Complete text - 2015–16 Departmental Performance Report - Treasury Board of Canada Secretariat

Erratum

Subsequent to tabling in Parliament and online publication of the Rapport ministériel sur le rendement de 2015-2016, two translation errors were corrected in sections II and III of the HTML and PDF versions of the French report.

  • In the “Priorité 6 : Un Secrétariat ouvert, souple et propice à la collaboration” subsection, the starting date for the initiative “Favoriser un milieu de travail plus dynamique, plus ouvert et plus connecté” has been modified from to .”
  • In the “Tendances relatives aux dépenses du ministère” subsection, the paragraph describing the variance between the 2013-14 and 2014-15 total program expenditures has been modified from “60 milliards” to “60 millions.”

These changes do not affect the rest of the information contained in the report.

© Her Majesty the Queen in Right of Canada,
represented by the President of the Treasury Board, 2016

Catalogue No. BT1-22E-PDF
ISSN: 1490-1498

Table of Contents

President’s message

The Honourable Scott Brison

The Honourable
Scott Brison

I am pleased to present the 2015–16 Departmental Performance Report of the Treasury Board of Canada Secretariat. We promised Canadians a government that would bring real change. We set the bar high, and we have been clear about how we define success.

In my mandate letter, the Prime Minister gave me an ambitious set of priorities in this regard. I am encouraged by our progress so far, and have been constantly impressed by the commitment and collaboration of federal employees, who are a force for positive change in our country.

In 2015–16, we engaged, listened and laid the foundation for future success. We defined the approach to Open Government and revitalizing access to information and laid the groundwork for public consultations. We initiated a culture change in the public service by working on a strategy to recruit the best and the brightest people, including millennials and mid-career professionals to its ranks. We took early action to restore fair labour laws for the public service and introduced legislation to repeal Bill C-59, which had provided the government with the authority to unilaterally override the collective bargaining process and impose a new sick leave system on the public service.

We are off to a good start, but there is much more to do to deliver better public services for Canadians. Going forward, the Secretariat will continue to seek opportunities to work in the spirit of openness, innovation and collaboration, and I know I can count on a fully engaged, dedicated and professional public service. Together, we will make the Government of Canada the best it can be.

I invite all Canadians to read this report to find out more about our efforts at the Treasury Board of Canada Secretariat to create the effective, responsible government Canadians expect and deserve.

The Honourable Scott Brison
President of the Treasury Board

Structure of this report

In keeping with the new Policy on Results, the Treasury Board of Canada Secretariat is piloting a new format for departmental performance reports. Lessons learned will inform future reporting to parliamentarians and to Canadians.

Results highlights

Highlights of the Treasury Board of Canada Secretariat’s results

  • Worked on creating a new Treasury Board Policy on Communications and Federal Identity, which took effect . The new policy gives government departments more options for engaging with Canadians in today’s digital environment.
  • Laid the groundwork for public consultations on Open Government and access to information.
  • Developed a strategy to improve cost estimating in the federal government, which will help make cost information more transparent and of a high quality to better support decision making.
  • Laid the groundwork for a new Treasury Board Policy on Results, which took effect . The new policy will strengthen the federal government’s ability to deliver results and to demonstrate how tax dollars contribute to outcomes for Canadians.
  • Demonstrated commitment to good‑faith bargaining by introducing legislation on , to repeal Bill C-59, which had provided the government with the authority to unilaterally override the collective bargaining process and impose a new sick leave system on the public service.

Actual spending: $4,127,888,742

This consists of $275.3 million (7 per cent) for Treasury Board of Canada Secretariat operations, $2.7 billion (65 per cent) for the employer’s share of insurance premiums for public servants and public service pensioners, and $1.2 billion (28 per cent) for the employer’s share of contributions to the public service pension plan.

Actual full‑time equivalents: 1,807

Section I: Organizational overview

Organizational profile

Minister: The Honourable Scott Brison, President of the Treasury Board

Organizational head: Yaprak Baltacıoğlu, Secretary of the Treasury Board

Ministerial portfolio: The minister’s portfolio consists of the Treasury Board of Canada Secretariat and the Canada School of Public Service, as well as the following organizations, which operate at arm’s length and report to Parliament through the President of the Treasury Board: the Public Sector Pension Investment Board, the Office of the Commissioner of Lobbying of Canada and the Office of the Public Sector Integrity Commissioner of Canada.

Related legislation: The Financial Administration Act is the act that establishes the Treasury Board itself and gives it powers with respect to the financial, personnel and administrative management of the public service, and the financial requirements of Crown corporations.

Year established: 1966

Raison d’être

The Treasury Board of Canada Secretariat is the public service central agency that acts as the administrative arm of the Treasury Board.

The Treasury Board is a committee of Cabinet. It is responsible for accountability and ethics; financial, personnel and administrative management; comptrollership; and approving regulations and most orders-in-council.

Roles and responsibilities

The Treasury Board of Canada Secretariat has four principal roles. Figure 1 indicates those roles and outlines the responsibilities related to each.

Figure 1: Treasury Board of Canada Secretariat roles and responsibilities

Spending oversight

Reviews spending proposals and authorities; reviews existing and proposed government programs for efficiency, effectiveness and relevance; and provides Parliament and Canadians with information on government spending.

Regulatory oversight

Develops and oversees policies to promote good regulatory practices; reviews proposed regulations to ensure that they adhere to the requirements of government policy; and advances regulatory cooperation across jurisdictions.

Administrative leadership

Leads government‑wide initiatives; develops policies and sets the strategic direction for government administration related to service delivery and access to government information, as well as the management of assets, finances, information and technology.

Employer

Develops policies and sets the strategic direction for people management in the public service; manages total compensation (including pensions and benefits) and labour relations; undertakes initiatives to improve performance in support of recruitment and retention objectives.

Key facts

$155.8 billion in planned statutory spending (2015–16)

$95.3 billion in planned voted expenditures (2015–16)

$99.0 billion in direct program spending (2015–16)

200 government‑wide policy instruments

$7.4 billion in internal services spending across government (2015–16)

There are about 2,600 regulations across all federal regulators.

About 25,000 full-time employees perform regulatory functions in the federal government.

About 190,000 employees work in the core public administration.

About 163,000 unionized members are represented by 15 bargaining agents.

For more information on the Secretariat and its responsibilities, see the Organizational Structure section of the Secretariat’s website.

Strategic outcome and program alignment architecture

The Strategic Outcome that the Secretariat strives to achieve and the programs that contribute to it are as follows:

Section II: Our context, our performance, our lessons learned

Operating environment

The Secretariat operates in an external environment of economic fluctuations, rapid technological change, geopolitical instability and increased security concerns. The Secretariat’s internal environment is being shaped by the growth, aging and increased diversity and mobility of Canada’s population. To adapt to the external and internal environment, the federal government needs new skill sets, needs to invest in information technology (IT) and innovation, and needs to take a government‑wide approach to solving problems.

Risks identified at start of year

At the start of the 2015–16 fiscal year, the Secretariat identified the highest risks to its ability to deliver results for Canadians. Throughout the year, it made significant efforts to respond to these risks. The risks were as follows:

  • Security vulnerabilities
  • Misalignment between existing skills and future needs
  • Gaps in information provided to Parliament and Cabinet

Security vulnerabilities

To address the risk of disruptions to federal government programs and services that stem from the increased frequency and sophistication of threats, the Secretariat expanded the risk response to include measures that address both cyber and physical threats. The Secretariat coordinated the federal government’s response to a number of critical cyber‑incidents. The response resulted in an action plan, a revised IT Incident Management Plan, and a strengthened Enterprise Security Architecture framework. The Secretariat will continue to adapt its risk response to keep pace with technology in order to counter significant threats.

Figure 2 provides the latest available statistics on cybersecurity in the federal government.

Figure 2: Government of Canada cybersecurity by the numbers

100 million
Attempts to access government network
Per day

374
Incidents investigated
to

41
Organizations affected
to

40
Percentage of incidents that targeted federal government industry and business development sector Figure 2 footnote *
to

Misalignment between existing skills and future needs

To maintain a public service that has the skills and talent to meet the federal government’s future needs, the Secretariat improved how it forecasts and analyzes workforce needs across the public service.

The Secretariat also worked with the Canada School of Public Service, the Public Service Commission of Canada, the Privy Council Office and departments to develop a strategy for attracting and recruiting millennials and mid-career Canadians to the public service and for retaining and developing them.

There is now a better understanding of what skill gaps exist, and strategies are being put in place to address them. As a result, the risk of a misalignment between current skills and future needs has been relatively reduced.

Figure 3 shows the most recent data available on the number of new hires to indeterminate positions in the federal public service by age.

Figure 3: New indeterminate hires in the core public administration (CPA) by age (2014–15)
New indeterminate hires in the core public administration (CPA) by age (2014–15). Text version below:
Figure 3 - Text version

This bar graph shows the number of new indeterminate hires in the core public administration in 2014–15, by age.

The number of new indeterminate hires is presented along the Y axis, in increments of 50, starting at 0 and ending at 350. The age of new indeterminate hires is presented along the X axis, starting at 15 and increasing by 5‑year increments, ending at 65.

The ages are divided into three generational groups:

  • Ages 15 to 35: Millennials
  • Ages 36 to 47: Generation X
  • Ages 48 to 69: Baby boomers
Age (years) New indeterminate hires
15 0
16 0
17 1
18 11
19 9
20 23
21 45
22 142
23 204
24 290
25 301
26 281
27 298
28 279
29 252
30 277
31 236
32 262
33 185
34 217
35 176
36 164
37 159
38 145
39 146
40 126
41 153
42 145
43 109
44 100
45 104
46 104
47 95
48 98
49 115
50 112
51 91
52 95
53 93
54 83
55 72
56 62
57 54
58 51
59 38
60 28
61 17
62 8
63 14
64 7
65 4
66 5
67 3
68 0
69 3
70 0
71 0
72 0
73 0
74 0
75 1

In 2014–15, 54 per cent of new indeterminate hires were 35 or under, and their average age was 36, down from 37 in the previous year.

Gaps in information provided to Parliament and Cabinet

To address potential gaps in information provided to Parliament and Cabinet, the Secretariat improved its information management practices and business processes, and increased measures for due diligence. The Secretariat also made more performance information available through the TBS InfoBase. The number of activities under way to improve performance information, the renewed focus on and senior management commitment to results and evidence-based decision making have reduced these gaps. However, work is still needed to strengthen performance information and data analysis capacity in the Secretariat.

Risks identified at mid-year

The mandate letter given to the new President of the Treasury Board in November 2015 set out high expectations for progress on a number of government priorities in a short time frame. The initiatives undertaken to address the priorities are complex and horizontal. Close cooperation among departments and greater stakeholder engagement are required.

Most of the initiatives involve increased IT capacity and investment. The Secretariat identified three additional risks at mid‑year. If these three risks materialize, they will have a considerable impact on the Secretariat’s ability to deliver on its priorities. The Secretariat is monitoring these risks closely and is adjusting its responses where required.

The three additional risks are as follows:

  • Slow pace of implementation
  • Insufficient government-wide project delivery capacity
  • Limited IT capacity

Slow pace of implementation

The government set high expectations for the public service for high‑quality advice and timely delivery of results for Canadians. The Secretariat has a solid track record, but there is still a risk that the priority initiatives will not yield the desired results or will not be implemented at the expected pace. To address the risk, the Secretariat adopted a results and delivery approach.

Results and delivery approach

This approach involves clear goals and performance indicators for all commitments. The approach is being led by the Chief Results and Delivery Officer and is supported by a small Results and Delivery Unit.

The Secretariat’s tools and processes for implementing the results and delivery approach have served as models for other federal departments. In the coming year, the Secretariat’s efforts will focus on strengthening an evidence-based approach to implementation of initiatives and decision making.

Insufficient government-wide project delivery capacity

At the start of 2015–16, the risk of insufficient capacity to support government‑wide project delivery was limited to the back office transformation initiative, which aims to replace the myriad human resources management, financial management and information management platforms of federal government departments with government‑wide systems. This transformation presents a challenge, particularly for an organization as large and complex as the federal government. The launch of new horizontal initiatives mid‑year extended the risk of insufficient capacity to other initiatives such as Open Government, Service Strategy and Revitalizing Access to Information.

The Secretariat’s response to the risk of insufficient project delivery capacity focused on strengthening governance for the back office transformation so that it could lead an integrated approach to enterprise-wide decision making and resource allocation, as well as on the project delivery capacity for the back office. The risk is being mitigated in other horizontal initiatives both through leveraging governance, and through efforts to attract, develop and retain additional skills and talent.

Limited IT capacity

There is a risk that the current IT infrastructure and expertise may not be sufficient to support achieving the Secretariat’s priorities. In 2015–16, the Secretariat started implementing a response to this risk that focuses on three main objectives: acquiring new technology, optimizing the current IT infrastructure, and developing the internal expertise needed to support new technologies.

Performance analysis by priority

With the change of government in , new priorities were announced in the President of the Treasury Board’s mandate letter. This resulted in a reset of the five organizational priorities that the Secretariat identified in its 2015–16 Reports on Plans and Priorities and the development of a new performance measurement framework with more outcome‑based indicators aimed at measuring what matters to Canadians.

The 2015–16 Departmental Performance Report outlines progress made on the five new priorities, on the initiatives related to them, and on their respective indicators. It also outlines work on the sixth priority, which builds on the ongoing work to modernize the Secretariat’s internal operations.

Priority 1
Open and transparent government
Priority 2
Better service for Canadians
Priority 3
Better oversight, information and reporting to Parliament
Priority 4
Aligning resources for results
Priority 5
Workforce of the future
Priority 6
Open, agile and collaborative Secretariat

Progress on each priority and the associated initiatives is based on the assessment of the Secretariat’s progress against the key milestones identified as part of the results and delivery approach.

Priority 1: Open and transparent government

The promise: The Government of Canada promised to make government more open and transparent.

The Secretariat is supporting this commitment by leading efforts to improve Canadians’ access to government information and to their own personal information held by government, and to provide better opportunities for engaging with government. Greater openness and transparency will help keep the government focused on Canadians’ values and expectations.

The bottom line 100% of key initiatives under way and on track

Where we started

Canadians want to participate in government decision making and want government to be more open. Data shows that the government needs to invest to improve how it interacts with citizens.

As of the end of 2014–15, only 49 per cent of government departments and agencies had published their data sets, so a wealth of information is untapped.

In 2014–15, the government answered 87.5 per cent of information requests within set timelines. Maintaining service standards is challenging because of the growing number and the complexity of requests.

In 2014–15, the government answered 82.5 per cent of personal information requests within set timelines, but the process is still too complicated.

What we are doing

To support this priority, the Secretariat is undertaking the following initiatives:

  • Open Government so that Canadians have increasing access to government data and information.
  • Revitalizing access to information so that Canadians have timely access to the federal government information they are entitled to access.
  • Streamlining requests for personal information so that Canadians have timely access to the personal information that the federal government has about them.
  • Modernizing the government’s communication policy so that Canadians can actively engage with the federal government through a variety of channels.
  • Strengthening accountability for government advertising to make sure that advertising is non‑partisan.

What we delivered in 2015–16

Under way and on track
Open Government

Start date: ; Ongoing
Supports sub‑program 1.3.4 Transformation Leadership

  • An additional $11.5 million over five years was allocated in Budget 2016 for the Secretariat to double its capacity to support Open Government.
  • Laid the groundwork for online and in-person public consultations on Open Government across the country to get Canadians’ views on a new plan for Open Government.
  • Worked on Canada’s Third Biennial Plan to the Open Government Partnership.

Figure 4 shows the increased number of visits to and downloads from the Open Government Portal in 2015–16.

Figure 4 : Number of visits to and downloads from the Open Government Portal in 2015–16
Number of visits to and downloads from the Open Government Portal in 2015–16. Text version below:
Figure 4 - Text version

This bar graph shows the number of visits to and downloads from the Open Government Portal in 2015–16.  

Month Visits Downloads
April 2015 29,000 5,000
May 2015 31,000 4,000
June 2015 28,000 4,000
July 2015 29,000 4,500
August 2015 27,000 3,500
September 2015 33,000 3,500
October 2015 34,000 3,400
November 2015 35,000 3,500
December 2015 31,000 3,300
January 2016 36,000 4,400
February 2016 39,000 8,000
March 2016 44,000 7,800
Under way and on track
Revitalizing access to information

Start date: ; End date: To be determined
Supports sub‑program 1.2.3 Information Management and Information Technology Policy

  • $3.1 million over two years was allocated in Budget 2016 to support the government’s commitment to revitalize access to information.
  • Announced a two-step approach to revitalize access to information:
    • Step 1: The Secretariat laid the groundwork for public consultations on improvements to the Act. Over 2016–17, the government will move forward on implementing its proposals for improving access to information and will make other changes identified through consultations.
    • Step 2: The government will begin the first full five-year review of the Act in 2018.
Under way and on track
Streamlining requests for personal information

Start date: ; Ongoing
Supports sub‑program 1.2.3 Information Management and Information Technology Policy

  • $9.8 million over five years was allocated in Budget 2016 to enhance Canadians’ access to their own personal information held by government.
  • Laid the groundwork for consultations on implementing a 30-day guarantee for personal information requests, backed up by a written explanation when a response is not provided within 30 days.
  • Defined the approach to a simple, central website where Canadians can submit access to information requests and privacy requests to any government institution.
Under way and on track
Modernizing the government’s communication policy

Start date: ; End date:
Supports sub‑program 1.2.4 Externally Facing Policy

  • Laid the groundwork for the new Treasury Board Policy on Communications and Federal Identity, which took effect . The new policy gives government departments more options for engaging with Canadians in today’s digital environment.
Under way and on track
Strengthening accountability for federal government advertising

Start date: ; End date: To be determined
Supports sub‑program 1.2.4 Externally Facing Policy

  • Worked on establishing an independent external review process to make sure that advertising is non‑partisan.
  • Developed the Directive on the Management of Communications, which took effect .

Priority 2: Better service for Canadians

The promise: The Government of Canada has committed to making it easier to access government services online and to establishing new performance standards for federal services in order to meet the rising expectations of Canadians and businesses.

The Secretariat is supporting this commitment through various initiatives, including advancing a Government of Canada Service Strategy and establishing and tracking new performance standards for key government services. It is also leading efforts to ensure that the government’s back office functions are aligned to support better services for Canadians.

The bottom line 100% of key initiatives under way and on track

Where we started

Citizens expect their government to deliver high‑quality services when they need them. Recent surveys indicate that, with more and more people having access to and using the Internet and mobile devices, expectations of online government services are also increasing. People want a dynamic, simplified experience.

Usage of the three main Government of Canada service channels

In person: 8 million clients assisted

Telephone: 54 million calls to the 1 800 O‑Canada service and hotlines for Employment Insurance, Canada Pension Plan, Old Age Security, and tax and benefits hotlines

Online: 326 million website visits and account logins to Canada.ca, the Canada Revenue Agency and the Service Canada websites, and the “My Account” feature

Satisfaction with federal services is lower than the average for services delivered by any government in Canada.

The federal service delivery landscape is broad and fragmented, and many services are still not available online.

