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

Key facts

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

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.

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 - 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.

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.

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.

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.

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: November 2015; 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 - 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

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.

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

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.

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

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.

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

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.

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

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:

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

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 July 1, 2016. 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.

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

Sub-program 1.1.1: Cabinet Decision Support

Sub-program 1.1.2: Expenditure Analysis and Allocation Management

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 May 11, 2016. 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.

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.

Sub-program 1.2.1: Financial Management Policy

Sub-program 1.2.2: People Management Policy

Sub-program 1.2.3: Information Management and Information Technology Policy

Sub-program 1.2.4: Externally Facing Policy

Sub-program 1.2.5: Organizational Management Policy

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.

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.

Sub-program 1.3.1: Pensions and Benefits

Sub-program 1.3.2: Labour Relations

Sub-program 1.3.3: Government-Wide Operations

Sub-program 1.3.4: Transformation Leadership

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.

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.

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.

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.

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.

Actual spending and FTEs aligned with planned spending and FTEs.

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:

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:

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:

4. Accounts payable and accrued liabilities

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

5. Employee future benefits

6. Accounts receivable and advances

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

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:

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:

9. Contingent liabilities

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:

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

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:

Goal 7: Waste and Asset Management

Greening Government Operations

General and Financial Information by Fee

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

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.

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.

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.