned FTEs, largely due to the transfer of programs to the Canada School of Public Service and staffing delays related to the administration of the Public Service Superannuation Act.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Effective people management in the Government of Canada Percentage of assessed departments and agencies that obtained a MAF rating of at least “acceptable” for people management Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of assessed departments and agencies that obtained a MAF rating of at least “acceptable” for areas of weakness identified in the previous round of assessment for people management Not available No longer applicable due to changes in the MAF methodology. See narrative below.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
21,700,682 20,305,658 -1,395,024
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
151 140 -11

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

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Federal organizations are equipped with the knowledge and guidance to address people management priorities Percentage of people management policy instruments that have been reviewed that comply with established review cycles 80% by 80%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat’s work in this sub-program focused on meeting the target for reviewing people management policy instruments, supporting the implementation of legislative changes made in 2014 to the Public Service Labour Relations Act, and providing guidance for responding to the Ebola outbreak.

The Secretariat continued to streamline and consolidate 12 policies, drafting the Policy on Workforce Excellence and the associated Directive on Duty to Accommodate, the Directive on Term Employment and the Standard on Building Emergency and Evacuation Team. Significant policy review work was undertaken on the Policy on Terms and Conditions of Employment and other labour relations instruments.

Work progressed in preparing for changes to the recourse system, required as a result of the 2013– legislative changes to the Public Service Labour Relations Act and the merging of tribunals to create the Administrative Tribunals Support Service of Canada.

Essential service designations were identified by all departments as per legislation, and consultations subsequently took place with bargaining agents. Legal decisions in other jurisdictions relating to labour relations were monitored, and their implications were analyzed in light of current federal government policy.

The Secretariat closely monitored the Ebola situation in West Africa and helped facilitate a program in conjunction with the Canadian Red Cross to allow public servants to volunteer. The Secretariat worked with other government entities to ensure that federal organizations were equipped with information and direction on the Ebola situation.

In addition, all organizations across government have demonstrated progress in engaging in dialogue on values and ethics.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
26,984,328 25,308,322 -1,676,006
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
207 178 -29

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.

Performance Results
Expected Result  Performance Indicators Targets Actual Results
Federal organizations are equipped with processes, tools, data or systems to continuously improve their people management practices Percentage of organizations that have adopted standardized processes, tools, data or systems 80% by 98%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat focused on putting infrastructure in place to implement policy and collective bargaining requirements, as well as new human resources software and people management systems. As a result, the Secretariat exceeded its target for ensuring that federal organizations are equipped with the processes, tools, data and systems to continuously improve their people management practices.

Activities undertaken in this sub-program included the following:

  • The Directive on Performance Management was fully implemented across the core public administration. The Secretariat put in place an automated, online performance management application; mandatory requirements for performance management training for all core public administration managers; and performance management review panels.
  • The Secretariat ensured that government-wide labour relations policy advice and programs were consistent and coherent, and that deputy heads were supported in the implementation of their direct authorities.
  • The Secretariat piloted new software to streamline the advice it provides to departments on interpreting collective agreements. Tools were developed to help departments interpret collective agreements, employer policies, and terms and conditions of employment.
  • In partnership with Public Works and Government Services Canada, the Secretariat continued building and modernizing the Government of Canada human resources system, My GCHR, to include new functionality. Departments, representing a total of 32,000 FTEs, adopted the centrally managed standard as of , thereby contributing to a reduction in enterprise-wide costs and increasing the consistency of human resources service delivery.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
15,865,191 83,171,798 67,306,607
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
93 85 -8

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 Results
Expected Result Performance Indicators Targets Actual Results
The comprehensive management of compensation supports the Government of Canada to meet its objectives for sustainable recruitment and retention and to fulfill its employer obligations Percentage of Government of Canada objectives met in the areas of recruitment and retention or employer obligations 100% by 100%
Performance Analysis and Lessons Learned

Progress on the comprehensive management of compensation continued. The Secretariat’s commitments in this area involve a wide range of initiatives and activities, including strategic expenditure management, pensions and benefits, disability and sick leave management, pay equity complaints management, and job classification renewal.

Regarding pensions, the Secretariat developed and guided legislative amendments to the Members of Parliament Pension Plan relating to suspended members to ensure that periods of suspension are not pensionable. The Secretariat also followed up on the recommendations of the 2014 Spring Report of the Auditor General of Canada pertaining to public sector pension plans.