What we are doing

To support this priority, the Secretariat is undertaking the following initiatives:

  • Advancing a new Government of Canada Service Strategy to support government‑wide improvements to service delivery to Canadians and businesses. These improvements include secure access to government services for Canadians and businesses, building on the foundation of the Treasury Board Policy on Service.
  • Establishing and tracking new service performance standards that reflect clients’ priorities, expectations and satisfaction and that clearly indicate progress and results.
  • Enterprise-wide back office transformation to make Government of Canada operations more efficient, ultimately allowing public servants to be more responsive to citizens’ needs and providing employees with renewed tools and processes.

What we delivered in 2015–16

Under way and on track
Advancing a new Government of Canada Service Strategy

Start date: ; End date: To be determined
Supports sub‑program 1.2.4 Externally Facing Policy

  • In collaboration with service departments, developed a framework for the service strategy that includes objectives, core elements and an approach for developing and implementing the strategy and for tracking performance.
  • $17.8 million over five years was allocated in Budget 2016 to support the development of a client‑first service strategy and to finish migrating government websites to Canada.ca.
  • Government of Canada web presence for Canadians improved through a single, mobile-friendly, user-centric, easily accessible and searchable Canada.ca website that went live in December 2015.
Under way and on track
Establishing and tracking new service performance standards

Start date: ; End date:
Supports sub‑program 1.2.4 Externally Facing Policy

  • Collected preliminary performance information to inform the development of new performance standards, which must be established under the new Treasury Board Policy on Service, which took effect in 2015–16.
Under way and on track
Enterprise-wide back office transformation

Start date: ; Ongoing
Supports sub‑program 1.3.4 Transformation Leadership

  • Brought 32 organizations representing about 41,000 employees into a new human resources system, which supports managers in their staffing and classification actions and human resources professionals in their policy compliance role.
  • $70.2 million was allocated in Budget 2016 to support the development of a business case and to transform human resources, financial and information management services.
  • Established a governance committee of deputy ministers to lead an integrated approach to enterprise-wide decision making and resource allocation.
  • Created an Enterprise Project Management Office to manage back office transformation activities and to address the need for sustained leadership.
    • Led a sub-component of this initiative, Financial Management Transformation, which focused on the preparatory work to build a single, shared financial and materiel management system solution (SAP) for departments and agencies with low financial management business complexity. In the future, these organizations will use the same platform, which will create efficiencies across business processes and standardize data.
    • Completed an environmental scan that identified gaps and outlined a strategy for the integration of human resources and finance data and systems.

Priority 3: Better oversight, information and reporting to Parliament

The promise: The Government of Canada has committed to improving financial oversight and to using the best available information.

The Secretariat will work to improve the alignment and quality of financial information provided to Parliament and will update Treasury Board policies to take a more modern approach to comptrollership.

The bottom line 100% of key initiatives under way and on track

Where we started

Cabinet ministers and parliamentarians need accurate and timely financial information so that they can make informed decisions about laws, programs and services that affect Canadians every day. Each fiscal year, the budget and the Main Estimates are tabled in Parliament around the same time. That timing means that the Main Estimates for the year do not usually reflect the spending plans set out in the budget for that year.

It takes an average of 13 months after the funding for an initiative is announced for the organization to receive the funds.

Treasury Board policies related to financial management are prescriptive and limit departments’ ability to take informed risks. This impacts the work of more than 22,000 public servants who deliver financial services and manage assets in support of federal government programs.

The capacity to identify the costs of legislative and program proposals varies among departments.

What we are doing

To support this priority, the Secretariat is undertaking the following initiatives:

  • Improving oversight and reporting to Parliament to allow for increased scrutiny of government spending by Parliament and for timely implementation of budget measures.
  • Transparent, high‑quality costing to support decision-making.
  • Modernizing comptrollership to transform various aspects of financial management and to support professional development and talent management among financial management professionals.

What we delivered in 2015–16

Under way and on track
Improving oversight and reporting to Parliament

Start date: ; End date:
Supports sub‑program 1.1.2 Expenditure Analysis and Allocation Management

  • Consulted with key stakeholders including the Treasury Board, Cabinet, Parliament, the Parliamentary Budget Officer, external experts and the media about how to align the budget and estimates processes to make planning, spending and tracking of tax dollars more timely and transparent.
  • Improved reporting to Parliament on anticipated lapses by publishing new data online in the 2015–16 Supplementary Estimates (C).
  • Took steps to ensure that the 2016–17 Supplementary Estimates (A) reconcile funding announced in Budget 2016 with funding requested through the 2016–17 Estimates so that Parliament can track spending more easily and hold the government to account.
Under way and on track
Transparent, high‑quality costing

Start date: ; Ongoing
Supports sub‑program 1.1.1 Cabinet Decision Support

  • The Costing Centre of Expertise performed an enhanced review of 68 high‑value, high‑risk Cabinet documents with a total estimated value of $75 billion.
  • Promoted the creation of a professional designation in cost estimating to increase costing capacity in the federal government.
In the spotlight: Strategy for improving cost estimating in the federal government

The Secretariat’s Costing Centre of Expertise has developed a strategy to improve costing capacity in departments and agencies so that they can provide better cost information in support of decision making. The strategy includes the following:

  • An ongoing assessment of the maturity of the cost‑estimating function in key departments
  • A partnership between the Centre and the International Cost Estimating and Analysis Association to create a Canadian professional designation in cost estimating
  • The continued development of costing guidance
  • An active community of practice made up of professionals from different departments who meet monthly to share information, tools and ideas to strengthen and advance costing in the federal government
Under way and on track
Modernizing comptrollership

Start date: ; End date: December 2016
Supports sub‑program 1.2.1 Financial Management Policy

  • Started reviewing how financial management professionals are recruited, developed and retained.
  • Developed a vision and strategy for a renewed Next Generation Chief Financial Officer (CFO) development program to address a demographic gap in the CFO community. This work involved extensive research on the current state of the community, career aspirations, training, skill sets and future movement.
  • In collaboration with the University of Ottawa, developed and piloted a seven-month leadership development program. A total of 42 executives and managers participated in the program, which was created to promote cross-pollination among the Internal Audit, Finance, Procurement, Evaluation and Planning communities and to develop key leadership competencies in support of comptrollership talent management efforts.
  • Launched an onboarding program for new chief audit executives to support them in delivering high‑quality internal audit services to departments and in turn support deputy ministers in their role as accounting officers.
  • Released a revised Guidebook for Departmental Audit Committees to keep pace with changes in the internal audit function across government over the last several years.

Priority 4: Aligning resources for results

The promise: The Government of Canada has committed to aligning resources with results that have the greatest positive impact on the lives of Canadians.

The Secretariat will play a lead role in promoting new approaches to programs and policies across government and will work at changing the management culture in order to enhance the quality and use of data and performance information government-wide.

The bottom line 100% of key initiatives under way and on track

Where we started

Canadians expect the government to implement effective and efficient programs and services that meet their needs. The government cannot meet this expectation unless it has evidence on which to base decisions about program improvements. Making program improvements requires modern procurement policies, a streamlined policy suite and a willingness to try new approaches and to take intelligent risks.

Less than 50 per cent of large departments use information from their performance measurement frameworks and strategies, evaluations and other results-based management tools to support their proposals to Cabinet and Treasury Board.

  • 62 per cent of large departments and agencies (LDAs) consistently use performance information to identify risks.
  • 68 per cent of LDAs consistently use performance information to establish priorities.
  • 68 per cent of LDAs consistently use performance information to support resource allocations.

The Secretariat currently supports over 200 Treasury Board policy instruments, including 8 frameworks, 74 policies, 73 directives and 79 standards. As a result, rules lack clear accountabilities, and are hard to find and hard to apply.

The current suite of procurement-related policies is outdated. The rules and roles need to be simplified, clarified and updated.

What we are doing

To support this priority, the Secretariat is undertaking the following initiatives:

  • Experimenting with new approaches to ensure that ongoing innovation and measurement is integrated into policy and program design and delivery.
  • Managing for results to ensure that Government of Canada organizations focus on results that matter to Canadians, and that they demonstrate the results through regular public reporting and evaluation.
  • Modernizing procurement in collaboration with Public Services and Procurement Canada so that government procurement is easier and delivers better value for money.
  • Renewing the policy suite so that it is streamlined and supports modern management.

What we delivered in 2015–16

Under way and on track
Experimenting with new approaches

Start date: ; Ongoing
Supports sub‑program 1.1.2 Expenditure Analysis and Allocation Management

  • Consulted with other government departments to assess needs and determine best approach.
Under way and on track
Managing for results

Start date: ; Ongoing
Supports sub‑programs 1.1.1 Cabinet Decision Support and 1.2.5 Organizational Management Policy

  • Laid the groundwork for the Treasury Board Policy on Results, which took effect . The new policy will improve how the government expresses its results and measures its performance, and how it uses this information to allocate resources to and align them with core responsibilities and priorities, with a view to improving how it reports to Canadians.
Under way and on track
Modernizing procurement

Start date: ; End date:
Supports sub‑program 1.2.1 Financial Management Policy

  • As of , draft policy instruments were produced for internal consultation purposes.
Under way and on track
Renewing the policy suite

Start date: ; End date:
Supports sub‑program 1.2 Management Policies Development and Monitoring

  • Started reviewing all Treasury Board policy instruments to streamline rules; clarify accountabilities; improve users’ experience; and focus on performance, innovation and balanced risk taking.

Priority 5: Workforce of the future

The promise: The Government of Canada has committed to working with the public service to provide effective and professional services for Canadians.

The Secretariat will help the Government of Canada fulfill its role as a modern employer by supporting good-faith collective bargaining and by leading action to create a healthy, harassment-free workplace. This includes efforts to reinforce the core public service values of promoting both official languages, a respectful workplace, and diversity and inclusion.

The bottom line 100% of key initiatives under way and on track

Where we started

The federal public service is a key contributor to Canadian democracy and is recognized in Canada and around the world for its non-partisanship, professionalism and reliability. It is Canada’s largest employer, employing about 190,000 people in the core public administration. The government’s ability to meet its commitments depends on a healthy and respectful public service workplace and on a productive and engaged public service that represents the diversity and linguistic duality of Canada’s population.

Mental health

In 2015–16, 49 per cent of long-term disability claims related to mental health.

Respectful workplace

In the 2014 Public Service Employee Survey, 79 per cent of employees indicated that their organization treated them with respect—up 3 per cent from 2011. However, 19 per cent reported having experienced harassment in the workplace in the previous two years.

Official languages

Making bilingual services available when and where required is challenging given changing demographics, new service delivery models and increasing public expectations.

Diversity and inclusion

All four employment equity groups (women, visible minorities, persons with disabilities and Aboriginal peoples) meet workforce availability levels, but three of the four groups are under-represented among public service executives (women, visible minorities and Aboriginal people).

Collective bargaining

All but one collective agreement in the core public administration and separate agencies expired in 2014. The collective agreement for the Canada Revenue Agency expired in 2012. Delays in collective bargaining create financial pressures, program complexity and an unstable labour relations environment.

Recruitment

Recruitment rates remain high, but opportunities exist to recruit the skills and the demographic profiles that the workforce will need in the future. The average age of new hires into indeterminate positions in the federal public service was 36 in 2014–15, down from 37 the previous year.

What we are doing

To support this priority, the Secretariat is undertaking the following initiatives:

  • Improving mental health in the public service workplace.
  • Supporting a workplace free from harassment and sexual violence so that people who work in the public service feel safe and respected.
  • Making sure that federal services are delivered in compliance with the Official Languages Act.
  • Increasing the number of Indigenous Canadians and members of other minority groups in leadership positions so that public service leaders reflect the diversity of Canada’s population.
  • Strengthening the recruitment strategy and the engagement of new public servants.
  • Bargaining in good faith to restore a culture of respect for and within the public service.
  • Introducing a new labour relations regime for the Royal Canadian Mounted Police.

What we delivered in 2015–16

Under way and on track
Improving mental health

Start date: ; Ongoing
Supports sub‑program 1.2.2 People Management Policy

  • In early 2015, the joint Task Force on Mental Health was created to improve mental health and safety in the federal workplace and to study how the government can best align with the Mental Health Commission of Canada’s National Standard of Canada for Psychological Health and Safety in the Workplace. The task force is a collaborative employer-union forum for addressing issues of mutual concern.
  • The Technical Committee of the task force submitted its first report to the Steering Committee of the Task Force in .
Under way and on track
A workplace free from harassment and sexual violence

Start date: ; Ongoing
Supports sub‑program 1.2.2 People Management Policy

  • Created an interdepartmental working group to make recommendations to support a workplace free from harassment and sexual violence.
  • Continued working with departments to promote a culture of respect based on the Values and Ethics Code for the Public Sector.
Under way and on track
Official languages

Start date: ; Ongoing
Supports sub‑program 1.2.2 People Management Policy

  • The President of the Treasury Board’s Annual Report on Official Languages 2014–15 was tabled.
    • The report indicated that most federal institutions continued to ensure that communications and services to the public were offered in both official languages in bilingual offices, and that they put measures in place to create and maintain a work environment that is conducive to the use of both official languages in bilingual regions.
Under way and on track
Minority groups in positions of leadership

Start date: ; Ongoing
Supports sub‑program 1.2.2 People Management Policy

  • Provided support to a new Governor in Council appointment process led by the Privy Council Office and to talent management efforts in order to improve access by women, Indigenous Canadians and minority groups to executive positions in the public service.
  • Led the Champions and Chairs Circle for Aboriginal Peoples, which has set Aboriginal leadership development and mentoring as a priority.
    • The Chairs Circle will be working to build on initiatives that have succeeded elsewhere in the federal public service, including the Leadership Development Initiative at Indigenous and Northern Affairs Canada and the Aboriginal Mentoring Pilot Project at National Defence.
  • Presented the new workforce availability estimates based on data from the 2011 census in the 23rd Annual Report to Parliament on Employment Equity in the Public Service of Canada.
Under way and on track
Strengthening the recruitment strategy and the engagement of new public servants

Start date: ; Ongoing
Supports sub‑program 1.2.2 People Management Policy

  • To help reduce the average age of new indeterminate employees, the Secretariat worked with the Canada School of Public Service, the Public Service Commission, the Privy Council Office and departments to develop a strategy for attracting, recruiting, developing and retaining millennials and mid-career Canadians.
  • The Secretariat continued to work with departments to identify key skills and occupational requirements to inform future public service recruitment efforts.
Under way and on track
Bargaining in good faith

Start date: ; Ongoing
Supports sub‑program 1.3.2 Labour Relations

  • Introduced legislation on to repeal provisions of Bill C-59 that gave the government the authority to unilaterally override the collective bargaining process and impose a new sick leave system.
  • Negotiations continued between the Government of Canada and most bargaining agents, including the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada.
Under way and on track
New labour relations regime for the Royal Canadian Mounted Police

Start date: ; Ongoing
Supports sub‑program 1.3.2 Labour Relations

  • Introduced legislation on , to create a new labour relations regime for the Royal Canadian Mounted Police (RCMP) that will give RCMP members and reservists a right to make choices about representation in labour relations matters.
In the spotlight: New labour relations regime for Royal Canadian Mounted Police

Key elements of the new proposed regime:

  • Freedom for RCMP members and reservists to choose whether to be represented by a bargaining agent
  • Independent, binding arbitration as the dispute resolution process for bargaining impasses, with no right to strike
  • A single, national bargaining unit for RCMP members appointed to a rank and for reservists

The bill was drafted following extensive consultations with regular members of the RCMP and jurisdictions that have agreements with the RCMP for police services.

Priority 6: Open, agile and collaborative Secretariat

The promise: The Secretariat has committed to creating a more open, agile and collaborative organization that fosters respect and innovation, empowers employees to excel in their work, and maximizes benefits for Canadians.

To accomplish this, the Secretariat launched This is TBS, an initiative that brings together all of the Secretariat’s internal transformational initiatives under three streams of work: supporting a high-performing workforce; fostering a more dynamic, open, and networked workplace; and adopting lean and efficient business practices. These initiatives support Blueprint 2020 commitments.

The bottom line 100% of key initiatives under way and on track

Where we started

In 2013, the Secretariat’s leaders launched This is TBS to reach out to employees and learn about their needs, and to generate ideas about and build momentum for the transformation. This is some of what we heard:

More support is needed to develop skills for the future, for both managers and employees.

Employees do not have access to the technology they need to do their jobs quickly and efficiently from different locations.

More effort is needed to adopt innovative practices and to encourage networking. “Red tape” and too many layers of hierarchy are slowing our efforts.

In 2015–16, the Secretariat was tasked with an ambitious agenda that consisted of multiple complex and priority initiatives with tight deadlines. To deliver on this agenda the organization must be agile, work collaboratively, adopt lean and efficient business practices, and take intelligent risks.

What we are doing

To support this priority, the Secretariat is undertaking initiatives under the following themes:

  • Supporting a high-performing workforce that is agile and that strives to maintain a respectful and healthy work environment.
  • Fostering a more dynamic, open and networked workplace by, for example, renewing and consolidating office space to meet Workplace 2.0 standards and re‑engineering back office technology to better manage information.
  • Adopting lean and efficient business practices that create opportunities for transferring skills and knowledge, streamlining processes, and empowering employees.

What we delivered in 2015–16

Under way and on track
Supporting a high-performing workforce

Start date: ; Ongoing
Supports sub‑program 1.5.4 Human Resources Management Services

Progress on creating a respectful and healthy work environment
  • Made the “Every Day” commitment to employees.
  • Developed Taking Action, a document that presents the concrete steps the Secretariat plans to take to address the concerns expressed in the 2014 Public Service Employee Survey. By developing this document, the Secretariat aims to support effective people management, expand and modernize communication and engagement, articulate key management commitments and foster sustained culture change. Implementation of the steps identified in Taking Action is under way.
  • Piloted skip‑level meetings, which give employees an opportunity to meet with their leaders to hear about and provide input on priorities and operational issues, and which foster stronger communication at all levels.
  • Appointed a Wellness Champion to promote a culture that encourages wellness of the mind, body and workplace at the Secretariat and to develop an organizational wellness strategy.
In the spotlight: “Every Day”

“Every Day” is a commitment by Secretariat executives to Secretariat employees to support a respectful, fulfilling and productive work environment each and every day. “Every Day” describes the sort of workplace and workforce the Secretariat wants to have—one that will attract, retain and develop the very best people. This means the following:

  • Senior management that respects and engages employees face-to-face, communicates clear expectations, gives employees what they need to do their jobs, engages employees in decision making and promptly informs them of changes that affect them
  • Employees who are excited, empowered, supported, enabled, and given opportunities to develop and grow
Progress on creating an agile workforce
  • Implemented mobility initiatives, such as the Employee Skills Inventory and micro-missions, to help employees acquire skills and experience in areas other than their own and develop new perspectives to enhance their career opportunities.
  • Reached more than 1,000 employees through in-house workshops on values and ethics, harassment prevention, working in Workplace 2.0, and communicating effectively to prevent conflict.
  • Created, as a pilot project, a Talent Management Advisory Committee for the EC occupational group, which represents about one quarter of the Secretariat’s employees. The Committee’s work is built into the process for managing employee performance.
Under way and on track
Fostering a more dynamic, open and networked workplace

Start date: ; End date:
Supports sub‑programs 1.5.6 Information Management Services, 1.5.7 Information Technology Services, 1.5.8 Real Property Services

Completed phase 1 of the Secretariat’s Workplace Renewal Initiative
  • Consolidated the Secretariat’s operations from 12 to 3 locations in downtown Ottawa, reducing the Secretariat’s office space by 30 per cent.
  • Moved 1,500 employees (65 per cent of the Secretariat’s workforce) to a new building at 90 Elgin Street, which is fit up to Government of Canada Workplace 2.0 standards.
    • The new workplace has open space on each floor to foster collaboration. It also has over 929 square metres of meeting space that includes large multi-purpose rooms that can hold up to 200 people; interview rooms; training rooms; a telepresence room; informal collaboration areas; and space for hosting foreign delegates, the media and other visitors.
    • Employees can use audiovisual and video conferencing technology to collaborate online, in real time, from multiple locations.
  • Moved the remaining 800 employees (35 per cent) to a building close to 90 Elgin to optimize operational effectiveness by reducing employees’ travel time between buildings.
  • Consolidated 3,353 linear metres of Secretariat records to provide additional safeguards for sensitive information.
Introduced new technology tools and practices for managing information and enhancing security, including the following:
  • Deployed the new information management system, GCDOCS, on both the Protected B and Secret networks. Employees can now search for, retrieve and reuse information more easily, which has reduced duplication and costs and led to improvements in how the Secretariat manages other departments’ sensitive information.
  • Replaced all desktop computers (about 2,300) with laptops or tablets, and provided WiFi access so that Secretariat employees can work anywhere in the building. The increased employee mobility promotes a digital work culture and drastically reduces paper consumption.
Under way and on track
Adopting lean and efficient business practices

Start date: ; Ongoing
Supports sub‑programs 1.5.1 Management and Oversight Services, 1.5.2 Communications Services, 1.5.4 Human Resources Management Services, 1.5.5 Financial Management Services

  • Continued leaning and automating the contract initiation process to provide Secretariat employees and managers with simplified self-serve online smart forms for purchasing supplies and services to supplement their resources and deliver results.
  • Streamlined and improved the consultation process for developing the Secretariat’s risk-based audit and evaluation plans in order to reduce the time spent on the process.
  • Implemented a new method to reduce processing time for internal staffing actions.
  • Expanded the functionality of the Secretariat’s financial system so that credit card transactions can be reconciled automatically and to make financial forecasting more accurate.

