Organizational Expenditure Overview - 2015–16 Report on Plans and Priorities - Treasury Board of Canada Secretariat
Section I: Organizational Expenditure Overview
- Appropriate Minister:
- The Honourable Tony Clement, President of the Treasury Board
- Institutional Head:
- Yaprak Baltacıoğlu, Secretary of the Treasury Board
- Ministerial Portfolio:
- The Treasury Board of Canada Secretariat and the Canada School of Public Service. Operating at arm's length and reporting to Parliament through the President of the Treasury Board are 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.
- Enabling Instrument:
- Financial Administration Act, R.S.C., 1985, c.F-11
- Year Established:
Treasury Board Roles
The Treasury Board is a Cabinet committee of ministers established in 1867. It oversees the government's financial, human resources and administrative responsibilities, and establishes policies that govern each of these areas. In addition, the Prime Minister has designated the Treasury Board to act as the committee of the Queen's Privy Council to consider and approve regulations and most orders-in-council. The Treasury Board, as the management board for the government, has three principal roles:
It acts as the government's Management Office by promoting improved management performance. It also approves policies to support the prudent and effective management of the government's assets and financial, information and technology resources.
It acts as the government's Budget Office by examining and approving the proposed spending plans of government departments and by reviewing the development of approved programs.
It acts as the human resources office and employer or People Management Office by managing compensation and labour relations for the core public administration. It also sets foundational values for the public sector and people management policies for the core public administration (including determining the terms and conditions of employment) to ensure coherence and consistency, where needed.
The Treasury Board of Canada Secretariat (“Secretariat”) is the administrative arm of the Treasury Board, and the President of the Treasury Board is the Minister responsible for the Secretariat. The Secretariat supports the Treasury Board by making recommendations and providing advice on program spending, regulations and management policies and directives, while respecting the primary responsibility of deputy heads in managing their organizations, and their roles as accounting officers before Parliament. In this way, the Secretariat strengthens the way government is managed and helps to ensure value for money in government spending and results for Canadians.
The Secretariat supports the Treasury Board in each of its roles (see text box “Treasury Board Roles”). Within the Secretariat, the Comptroller General of Canada provides government-wide leadership, direction, oversight and capacity building for financial management, internal audit and the management of assets and acquired services. The Chief Human Resources Officer provides government-wide leadership on people management through policies, programs and strategic engagements and by centrally managing labour relations, compensation, pensions and benefits and contributing to the management of executives. The Chief Information Officer provides government-wide leadership, direction, oversight and capacity building for information management, information technology, government security (including identity management), access to information, privacy, and internal and external service delivery.
The Treasury Board portfolio consists of the Secretariat and the Canada School of Public Service. 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 are arm's-length organizations that report to Parliament through the President of the Treasury Board.
When working with federal organizations, the Secretariat plays three central agency roles:
- A challenge and oversight role that includes Cabinet decision-making support, reporting on the government's management and budgetary performance and developing government-wide management policies and standards;
- A community enabling role to help organizations improve management performance; and
- A leadership role in driving and modelling excellence in public sector management and launching government-wide horizontal initiatives that target administrative efficiencies.
Strategic Outcome and Program Alignment Architecture
In 2015–16, the Secretariat revised its Program Alignment Architecture (PAA) to better reflect its core business activities and support the achievement of expected results. The Secretariat's PAA includes five programs that contribute to the achievement of its Strategic Outcome, “Good governance and sound stewardship to enable efficient and effective service to Canadians.” Detailed information about the Secretariat's Strategic Outcome and each program can be found in Section II: Analysis of Programs by Strategic Outcome.
- 1 Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians
- 1.1 Program: Decision-Making Support and Oversight
- 1.2 Program: Management Policies Development and Monitoring
- 1.3 Program: Government-Wide Program Design and Delivery
- 1.4 Program: Government-Wide Funds and Public Service Employer Payments
- 1.5 Program: Internal Services
- 1.5.1 Sub-Program: Management and Oversight Services
- 1.5.2 Sub-Program: Communications Services
- 1.5.3 Sub-Program: Legal Services
- 1.5.4 Sub-Program: Human Resources Management Services
- 1.5.5 Sub-Program: Financial Management Services
- 1.5.6 Sub-Program: Information Management Services
- 1.5.7 Sub-Program: Information Technology Services
- 1.5.8 Sub-Program: Real Property Services
- 1.5.9 Sub-Program: Materiel Services
- 1.5.10 Sub-Program: Acquisition Services
For 2015–18, the Secretariat will continue its focus on implementing reforms aimed at increasing the efficiency and effectiveness of government and ensuring value for taxpayer dollars. This includes supporting greater fiscal discipline in managing government expenditures; enhancing public service integrity, performance and productivity; using information technology (IT) to improve service; and continuing to simplify rules and administrative processes.