The government remained committed to supporting the health and wellness of employees and retirees while ensuring that the Public Service Health Care Plan is affordable, sustainable and comparable with other employer-sponsored health care plans in Canada. Negotiated changes to the Public Service Health Care Plan were successfully implemented, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

A new round of collective bargaining was initiated with all 27 groups in 2014–. A total of 93 negotiation sessions were held with bargaining agents, representing all 27 groups.

Work progressed in aligning the compensation regimes of separate agencies, the Canadian Armed Forces and the Royal Canadian Mounted Police with that of the core public administration.

In addition, as part of its efforts to effectively manage compensation, the Secretariat supported departments and agencies in recruiting and retaining the right talent for their business needs. The Secretariat developed strategies to simplify recruitment, to create candidate pools for frequently needed work, and to pilot interdepartmental micro-missions to facilitate employee mobility and retention.

Program 1.3: Expenditure Management

The Expenditure Management Program aims to align resources to achieve government priorities in a way that maximizes value for money and provides a whole-of-government perspective on matters related to direct program spending.

Working with appropriated organizations and most Crown corporations, the Secretariat undertakes the review, analysis and challenge of plans and proposals that involve federal spending. This is achieved by developing expenditure forecasts and strategies, management of total compensation and promoting results-based management.

This work, as well as the production of government Estimates documents and reporting to Parliament, forms part of the Expenditure Management System. This is the framework for developing and implementing the government’s spending plans and priorities within the limits established by the budget in coordination with the Department of Finance Canada and the Privy Council Office.

The primary legislation underpinning program activities is the Financial Administration Act, as well as the appropriation acts associated with the Estimates.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
31,791,958 31,791,958 31,548,046 30,431,157 -1,360,801
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
261 231 -30

Planned spending and total authorities available for use largely aligned with actual spending. Actual FTEs were less than planned FTEs due to staffing delays.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Government expenditures facilitate the achievement of government priorities in a prudent, effective and accountable manner Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for managing for results Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of large organizations that obtained a MAF rating of at least “acceptable” for quality and use of evaluation Not available No longer applicable due to changes in the MAF methodology. See narrative below.

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– 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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
4,662,759 4,264,883 -397,876
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
42 36 -6

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

Performance Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies are equipped with the tools and guidance they need to manage for results Percentage of departments that “mostly” or “strongly” agree the tools or guidance received from results-based management are useful 80% 73%
Percentage of large departments that obtained a MAF rating of at least “acceptable” for the use of evaluations to support decision making Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

Deputy heads from 29 departments and agencies provided feedback on the usefulness of the Secretariat’s tools and guidance for implementing the Policy on Management, Resources and Results Structures. A total of 73 per cent of deputy heads “mostly” or “strongly” agreed that the tools and guidance were useful, which represents a 13-percentage-point increase from last year’s result. Deputy heads recognized the Secretariat’s efforts in engaging with departments and agencies and improving the provision of guidance.

In 2014–, the Secretariat released guidance and questions and answers on internal services expenditures, with the goal of achieving greater consistency and comparability in reporting across departments. A guide for reporting on horizontal initiatives was also released.

In response to findings from a review of the Policy on Management, Resources and Results Structures, the Secretariat worked to strengthen the approach to collecting, using and reporting on performance information. This work involved engaging and sharing information with large and small departments and agencies.

The Secretariat approved the final report on the Evaluation of the 2009 “Policy on Evaluation. Assessing both the application and the performance of the Policy on Evaluation, the report recommended renewing the policy by adding flexibility to the core requirements and requiring departments to consider the needs of the range of evaluation user groups. The report also recommended engaging the Secretariat’s policy centres to guide departments in collecting financial management data and structuring performance measurement.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
19,717,100 19,274,034 -443,066
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
161 145 -16

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

Performance Results
Expected Result Performance Indicators Targets Actual Results
Decision makers have the necessary financial and non-financial information to make departmental and government-wide expenditure management decisions Percentage of Secretariat officials with direct access to tools presenting integrated departmental and government-wide expenditure management information that better support decision makers 100% 100%
Percentage of expenditure management reporting targets achieved 100% 100%
Performance Analysis and Lessons Learned

The Secretariat met expectations in this area by providing complete and direct access to tools that present integrated departmental and government-wide expenditure management information. The provision of this information, which is both financial and non-financial, supports informed decision making.