For more information on organizational priorities, see the President of the Treasury Board’s mandate letter on the Prime Minister of Canada’s website.

Lessons learned to improve performance

In 2015–16, the Secretariat focused on laying the foundation for delivering on the priorities set out in the Prime Minister’s mandate letter to the President of the Treasury Board and on adopting a results and delivery approach. The Secretariat is off to a good start. All priority initiatives are under way and on track.

Staying on track and sustaining success over the long term, however, will not be easy. As implementation of these initiatives continues, a culture shift will be needed at the Secretariat. This culture shift will present both challenges to be addressed and opportunities to be seized.

Figure 5: Culture shift
Culture shift. Text version below:
Figure 5 - Text version

This graphic shows the six elements of the culture shift that is required in the Secretariat to implement its priority initiatives. Each aspect is depicted as a mechanical gear, and the cogs of each are connected with the cogs of the next.

The six aspects of the culture shift are as follows:

  • Increased collaboration
  • Increased use of quality data
  • Innovative approaches
  • Stakeholder engagement
  • Results and delivery
  • Intelligent risk-taking

Ongoing prioritization and sequencing key to delivering on multiple priorities

The Secretariat realized early in the process that delivering on multiple new priority initiatives in a short time would be challenging. The challenge resulted largely from the volume of work and from the potential implications on the ability to deliver and on employee workload.

The Secretariat prioritized the initiatives according to their importance, materiality and scope. For all high‑priority initiatives, delivery charters were developed. These charters provide an in-depth assessment of priorities so that senior management can check on progress, compare progress across priorities, identify actions and reassess how resources are allocated.

As implementation progresses, the Secretariat will continue to explore ways to further prioritize and sequence to help minimize the risk of not delivering the desired results on time and to support the ultimate goal of maximizing benefits to Canadians.

Quality, available and timely data key to evidence-based decisions

As part of the results and delivery approach, the Secretariat started work to reorient its performance measurement framework to focus more on outcome-based results and on measures aimed at assessing what matters to Canadians. Although the move is intended to support evidence-based decision making, this new approach will work only if meaningful, quality and timely data are available.

The Secretariat therefore increased its efforts in this area. It started assessing available data and exploring options for addressing gaps, including investment gaps. Options being considered include developing interim indicators to measure short‑term progress until the new data systems are in place, and increasing collaboration with other departments in order to leverage expertise and systems across government.

The Task Force on Mental Health provides a good model of cooperation between the Government of Canada and federal public sector unions

The joint task force created in early 2015 to improve mental health and safety in the federal workplace has proven to be a good model of cooperation between the federal government and public sector unions for addressing issues of mutual concern. The task force released its first report in December 2015, which contained concrete recommendations for improving mental health in federal public service organizations. These recommendations were strengthened with the release of a second report, in May 2016. The Secretariat is considering using this model of cooperation in other areas of mutual concern, such as diversity and inclusion.

Enterprise-wide collaboration requires new ways of working

The Secretariat’s engagement in enterprise-wide initiatives such as back office transformation is relatively new. As with any new undertaking, some changes are difficult to implement, particularly early in the process when existing structures and rules are not conducive to new ways of working. The large number of stakeholders also presents a challenge, because they all have different capacities, requirements, and competing priorities.

To address these challenges, the Secretariat is taking a number of steps. These include staggered approaches through piloting and re-adjustment as necessary, as well as creation of new governance bodies that reflect the complexity, scope and diversity of stakeholders while clearly establishing decision rules necessary to harmonize various interests. The Secretariat recognizes that more could be done in this area. Moving forward, the Secretariat will focus on improving change management and communication by better integrating projects and planning.

Maintain Blueprint 2020 momentum by focusing on real changes for employees and engagement activities that resonate with them

Maintaining momentum and employee curiosity on an evergreen vision that includes many long‑term transformational initiatives is not easy, particularly given the constant pressure to deliver short-term results in the face of competing priorities.

In response, the Secretariat engaged leaders at all levels through various forums, including the This is TBS Steering Committee and town halls. It also maintained conversation on transformation through engagement activities that resonated with employees. For example, a café-style event was held during National Public Service Week that gave employees a chance to provide input on the main actions needed to respond to the results of the Public Service Employee Survey.

The Secretariat remained focused on areas of work where it can show progress in order to make the changes real for its employees.

Section III: Expenditure and human resources overview

Actual expenditures

2015–16 budgetary financial resources (dollars)
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
6,892,444,333 6,892,444,333 6,270,667,911 4,127,888,742 -2,764,555,591
2015–16 human resources (full-time equivalents)
Planned Actual Difference (actual minus planned)
1,844 1,807 -37

Budgetary performance summary

Budgetary performance summary for strategic outcomes and for programs (dollars)
Strategic Outcome, Program(s) and Internal Services 2015–16 Main Estimates 2015–16 Planned spending 2016–17 Planned spendingBudgetary performance summary note * 2017–18 Planned spendingBudgetary performance summary note * 2015–16 Total authorities available for use 2015–16 Actual spending (authorities used) 2014–15 Actual spending (authorities used) 2013–14 Actual spending (authorities used)

Note: Any minor numerical differences are due to rounding.

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results
Management frameworks N/A N/A N/A N/A N/A N/A 54,481,225 57,875,343
People management N/A N/A N/A N/A N/A N/A 128,785,777 57,834,089
Expenditure management N/A N/A N/A N/A N/A N/A 30,431,157 35,573,464
Financial management N/A N/A N/A N/A N/A N/A 31,231,325 31,291,934
Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians
Decision-making support and oversight 47,506,141 47,506,141 50,579,535 49,568,557 44,582,570 41,781,563 N/A N/A
Management policies development and monitoring 73,826,361 73,826,361 68,090,606 68,236,105 67,999,885 65,041,366 N/A N/A
Government-wide program design and delivery 50,671,220 50,671,220 53,256,595 52,997,096 134,545,152 90,757,746 N/A N/A
Government-wide funds and public service employer payments 6,645,161,074 6,645,161,074 6,230,254,397 6,230,254,397 5,941,211,076 3,852,630,170 2,898,360,909 2,629,221,633
Sub-total 6,817,164,796 6,817,164,796 6,402,181,133 6,401,056,155 6,188,338,683 4,050,210,845 3,143,290,393 2,811,796,463
Internal Services sub-total 75,279,537 75,279,537 65,624,896 69,130,661 82,329,228 77,677,897 78,399,289 80,724,486
Total 6,892,444,333 6,892,444,333 6,467,806,029 6,470,186,816 6,270,667,911 4,127,888,742 3,221,689,682 2,892,520,949

In 2015–16, the Secretariat revised its Program Alignment Architecture to better reflect core business activities and support the achievement of expected results. Due to significant differences between the Secretariat’s previous Program Alignment Architecture and current structure, historical spending for fiscal year 2013–14 and 2014–15 has not been restated.

The budgetary performance summary table on the previous page provides the following:

  • Main Estimates for 2015–16
  • Planned spending for 2015–16, as reported in the Secretariat’s 2015–16 Report on Plans and Priorities (RPP)
  • Planned spending for 2016–17 and 2017–18 for government commitments set out in ministerial mandate letters and as reported in the Secretariat’s 2016–17 RPP
  • Total authorities available for use in 2015–16, which reflects the authorities received to date, including in-year contributions from other government departments for the government-wide back office transformation initiative, which the Secretariat is leading
  • Actual spending for 2015–16, 2014-15 and 2013–14, as reported in the Public Accounts

Additional details on planned spending are provided as supplementary information.

The Government-Wide Funds and Public Service Employer Payments program is the largest portion of the Secretariat’s planned spending. On average, 58 per cent of this program’s funding is transferred to other federal organizations for items such as government contingencies, government-wide initiatives, compensation requirements, operating and capital budget carry forward, and paylist expenditures (Central Votes 5, 10, 15, 25, 30 and 33). The Secretariat’s total funding available for use is reduced accordingly. The remaining 42 per cent of this program’s funding is used to pay the employer’s share of the contributions to employee pension, insurance and benefits plans.

Overall, planned spending is projected to decrease by $422 million from 2015–16 to 2017–18. The decrease can be largely attributed to a reduction in Central Vote 30, Paylist Requirements. Payments for the elimination of accumulated severance are nearing completion and are expected to return to historical reference levels by 2016–17.

Actual spending increased by $906 million from 2014–15 to 2015–16. Most of that increase, $718 million, can be attributed to statutory items, largely due to an actuarial adjustment made in relation to the Public Service Superannuation Act. The rest of the increase, $236 million, related to public service employer payments to incrementally restore the financial health of the Service Income Security Insurance Plan (SISIP). This plan is providing benefits to an increased number of medically released Canadian Armed Forces members who served in the Afghanistan mission. These increases were offset by a $48‑million decrease in the Secretariat’s operating expenditures, mostly related to the sunset of funding received in 2014–15 for the payout of an out-of-court settlement under the White class action lawsuit launched against the Crown in 2014.

Actual spending increased by $329 million from 2013–14 to 2014–15. This was primarily attributed to funding received in 2014–15 to top up the SISIP reserves to a sustainable level and to implement approved benefit changes to the Public Service Health Care Plan (PSHCP) totalling $269 million. The remaining increase of $60 million is mainly the result of new funding received for the payout of the out-of-court settlement mentioned above.

Departmental spending breakdown

Figure 6: Treasury Board of Canada Secretariat 2015–16 actual spending by category (millions)
Treasury Board of Canada Secretariat 2015–16 actual spending by category (millions). Text version below:
Figure 6 - Text version

This pie chart shows the breakdown of the Treasury Board of Canada Secretariat’s actual spending for 2015–16 in two categories: public service employer payments and various statutory items, which accounted for 93 per cent of actual spending, or $3,853 million; and Secretariat operations, which accounted for 7 per cent of actual spending, or $275 million).

The Secretariat spent a total of $4.1 billion toward achieving its Strategic Outcome. Departmental operations accounted for 7 per cent of total spending. The balance, 93 per cent, relates to the Secretariat’s role in supporting the Treasury Board as employer of the core public administration.

Figure 7: Treasury Board of Canada Secretariat public service employer payments and various statutory items 2015–16 actual spending (millions)
Treasury Board of Canada Secretariat public service employer payments and various statutory items 2015–16 actual spending (millions). Text version below:
Figure 7 - Text version

This pie chart shows the breakdown of the Treasury Board of Canada Secretariat’s actual spending on public service employer payments and various statutory items for 2015–16. The pie chart is divided into six spending categories, broken down as follows:

Category Amount Percentage of total
Statutory payments $1,162 million 30%
Public Service Health Care Plan $921 million 24%
Service income security $599 million 16%
Provincial Payroll Taxes / Health Care Premiums and Other Note: In the 2014–15 Departmental Performance Report, “Other” was grouped with disability insurance. In this year’s report, it is grouped with provincial payroll taxes / health care premiums. $486 million 13%
Dental care plans $361 million 9%
Life and disability insurance $324 million 8%

Total spending for public service employer payments was $2.7 billion in 2015–16. The amount includes payments made under public service benefit plans, legislated amounts payable to provinces and associated administrative expenditures. Statutory payments, which relate to the employer contributions made under the Public Service Superannuation Act and other retirement acts and the Employer Insurance Act totalled $1.2 billion.

Departmental spending trends

Figure 8: Spending trends for program expenditures (Vote 1)
Spending trends for program expenditures (Vote 1). Text version below:
Figure 8 - Text version

This bar graph illustrates the Secretariat’s actual spending (Vote 1) for fiscal years 2013-14, 2014-15 and 2015-16 and planned spending for fiscal years 2016-17, 2017-18 and 2018-19. Financial figures are presented in dollars along the y axis, increasing by $50 million and ending at $350 million. These are graphed against fiscal years 2013-14 to 2018-19 on the x axis

For each fiscal year, amounts for the Secretariat’s program expenditures (Vote 1), statutory vote (largely comprised of contributions to employee benefit plans), and anticipated sunset programs are identified.

No amount is reported in 2013-14 to 2018-19 as sunset programs - anticipated.

In 2013-14, actual spending was $29,075,263 for statutory items, $234,224,053 for program expenditures for a total of 263,299,316.

In 2014-15, actual spending was $27,477,862 for statutory items and $295,850,911 for program expenditures for a total of 323,328,773.

In 2015-16, actual spending was $26,316,063 for statutory items and $248,942,508 for program expenditures for a total of 275,258,571.

Planned spending for statutory items goes from $28,020,193 in 2016-17, to $27,981,239 in 2017-18 and to $27,895,587 in 2018-19.

Planned spending for program expenditures goes from $209,531,439 in 2016-17, to $211,951,180 in 2017-18, and to $203,150,710 in 2018-19.

Total planned spending goes from $237,551,632 in 2016-17, to $239,932,419 in 2017-18, and to $231,046,297 in 2018-19.

The Secretariat’s operating expenditures include salaries, non-salary costs to deliver programs and statutory items related to the employer’s contributions to the Secretariat’s employee benefit plans.

Total program expenditures increased by $60 million between 2013–14 and 2014–15, mostly because new funding was received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit.

The decrease of $48 million between 2014–15 and 2015–16 actual spending resulted mostly from reduced expenditures in 2015–16 related to the settlement in the White case and a decrease in spending related to the Workspace Renewal Initiative (phase I). Those decreases were partially offset by expenditures incurred to support the Government-Wide Back Office Transformation Initiative.

A further decrease of $37.7 million between 2015–16 and 2016–17 is attributed to the sunset of funding received for the same out-of-court settlement and for the Government-Wide Back Office Transformation Initiative.

Program expenditures are anticipated to decrease by $6.5 million from 2016–17 to 2018–19, mostly due to the sunsetting of the Workspace Renewal Initiative (phase II) and the reprofiling of Workplace Wellness and Productivity Strategy funding to accommodate project timelines that have been impacted by ongoing collective bargaining.

Figure 9: Spending trends for public service employer payments (Vote 20) and various statutory items
Spending trends for public service employer payments (Vote 20) and various statutory items. Text version below:
Figure 9 - Text version

This bar graph illustrates the Secretariat’s actual spending for the public service employer payments (Vote 20) and various statutory items for fiscal years 2013-14, 2014-15 and 2015-16 and planned spending for fiscal years 2016-17, 2017-18 and 2018-19. Financial figures are presented in dollars along the y axis, increasing by $500 million and ending at $4.5 billion. These are graphed against fiscal years 2013-14 to 2018-19 on the x axis.

For each fiscal year, amounts for the Secretariat’s public service employer payments (Vote 20), statutory items (largely comprised of payments under the Public Service Pension Adjustment Act), and anticipated sunset programs are identified.

No amount is reported in 2013-14 to 2018-19 as sunset programs - anticipated.

In 2013-14, actual spending was $443,088,925 for statutory items and $2,186,132,708 for public service employer payments for a total of 2,629,221,633.

In 2014-15, actual spending was $444,049,205 for statutory items and $2,454,311,704 for public service employer payments for a total of 2,898,360,909.

In 2015-16, actual spending was $1,162,005,794 for statutory items and $2,690,624,377 for public service employer payments for a total of 3,852,630,171.

Planned spending for statutory items will remain the same for fiscal years 2016-17 to 2018-19 in the amount of $340,000,000.

Planned spending for public service employer payments will remain the same for fiscal years 2016-17 to 2018-19 in the amount of $2,337,061,397.

Total planned spending will remain the same for fiscal years 2016-17 to 2018-19 in the amount of $2,677,061,397.

Expenditures for public service employer payments and statutory items represent the employer’s share of contributions required by the insurance plans sponsored by the Government of Canada. These amounts also include statutory items for payments under the Public Service Pension Adjustment Act and employer contributions made under the Public Service Superannuation Act, the Employment Insurance Act and related acts.

The increase of $269 million from 2013–14 to 2014–15 is largely attributed to public service employer payments. This increase was mostly to address a funding shortfall in the SISIP to provide benefits to the increased number of medically released Canadian Armed Forces members who served in the Afghanistan mission. Also contributing to the increase was the implementation of approved changes to the PSHCP that were negotiated in 2014.

The increase of $954 million from 2014–15 to 2015–16 is attributed to statutory items of $718 million, which is largely due to an actuarial adjustment made in relation to the Public Service Superannuation Act, and an increase of $236 million related to public service employer payments to incrementally restore the financial health of the SISIP.

Planned expenditures for 2016–17 are anticipated to decrease by $1,176 million from 2015–16, largely because of the actuarial adjustment noted above and because of a further decrease in contributions, which is to start in 2016–17. To a lesser extent, the decrease is also attributable to a payment made in 2015–16 for the SISIP that returned the plan to a sustainable position, partially offset by higher plan unit costs, membership utilization rates and benefit enhancements under the PSHCP.

Planned spending for statutory items in 2016–17 to 2018–19 has been updated to reflect the change made in the actuarial adjustment amount for future years in relation to the Public Service Superannuation Act.

Expenditures by vote

For information on the Treasury Board of Canada Secretariat’s voted and statutory expenditures, consult the Public Accounts of Canada 2016, which is available on the Public Services and Procurement Canada website.

Section IV: Financial statements

Financial statements highlights

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

The figures provided in this section of the report may be different from those provided in other sections. The figures provided in other sections were prepared on an expenditure basis. The figures in this section were prepared on an accrual basis. The difference relates to accrual entries such as the recognition of services without charge received from other government departments, the acquisition of capital assets and related amortization expenses, as well as to accrued liability adjustments.