To improve its internal efficiency and effectiveness, the Secretariat is implementing a set of initiatives under its transformation plan, This is TBS. These include the Workplace Renewal Initiative; the 2014–17 Human Resources Plan; “lean” processes; and the new PAA and its corresponding Performance Measurement Framework (PMF). Together these initiatives will reshape the Secretariat by generating new ideas on how to carry out its business, providing modern and cost efficient tools, and ensuring employees are equipped to fulfill their roles effectively.
Having released its progress report to the Clerk of the Privy Council in January 2015, the Steering Committee for This is TBS will continue to embrace the core principles of BluePrint 2020 by engaging employees in meaningful discussions about the future public service, fostering a better understanding of what they do, how they do it, and how it fits with what others are doing.
In this spirit, the Secretariat will focus on its five priorities in 2015–18, with increased emphasis on consolidating past efforts and advancing new initiatives that together will contribute to the achievement of the Secretariat's Strategic Outcome. These initiatives are highlighted in the tables that follow. Additional information is provided in Section II: Analysis of Programs by Strategic Outcome.
Why is this a priority?
As indicated in the 2014 Federal Budget, achieving leaner and more efficient government is a key part of the government's plan to return to balanced budgets by 2015 and return the debt-to-GDP ratio to pre-recession levels by 2017. To build on recent targeted measures, there is a need to reform how government spending is managed, to make sure that resources are allocated efficiently to key priorities and to optimize results for Canadians.
This reform will involve a more rigorous examination of new spending proposals and a more systematic review of ongoing spending to enable efficient design and delivery of federal government programs. It will also include modernizing the way that government financial and performance data is captured and managed in order to support stronger management oversight and reduce administrative costs.
What are the plans to meet this priority?
Why is this a priority?
To contribute effectively, employees need to be supported with clear goals and opportunities to learn and innovate while they deliver the quality programs and services expected by Canadians. In this context, there is a need to modernize how the government manages performance, short-term disability and sick leave, and how it supports employee wellness and productivity. At the same time, there is a need to manage compensation in a holistic and sustainable way that aligns with modern employment conditions and current fiscal and economic realities.
What are the plans to meet this priority?
Why is this a priority?
Managing information as a strategic asset with a whole-of-government approach supports informed decision making, transparency, access, and program and service delivery. Adopting modern, enterprise-wide practices and solutions based on standardized business processes will reduce administrative or back office costs, improve the security posture of IT systems and data, create greater transparency and accountability, enhance employee productivity, and reduce overall government spending in internal services.
The 2014 Fall Report of the Auditor General of Canada, Chapter 7, states that the government needs to protect and properly manage the information it uses in the delivery of programs and services. Furthermore, the Report of the Standing Committee on Government Operations and Estimates Open Data: The Way of the Future urges the Government of Canada (GC) to continue to pursue its commitment to Open Government, and recognizes the “importance of increased collaboration and harmonization with other levels of government, including international governments and with non-governmental organizations.”
What are the plans to meet this priority?
Why is this a priority?
Economic Action Plan 2014 reaffirmed the government's commitment to tackle the federal regulatory red tape that can impose administrative burden on Canadian businesses. In October 2012, the government set out to implement a comprehensive package of regulatory reforms through the Red Tape Reduction Action Plan.
The Plan takes a common-sense approach to cutting red tape so that entrepreneurs can focus on growing, innovating and creating jobs. These reforms aim to reduce the regulatory burden on Canadians and business, improve service and predictability in the regulatory system, and make it easier to do business with regulators.
In addition, the government recognizes the value in pursuing efforts to review internal administrative barriers to fostering efficiency and effectiveness and reducing costs.
What are the plans to meet this priority?
|Ongoing||All programs, including Internal Services|
Why is this a priority?
In an environment of returning to balanced budgets, the ongoing focus on cost-containment contributes to improving the Secretariat's internal efficiencies and effectiveness as an organization, including its work environment, processes and technologies. By 2017, the four-year workplace renewal initiative will modernize and reduce the Secretariat's office space by 30 per cent; streamline and automate internal operations; use updated technology to enhance employee productivity and collaboration; and increase efficiency in support of the Secretariat's central agency responsibilities.
What are the plans to meet this priority?
The Secretariat actively monitors its operating environment to identify and manage risks that could affect progress toward its strategic outcome, organizational priorities and expected results. Key risks are captured in the Secretariat's Corporate Risk Profile (CRP), which is updated annually. The Secretariat continues to focus on the four key risks described in the table below. For each risk, a response strategy has been developed, including specific mitigation measures.
|Risk||Risk Response StrategyFootnote 2||Link to Program Alignment Architecture|
Constantly evolving cyber-threats may compromise GC information systems, infrastructure and data with potentially significant disruptions to GC program and service delivery.