In 2014–, the Secretariat added new features and content to the TBS InfoBase. This is a searchable online database that provides access to detailed government information. The TBS InfoBase was updated to include current and historical financial and people management information for all government organizations that receive appropriations, and to provide new options for finding, navigating, and comparing the information.

The Secretariat met its expenditure management reporting target by posting the Estimates to its website when the documents were tabled in Parliament.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,412,099 6,892,240 -519,859
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
58 50 -8

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

Performance Results
Expected Result Performance Indicators Targets Actual Results
The Government of Canada is able to manage compensation expenditures in line with the principles laid out in the Policy Framework for the Management of Compensation Percentage of compensation decisions that support alignment with the external market 90% Not applicable
Performance Analysis and Lessons Learned

Overall, the Government of Canada has continued to manage affordable compensation expenditures that are aligned with the external market. No new collective bargaining settlements were reached in 2014– in the core public administration.

Program 1.4: Financial Management

The Financial Management program provides oversight and direction to federal organizations on improving the stewardship of taxpayers’ dollars and government assets. The program works to strengthen financial management, internal audit, management of real property and materiel, investment planning, project management and procurement across the federal public service.

Program objectives are accomplished by providing direction to departments; demonstrating leadership; developing and maintaining policies, guidance and practices; nurturing sustainable and professional communities (e.g., finance, procurement, audit); and helping improve government operations. The primary legislation issuing program authority is the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
32,235,681 32,235,681 31,429,596 31,231,325 -1,004,356
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
212 215 3

Planned spending and total authorities available for use largely aligned with actual spending. Actual FTEs largely aligned with planned FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Sound comptrollership in the Government of Canada Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for financial management and control, internal audit, and management of acquired services and assets Not available No longer applicable due to changes in the MAF methodology. See narrative below.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
15,032,546 16,516,985 1,484,439
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
100 104 4

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.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Government departments and agencies are equipped to implement and sustain performance in financial management, oversight and reporting Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for financial management and control Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

As a result of MAF renewal, the Secretariat replaced aggregate ratings (described in the performance indicators above) with more tailored analysis. The renewed MAF assessment process analyzed results relating to departments’ compliance with financial management policies. Efforts in 2014– to advance the transformation of the financial management function government-wide centred on building capacity to manage and direct change.

The Secretariat implemented the Guideline on Chief Financial Officer Attestation for Cabinet Submissions to provide chief financial officers with a framework and practical guidance for reviewing Cabinet submissions and to ensure a consistent approach in departments’ costing of funding proposals. In 2014–, more than 90 Cabinet documents were reviewed, with combined cost estimates of over $100 billion. Through the Costing Centre of Expertise, the quality of cost estimates presented to ministers has begun to improve.

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 , 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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
9,228,631 7,706,062 -1,522,569
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
61 61 0

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.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Internal audit functions in departments and agencies provide independent assurance to their deputy heads on governance, risk management, and control processes Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” to sustain the effective delivery of internal audit services Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of departments and agencies that have received a rating of “generally conforms” on their practice inspection 95% 100%
Performance Analysis and Lessons Learned

All planned horizontal audits and Regional Development Agency internal audits were delivered as scheduled, with the exception of the Horizontal Internal Audit of IT Security. Its delay was cleared with the audit committees. The Secretariat also completed or substantially completed seven core control audits in 2014–; three more were initiated and underway as of .

The implementation of management action plans for horizontal audits, core control audits, and Regional Development Agency audits is monitored annually for all small departments and Regional Development Agencies.

Internal Audit was not assessed as part of MAF in 2014–; however, departmental internal audit functions did undertake third-party external practice inspections. As of , a total of 37 out of 37 assessed organizations received a “generally conforms” rating on their practice inspections. This exceeds the Secretariat’s target and demonstrates the maturity and strength of the internal audit function across the Government of Canada.