Treasury Board of Canada Secretariat
Condensed Statement of Operations (unaudited)
For the year ended
(dollars)
Financial information 2015–16 planned results 2015–16 actual results 2014–15 actual results Difference (2015–16 actual minus 2015–16 planned) Difference (2015–16 actual minus 2014–15 actual)
Total expenses 2,962,600,282 4,152,291,564 3,185,488,729 1,189,691,282 966,802,835
Total net revenues 13,268,175 11,701,966 10,782,961 (1,566,209) 919,005
Net cost of operations before government funding and transfers 2,949,332,107 4,140,589,598 3,174,705,768 1,191,257,491 965,883,830

Note: Refer to the Secretariat’s 2015-16 Future-Oriented Statement of Operations for more information on planned results.

The Secretariat’s total expenses in 2015–16 included approximately $3.8 billion related to public service employer payments for government-wide benefits programs, such as the employer’s share of the Public Service Health Care Plan (PSHCP), the Public Service Dental Care Plan (PSDCP), and other insurance and pension programs. Total expenses also included contributions of $1.2 billion to the Public Service Pension Plan (PSPP) related to actuarial deficits. The Secretariat’s total net revenues of $11.7 million in 2015–16 mainly include internal support services that the Secretariat provided to other government departments and the recovery of PSPP administration costs.

The difference of $967 million between 2015–16 and 2014–15 actual expenses and of $1,190 million between 2015–16 planned results and 2015–16 actual expenses is mainly due to increases related to public service employer payments, including an increase in contributions of $719 million to the PSPP related to actuarial deficits.

Treasury Board of Canada Secretariat
Condensed Statement of Financial Position (unaudited)
As at
(dollars)
Financial information 2015–16 2014–15 Difference (2015–16 minus 2014–15)
Total liabilities 459,800,454 817,619,442 (357,818,988)
Total net financial assets 376,944,154 725,314,297 (348,370,143)
Departmental net debt 82,856,300 92,305,145 (9,448,845)
Total non-financial assets 27,414,380 22,825,001 4,589,379
Departmental net financial position (55,441,920) (69,480,144) 14,038,224

The Secretariat’s liabilities consist mainly of accounts payable to other government organizations related to employee benefit plans and to claims for benefits under the PSHCP and the PSDCP. The Secretariat’s assets consist mainly of accounts receivable from other government departments and agencies related to employee benefit plans and amounts due from the Consolidated Revenue Fund (CRF), which represent amounts that can be paid out from the CRF, without further charges to the Secretariat’s authorities.

The decrease in total liabilities resulted mainly from a decrease of $443 million in accounts payable to the PSPP related to actuarial deficits, because all contributions were made by March 31, 2016. This decrease is partially offset by an increase of $81 million in accounts payable to other government departments and agencies mostly related to employee benefit plans.

The decrease in total net financial assets resulted from a decrease of $237 million in amounts due from the CRF and a reduction of $111 million in accounts receivable from other government departments and agencies mostly related to employee benefit plans.

The increase of $14 million in the departmental net financial position, which is the difference between the departmental net debt and the total non-financial assets, is mostly related to a reduction in accrued contingent liabilities and an increase in tangible capital assets.

Complete financial statements

See the complete Treasury Board of Canada Secretariat Financial Statements for the Year Ended , which include the Statement of Management Responsibility Including Internal Control Over Financial Reporting and its Annex for fiscal year 2015–16.

Section V: Supplementary information

Supplementary information: Reporting by program

Detailed information on program performance can be found in the Supplementary information: Reporting by program section of the Treasury Board of Canada Secretariat’s website.

Supplementary information tables

The following supplementary information tables can be found in the supplementary information tables section of the Treasury Board of Canada Secretariat’s website:

Information on federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Report on Federal Tax Expenditures. That report also provides detailed information on each tax expenditure, including descriptions, objectives, historical information and references to related federal spending programs. The tax measures presented in the Report on Federal Tax Expenditures are solely the responsibility of the Minister of Finance.

Section VI: Organizational contact information

Treasury Board of Canada Secretariat
90 Elgin Street
Ottawa, Canada K1A 0R5
Telephone: 613-369-3200
Toll free: 1-877-636-0656
Teletypewriter (TTY): 613-369-9371
Email: info@tbs-sct.gc.ca
Website: www.tbs-sct.gc.ca

Supplementary Information: Reporting by Program

Analysis of program(s) and internal servicesReporting by Program Footnote 1

Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians

Appendix: Definitions

Strategic outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians

Performance results
Strategic outcome Performance indicators Target Actual resultStrategic outcome note *
Good governance and sound stewardship to enable efficient and effective service to Canadians Canada’s ranking in the World Bank’s Worldwide Governance Indicators for the third indicator, Government Effectiveness Top ten among Organisation for Economic Co‑operation and Development (OECD) member countries Canada ranks 9th among the 35 OECD member countries for Government Effectiveness (as of 2015)

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 2015, Canada ranked 9th among the 35 OECD member countries for this indicator, consistent with the previous year’s ranking. The result remains on target, and Canada retains its position in the 95th percentile of the 215 countries measured.

Program 1.1: Decision-Making Support and Oversight

Description

Through the Decision-Making Support and Oversight program, the Treasury Board of Canada Secretariat supports the Treasury Board in its roles as management board of the Government of Canada and as expenditure manager in the government-wide expenditure cycle. The objective is to support the government in promoting value for money and results for Canadians in programs and operations.

The Secretariat achieves program results by providing independent strategic advice, analysis, guidance and oversight of programs, operations, and expenditures. It reviews departmental submissions, provides recommendations to the Treasury Board, and coordinates and reports on the allocation of expenditures across government organizations and programs.

Program performance analysis

In 2015–16, the Secretariat reviewed approximately 300 Treasury Board submissions, 220 Memoranda to Cabinet and other Cabinet presentations, and 200 Budget proposals through an integrated challenge process. This review included engaging the Secretariat’s Costing Centre of Expertise on 68 high‑value or high‑risk Cabinet documents estimated at $75.7 billion.

Deputy heads from 33 departments and agencies gave feedback on the Secretariat’s challenge function and on the assistance the Secretariat provided to address the challenges in their organizations. The Secretariat exceeded its target for this indicator, with 88 per cent of deputy heads agreeing that the Secretariat fulfills this role effectively. In particular, deputy heads commented on the supportiveness and accessibility of Secretariat analysts, and on the usefulness of their advice.

The Secretariat also provided a challenge function and supported the Governor in Council in the approval process for a total of 418 submissions at 20 Treasury Board meetings to consider orders in council. This function drives compliance with the Cabinet Directive on Regulatory Management and the Red Tape Reduction Act. There was an estimated $6.3‑million net reduction in the administrative burden cost imposed by regulations approved in 2015–16.

To further promote value for money and results for Canadians in programs and operations, the Secretariat laid the groundwork for a new Treasury Board Policy on Results, which took effect . The new policy will strengthen the federal government’s ability to deliver results and to demonstrate how tax dollars contribute to outcomes for Canadians.

To improve oversight and reporting to Parliament, the Secretariat consulted with key stakeholders, including the Treasury Board, Parliament and the media, about how to align the budget and estimates processes. The intent is to make the planning, spending and tracking of tax dollars more timely and transparent. In addition, the Secretariat increased the availability of performance information through the TBS InfoBase, a publicly available database of financial and human resources information on government operations.

2015–16 budgetary financial resources (dollars) Reporting by Program Footnote 2
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
47,506,141 47,506,141 44,582,570 41,781,563 -5,724,578
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
377 332 -45

Actual spending and FTEs were lower than planned, mainly due to staffing and contract delays.

Performance results
Expected results Performance indicators Target Actual results
The Secretariat promotes value for money and results for Canadians in programs and operations Federal organizations agree that the Secretariat provides an effective challenge function 70% by 88% for 2015–16

Sub-program 1.1.1: Cabinet Decision Support

Description

Through the Cabinet Decision Support sub-program, the Secretariat supports decision making by providing advice regarding resource allocation, risks, compliance with rules and policies, and alignment with the Government of Canada’s objectives and priorities. The objective is to provide the Treasury Board and other Cabinet committees with the best possible advice and analysis regarding departmental submissions to achieve results for Canadians.

The Secretariat achieves sub-program results by reviewing and providing advice and guidance on Treasury Board submissions and Memoranda to Cabinet. The Secretariat plays a challenge function role in reviewing Cabinet proposals, including performance strategies and implementation plans. It also supports the Treasury Board as a committee of ministers in considering Governor in Council regulations and orders in council.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
30,537,739 29,139,323 -1,398,416
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
242 221 -21

Actual spending and FTEs were lower than planned, mainly due to higher attrition.

Performance results
Expected results Performance indicators Targets Actual results
Cabinet makes decisions that are supported by evidence Per cent of applicable Cabinet documents that have quality performance, evaluation, and costing information (as per the Secretariat’s guidance) 100% by Not yet available
Costing information is transparent and of a high quality to support decision making Accuracy of estimated costs presented to Parliament, compared with actual costs To be determined by Not yet available

Sub-program 1.1.2: Expenditure Analysis and Allocation Management

Description

Through the Expenditure Analysis and Allocation Management sub-program, the Secretariat provides advice and analysis related to government expenditures, including compensation. It also supports decision making by providing reliable, detailed and timely information to Parliament and to the public, and by reporting on spending and resource allocation. The objective is to promote accountability and transparency in the management of government expenditures.

The Secretariat achieves sub-program results by working closely with federal departments and most Crown corporations, and by conducting research and analysis on expenditure trends to support expenditure planning, resource allocation and results-based management and decision making.

Expenditures on whole-of-government reporting to Parliament and to Canadians are also included under this sub-program.

The primary legislation underpinning this sub-program’s activities is the Financial Administration Act, as well as the Appropriation Acts associated with the Estimates.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
16,968,402 12,642,240 -4,326,162
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
135 111 -24

Actual spending and FTEs were lower than planned, mainly due to higher attrition, organizational restructuring and contract delays.

Performance results
Expected results Performance indicators Targets Actual results
Government expenditures are timely and managed in an effective manner The Consolidated Financial Statements of the Government of Canada receive an unmodified opinion from the Auditor General of Canada Yes, 100% of the time by Yes, 100% of the time for unqualified opinion for , financial statements
Per cent of applicable budget measures that are reflected in the Estimates within one fiscal year 100% by 70% (Budget 2015, as at )
Resources are aligned with priorities Total spending allocated to priorities and to experimentation To be determined by No data is available. The indicator is under review.

Program 1.2: Management Policies Development and Monitoring

Description

Through the Management Policies Development and Monitoring Program, the Secretariat supports the Treasury Board in its role of establishing principles for sound governance and management by setting government-wide policy direction in targeted areas. The objective is to have a sound management policy framework for the Government of Canada.

The Secretariat achieves program results by communicating clear management expectations to deputy heads and by adopting principles-based and risk-informed approaches to monitoring policy compliance. The Secretariat provides reviews, leads implementation, and supports and monitors policies and departmental performance under several areas of management. The Secretariat also engages with functional communities and undertakes outreach and monitoring to promote policy compliance and build the capacity of functional communities.

This program is underpinned by legislation such as the Financial Administration Act and the Public Service Employment Act.

Program performance analysis

The Secretariat currently supports more than 200 Treasury Board policy instruments, including 8 frameworks, 74 policies, 73 directives and 79 standards. In 2015–16, the Secretariat started a review of all Treasury Board policy instruments to streamline rules; clarify accountabilities; improve users’ experience; and focus on performance, innovation and balanced risk taking. Through this review, known as the Policy Suite Reset Initiative, the Secretariat undertook a suite‑wide analysis of key horizontal themes, developed a common reset approach and established an external advisory committee. The performance of this program will be measured by the progress in streamlining and implementing renewed policy instruments over the course of 2016–17. Departments’ perceptions of the streamlining will also be sought.

The Secretariat also laid the groundwork for a new Treasury Board Policy on Communications and Federal Identity, which took effect . The new policy gives government departments more options for engaging with Canadians in today’s digital environment.

The government announced a two-step approach to revitalizing access to information. As a first step, the Secretariat laid the groundwork for public consultations on improvements to the Act. Over 2016–17, the government will move forward on implementing its proposals for improving access to information and will make other changes identified through consultations. As a second step, the government will begin the first full five-year review of the Act in 2018.

In 2015–16, the Secretariat also focused on strengthening the recruitment and retention of new public servants. The Secretariat worked with the Canada School of Public Service, the Public Service Commission, the Privy Council Office and departments to develop a recruitment strategy to attract, recruit, retain and develop millennials and mid-career Canadians into the public service.

2015–16 budgetary financial resources (dollars)
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
73,826,361 73,826,361 67,999,885 65,041,366 -8,784,995
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
552 466 -86

Actual spending and FTEs were lower than planned, mainly due to project deferrals and efficiencies, staffing delays, and internal reallocations made during the year to better align resources with operational activities and priorities. These decreases were offset by an internal budget transfer made during the year to support the Costing Centre of Expertise.

Performance results
Expected results Performance indicators Targets Actual results
A streamlined policy suite that supports modern management Per cent of policy instruments that have been streamlined 90% by Not yet available
Per cent of departments that have implemented renewed policies within expected timelines 90% by Not yet available
Per cent of organizations that agree that the new policy suite is streamlined 75% by Not yet available

Sub-program 1.2.1: Financial Management Policy

Description

Through the Financial Management Policy sub-program, the Secretariat provides direction to federal organizations on proper stewardship of taxpayers’ dollars and government assets. It works to strengthen financial management, management of real property and materiel, investment planning and project management, and procurement across the federal public service. The objective is to promote sound stewardship and value for money and provide direction on standardizing the management of public resources, including in the areas of financial management and assets and acquired services, across the Government of Canada.

The Secretariat achieves sub-program results by developing and maintaining policies, guidance and practices; nurturing sustainable and professional communities (e.g., finance, procurement, materiel management, real property); monitoring departmental performance and compliance; and helping to improve the overall efficiency of government operations. The work includes community development, learning and outreach activities.

The primary legislation issuing program authority is the Financial Administration Act.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
12,034,021 13,077,986 1,043,965
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
79 88 9

Actual spending and FTEs were higher than planned, mainly due to internal reallocations made during the year to support the Costing Centre of Expertise.

Performance results
Expected results Performance indicators Targets Actual results
Financial management policies are effective in promoting sound stewardship and value for money across the Government of Canada Per cent of organizations that have implemented an ongoing risk-based monitoring program for all three control areas to support the effectiveness of their internal controls over financial reporting 80% by 77% (based on 2015–16 Management Accountability Framework (MAF) results)
Per cent of organizations that met key policy requirements for management of acquired services and assets 80% by 82.5% (based on MAF 2015–16 results)
In collaboration with Public Services and Procurement Canada, government procurement is easier and delivers better value for dollars spent Per cent of all department contracts that used mandatory and non-mandatory standing offers 20% by 21.4% (based on MAF 2015–16 results)
Per cent of contracts over $25,000 awarded through competitive processes 80% by 84.2% (based on MAF 2015–16 results)

Sub-program 1.2.2: People Management Policy

Description

Through the People Management Policy sub-program, the Secretariat supports activities of the Treasury Board in its role as the employer of the core public administration. It provides government-wide leadership through enabling policy frameworks, strategic engagements and infrastructure for human resources services, to achieve high performance and leadership excellence in people management. It 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.

The Secretariat achieves sub-program results by developing and monitoring the implementation of policy frameworks for executive management, classification, values and ethics and official languages. It establishes people management performance indicators; assesses and reports on organizations’ performance in people management; and collects and provides data on the public service. Its work includes community development, learning and outreach activities.

This sub-program is underpinned by legislation such as the Financial Administration Act, the Public Service Labour Relations Act, the Public Service Employment Act and the Official Languages Act.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
27,789,543 23,697,797 -4,091,746
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
231 189 -42

Actual spending and FTEs were lower than planned due to project delays and internal reallocations made during the year to the Public Service Performance Management project.

Performance results
Expected results Performance indicators Targets Actual results
A safe and respectful public service workplace Per cent of employees who indicate that, overall, their organization treats them with respect Improvement over 2014 PSES results by No Public Service Employee Survey was undertaken in 2015–16.
Per cent of employees who indicate that their organization works hard to create a workplace that prevents harassment Improvement over 2014 PSES results by No Public Service Employee Survey was undertaken in 2015–16.
Per cent of employees who indicate that they can initiate a formal recourse process without fear of reprisal Improvement over 2014 PSES results by No Public Service Employee Survey was undertaken in 2015–16.
The public service and its leaders reflect Canada’s diversity Per cent of executive employees (compared with workforce availability) who self‑identify as:
  • a visible minority
  • a woman
  • an Aboriginal person
  • a person with a disability
Improvement over previous year

Women increased their representation from 46.1% to 46.4%, but remained below their workforce availability of 47.8%.

Members of visible minority groups increased their representation from 8.5% to 8.8%, but remained below their workforce availability of 9.5%.

Representation of Aboriginal people decreased from 3.7% to 3.4%, remaining below their workforce availability of 5.2%.

Representation of persons with disabilities decreased marginally from 5.4% to 5.3%, which continued to exceed their workforce availability of 2.3%.

Per cent of offices delivering bilingual federal services, where required by regulation

90% oral communication by

90% written communication by

In terms of the delivery of bilingual federal services, 97% of institutions indicated that their users had received oral communications in their official language of choice and 99% of institutions indicated that their users had received written communication in their official language of choice (based on 2014–15 reviews).
A healthy public service workplace that supports mental health Per cent of the public service population on disability due to mental health–related claims Comparable to large employersSub-program 1.2.2: People Management Policy note *

In 2015–16 mental health related claims made up 49% of all reported disability claims.

That rate is comparable to industry benchmarks: mental health issues are responsible for between one third and one half of all long‑term sickness and disability in the working‑age population.

Sub-program 1.2.3: Information Management and Information Technology Policy

Description

Through the Information Management and Information Technology Policy sub-program, the Secretariat provides strategic direction and leadership for the enterprise and to federal organizations on record keeping, data management, web content management, access to information and privacy protection, and management of cyber-security and information technology. The objective is to enable information to be safeguarded as a public trust and managed as a strategic asset.

The Secretariat promotes open information and allows Canadians to exercise their right to access and use information, while protecting personal information against unauthorized collection, use and disclosure. Continual improvement of information management and information technology across the Government of Canada is encouraged by promoting principles and directives that support the achievements of the Government of Canada’s enterprise transformation objectives, and enable departments to meet priorities.

The Secretariat achieves sub-program results by developing and maintaining policy instruments, encouraging collaboration between government institutions, monitoring and overseeing departmental policy performance, and providing leadership. The work includes community development, learning and outreach activities.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
18,560,668 16,055,599 -2,505,069
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
122 96 -26

Actual spending and FTEs were lower than planned, mainly due to internal reallocations made during the year and to contracts undertaken at a lower cost.

Performance results
Expected results Performance indicators Targets Actual results
Federal institutions manage information and technology effectively Per cent of organizations that have implemented strategies and plans to effectively manage
  • information
  • cyber-threats
  • technology
To be determined by 84% for information management only (based on 2015–16 statistical reports on the administration of the Access to Information Act)
Canadians have timely access to government information and their personal information held by government Per cent of access to information requests received within established timelines 85% by 86% (based on 2015–16 statistical reports on the administration of the Access to Information Act)
Per cent of personal information requests received within established timelines 85% by 80% (based on 2015–16 statistical reports on the administration of the Privacy Act)

Sub-program 1.2.4: Externally Facing Policy

Description

Through the Externally Facing Policy sub-program, the Secretariat provides strategic direction and guidance to federal organizations to effectively manage Government of Canada communications and services to Canadians. In addition, it supports good regulatory practices for the benefit of citizens and stakeholders. The objectives are to promote high-quality, beneficial, consistent and open relationships and interactions between the Government of Canada and citizens and other stakeholders, and to support implementation of the Cabinet Directive on Regulatory Management.