The Secretariat will continue to work on numerous fronts to mitigate the risk of rapidly evolving cyber-threats, including:
Back Office Transformation
The complexity and pace of the transformation agenda may exceed federal organizations' and the Secretariat's capacity to drive back office standardization and consolidation.
The Secretariat will continue to provide leadership and oversight for government administrative reforms so that they achieve their intended results, including:
Gaps in the Secretariat's information and analytic capacity may limit its ability to perform a robust challenge function and to provide sound advice to ministers on costs and expenditure management.
The Secretariat will continue to pursue initiatives to ensure appropriate mechanisms and capacities are in place to support sound decision making on government expenditures, including:
High-Performing Public Service
A misalignment may occur between the skills and abilities required for an evolving and high-performing public service and current people management policies and tools.
The Secretariat will continue to advance a number of key reforms to ensure that the government's people management practices are aligned with current and future needs, including:
The Secretariat continues to operate in a dynamic environment as it advances key reforms to achieve a modern, efficient and high-performing government. This is the strategic and organizational context within which the Secretariat manages identified risks for 2015–18.
The Secretariat's efforts to transform and modernize government are taking place against the backdrop of rapid technological change and greater use of mobile devices and remote access. Despite efforts to date, the increased sophistication of threats continues to pose a risk. In the face of such incidents, citizens and Canada's partners (including industry and other jurisdictions) will demand that the Government of Canada protect their information so that program and service delivery is secure and resilient. As the government-wide lead on IT security policy and standards, the Secretariat has a responsibility to work with other federal organizations to support a coordinated and strategic approach to cyber-security. To address this ongoing risk, the Secretariat has adopted a progressively evolving risk response that includes lessons learned from significant incidents in order to keep up with the pace of technology and counter significant threats.
Reducing the cost of government and ensuring value for taxpayer dollars is a key ongoing priority. The 2014 Federal Budget reaffirmed the commitment to return to a balanced budget by 2015, primarily through spending restraint measures that include improvement to government administration and service delivery. In supporting the Treasury Board, the Secretariat is responsible for providing government with the comprehensive, accurate and reliable information needed to make sound financial decisions. This is even more important at a time when the fiscal environment has become increasingly unpredictable. To fulfill its role and address any possible gaps in information and analytic capacity, the Secretariat will continue to build on past years' risk responses with an increased focus on engagement, outreach and timely communications with other central agencies.
The government will continue to use technology to increase efficiency and reduce the administrative costs associated with its back office functions (e.g., human resources, finance and records management). This ongoing and complex area of work involves standardizing, consolidating and simplifying administrative processes and systems that support the operations of federal organizations. Since last year, numerous risk responses have been successfully implemented, and the Secretariat's response to risk has notably matured.
Finally, as the government adapts to the realities of our times, there is continued risk of a misalignment between the skills and abilities required for an evolving public service and current people management policies and tools. In supporting the employer of the core public administration, the Secretariat is responsible for providing leadership to modernize people management practices, including reviewing and updating current policies and tools to support a high-performing workforce. To that end, the Secretariat is implementing a performance management program that will lead to improved performance and higher productivity within the public service.
|Strategic Outcomes, Programs and Internal Services||2012–13
Any minor numerical differences are due to rounding errors.
In 2015–16, the Secretariat revised its PAA to better reflect the Secretariat's core business activities and support the achievement of expected results.
|Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians|
|Decision-Making Support and Oversight||N/A||N/A||N/A||47,506,141||47,506,141||47,927,651||47,846,414|
|Management Policies Development and Monitoring||N/A||N/A||N/A||73,826,361||73,826,361||71,875,824||71,941,055|
|Government-Wide Program Design and Delivery||N/A||N/A||N/A||50,671,220||50,671,220||48,051,421||44,338,351|
|Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results|
|Government-Wide Funds and Public Service Employer Payments||2,500,372,808||2,629,221,633||6,039,468,675||6,645,161,074||6,645,161,074||6,333,254,397||6,333,254,397|
|Internal Services Subtotal||80,220,719||80,724,486||71,296,333||75,279,537||75,279,537||64,308,499||64,876,983|
In 2015–16, the Secretariat revised its PAA to better reflect core business activities and support the achievement of expected results. Due to the significant differences between the Secretariat's previous and current PAA structures, expenditures for 2012–13 and 2013–14, as well as forecast spending for 2014–15, have not been restated.
The table above outlines:
- Actual spending for 2012–13 and 2013–14, as reported in the Public Accounts;
- Forecast spending for 2014–15, which reflects the authorized levels to the end of the fiscal year and is assumed to equal forecast expenditures; and
- Planned spending for 2015–16, 2016–17 and 2017–18 as presented in the department's Annual Reference Level Update.
Additional details regarding planned spending are provided in Section II: Analysis of Programs by Strategic Outcome.