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.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,974,504 7,008,278 -966,226
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
51 49 -2

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 Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies have the tools and policies they need to implement and sustain effective acquired services and asset management practices and performance Percentage of large departments and agencies that have an approved or acknowledged investment plan 100% 84%
Percentage of small departments and agencies that have an approved or acknowledged investment plan 100% 57%
Performance Analysis and Lessons Learned

Assets and acquired services policies are being assessed as part of a broader review of the Treasury Board policy suite. Analysis has revealed the potential for streamlining the requirements, and has opened up opportunities for improving their horizontal linkages, particularly in the areas of decision making and accountability, life-cycle management, and performance and monitoring. Based on these findings, potential changes to the assets and acquired services policies are being considered.

Although the Secretariat’s targets for approved or acknowledged investment plans in both small and large departments were not met, the plans that were approved or acknowledged covered over 90 per cent of the government’s spending on assets and acquired services. This result supports an effective regime for planning and decision making.

Program 1.5: Government-Wide Funds and Public Service Employer PaymentsFootnote 5

The Government-Wide Funds and Public Service Employer Payments program accounts for funds that are held centrally to supplement other appropriations, from which allocations are made to, or payments and receipts are made on behalf of, other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Treasury Board as the employer of the core public administration, including employer obligations under the public service pension and benefits plans.

The administration of these funds falls under the Expenditure Management program and the People Management program, but their financial resources are shown separately in the Program Alignment Architecture for visibility and reporting purposes.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
7,106,195,208 7,106,195,208 4,905,924,725 2,898,360,909 -4,207,834,299

The budgetary financial resources for this program can be broken down into two components: government-wide funds and the public service employer payments.

Government-Wide Funds (Central Votes) (dollars)
2014– Main Estimates
(revised)
2014– Planned Spending
(revised)
2014– Total Authorities Available for Use 2014– Actual Spending (authorities used) 2014– Difference (actual minus planned)
4,403,193,000 4,403,193,000 1,955,741,113 0 -4,403,193,000

The variance between planned and actual spending in this program is mainly attributable to the way that government-wide funds are transferred between the Secretariat and other government organizations. Every year, the Secretariat includes funding in its reference level to be transferred to other government organizations once specific criteria are met (in 2014–, this amount was roughly $4.4 billion). The organizations who receive the transfers include the additional funding in their appropriations, and incur expenditures against it; therefore, no actual spending is incurred by the Secretariat under government-wide funds.

Government-wide funds include funding to support other government departments and agencies for expenditures such as paylist requirements (to cover parental benefits and severance payments); compensation adjustments (to adjust for salary increases); Operating Budget Carry Forward (to carry forward eligible lapsing funds from the previous fiscal year); and Capital Budget Carry Forward (to carry forward lapsing capital funds from the previous fiscal year).

Public Service Employer Payments and Various Statutory Items (dollars)
2014– Main Estimates
(revised)
2014– Planned Spending
(revised)
2014– Total Authorities Available for Use 2014– Actual Spending (authorities used) 2014– Difference (actual minus planned)
2,703,002,208 2,703,002,208 2,950,183,612 2,898,360,909 195,358,701

Public service employer payments pertain to group insurance and benefit programs, and various statutory payments. Planned spending (equal to Main Estimates) was $2.7 billion.

During the year, funding was increased by $247 million. This was mainly to address a funding shortfall within the plan due to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission. The increase was also due to the implementation of changes to the Public Service Health Care Plan negotiated in 2014, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
N/A N/A N/A
Performance Results
Expected Result Performance Indicators Targets Actual Results
Allocations, payments and receipts managed by the Secretariat are made, as required Percentage of allocations and payments made as required 100% 100%

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.

Internal ServicesFootnote 6

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services, Acquisition Services, and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided to a specific program.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities Available for Use Actual Spending (authorities used) Difference (actual minus planned)
78,425,603 78,425,603 89,329,995 78,399,289 -26,315
2014– Human Resources (FTEs)
Planned (revised) Actual Difference (actual minus planned)
585 599 14

The difference between planned spending and total authorities available for use was mainly due to transfers from Treasury Board Central Votes for items such as Operating Budget Carry Forward, a one-time transition payment for salary in arrears for the Secretariat's employees, the Web Renewal initiative, collective agreement increases, and internal reallocations within the Secretariat. Most of the difference between actual spending and total authorities available for use is due to a re-profiling of funds for the Workspace Renewal initiative from 2014– to 2015–. Planned spending and FTEs aligned with actual spending and FTEs.

Performance Analysis and Lessons Learned

In 2014–, 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– 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.

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