The Secretariat achieves sub-program results by providing strategic direction and guidance in the areas of Government of Canada services, communications and regulations, and by monitoring organizational policy compliance. The work includes community development, learning and outreach activities.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
7,883,810 5,742,896 -2,140,914
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
57 41 -16

Actual spending and FTEs were lower than planned mainly due to internal reallocations made during the year to the Web Renewal Initiative and due to staffing delays.

Performance results
Expected results Performance indicators Targets Actual results
Canadians can actively engage with the federal government through multiple digital channels Per cent of engagement through multiple digital channels To be determined by Not yet available
Integrity of government advertising is strengthened Per cent of Canadians who perceive government advertising as fair and non-partisan To be determined by Not yet available
Improved online federal government service delivery Per cent of priority federal government services that are available online To be determined by Not yet available
Degree of client satisfaction with federal government services (quality, timeliness and efficiency To be determined by Not yet available
Per cent of priority services in key departments that meet established service standards To be determined by Not yet available

Sub-program 1.2.5: Organizational Management Policy

Description

Through the Organizational Management Policy sub-program, the Secretariat provides leadership and direction in the areas of results-based management, risk management, internal audit, evaluation and non–information technology security. The Secretariat develops policies that support the ongoing improvement of the relevance, effectiveness and value for money of programs and operations across the Government of Canada. Through the Management Accountability Framework, it provides strategic direction to support and improve the practices and accountability of deputy heads across departments. The objective is to promote effective and standard corporate management practices across the Government of Canada.

The Secretariat achieves sub-program results by developing and maintaining policy instruments and engaging with functional communities to build capacity and promote management excellence. It also monitors policy compliance in the area of corporate management. The work includes community development, learning and outreach activities.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
7,558,319 6,467,088 -1,091,231
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
62 52 -10

Actual spending and FTEs were lower than planned, mainly due to reduced contracting activity and staffing delays.

Performance results
Expected results Performance indicators Targets Actual results
Organizational management policies promote effective and consistent corporate management practices across the Government of Canada Organizations agree that the Secretariat’s policy centres for organizational management provide useful tools and guidance 70% by 76% for 2015–16
Per cent of federal organizations that have received a “generally conforms” on a practice inspection of their internal audit function 95% by 95% as of
Performance information is used by departments to inform management practices and processes Per cent of departments that use performance information to:
  • identify risks
  • establish priorities
  • support resource allocations
100% by
  • 62% of large departments and agencies consistently use performance information to identify risks
  • 68% of large departments and agencies consistently use performance information to establish priorities
  • 68% of large departments and agencies consistently use performance information to support resource allocations
(Based on 2015–16 MAF results)

Program 1.3: Government-Wide Program Design and Delivery

Description

Through the Government-Wide Program Design and Delivery program, the Secretariat designs and delivers activities, systems, services and operations with, for, or on behalf of other organizations in the Government of Canada. It also establishes a platform for transformational initiatives. The objective is to provide consistent and cost-controlled operations across the Government of Canada.

The Secretariat achieves program results by developing and delivering solutions where whole-of-government leadership is required, or where transformation and standardization can be achieved to improve quality and value for money.

Performance results analysis

This was the first year in which deputy heads from 33 departments and agencies were asked to assess the Secretariat’s ability to communicate information and provide guidance on current and future enterprise-wide initiatives. Sixty‑four per cent of respondents agreed that the Secretariat is fulfilling this role effectively. This result will serve as baseline from which to assess future progress. In the coming years, the Secretariat’s efforts will focus on stronger integration of projects and planning, which will support change management and communication.

To promote consistency in systems and operations across the Government of Canada, the Secretariat advanced the Open Government initiative to ensure that Canadians have greater access to government data and information. The Secretariat laid the groundwork for online and in-person public consultations across the country to gather Canadians’ views on a new plan for Open Government.

In collaboration with service departments, the Secretariat developed a framework for a new Government of Canada Service Strategy that includes objectives, core elements and an approach for developing and implementing the strategy and for tracking performance. This strategy will support and drive government-wide improvements to delivering services to Canadians and businesses.

In support of the Government of Canada’s commitment to bargain in good faith, the Secretariat introduced legislation to repeal provisions of Bill C-59 that gave the government the authority to unilaterally override the collective bargaining process and impose a new sick leave system. Negotiations continued between the government and most bargaining agents, including the Public Service Alliance of Canada and the Professional Institute of the Public Service of Canada.

To support modernization of pensions and benefits plans, the Secretariat conducted a governance benchmarking study of public sector pension plans. This study will inform the governance review that is currently under way. The Secretariat also ensured the financial health of the Service Income Security Insurance Plan, which provides compensation and benefits to disabled employees of the Department of National Defence.

As a central agency, in support of the Clerk of the Privy Council’s Blueprint 2020 initiative, the Secretariat helped reduce internal government-wide red tape by forming a tiger team to identify ways to streamline internal processes. The team helped identify root causes of red tape, as well as best practices in the areas of staffing, procurement, and grants and contributions.

In addition, the Secretariat enhanced public servants’ capacity for learning Canada’s official languages by improving the quality of online courses available; transformed the government’s digital workplace by creating a single, mobile‑friendly government‑wide intranet site; and, improved workforce planning by launching a range of tools to help managers connect with talented public servants.

2015–16 budgetary financial resources (dollars)
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
50,671,220 50,671,220 134,545,152 90,757,746 40,086,526
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
333 428 95

The difference between planned spending and total authorities available for use is mainly due to in‑year contributions received from other government departments in support of the back office transformation initiative and to new funding received for the payout of an out‑of‑court settlement to eligible claimants under the White class action lawsuit. The increase in actual spending and FTEs stems mainly from the back office transformation initiative and payouts of the same out‑of‑court settlement. Any remaining unused authorities for the back office transformation initiative at the end of fiscal year were reprofiled for use in 2016–17.

Performance results
Expected results Performance indicators Targets Actual results
The Secretariat promotes consistency in systems and operations across the Government of Canada Employees agree that they have the necessary tools to do their jobs Improvement over 2014 PSES results by No Public Service Employee Survey was undertaken in 2015–16
Per cent of organizations that agree that the Secretariat provides effective guidance with respect to enterprise‑wide systems and operations To be determined by 64% for 2015–16

Sub-program 1.3.1: Pensions and Benefits

Description

Through the Pensions and Benefits sub-program, the Secretariat supports the Treasury Board as sponsor and manager of the federal public service pension plan and group benefit plans. The objective is to provide consistent, sustainable and well-managed pensions and benefits to employees across the core public service.

The Secretariat oversees administration of the public service pension plan, providing direction to Public Services and Procurement Canada. Working with major insurance companies, it undertakes management and oversight responsibilities for other federal benefit programs. The scope of the Pensions and Benefits Sector includes policy and program development for public service pensions, benefit plans, and disability and sick leave management (Workplace Wellness and Productivity Strategy).

The Secretariat also manages stakeholder relations, provides information to pension and benefit plan members on entitlements, and communicates changes to the public service pension and benefits plans. The Secretariat supports the Secretary and the Treasury Board in setting the terms and conditions relating to eligibility, premiums, contributions, and other arrangements.

The Secretariat is managing insurance benefit plans for employees, pensioners and dependants, which cover health care, dental and disability. The work includes oversight of plan contracts, communications, and initiatives for managing costs.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
7,559,708 22,084,333 14,524,625

Actual spending was higher than planned, mainly due to new funding received for the payout of an out‑of‑court settlement to eligible claimants under the White class action lawsuit.

2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
84 83 -1

Actual FTEs aligned with planned FTEs.

Performance results
Expected results Performance indicators Targets Actual results
Modern pension and benefit plans that help make the government a modern employer Per cent of key government partners that agree that the Secretariat provides quality tools and guidance in the area of pensions and benefits 80% by 100% for 2015–16

Sub-program 1.3.2: Labour Relations

Description

Through the Labour Relations sub-program, the Secretariat supports the Treasury Board in its role as employer by overseeing labour management and compensation operations for the core public administration.

The Secretariat negotiates collective agreements with employee bargaining agents and oversees employer representation at recourse for labour relations, classification, pay equity, staffing and terms and conditions of employment. It also provides advice and guidance to departments on labour relations and compensation issues.

This sub-program is underpinned by legislation, such as the Financial Administration Act, the Public Service Labour Relations Act and the Public Service Employment Act.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
21,988,012 14,037,994 -7,950,018
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
89 80 -9

Actual spending and FTEs were lower than planned, mainly due to frozen funds earmarked for legal costs associated with Charter challenges and due to staffing and contract delays.

Performance results
Expected results Performance indicators Targets Actual results
Consistent and coherent compensation advice provided to organizations Per cent of compensation decisions that are aligned with the principles of the Treasury Board’s Policy Framework for the Management of Compensation 90% by Not applicable — No agreements signed during the period
Labour relations programs help government organizations to effectively execute their responsibilities Per cent of government organizations that agree that the advice and support provided by the Secretariat’s labour relations programs assist them in the execution of their responsibilities 70% 82% for 2015–16
Good faith bargaining expectations are met Number of founded bad faith bargaining complaints Reduction from previous year by

In 2015–16, no complaints of bad faith bargaining were filed in relation to the 2015 round of collective bargaining.

Therefore, there were no founded bad faith bargaining complaints.

100% success rate for this indicator.

Sub-program 1.3.3: Government-Wide Operations

Description

Through the Government-Wide Operations sub-program, the Secretariat provides other departments with access to shared operations, services, and information technology (IT) systems. The Secretariat also provides support to small departments where specific expertise is required or capacity limitations exist, in order to generate cost savings. The Secretariat develops and maintains IT tools that promote a more collaborative and efficient public service. The objective is to improve the efficiency of government organizations.

Activities under this sub-program are performed with groups of government organizations to facilitate government business. These services and systems are developed and maintained by the Secretariat, sometimes in partnership with other organizations.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
10,919,087 10,314,974 -604,113

Actual spending aligned with planned spending.

2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
101 112 11

The variance between planned and actual FTEs is mainly attributable to the fact that although the Secretariat is the employer for those who were working on developing GCpedia, the collaborative online work environment, other government departments funded the cost of those employees.

Performance results
Expected results Performance indicators Targets Actual results
Government-wide operations are managed effectively Per cent of targeted organizations that have implemented services and systems developed or mandated by the Secretariat 100% by No longer applicable
Per cent of public servants using collaborative tools (e.g., GCconnex, GCpedia) developed by the Secretariat 55% by 53% by

Sub-program 1.3.4: Transformation Leadership

Description

Through the Transformation Leadership sub-program, the Secretariat reviews existing administrative systems and processes, and provides the platform for transformational initiatives across the Government of Canada for improvements, primarily (but not exclusively) in back office functions. The objective is to achieve better value for money and services by redesigning and transforming Government of Canada operations where the benefits outweigh the costs.

The Secretariat develops and pilots leading-edge enterprise tools, systems, and services to initiate change and identify lessons learned to support government-wide implementation.

2015–16 budgetary financial resources (dollars)
Planned spending Actual spending (authorities used) Difference (actual minus planned)
10,204,413 44,320,444 34,116,031
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
59 153 94

Actual spending and FTEs were higher than planned, mainly to due to in-year contributions received from other government departments for the back office transformation initiative and due to internal reallocations for the Web Renewal Initiative and Open Government.

Performance results
Expected results Performance indicators Targets Actual results
Canadians have better access to government data Per cent of federal data publicly released To be determined by Not yet available
Transformational initiatives improve Government of Canada operations Per cent of targeted departments leveraging enterprise back office systems To be determined by Not yet available

Program 1.4: Government-Wide Funds and Public Service Employer Payments

Description

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 Analysis and Allocation Management sub-program and the People Management Policy sub-program, but their financial resources are shown separately in the Secretariat’s Program Alignment Architecture for visibility and reporting purposes.

Program performance analysis

Planned spending included about $3.95 billion for government-wide funds, also known as Treasury Board Central Votes. Funding from Treasury Board Central Votes is used to supplement appropriations of government departments and agencies for purposes such as temporary advances for urgent or unforeseen items that require funding before the next Supply Bill; implementation of strategic initiatives across multiple departments; meeting the employer’s legal requirements to pay parental benefits and severance payments; adjustments for salary increases; and to carry forward eligible lapsing operating and capital funding from the previous fiscal year.

Over the course of the fiscal year, information on the allocation of funding from government‑wide funds to departments is provided in the Supplementary Estimates annex tables.Reporting by Program Footnote 3 The final allocations of government-wide funds for 2015–16 can be found in Section 11, Volume III, of the 2015–16 Public Accounts.

Links to the lists of allocations from Treasury Board Central Votes in Supplementary Estimates (A), (B), and (C) for 2015–16 can be found on the Supplementary Estimates page.

Planned spending also included $2.69 billion for various statutory payments and for public service employer payments relating to group insurance and benefit programs, such as the employer’s share of health, income maintenance and life insurance premiums, payments to or in respect of provincial health insurance plans, payroll taxes, provincial taxes, and payments of administration costs.

2015–16 budgetary financial resources (dollars) Reporting by Program Footnote 4
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
6,645,161,074 6,645,161,074 5,941,211,076 3,852,630,170 -2,792,530,904

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

2015–16 government-wide funds (central votes) (dollars)
Main Estimates (revised) Planned spending (revised) Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
3,952,090,470 3,952,090,470 2,059,934,678 0 -3,952,090,470

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. If these funds are needed, they are transferred to the appropriate department. If they are not needed, the unused balance is returned to the fiscal framework at the end of the fiscal year and is reported as a Secretariat lapse. No actual spending is incurred by the Secretariat under government-wide funds.

2015–16 public service employer payments and various statutory items (dollars)
Main Estimates (revised) Planned spending (revised) Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
2,693,070,604 2,693,070,604 3,881,276,398 3,852,630,171 1,159,559,567

During the year, funding increased by $1.2 billion, largely due to an actuarial adjustment to the Public Service Superannuation Act and due to an increase related to public service employer payments to incrementally restore the financial health of the Service Income Security Insurance Plan.

2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference
Not applicable Not applicable Not applicable
Performance results
Expected results Performance indicators Targets Actual results
Allocations and payments managed by the Secretariat are made as required Per cent of allocations and payments made 100% by 100% for 2015–16

Internal Services

Description

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. Internal services include only those activities and resources that apply across an organization, and not those provided to a specific program. The groups of activities 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; and Acquisition Services.

Program performance analysis

In 2015–16, the Secretariat was tasked with an ambitious agenda that consisted of multiple complex priority initiatives with tight deadlines. To deliver on this agenda the Secretariat undertook a number of initiatives related to internal operations.

To support the achievement of the President of the Treasury Board’s priorities, the Secretariat adopted a results and delivery approach, which is being led by the Chief Results and Delivery Officer and supported by a small Results and Delivery Unit. This approach involves clear goals and performance indicators for all commitments. The Secretariat’s tools and processes for implementing the results and delivery approach have served as models for other federal departments. In the coming year, the Secretariat’s efforts will focus on strengthening an evidenced‑based approach to implementation of initiatives and decision making.

To support a high–performing workforce, the Secretariat’s executive community made a shared “Every Day” commitment to all employees to engage face‑to‑face, to involve them in decision making and to treat them with respect. The commitment also involves fostering an environment where employee recognition is integrated into the performance management cycle.

The Secretariat reduced its office space by 30 per cent by moving 65 per cent of its operations to new office space that is fit up to Government of Canada Workplace 2.0 Standards. As a result, its workplace has become more dynamic, open, collaborative and networked. The Secretariat has also introduced new technology, tools and practices for managing information. Desktops have been replaced with tablets and laptops; and office phones have been replaced with cellphones. Wi-FI is available throughout the Secretariat’s offices, which has increased productivity, mobility and collaboration.

The Secretariat adopted lean and efficient business practices by streamlining its processes for internally advertised staffing, ministerial correspondence, communications approvals, and the development of evaluations and risk-based audit plans.

2015–16 budgetary financial resources (dollars)
Main Estimates Planned spending Total authorities available for use Actual spending (authorities used) Difference (actual minus planned)
75,279,537 75,279,537 82,329,228 77,677,896 2,398,359
2015–16 human resources (full-time equivalents [ FTEs ] )
Planned Actual Difference (actual minus planned)
582 581 -1

Actual spending and FTEs aligned with planned spending and FTEs.

Appendix: Definitions

appropriation (crédit)
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures (dépenses budgétaires)
Operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
Departmental Performance Report (rapport ministériel sur le rendement)
Reports on an appropriated organization’s actual accomplishments against the plans, priorities and expected results set out in the corresponding Reports on Plans and Priorities. These reports are tabled in Parliament in the fall.
full‑time equivalent (équivalent temps plein)
A measure of the extent to which an employee represents a full person‑year charge against a departmental budget. Full‑time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.
Government of Canada outcomes (résultats du gouvernement du Canada)
A set of 16 high‑level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.
Management, Resources and Results Structure (Structure de la gestion, des ressources et des résultats)
A comprehensive framework that consists of an organization’s inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.
non‑budgetary expenditures (dépenses non budgétaires)
Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance (rendement)
What an organization did with its resources to achieve its results, how well those results compare to what the organization intended to achieve, and how well lessons learned have been identified.
performance indicator (indicateur de rendement)
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.
performance reporting (production de rapports sur le rendement)
The process of communicating evidence‑based performance information. Performance reporting supports decision making, accountability and transparency.
plan (plan)
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead up to the expected result.
planned spending (dépenses prévues)

For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by February 1. Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

priorities (priorité)
Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important or what must be done first to support the achievement of the desired Strategic Outcome(s).
program (programme)
A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results and that are treated as a budgetary unit.
Program Alignment Architecture (architecture d’alignement des programmes)
A structured inventory of an organization’s programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.
Report on Plans and Priorities (rapport sur les plans et les priorités)
Provides information on the plans and expected performance of appropriated organizations over a three‑year period. These reports are tabled in Parliament each spring.
results (résultat)
An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead they are within the area of the organization’s influence.
statutory expenditures (dépenses législatives)
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
Strategic Outcome (résultat stratégique)
A long‑term and enduring benefit to Canadians that is linked to the organization’s mandate, vision and core functions.
sunset program (programme temporisé)
A time‑limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.
target (cible)
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
voted expenditures (dépenses votées)
Expenditures that Parliament approves annually through an appropriation act. The Vote wording becomes the governing conditions under which these expenditures may be made.
whole‑of‑government framework (cadre pangouvernemental)
Maps the financial contributions of federal organizations receiving appropriations by aligning their Programs to a set of 16 government‑wide, high‑level outcome areas, grouped under four spending areas.

Treasury Board of Canada Secretariat
Financial Statements (Unaudited)
for the year ended

Table of contents

Statement of Management Responsibility, Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended , and all information contained in these statements rests with the management of the Treasury Board of Canada Secretariat (Secretariat). These financial statements have been prepared by management using the government’s accounting policies, which are based on Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Secretariat’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Secretariat’s Departmental Performance Report is consistent with these financial statements.