Government-Wide Funds and Public Service Employer Payments represents the largest portion of the Secretariat's planned spending. Approximately 57 per cent of this program's spending is transferred to, and spent by, other federal organizations for items such as operating and capital budget carry forward, severance, parental benefits and compensation requirements (Central Votes 5, 10, 15, 25, 30 and 33). The Secretariat's total available spending authorities are reduced accordingly.
The significant difference between planned and actual spending (on average $4 billion per year) is related to the distribution of funds from the Central Votes to other organizations. These expenditures are detailed in the operating votes for these organizations. The balance of this program's funding is for public service employer payments, which include revenues and expenses for the Public Service Health Care Plan, the Public Service Dental Care Plan, Disability Insurance, provincial payroll taxes (Manitoba, Newfoundland and Labrador, Ontario and Quebec) and other programs.
The increase in disability and health care expenditures and the decrease in revenues from revolving funds and special accounts related to public service employer payments resulted in an increase of actual spending by $130.5 million from 2012–13 to 2013–14.
Looking ahead at forecast spending for the Secretariat's operations, there is a planned increase of $3.5 billion from 2013–14 actual spending. The planned increase is predominantly a result of Central Votes funding not yet allocated to other organizations.
The Secretariat's future spending is expected to decrease by $330 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.
Alignment of Spending With the Whole-of-Government Framework
|Strategic Outcome||Program||Spending Area||Government of Canada Outcome||2015–16 Planned Spending|
|Good governance and sound stewardship to enable efficient and effective service to Canadians||Decision-Making Support and Oversight||Government Affairs||Well-managed and efficient government operations||47,506,141|
|Management Policies Development and Monitoring||Government Affairs||Well-managed and efficient government operations||73,826,361|
|Government-Wide Program Design and Delivery||Government Affairs||Well-managed and efficient government operations||50,671,220|
|Government-Wide Funds and Public Service Employer Payments||Government Affairs||Well-managed and efficient government operations||6,645,161,074|
|Spending Area||Total Planned Spending|
Departmental Spending Trend
Looking at fiscal year 2015–16, the Secretariat's total planned spending is $6.9 billion. This includes $4.0 billion, or 57 per cent, in Central Votes used to supplement the appropriations of departments and agencies.
Most of the remaining balance, $2.7 billion, is related to the Secretariat's role in supporting the Treasury Board as employer of the core public administration. These funds are used for:
- The public service pension, benefits, and insurance plans, including payment of the employer's share of health, income maintenance, and life insurance premiums;
- Payments in respect of provincial health insurance;
- Payments of provincial payroll taxes and Quebec sales tax on insurance premiums; and
- Funding to address actuarial deficits in the Public Service Pension Fund.
The remaining amount, $0.3 billion, is directly related to the operations of the Secretariat and its four other program activities: Decision-Making Support and Oversight, Management Policies Development and Monitoring, Government-Wide Program Design and Delivery, and Internal Services.
The profile of the Secretariat's operating expenditures includes salaries, non-salary costs that support its operations, statutory items comprised of contributions to employee benefit plans, and other statutory items for its own employees.
Out-of-court settlements led to an increase between 2013–14 actual spending and 2014–15 forecast spending. The decrease between 2014–15 and 2015–16 planned spending is mostly related to an out-of-court settlement, Web Renewal, the National Managers' Community, Paylist Requirements and Operating Budget Carry Forward.
Decreases in program expenditures are expected to continue until 2017–18 due to the sunset of initiatives such as the Workspace Renewal, the Joint Learning Program, Web Renewal, the Federal Contaminated Sites Action Plan, and the Workplace Wellness and Productivity Strategy.
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.
Expenditures for public service insurance increased by $129 million from 2012–13 to 2013–14 following a premium rate increase for the Disability Insurance Plan; the cessation of a premium holiday for the long-term disability insurance line under the Royal Canadian Mounted Police Life and Disability Insurance Plan; higher usage of the Public Service Health Care Plan (PSHCP) by members; and a decrease in recoveries of the employer's share of insurance plans from other government departments related to Special Accounts and Revolving Funds.
Public service employer payments increased by $320 million from 2013–14 to 2014–15 and decreased by $256 million from 2014–15 to 2015–16 mostly due to a one-time top-up payment for the Service Income Security Insurance Plan (SISIP) and the implementation of benefit changes made to the Public Service Health Care Plan (PSHCP).
Planned spending between 2015–16 and 2017–18 is expected to increase by $87 million largely as a result of an expected rise in PSHCP usage per member, increased unit costs under the Pensioners' Dental Services Plan and the Public Service Dental Care Plan, and higher employer contributions directly related to increases in payroll.
Estimates by Vote
For information on the Treasury Board of Canada Secretariat's organizational appropriations, consult the 2015–16 Main Estimates on the Treasury Board of Canada Secretariat website.
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