Management is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded, and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Secretariat; and through conducting an annual risk-based assessment of the effectiveness of the system of internal control over financial reporting.

A risk-based assessment for the year ended , was completed in accordance with the Policy on Internal Control, and the results and action plans are summarized in the annex.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to assess key risks and the effectiveness of associated key controls and to make any necessary adjustments.

The system of internal control is monitored by Internal Audit, which conducts periodic audits and reviews of different areas of the Secretariat’s operations. In addition, the Chief Audit Executive has free access to the Audit Committee, which oversees and provides advice to management on its responsibilities for maintaining adequate control systems and the quality of financial reporting. This committee undertakes a review of the financial statements, including all significant accounting estimates and judgments therein, and advises the Secretariat on any apparent material concerns.

The financial statements of the Secretariat have not been audited.

Yaprak Baltacioğlu
Secretary of the Treasury Board
Ottawa, Canada

Renée Lafontaine
Chief Financial Officer
Ottawa, Canada

Treasury Board of Canada Secretariat
Statement of Financial Position (Unaudited)
as at
(in thousands of dollars)
2016 2015

Table notes:

  • The accompanying notes form an integral part of these financial statements.
  • For contractual obligations, see Note 8.
  • For contingent liabilities, see Note 9.
Liabilities
Accounts payable and accrued liabilities ( Note 4)
439,167 797,265
Vacation pay and compensatory leave
7,941 7,665
Employee future benefits ( Note 5)
12,692 12,689
Total liabilities 459,800 817,619
Financial assets
Due from Consolidated Revenue Fund
247,127 483,662
Accounts receivable and advances ( Note 6)
130,578 242,184
Total gross financial assets 377,705 725,846
Financial assets held on behalf of government
Accounts receivable and advances ( Note 6)
(761) (532)
Total financial assets held on behalf of government (761) (532)
Total net financial assets 376,944 725,314
Departmental net debt 82,856 92,305
Non-financial assets
Prepaid expenses
1,149 106
Tangible capital assets ( Note 7)
26,265 22,719
Total non-financial assets 27,414 22,825
Departmental net financial position (55,442) (69,480)

Yaprak Baltacioğlu
Secretary of the Treasury Board
Ottawa, Canada

Renée Lafontaine
Chief Financial Officer
Ottawa, Canada

Treasury Board of Canada Secretariat
Statement of Operations and Departmental Net Financial Position (Unaudited)
for the Year Ended
(in thousands of dollars)
2016 Planned Results 2016 2015

Table notes:

Expenses
Government-Wide Funds and Public Service Employer Payments ( Note 12b)
2,685,362 3,855,808 2,899,672
Decision-Making Support and Oversight ( Note 13)
51,263 47,103 0
Management Policies Development and Monitoring ( Note 13)
79,597 71,934 0
Government-Wide Program Design and Delivery ( Note 13)
63,510 89,207 0
Internal Services
82,868 88,240 80,100
Expenses not allocated to the 2016 Program Alignment Architecture ( Note 13)
0 0 205,716
Total expenses 2,962,600 4,152,292 3,185,488
Revenues
Internal support services
5,978 6,664 6,220
Recovery of pension administration costs
8,744 6,143 5,554
Parking fees (government-wide)
2,200 3,379 3,491
Other
66 3,432 140
Gross revenues
16,988 19,618 15,405
Revenues earned on behalf of government
(3,720) (7,916) (4,622)
Total net revenues 13,268 11,702 10,783
Net cost of operations before government funding and transfers 2,949,332 4,140,590 3,174,705
Government funding and transfers
Net cash provided by government
4,363,821 2,870,426
Change in due from Consolidated Revenue Fund
(236,535) 300,707
Services provided without charge by other government departments ( Note 10)
27,415 19,260
Transfer of the transition payments for implementing salary payments in arrears ( Note 11)
(49) (6,106)
Tangible capital assets transferred to other government departments
(24) (21)
Total government funding and transfers 4,154,628 3,184,266
Net cost of operations after government funding and transfers (14,038) (9,561)
Departmental net financial position (beginning of year) (69,480) (79,041)
Departmental net financial position (end of year) (55,442) (69,480)
Treasury Board of Canada Secretariat
Statement of Change in Departmental Net Debt (Unaudited)
for the Year Ended
(in thousands of dollars)
2016 2015

Table note:

  • The accompanying notes form an integral part of these financial statements.
Net cost of operations after government funding and transfers (14,038) (9,561)
Change due to tangible capital assets
Acquisition of tangible capital assets
6,944 11,702
Amortization of tangible capital assets
(3,669) (1,795)
Proceeds from disposal of tangible capital assets
(27) (12)
(Loss) gain on write-off and disposal of tangible capital assets
(256) 12
Transfer to other government departments
(24) (21)
Other adjustments
578 0
Total change due to tangible capital assets
3,546 9,886
Change due to prepaid expenses
1,043 75
Net (decrease) increase in departmental net debt (9,449) 400
Departmental net debt (beginning of year) 92,305 91,905
Departmental net debt (end of year) 82,856 92,305
Treasury Board of Canada Secretariat
Statement of Cash Flows (Unaudited)
for the Year Ended
(in thousands of dollars)
2016 2015

Table note:

  • The accompanying notes form an integral part of these financial statements.
Operating activities
Net cost of operations before government funding and transfers 4,140,590 3,174,705
Non-cash items:
Amortization of tangible capital assets
(3,669) (1,795)
(Loss) gain on write-off and disposal of tangible capital assets
(256) 12
Other adjustments to tangible capital assets
578 0
Services provided without charge by other government departments ( Note 10)
(27,415) (19,260)
Transition payments for implementing salary payments in arrears (Note 11) 49 6,106
Variations in Statement of Financial Position:
(Decrease) increase in accounts receivable and advances
(111,835) 33,174
Increase in prepaid expenses
1,043 75
Decrease (increase) in accounts payable and accrued liabilities
358,098 (331,702)
(Increase) decrease in vacation pay and compensatory leave
(276) 223
Increase in employee future benefits
(3) (2,875)
Cash used in operating activities 4,356,904 2,858,663
Capital investing activities
Acquisitions of tangible capital assets
6,944 11,702
Proceeds from disposal of tangible capital assets
(27) (12)
Cash used in capital investing activities 6,917 11,690
Financing activities
Lease payments for tangible capital assets
0 73
Cash used in financing activities 0 73
Net cash provided by the Government of Canada 4,363,821 2,870,426

Treasury Board of Canada Secretariat
Notes to the Financial Statements (Unaudited)
for the Year Ended

1. Authority and objectives

Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. The Secretariat is headed by a Secretary, who reports to the President of the Treasury Board.

The mission of the Secretariat is to ensure that rigorous stewardship of public resources achieves results for Canadians.

The core business of the Secretariat is currently organized into the following key programs:

a) Government-Wide Funds and Public Service Employer Payments

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.

b) Decision-Making Support and Oversight

Through the Decision-Making Support and Oversight program, the Secretariat supports the Treasury Board in its roles as management board of the Government of Canada and as expenditure manager in the government-wide expenditure cycle. The objective is to support the government in promoting value for money and results for Canadians in programs and operations. The Secretariat achieves program results by providing independent strategic advice, analysis, guidance and oversight of programs, operations and expenditures. It reviews departmental submissions, provides recommendations to the Treasury Board, and coordinates and reports on the allocation of expenditures across government organizations and programs.

c) Management Policies Development and Monitoring

Through the Management Policies Development and Monitoring Program, the Secretariat supports the Treasury Board in its role of establishing principles for sound governance and management by setting government-wide policy direction in targeted areas. The objective is to have a sound management policy framework for the Government of Canada. The Secretariat achieves program results by communicating clear management expectations to deputy heads and by adopting principles-based and risk-informed approaches to monitoring policy compliance. The Secretariat provides reviews, leads implementation, and supports and monitors policies and departmental performance under several of areas of management. The Secretariat also engages with functional communities and undertakes outreach and monitoring to promote policy compliance and build the capacity of functional communities. This program is underpinned by legislation such as the Financial Administration Act and the Public Service Employment Act.

d) Government-Wide Program Design and Delivery

Through the Government-Wide Program Design and Delivery program, the Secretariat designs and delivers activities, systems, services and operations with, for, or on behalf of other organizations in the Government of Canada. It also establishes a platform for transformational initiatives. The objective is to provide consistent and cost-controlled operations across the Government of Canada. The Secretariat achieves program results by developing and delivering solutions where whole-of-government leadership is required, or where transformation and standardization can be achieved to improve quality and value for money.

e) Internal Services

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. Internal services include only those activities and resources that apply across an organization, and not those provided for a specific program. The groups of activities 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; and Acquisition Services.

2. Summary of significant accounting policies

These financial statements have been prepared using the government’s accounting policies, which are based on Canadian public sector accounting standards. The presentation and results using the accounting policies stated below do not result in any significant differences from Canadian public sector accounting standards.

The significant accounting policies are as follows:

a) Parliamentary authorities

The Secretariat is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.

Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the Report on Plans and Priorities 2015–16. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the Report on Plans and Priorities 2015–16.

b) Net cash provided by government

The Secretariat operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Secretariat is deposited to the CRF, and all cash disbursements made by the Secretariat are paid from the CRF. The net cash provided by government is the difference between all cash receipts and all cash disbursements, including transactions between government departments.

c) Amounts due from or to the Consolidated Revenue Fund (CRF)

Amounts due from or to the Consolidated Revenue Fund (CRF) are the result of timing differences at year-end between the time when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Secretariat is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

Revenues are accounted for in the period in which the related transaction or event that gave rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the Secretariat’s liabilities. While the Secretary is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and, therefore, are presented as a reduction of the entity’s gross revenues.

e) Expenses

Expenses are recorded on an accrual basis:

  • Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. Transfer payments that become repayable as a result of the realization of conditions specified in the contribution agreement are recorded as a reduction to transfer payment expenses and are set up as a receivable.
  • Vacation pay and compensatory leave are accrued, as the benefits are earned by employees under their respective terms of employment.
  • Services provided without charge by other government departments for accommodation and legal services are recorded as operating expenses at their estimated cost.
f) Government-wide employee benefits
(i) Pension and other employee benefits

Eligible public service employees participate in the Public Service Pension Plan (the Plan), a defined benefit pension plan sponsored by the Government of Canada. In support of the Treasury Board’s role as employer for the public service, the Secretariat funds employer contributions to the Plan for all departments and agencies, including additional contributions in respect of any actuarial deficits, via statutory authorities.

Starting with fiscal year 2016, and based on the triennial actuarial valuation of the Plan tabled in Parliament on , an annual adjustment of $340 million will be made to the Pension Fund for a period of 15 years ending in 2030. This amount, along with one-time adjustments in fiscal year 2016 of $681 million made to the Public Service Superannuation Account and $141 million made to the Retirement Compensation Arrangement (RCA) accounts No. 1 and No. 2, comprises the amount of $1,162 million that has been expensed in the Secretariat’s financial statements (refer to Note 12b).

Employer contributions to the Plan are expensed in the year incurred, and the Secretariat recovers a portion of the employer contributions from other departments and agencies.

Eligible employees of the Secretariat also participate in the Plan. The Secretariat’s financial reporting responsibility in respect of its own employees’ participation in the Plan is limited to its employer contributions.

The Government of Canada also sponsors a variety of other employee benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. Benefit payments for these plans are recognized as expenses in the Secretariat’s financial statements when they become due, and no accruals are recorded for future benefits. A portion of these benefits is also recovered from other departments and agencies. This accounting treatment corresponds to the funding provided to the Secretariat through parliamentary appropriations.

For all pension and other employee future benefits, the actuarial liabilities and related disclosures as well as actuarial surpluses or deficiencies for the whole of government are recognized in the financial statements of the Government of Canada. It is the government as the sponsor of the defined benefit plans that ultimately bears the actuarial and investment risks inherent to these plans.

(ii) Severance benefits

Certain employee groups are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.

As a result of collective agreement negotiations with certain employee groups and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees, commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits on termination from the public service. As a result, the obligation related to these employee groups has ceased to accumulate.

g) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost or net recoverable value. A valuation allowance has been recorded for receivables where recovery is considered uncertain.

h) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur and a reasonable estimate of the loss can be made, an estimated liability is accrued, and an expense is recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

i) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Secretariat does not capitalize intangibles, works of art and historical treasures that have cultural, aesthetic or historical value.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class Amortization period
Computer hardware 3 years
Computer software 3 to 10 years
Machinery and equipment 3 to 10 years
Motor vehicles 5 years
Assets under construction Once in service, in accordance with asset type
Leasehold improvements Lesser of the remaining term of the lease or useful life of the improvement
Leased tangible capital assets Over the lease term

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use, and are not amortized until they become available for use.

j) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of the assets, liabilities, revenues and expenses in the financial statements. At the time of the preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for claims incurred but not yet reported under the public service health and dental care plans, the liability for employee future benefits, and the useful life of tangible capital assets. The actual results could significantly differ from the estimated results. Management’s estimates are reviewed periodically; as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary authorities

The Secretariat receives most of its funding through expenditure authorities provided by Parliament. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through the parliamentary authorities of prior, current or future years. Accordingly, the Secretariat’s net results of operations for the year on a government funding basis differ from its net results of operations on an accrual accounting basis.

The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year authorities used
($ thousands)
2016 2015
Net cost of operations before government funding and transfers 4,140,590 3,174,705
Adjustments for items affecting net cost of operations but not affecting authorities:
Amortization of tangible capital assets
(3,669) (1,795)
(Loss) gain on write-off and disposal of tangible capital assets
(256) 12
Services provided without charge by other government departments
(27,415) (19,260)
(Increase) decrease in vacation pay and compensatory leave
(276) 223
Decrease (increase) in employee future benefits
460 (3,108)
Refund of prior years’ expenditures
664 50,457
Decrease in accrued liabilities
9,346 2,017
Other
437 (42)
Subtotal (20,709) 28,504
Adjustments for items not affecting net cost of operations but affecting authorities:
Acquisitions of tangible capital assets
6,944 11,702
Lease payments for tangible capital assets
0 73
Transition payments for implementing salary payments in arrears ( Note 11)
49 6,106
Salary overpayments to be recovered
256 0
Increase in advances
759 600
Subtotal 8,008 18,481
Current year authorities used 4,127,889 3,221,690
b) Authorities provided and used
($ thousands)
2016 2015
Authorities provided
Vote 1: Program expenditures
303,094 321,759
Vote 5: Government contingencies
750,000 750,000
Vote 10: Government-wide initiatives
2,090 103
Vote 20: Public service insurance
2,719,271 2,506,134
Vote 25: Operating budget carry-forward
451,599 460,112
Vote 30: Pay list requirements
747,467 608,192
Vote 33: Capital budget carry-forward
108,778 137,334
Subtotal 5,082,299 4,783,634
Statutory authorities:
Contributions to employee benefit plans
26,234 27,398
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts, and the Employment Insurance Act
1,162,000 444,043
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act
3 0
President of the Treasury Board: Salary and car allowance
82 80
Payments under the Public Service Pension Adjustment Act
3 6
Spending of proceeds from the disposal of surplus Crown assets
47 15
Subtotal 1,188,369 471,542
Total authorities provided 6,270,668 5,255,176
Less:
Lapsed or transferred authorities:
Vote 1: Program expenditures
(54,152) (25,908)
Vote 5: Government contingencies
(750,000) (750,000)
Vote 10: Government-wide initiatives
(2,090) (103)
Vote 20: Public service insurance
(28,646) (51,822)
Vote 25: Operating budget carry-forward
(451,599) (460,112)
Vote 30: Pay list requirements
(747,467) (608,192)
Vote 33: Capital budget carry-forward
(108,778) (137,334)
Spending of proceeds from the disposal of surplus Crown assets
(47) (15)
Subtotal (2,142,779) (2,033,486)
Current year authorities used 4,127,889 3,221,690

4. Accounts payable and accrued liabilities

The following table presents the details of the Secretariat’s accounts payable and accrued liabilities:

($ thousands)
2016 2015
Accounts payable to other government departments and agencies 329,013 691,164
Accounts payable to external parties 30,850 18,681
Total accounts payable 359,863 709,845
Accrued liabilities 79,304 87,420
Total accounts payable and accrued liabilities 439,167 797,265

5. Employee future benefits

a) Pension benefits

The Secretariat’s employees participate in the Public Service Pension Plan (the Plan), which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years, at a rate of 2 per cent per year of pensionable service, times the average of the best five consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits, and they are indexed to inflation.

Both the employees and the Secretariat contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan (EAP) 2012, employee contributors have been divided into two groups:

  1. Group 1 relates to existing Plan members as of ; and
  2. Group 2 relates to members joining the Plan as of .

Each group has a distinct contribution rate. The employer expense in 2016 amounts to $18.1 million ($18.7 million in 2015). For Group 1 members, this expense represents approximately 1.25 times (1.41 times in 2015) the employee contributions; for Group 2 members, it represents approximately 1.24 times (1.39 times in 2015) the employee contributions. Employee contribution rates for both groups are gradually being increased to allow the employee-employer cost-sharing ratio to reach 50:50 by fiscal year 2018.

b) Severance benefits

The Secretariat provides severance benefits to certain employee occupational groups based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at year ended March 31, is as follows (see also Note 2f (ii)):

($ thousands)
2016 2015
Accrued benefit obligation (beginning of year) 12,689 9,814
Expense for the year 1,789 4,958
Benefits paid during the year (1,786) (2,083)
Accrued benefit obligation (end of year) 12,692 12,689

6. Accounts receivable and advances

The following table presents details of the Secretariat’s accounts receivable and advance balances:

($ thousands)
2016 2015
Receivables: Other government departments and agencies 129,086 240,054
Receivables: External parties 1,615 2,319
Advances to employees 66 9
Subtotal accounts receivable and advances 130,767 242,382
Less allowance for doubtful accounts on external receivables (189) (198)
Gross accounts receivable and advances 130,578 242,184
Accounts receivable held on behalf of government (761) (532)
Net accounts receivable and advances 129,817 241,652

The bulk of receivables from other government departments and agencies are related to receivables established at year-end as a result of employee benefit plans.

7. Tangible capital assets

The following table presents the details of tangible capital assets:

($ thousands)
Cost Accumulated amortization Net book value
Capital asset class Opening balance Acquisi-tions Adjust-ments Financial Statements table 7 note * Closing balance Opening balance Amorti-zation Adjust-ments* Closing balance 2016 2015
Financial Statements Table 7 notes:
Financial Statements Table 7 Note 1

The adjustments include mainly assets under construction that were put into use during the reporting period, disposals and write-offs, and the transfer of a motor vehicle to Parks Canada.

Return to Financial Statements table 7 note * referrer

Assets under construction 13,003 6,888 (15,736) 4,155 0 0 0 0 4,155 13,003
Machinery and equipment 2,004 0 5,542 7,546 426 663 (95) 994 6,552 1,578
Motor vehicles 117 56 (93) 80 92 6 (68) 30 50 25
Leasehold improvements 1,952 0 6,786 8,738 1,952 491 (1,633) 810 7,928 0
Computer hardware 2,350 0 0 2,350 28 780 0 808 1,542 2,322
Computer software 9,275 0 1,961 11,236 3,484 1,729 (15) 5,198 6,038 5,791
Total 28,701 6,944 (1,540) 34,105 5,982 3,669 (1,811) 7,840 26,265 22,719

8. Contractual obligations

The nature of the Secretariat’s activities can result in some large multi-year contracts and obligations whereby the Secretariat is obligated to make future payments in order to carry out its transfer payment programs or when the services or goods are received. Significant contractual obligations that can be reasonably estimated are summarized in the following table:

($ thousands)
2017 2018 2019 2020 2021 and thereafter Total
Public service health and pensioners’ dental insurance plans 32,976 0 0 0 0 32,976
Information technology services 8,149 0 0 0 0 8,149
Management consulting 2,663 416 164 0 0 3,244
Other professional services 1,395 84 39 20 13 1,551
Rentals 1,212 0 0 0 0 1,212
Transfer payments 200 200 200 200 0 800
Other 197 0 0 0 0 197
Total 46,793 700 403 220 13 48,129

9. Contingent liabilities

Claims and litigations

Claims have been made against the Secretariat in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. Claims for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $73 million as at ($80 million in 2015). No accrual for these contingent liabilities has been made in these financial statements.

10. Related-party transactions

The Secretariat is related, as a result of common ownership, to all Government of Canada departments, agencies and Crown corporations. The Secretariat enters into transactions with these entities in the normal course of business and on normal trade terms. In addition, the Secretariat has the responsibility to administer and fund on behalf of other government departments the employer’s contribution to health, dental and other employee insurance plans and payroll benefits through its centrally managed funds (refer to 10b).

During the year, the Secretariat received and provided common services as disclosed in the following sections:

a) Common services provided without charge by other government departments

The Secretariat received accommodation and legal services from certain common service organizations. These services were provided without charge and have been recorded in the department’s Statement of Operations and Departmental Net Financial Position as follows:

($ thousands)
2016 2015
Accommodation 24,240 16,398
Legal services 3,175 2,862
Total 27,415 19,260

In order to achieve efficiency and cost‑effectiveness and to deliver programs economically to the public, the government has centralized some of its administrative activities. As a result, the government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The cost of these services, such as the payroll and cheque issuance services provided by Public Services and Procurement Canada and the email, network and data centre services and the workplace technology devices provided by Shared Services Canada, are not included in the Secretariat’s Statement of Operations and Departmental Net Financial Position.

b) Common services provided without charge to other government departments

The Secretariat provided services without charge to other government departments for the provision of the employer’s contribution to health, dental and other employee insurance plans and payroll benefits in the amount of $1.6 billion in 2016 (compared with $1.7 billion in 2015).

c) Other transactions with related parties
($ thousands)
2016 2015
Expenses: Other government departments and agencies 41,664 22,625
Revenues: Other government departments and agencies 11,661 10,771

Expenses and revenues disclosed in (c) exclude common services provided without charge, which have already been disclosed in (a) and (b). The expenses are related to various goods and services and to salary transactions with other departments and agencies. The revenues are mainly related to internal support services and the recovery of public service pension administration costs.

11. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in fiscal year 2015. As a result, a one-time payment was issued to employees and will be recovered from them in the future. Employees that were on leave without pay when the initial one-time transition payments were issued will receive the transition payment shortly after their return to work from their leave without pay. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay processes. This change to the pay system had no impact on the expenses of the Secretariat. However, it did result in the use of additional spending authorities by the Secretariat. Prior to year-end, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Services and Procurement Canada, which is responsible for the administration of the government pay system.

12. Segmented information

a) Main programs

Presentation by segment is based on the Secretariat’s program alignment architecture. This presentation is based on the same accounting policies described in the summary of significant accounting policies in Note 2.

The following table presents the expenses incurred and revenues generated for the main programs, by major category of expenses and revenues:

($ thousands)
GF and PSEP DMSO MPDM GPDD IS 2016 Total 2015

Legend

GF and PSEP
Government-Wide Funds and Public Service Employer Payments
DMSO
Decision-Making Support and Oversight
MPDM
Management Policies Development and Monitoring
GPDD
Government-Wide Program Design and Delivery
IS
Internal Services
Transfer payments
Industry
0 0 200 0 0 200 295
Total transfer payments 0 0 200 0 0 200 295
Operating expenses
Government-wide funds and public service employer payments
3,855,808 0 0 0 0 3,855,808 2,899,672
Salary and employee benefits
0 39,343 54,084 42,398 55,532 191,357 199,270
Professional and special services
0 2,775 9,919 37,508 14,389 64,591 38,902
Accommodation
0 4,363 6,302 5,818 7,757 24,240 16,398
Amortization
0 241 591 223 2,614 3,669 1,795
Repair and maintenance
0 2 1 15 2,705 2,723 2,329
Machinery, equipment, parts and tools
0 82 140 72 2,242 2,536 1,598
Rentals
0 14 161 328 1,791 2,294 2,591
Transport and telecommunications
0 178 289 436 441 1,344 1,361
Utilities, materiel and supplies
0 48 191 84 273 596 615
Information
0 11 20 15 179 225 337
Other subsidies and expenses
0 46 36 2,310 317 2,709 20,325
Total operating expenses 3,855,808 47,103 71,734 89,207 88,240 4,152,092 3,185,193
Total expenses 3,855,808 47,103 71,934 89,207 88,240 4,152,292 3,185,488
Revenues
Internal support services
0 0 0 0 6,664 6,664 6,220
Parking fees and other revenues
6,755 0 15 0 41 6,811 3,631
Recovery of pension administration costs
0 0 0 6,143 0 6,143 5,554
Revenues earned on behalf of government
(6,755) 0 0 (1,147) (14) (7,916) (4,622)
Total net revenues 0 0 15 4,996 6,691 11,702 10,783
Net cost of operations before government funding and transfers 3,855,808 47,103 71,919 84,211 81,549 4,140,590 3,174,705
b) Government-wide funds and public service employer payments

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat also funds payments to, or in respect of, the following:

  • Employer’s share of contributions to the Public Service Death Benefit Account;
  • Employer’s share of Canada/Québec Pension Plan contributions and Employment Insurance premiums;
  • Employer’s share of health, disability, and life insurance premiums and related Québec sales tax;
  • Employer’s share of the Québec Parental Insurance Plan premium;
  • Claims and related costs under the Public Service Dental Care Plan and the Pensioners’ Dental Services Plan;
  • Provincial payroll taxes in respect of employees who work in the provinces of Quebec, Ontario, Manitoba, and Newfoundland and Labrador. The payroll tax is levied on employers in each province to help fund their respective health plans; and
  • Returns to certain employees of their share of the Employment Insurance premium reduction.

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Québec Pension Plan contributions and Employment Insurance premiums are recovered from all departments, agencies and revolving funds based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies, and all revolving funds based on a percentage of salaries and wages incurred.

The following table presents a breakdown by major category:

($ thousands)
2016 2015
Financial Statements Table 12 notes:
Financial Statements Table 12b Note 1

Includes contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, the Canada/Québec Pension Plan, Employment Insurance and the Public Service Death Benefit Account.

Return to Financial Statements table 12b note 1 referrer

Financial Statements Table 12b Note 2

Includes mainly contributions to health, dental and disability plans, including any related taxes or premiums payable to Canadian provinces.

Return to Financial Statements table 12b note 2 referrer

Expenses
Employer’s contributions to government employee benefit plans (statutory) Financial Statements table 12b note 1 3,266,886 3,382,395
Public Service Health Care Plan claims (Vote 20) 1,195,657 1,093,988
Public Service Pension Plan contributions in respect of actuarial deficits (statutory) 1,162,000 443,000
Group disability and life insurance premiums (Vote 20) 938,361 745,061
Provincial payroll taxes (Vote 20) 515,394 522,644
Public service and pensioners’ dental plans claims (Vote 20) 452,025 429,682
Provincial health and Québec Parental Insurance Plan premiums (Vote 20) 77,746 74,849
Other expenses (Voted and statutory) 9,312 8,235
Total expenses 7,617,381 6,699,854
Recoveries
Employer’s contributions to government employee benefit plans recovered from government departments and agencies (statutory) 3,266,886 3,381,351
Employee, pensioner and employer contributions to group insurance plans (Vote 20) Financial Statements table 12b note 2 494,687 418,831
Total recoveries 3,761,573 3,800,182
Net expenses 3,855,808 2,899,672

13. Comparative information

As a result of the implementation of the Secretariat’s new Program Alignment Architecture (PAA) in 2016, comparative information for 2015 could not be provided in three of five program areas due to differences in program alignment between the Secretariat’s previous and new PAA. As such, comparative amounts have been reported as zero under the three new programs for 2016: Decision-Making Support and Oversight, Management Policies Development and Monitoring; and Government-Wide Program Design and Delivery.

Below are the unallocated amounts based on the Secretariat’s PAA for 2015:

($ thousands)
2015
Management Frameworks 56,434
People Management 84,711
Expenditure Management 31,760
Financial Management 32,811
Total 205,716

Departmental Sustainable Development Strategy

Overview of the Federal Government’s Approach to Sustainable Development

The Federal Sustainable Development Strategy (FSDS) 2013–16, presents the Government of Canada’s sustainable development activities, as required by the Federal Sustainable Development Act (FSDA). In keeping with the objectives of the Act to make environmental decision making more transparent and accountable to Parliament, the Treasury Board of Canada Secretariat (the Secretariat) supports the implementation of the FSDS through the activities described in this supplementary information table.

This Departmental Sustainable Development Strategy presents the results for Theme IV – Shrinking the Environmental Footprint – Beginning with Government. It covers the Secretariat’s performance indicators and targets, in particular, those related to electronic waste, managed print, paper consumption, green meetings and green procurement.

Theme IV: Shrinking the Environmental Footprint – Beginning with Government

Goal 7: Waste and Asset Management

Greening Government Operations

Target 7.2: Green Procurement

As of , the Government of Canada will continue to take action to embed environmental considerations into public procurement, in accordance with the federal Policy on Green Procurement.

Scope and Context

This target applies to procurement activities generated to support departmental operations at the Treasury Board of Canada Secretariat (the Secretariat).

Link to the Organization’s Program(s)

Program Activity: Internal Services

Financial Performance Expectations

N/A

Performance Measurement

Expected result

Environmentally responsible acquisition, use and disposal of goods and services.

Performance indicator Performance level achieved
Departmental approach to further the implementation of the Policy on Green Procurement in place as of . Fully implemented by 2014-15
Number and percentage of procurement and/or materiel management specialists who completed the Canada School of Public Service Green Procurement course (C215) or equivalent, in fiscal year 2015–16.
  • 13 specialists
  • 100%
  • Achieved
Number and percentage of managers and functional heads of procurement and materiel whose performance evaluation includes support and contribution toward green procurement, in fiscal year 2015–16.
  • 6 managers and functional heads
  • 100%
  • Achieved

Departmental green procurement target

By , 100% of vehicles purchased will be right-sized for operational needs and will be the most fuel-efficient vehicle in their class in the Government Motor Vehicle Ordering Guide and/or will be an alternative fuel vehicle.

Performance indicator Performance level achieved
Number of vehicle purchases that meet the target relative to the total number of all vehicle purchases in the given year.
  • 100%
  • Achieved

Departmental green procurement target

By , purchases will be monitored to ensure a higher percentage of recycled content and an increase in green purchases.

Performance indicator Performance level achieved
By , 95% of copy paper will contain a minimum of 30% recycled content and will be certified to a recognized environmental standard to reduce the environmental impact of its production.
  • 100%
  • Exceeded
By , 90% of toner cartridges are recycled at end of life.
  • 100%
  • Exceeded

Departmental green procurement target

By , the initiation of a contract under the Secretariat’s authority will not require paper.

Performance indicator Performance level achieved
Functional specialists in procurement will receive an electronically approved contract initiation form and will no longer require wet-ink signatures.
  • In progress
  • The online contract initiation form is targeted for release in fall 2016.
Implementation strategy element or best practice Performance level achieved
7.2.1.5. Leverage common-use procurement instruments where available and feasible.
  • Achieved
  • The Secretariat uses Public Services and Procurement Canada procurement instruments, when they are available and when it is feasible to use them.
Best Practice
7.2.3. Train acquisition cardholders in green procurement.
  • Achieved
  • It is mandatory for all acquisition cardholders to take a green procurement course.
Best Practice
7.2.4. Increase awareness of the Policy on Green Procurement among managers.
  • Achieved
  • Managers receive information about the Policy on Green Procurement during the procurement process.
Additional activities Performance level achieved
Ensure that employees who manage low-dollar-value (LDV) acquisitions receive green procurement training.
  • Achieved
  • LDV training sessions and acquisition cardholder prerequisite training both include information on green procurement.
Target 7.3: Sustainable Workplace Operations

As of , the Government of Canada will update and adopt policies and practices to improve the sustainability of its workplace operations.

Scope and Context

This target applies to select Internal Services areas that support departmental operations at the Treasury Board of Canada Secretariat.

Link to the Organization’s Program(s)

Program Activity: Internal Services

Financial Performance Expectations

N/A

Performance Measurement

Expected result

Departmental workplace operations have a reduced environmental impact.

Additional activities Performance level achieved
Approach to maintain or improve the sustainability of the departmental workplace is in place by .
  • Achieved in 2014–15
  • In 2015–16, the Secretariat continued to improve sustainability by continuing its campaign to become paperless and by streamlining and improving departmental workplace operations by increasing the use of tablets at meetings and by increasing the use of electronic tools for sharing information.
Implementation strategy element or best practice Performance level achieved
7.3.1.1. Engage employees in greening government operations practices.
  • Achieved
  • The Secretariat continued to engage all of its employees, in particular, those in the administrative services community, in challenges and opportunities related to document management and reduction. More specifically, employees are now using the new information management architecture to save documents electronically, which has reduced the use of paper records.
7.3.1.2. Integrate environmental considerations into corporate policies, processes and practices in accordance with departmental refresh cycles.
  • Achieved
  • The Secretariat continued to adhere to asset and materiel life-cycle management guidance outlined in the Asset Management Framework.
7.3.1.3. Maintain or improve existing approaches to sustainable workplace practices (printer ratios, paper usage, and green meetings).
  • Printer ratios: In 2015–16, the average ratio of office employees to printers where building occupancy levels, security considerations and space configurations allow was 8:1.
  • Achieved.
  • Green meetings: 100% of employees have access to a mobile device (tablet or laptop) to reference meeting material digitally and avoid printing.
  • Achieved.
  • Paper usage: The Secretariat set a new target —a 25% per employee reduction in paper consumption from the 2011–12 baseline. In 2015–16 the Secretariat achieved a 74% reduction from the 2011–12 baseline.
  • Exceeded
7.3.1.4. Minimize the ratio of information technology (IT) assets per employee.
  • Exceeded
  • The Secretariat’s current ratio of computing devices to employees is 1:1, excluding exceptions for operational needs or duty to accommodate. This exceeds the Secretariat’s target of ensuring a maximum of two network access devices per employee when an employee adopts mobile computing and telephony, excluding employees who have elevated security or network access requirements.
7.3.1.5. Select and operate IT and office equipment in a manner that reduces energy consumption and material usage.
  • Achieved
  • All multi-functional devices are set to hibernate when not in use.
7.3.1.6. Dispose of e-waste in an environmentally sound and secure manner.
  • Achieved
  • Continued to adhere to e-waste guidance outlined in the Asset Management Framework.
7.3.1.7. Reuse or recycle workplace materiel and assets in an environmentally sound and secure manner.
  • Achieved
  • Continued to adhere to reuse and recycling guidance outlined in the Asset Management Framework.
7.3.1.9. Increase the population density in office buildings, and increase space utilization in special-purpose buildings.
  • Achieved
  • 65% or 1,500 of the Secretariat’s employees now work in offices fit up to the Workplace 2.0 office space utilization standard. The Secretariat has no special-purpose buildings.
7.3.1.10. Maintain or improve sustainable fleet management.
  • Achieved
  • Departmental vehicles continue to adhere to the Treasury Board Directive on Fleet Management: Executive Vehicles, subsection 5.4, for the purchase and use of vehicle fleets.

Horizontal Initiatives

General Information

Name of horizontal initiative Workplace Wellness and Productivity Strategy – Modernizing Disability and Sick Leave Management
Name(s) of lead department(s) Treasury Board of Canada Secretariat (the Secretariat)
Federal partner organization(s)

Public Services and Procurement Canada (PSPC): Horizontal Initiatives note 1 The outcome of collective bargaining will determine the extent to which the expertise of PSPC’s Acquisitions Branch is required in procuring a new short-term disability plan. PSPC’s Accounting, Banking and Compensation Branch will support development of the technological solution required for interoperability with the People Soft–based absence management system and the human resources and pay systems used in the federal public service.

Employment and Social Development Canada (ESDC) – Labour: The Labour Program is identifying options for improving the administration of occupational claims under the Government Employees Compensation Act.

Health Canada: Health Canada is supporting the provision of an updated Policy on Employee Assistance Program and related departmental advice. Its activities are also helping to streamline the application process for medical retirement under the Public Service Superannuation Act.

Start date of the horizontal initiative
End date of the horizontal initiative 2019–2020
Total federal funding allocation (from start date to end date) (dollars) The amount of $25,010,838 in total funding has been allocated over a four-year period for the Secretariat, PSPC, Employment and Social Development Canada (ESDC) and Health Canada to carry out a range of activities in support of modernizing the current system for disability and sick leave management. The total allocated funding includes an amount of $21,092,649 from the fiscal framework, along with $3,918,189 from existing departmental reference levels.
Funding contributed by non-federal and non-governmental partners (dollars) Not applicable
Description of the horizontal initiative

Under the Disability Management Initiative in 2009, several structural gaps related to the existing disability management framework were identified. The Workplace Wellness and Productivity Strategy (WPS) was developed in response to the identified gaps. The goal of the WPS is to modernize the management of disability and sick leave in the federal public service.

The Government of Canada announced its intention to implement the WPS in Budget 2013 and earmarked $21.5 million over four years to do so. The funding was allocated between the Secretariat ($13.9 million), ESDC – Labour ($2.4 million) and PSPC ($5.2 million). This plan was reinforced in the October 2013 Speech from the Throne.

Budget 2014 identified the implementation of a modern, comprehensive and responsive disability and sick leave management system as a policy priority.

A business case was developed and identified options for addressing the structural gaps in the current system. The options were based on leading industry practices and on practices adopted by other public jurisdictions. Drawing from the business case and additional research and consultation, the Secretariat led the development of a strategy for Treasury Board and Cabinet consideration, which was finalized in early 2013. Funding for the initiative was subsequently earmarked in the fiscal framework and supplemented by resources from existing departmental reference levels.

In 2014, the Government of Canada embarked on formal negotiations with several bargaining units. In 2015–16, collective bargaining continued and included issues related to the Government of Canada’s initiative to modernize sick leave and disability management.

Shared outcome(s)

The targeted result to be achieved by the Secretariat and its partners is the modernization of key elements of the disability and sick leave management system in the federal public service, with a view to creating a seamless, integrated and sustainable system to support employee wellness and productivity. This initiative will aid in the prevention and improved management of employee disability, and will help to return a higher percentage of employees to work. It also aims to reduce or contain overall system costs associated with disability and sick leave management across the federal public service.

All employees in the federal public service will have the following:

  • Appropriate access to services to maintain their mental and physical health;
  • Support to recover and to stay at work, if possible, when illness or injury occurs, or to return to work as soon as it is safe to do so, with any necessary accommodations; and
  • Assurance of reasonable income security in cases where return to work is not possible due to the severity of the disability.
Governance structures The WPS initiative has put in place a detailed governance structure to support effective, collaborative and timely decision making to resolve ongoing emerging issues. The governance structure includes oversight at the highest levels, through the Deputy Minister Project Governance Committee, the Assistant Deputy Minister Steering Committee and a working-level group of committees covering each of the initiative’s major activities.
Performance highlights Since the commencement of formal collective bargaining, all engagements with industry have been temporarily placed on hold, to respect the bargaining process. Analytical and policy support continues to be provided to the collective bargaining process.
Comments on variances Implementation of the identified WPS activities was delayed because of current collective bargaining activities. As a result, industry consultations could not continue and further refinements to the plan design, which stem from input from the bargaining agents, could not be made. Given this situation, the project partners reduced their level of activity in order to preserve monies that will be required later to deliver the remaining planned activities. Resources have been reprofiled, as needed, to support these changes to the project timelines.
Results achieved by non-federal and non-governmental partners Not applicable
Contact information William Leffler, Acting Senior Director
Office of the Chief Human Resources Officer
140 O’Connor Street, L’Esplanade Laurier, East Tower, 8th Floor
Ottawa, Ontario K1A 0R5
613-946-4794

Horizontal Initiatives Notes

Horizontal Initiatives Note 1

Formerly Public Works and Government Services Canada (PWGSC).

Return to Horizontal Initiatives note 1 referrer

Performance Information: Workplace Wellness and Productivity Strategy

Federal organizations Link to the organization’s program(s) Contributing programs and activities Total allocation (from start to end date) (dollars) 2015–16 Planned spending (dollars) 2015–16 Actual spending (dollars) 2015–16 Expected results 2015–16 Actual results against targets
Treasury Board of Canada Secretariat People Management Direction Setting
Comprehensive Management of Compensation
$15,623,157 $4,469,000 $1,809,193
  • Project leadership
  • Coordination and oversight
  • Plan design and policy development
  • Input into the bargaining agent engagement, negotiation and consultation process
  • Change management activities.
  • Project leadership
  • Coordination and oversight
  • Plan design and policy development
  • Input into the bargaining agent engagement, negotiation and consultation process.
PSPC Acquisitions and Federal Pay and Pension Administration   $5,227,999 $3,552,975 $323,013

Support for the development of the Request for Information #4 and Request for Proposals for procurement of short-term and long-term disability plans; dependent on collective bargaining outcomes.

Activities in support of implementing pay and pension information system changes required for the short-term and long-term disability plans.

Preliminary analysis of business needs and preliminary process mapping.
ESDC Labour   $2,412,000 $221,600 $184,922 Activities focused on modernizing systems and arrangements involving occupational injury or illness claims filed under the Government Employees Compensation Act, to reduce reporting times and improve data collection and information available to departments and agencies.

Discussions and consultations under way with workers’ compensation boards to align policy and business requirements for the disability and sick leave management system.

Work under way to identify required system changes to Labour Program’s claims payment system.

Health Canada Specialized Health Services   $1,747,682 $588,141 $266,201

Activities in support of an updated Policy on Employee Assistance Program and related departmental advice.

Activities in support of a streamlined application process for medical retirement under the Public Service Superannuation Act (PSSA).

Work under way to identify required policy updates and changes to integrate ergonomics in line with the disability and sick leave management system.

Work under way to identify required business process changes to the application process for medical retirement under the PSSA.

Total for all federal organizations $25,010,838 $8,831,716 $2,583,329 Not applicable

Internal Audits and Evaluations

[A.] Internal Audits Completed in 2015–16

Title of internal audit Internal audit type Completion date
Not applicable Not applicable Not applicable

[B.] Evaluations in Progress or Completed in 2015–16

Title of evaluation Status Deputy head approval date Link to the organization’s program(s)
Evaluation of the International Public Sector Accounting Standards Board Contribution Program Completed Program 1.2: Management Policies Development and Monitoring; Sub-Program1.2.1: Financial Management Policy
Evaluation of Human Resources Services Modernization In progress

Program 1.2: Management Policies Development and Monitoring; Sub-Program 1.2.2: People Management Policy

Program 1.3: Government-Wide Program Design and Delivery; Sub-Program 1.3.4: Transformation Leadership

Evaluation of the Public Service Employee Survey In progress Program 1.2: Management Policies Development and Monitoring; Sub-Program 1.2.2: People Management Policy
Evaluation of the Centralized Language Training Program In progress Program 1.2: Management Policies Development and Monitoring; Sub-Program 1.2.2: People Management Policy

Response to Parliamentary Committees and External Audits

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

2015 Spring Report of the Auditor General of Canada

Report 2—Required Reporting by Federal Organizations

This audit focused on recurring reporting requirements set out in Treasury Board policies, by the Public Service Commission of Canada, and in statute. The overall objective of the audit was to determine whether selected reporting requirements for federal organizations efficiently support accountability and transparency, and generate information used for decision making in policy development and program management.

The Secretariat received six recommendations. The Secretariat’s responses can be found in this report’s list of recommendations.

2015 Fall Report of the Auditor General of Canada

Report 1—Implementing Gender-Based Analysis

This audit examined whether the selected departments performed adequate gender-based analysis to inform government decisions, and whether Status of Women Canada and the relevant central agencies (the Treasury Board of Canada Secretariat and the Privy Council Office) appropriately supported the implementation of gender-based analysis throughout the federal government. This audit also examined the government’s progress on the recommendations made by the Office of the Auditor General of Canada in 2009.

The Secretariat received two recommendations. The Secretariat’s responses can be found in this report’s list of recommendations.

Report 4—Information Technology Shared Services

This audit examined whether Shared Services Canada (SSC) has made progress in implementing key elements of its transformation plan and maintained the operations of existing services. The audit focused on SSC’s objectives of maintaining or improving IT services, generating savings, and improving IT security, while transforming IT services. It also looked at how the Treasury Board of Canada Secretariat assisted and provided governance and leadership on the strategic vision for SSC and how it fits into the government IT landscape.

The Secretariat received one recommendation. The Secretariat’s responses can be found in this report’s list of recommendations.

Response to external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

Audit of the Treasury Board of Canada Secretariat within the Context of the 2011–12 Strategic and Operating Review (Part VII of the Official Languages Act) 

The Office of the Commissioner of Official Languages conducted an audit of the Treasury Board of Canada Secretariat to determine how well the Secretariat is meeting its language obligations under Part VII of the Official Languages Act (the Act) during expenditure reviews. The audit focused specifically on the 2011–2012 Strategic and Operating Review (SOR), also known as the Deficit Reduction Action Plan. The audit focused solely on the requirement to take positive measures that support and assist the development of official language minority communities.

Appendix B of the report lists the recommendations and the Secretariat’s comments and action plan, and the Commissioner’s comments.

Status Report on Projects Operating with Specific Treasury Board Approval

Project name and project phase Original estimated total cost (dollars) Revised estimated total cost (dollars) Actual total cost (dollars) 2015–16 Main Estimates (dollars) 2015–16 Planned spending (dollars) 2015–16 Total authorities (dollars) 2015–16 Actual spending (dollars) Expected date of close-out
Program 1.6: Internal Services; Sub-Program: 1.6.3.1 Real Property Services
Workspace Renewal Initiative – Implementation Phase 54,000,000 54,000,000 26,558,164 9,467,467 9,467,467 9,449,061 8,210,510 2017-18

The above project exceeded the Secretariat’s then project approval limit, prompting the request for specific Treasury Board approval. This approval was prior to the increased authorities afforded to the Secretariat as a result of the approval of its Investment Plan (March 2012).

Expenditures include salary (FTEs), contracts (services) and assets (goods), but do not include GST/HST.

Workspace Renewal Initiative: Estimated total cost (columns 1 and 2) includes funding for the Secretariat and for Shared Services Canada. Other columns (columns 3 to 7) reflect Secretariat figures only.

Status Report on Projects Operating with Specific Treasury Board Approval

Project name and project phase Original estimated total cost (dollars) Revised estimated total cost (dollars) Actual total cost (dollars) 2015–16 Main Estimates (dollars) 2015–16 Planned spending (dollars) 2015–16 Total authorities (dollars) 2015–16 Actual spending (dollars) Expected date of close-out
Program 1.6: Internal Services; Sub-Program: 1.6.3.1 Real Property Services
Workspace Renewal Initiative – Implementation Phase 54,000,000 54,000,000 26,558,164 9,467,467 9,467,467 9,449,061 8,210,510 2017-18

The above project exceeded the Secretariat’s then project approval limit, prompting the request for specific Treasury Board approval. This approval was prior to the increased authorities afforded to the Secretariat as a result of the approval of its Investment Plan (March 2012).

Expenditures include salary (FTEs), contracts (services) and assets (goods), but do not include GST/HST.

Workspace Renewal Initiative: Estimated total cost (columns 1 and 2) includes funding for the Secretariat and for Shared Services Canada. Other columns (columns 3 to 7) reflect Secretariat figures only.

User Fees, Regulatory Charges and External Fees

Reporting on the User Fees Act

General and Financial Information by Fee

General Information
Fee Name Fees for processing requests filed under the Access to Information Act
Fee type Other products and services
Fee-setting authority Access to Information Act and the Directive on the Administration of the Access to Information Act ()
Year introduced 1981
Year last amended The Interim Directive on the Administration of the Access to Information Act was amended on .
Performance standard Response is to be provided within 30 days following receipt of request. The response time may be extended pursuant to section 9 of the Access to Information Act. Notice of extension is to be sent within 30 days after receipt of the request.
Performance results Statutory deadline met 95% of the time.
Financial Information, 2015–16 (dollars)
Forecast revenue Actual revenue Full cost
2,400 2,500 525,000
Financial Information, 2016–17, 2017–18 and 2018–19 (dollars)
Planning year Forecast revenue Estimated full cost
2016–17 2,000 580,000
2017–18 2,200 600,000
2018–19 2,400 620,000

Annex to the statement of management responsibility including internal control over financial reporting

Table of Contents

  1. Introduction
  2. Departmental System of Internal Control Over Financial Reporting
  3. Assessment Results in Fiscal Year 2015–16
  4. Departmental Action Plan

Introduction

This document provides a summary of the measures taken by the Treasury Board of Canada Secretariat (the Secretariat) to maintain an effective system of internal control over financial reporting (ICFR), which includes information on internal control management, assessment results and related action plans.

Detailed information on the Secretariat’s authority, mandate and programs can be found in its Report on Plans and Priorities and Departmental Performance Report.

2. Departmental system of internal control over financial reporting

2.1 Internal control management

The Secretariat has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. This structure is formalized in the department’s Financial Management and Internal Control Framework, approved by the Secretary, and includes the following:

  • Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers in their areas of responsibility for internal control management;
  • A Values and Ethics Office, which provides educational and awareness programs and has developed a departmental code of conduct;
  • Ongoing communication and training on the legislative and policy requirements for sound financial management and control;
  • A group dedicated to ICFR under the direction of the Chief Financial Officer, with a primary focus on maintaining internal control documentation and conducting assessments to support management and oversight of the system of ICFR; and
  • Monitoring of, and regular updates on, internal control management, as well as provision of related assessment results and action plans to the Secretary, departmental senior management and the Secretariat’s Government of Canada Audit Committee (GCAC).

GCAC is an independent and objective advisory committee to the Secretary. Its responsibilities include providing advice to the Secretary on the Secretariat’s systems of internal control, financial reporting and financial disclosures. It also provides advice, as applicable, on risk-based assessment plans and associated results regarding the effectiveness of the departmental system of ICFR.

GCAC comprises the Secretary, the Associate Secretary and three members who are external to the federal public administration. An external member chairs the committee. Given the independent nature of the committee, it plays an essential role in ensuring the integrity of corporate reporting and in providing an objective and broader perspective on risks and controls. The Secretariat’s Chief Financial Officer and the Chief Audit Executive, as well as the Comptroller General of Canada, attend all GCAC meetings. GCAC meets at least four times a year and may convene for additional meetings as required.

2.2 Service arrangements relevant to financial statements

2.2.1 Secretariat reliance on other federal government organizations

As a department, the Secretariat relies on other organizations to process certain transactions that are recorded in its financial statements. There are two types of service arrangements, as detailed below: common arrangements used by most departments and specific arrangements used by the Secretariat.

Common arrangements
  • Public Services and Procurement Canada (PSPC) centrally administers the payment of salaries and the procurement of goods and services, as per its delegation of authority, and provides accommodation services.
  • The Secretariat, as a government central agency, provides information that is used to calculate various accruals and allowances, such as the accrued severance liability.
  • The Department of Justice Canada provides legal services.
  • Shared Services Canada provides information technology (IT) infrastructure services to the Secretariat in the areas of data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between Shared Services Canada and the Secretariat.
Specific arrangements
  • PSPC performs the day-to-day administration of the Public Service Pension Plan (PSPP).
  • The Office of the Chief Actuary within the Office of the Superintendent of Financial Institutions Canada prepares a triennial actuarial valuation of the PSPP.
  • PSPC performs the day-to-day administration of some centrally funded expenses, such as the employer’s share of Canada and Québec Pension Plan (CPP/QPP) contributions, employment insurance premiums and provincial payroll taxes. These types of expenses are recorded on the Secretariat’s financial statements as government-wide funds and reflect the Treasury Board’s role as the employer of the public service.
2.2.2 Secretariat reliance on non-governmental service providers

The Secretariat relies on the internal controls of a number of insurance companies that provide specific services such as health care plan administration, dental plan administration and insurance services.

2.2.3 Secretariat services upon which other departments rely

Other government departments rely on the Secretariat to process certain transactions and to provide information that impacts their financial statements.

Common arrangements
  • The Secretariat provides all departments with percentage ratios, derived from the actuarially determined liability for severance benefits for the entire public service population. Departments use these ratios when calculating their severance pay liability for the purposes of their departmental financial statements.
  • The Secretariat provides all departments with a percentage amount that allows them to calculate an annual dollar figure for the services they receive without charge for the public service insurance benefit plans funded centrally.
  • The Secretariat provides all departments with details regarding the calculation required to determine the employer’s share of employee benefit plans. These plans include costs to the government for the employer’s contributions and payments to the public service superannuation, the CPP/QPP, the death benefit and employment insurance accounts.
Specific arrangements

The Secretariat provides certain corporate services to several departments via individual memoranda of understanding, including the Department of Finance Canada, the Privy Council Office, the Canada School of Public Service, the Canadian Transportation Agency, the Immigration and Refugee Board of Canada, the Office of the Superintendent of Financial Institutions Canada, Administrative Tribunals Support Services of Canada, the Canadian Grain Commission, the Financial Consumer Agency of Canada and the Security Intelligence Review Committee.

3. Assessment results in fiscal year 2015–16

The key findings and significant adjustments required from the current year’s assessment activities are summarized below.

New or significantly amended key controls

In the current year, there were no significant amended key controls in existing processes that required a reassessment.

The implementation of a new payroll system (Phoenix) resulted in important changes to the control activities associated with the payroll and benefits business process, resulting in the deferral of planned operating effectiveness testing for fiscal year 2017–18. Prior to the implementation of Phoenix in February 2016, the Secretariat reviewed and updated its process documentation related to departmental control responsibilities based on the control framework developed by PSPC.

Ongoing monitoring program

As part of its rotational ongoing monitoring plan, the Secretariat in its role as manager of government-wide funds and public service employer payments completed, with the assistance of Ernst & Young, its reassessment of the financial controls related to the Public Service Pension Plan and the Disability Insurance Plan. Key controls that were tested all performed as intended, and there were no remediation actions identified.

In its role as a department, the Secretariat completed operating effectiveness testing of travel expenses. The results indicated opportunities for improvements as follows:

  • Enhance the financial verification process and strengthen cost-recovery monitoring activities; and
  • Enforce formalized procedures and guidelines.
All activities were completed.

In addition, operating effectiveness testing was completed for the capital assets process. The results indicated opportunity for improvements as follows:

  • Maintain appropriate segregation of duties between reception of goods, creation of asset records and assets inventory;
  • Maintain evidence of verification for goods received by signing and dating packing slips, and review of asset inventory count by the responsible manager; and
  • Establish documentation requirements and maintain appropriate evidence to support the date when internally developed applications are put in service.
All activities were completed.
  • Other activities completed during 2015–16 were as follows:
  • An external audit of IT general controls of the Secretariat’s SAP financial system was conducted by Deloitte. The scope of this audit included IT general controls common to the clients of the Secretariat’s financial system cluster. IT controls under the purview of Shared Services Canada as well as user controls specific to each of the cluster members were scoped out. The results of this audit indicated that the controls tested were appropriately designed and implemented, and operated effectively throughout the period covered by the audit.
  • A review of Secretariat’s risk management process was conducted by the Internal Audit and Evaluation Bureau (IAEB) to assess the maturity level of the Secretariat’s risk management process and practices.
  • The Secretariat continued to advance in remediating outstanding issues from prior years’ assessments.

4. Departmental action plan

4.1 Progress in fiscal year 2015–16

The Secretariat has reached the ongoing monitoring stage by having completed its first full assessment of the whole departmental system of ICFR. The Secretariat has been applying its rotational ongoing monitoring activities in accordance with previous years’ approved plans as well as advancing in completing remediation actions that were outstanding from prior years’ assessments. Table 1 provides a summary of this progress.

Table 1. Progress summary during 2015–16
Element in previous year’s action plan Status
Secretariat as a department
Payroll and benefits: Operating effectiveness testing Deferred due to the implementation of the new payroll system (Phoenix)
Travel expenses: Operating effectiveness testing and remediation Completed
Capital assets: Operating effectiveness testing and remediation Completed
Secretariat as manager of government-wide funds and public service employer payments
Public Service Pension Plan (PSPP): Operating effectiveness testing Completed
Disability Insurance Plan (DI): Operating effectiveness testing Completed

4.2 Action plan for the next fiscal year and subsequent years

The Secretariat’s rotational risk-based ongoing monitoring plan over the next three years is shown in Table 2. The focus for fiscal year 2016–17 is to reassess the operating effectiveness of the controls related to the Public Service Health Care Plan, the Public Service Dental Care Plan, and the Pensioners’ Dental Services Plan.

Table 2. Rotational ongoing monitoring plan
Key control areas Fiscal year
2016–17
Fiscal year
2017–18
Fiscal year
2018–19
Secretariat as a department
Entity level controls N/A N/A Yes
IT general controls under departmental managementStatement of management responsibility note 1 N/A Yes N/A
Payroll and benefits N/A Yes N/A
Financial reporting and closing cycle N/A N/A Yes
Revenues and accounts receivable N/A N/A Yes
Capital assets N/A N/A Yes
Secretariat as manager of government-wide funds and public service employer payments
Public Service Pension Plan (PSPP) N/A N/A Yes
Disability Insurance Plan (DI) N/A N/A Yes
Public Service Health Care Plan (PSHCP) Yes N/A N/A
Public Service Dental Care Plan (PSDCP) Yes N/A N/A
Provincial payroll taxes N/A Yes N/A
Employment Insurance (EI) premiums N/A Yes N/A
Canada/Québec Pension Plan (CPP/QPP) contributions N/A Yes N/A
Pensioners’ Dental Services Plan (PDSP) Yes N/A N/A
Public Service Management Insurance Plan (PSMIP)Net cost from continuing operations N/A Yes N/A
Provincial health insurance plan premiums N/A Yes N/A
Québec Parental Insurance Plan N/A Yes N/A
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