Treasury Board Submissions for Crown Corporations
Introduction
These instructions outline for portfolio departments how to complete the Treasury Board (TB) submission template when seeking approval of Crown corporation business. They include information on the following:
- corporate plans
- operating and capital budgets
- access to new funding
These instructions should be used with the Guidance for Drafters of Treasury Borad Submissions and Commonly Sought Authorities (accessible only on the Government of Canada network).
The Treasury Board of Canada Secretariat (TBS) has developed a streamlined approach for approval of lower-risk corporate plans and capital and operating budgets. The following criteria for using this approach apply:
Funding requests are limited to:
- top-up funding for previously approved activities
- funding for new or modified activities that are considered low risk
There must be a clear and identified source of funds.
- No deficit should be forecast in the first planning year. Exceptions may be considered if the plan is otherwise low risk. A projected deficit in outer years does not, on its own, preclude eligibility.
- No additional authorities or approvals from the TB or Governor in Council are required following TB approval of the plan and budgets (for example, restricted transactions or orders-in-council).
- The plan includes only currently approved activities, or lower-risk new or modified activities, consistent with those outlined in the most recently approved corporate plan or amendment.
Consult your TBS analyst to determine whether the corporate plan and budgets are eligible for this process.
Purpose of Treasury Board submissions
TB submissions present the planned activities and planned expenditures of Crown corporations through corporate plans and budgets, or amendments to corporate plans and budgets, every year, as required by legislation (the Financial Administration Act and Crown corporation enabling legislation). Approval of the TB submission provides the operational mandate for the Crown corporation’s planned activities and planned spending. TB ministers may approve, defer or deny the authorities sought, and, in some cases, may impose conditions.
A TB submission should present the following in simple, clear language:
- a summary of the Crown corporation’s main activities and spending, including any new activities and spending or the cessation or winding down of main activities, for the period (including costs and source(s) of funds)
- the department’s analysis and assessment of the corporation’s planned activities and planned spending, consistent with the minister’s accountability for portfolio Crown corporations and responsibilities assigned to deputy ministers for integrated portfolio coordination in Open and Accountable Government, Annex H: section 2 (Integrated Portfolio Coordination) and section 3 (Crown Corporations)
- the expected results and how they will be measured, including an overview of what success looks like for the Crown corporation and how the department and responsible minister will know that success has been achieved
- the department’s analysis and assessment of any risks associated with the planned activities and planned spending, from a whole-of-government perspective, and how these risks will be mitigated, including an explanation of any residual risks
- the decision(s) being sought from the TB or the Governor in Council
TB reviews planned expenditures of Crown corporations to:
- understand the corporation’s overall financial health
- make sure that expenditures are consistent with the corporation’s mandate, public policy objectives and strategic direction
- ensure that they are aligned with government fiscal priorities
TB also reviews planned expenditures by Crown corporations to understand how they are designed, implemented and delivered to realize the desired results and achieve value for money.
Accountabilities
The TB submission is presented by the responsible minister on behalf of the Crown corporation.
The portfolio department is responsible for confirming that:
- the planned activities, including any new activities, are within the Crown corporation’s legal mandate
- the Privy Council Office has confirmed policy cover of proposed new activities
- if the new or existing activities require incremental funding, that a source of funds has been secured to support the planned spending
Regular and consistent contact between the department and the Crown corporation supports mutual understanding and collaboration while promoting policy coordination and building coherence in the activities and reporting of portfolio organizations.
The department plays an essential role in supporting the responsible minister by promoting policy coordination and building coherence in the activities and reporting of its portfolio organizations. The department advises the responsible minister on how to ensure integration in the activities of the portfolio, while respecting any accountability requirements and mandates set out by legislation. In this manner, the department provides integrated analysis and assessment of the Crown corporation’s plans in the context of the broader portfolio. The TB submission is an important opportunity for the responsible minister to provide information about and an assessment of the Crown corporation’s operations to TB ministers.
Contact TBS early to ensure that your TBS analyst can provide timely feedback and advice and resolve any concerns, consistent with the Guidance for Crown Corporations on Preparing Corporate Plans and Budgets. It is best practice to share a draft of the corporate plan ahead of the draft of the associated TB submission.
TBS is responsible for challenging proposals and formulating advice to support decisions by TB ministers.
TB submissions, including all drafts or versions of a submission, are considered Cabinet confidences. Crown corporations do not have a right to access Cabinet confidences, as they are arm’s length to government and are not within the inner circle of Cabinet. For more information, see the Policy on the Security of Cabinet Confidences.
Guidance: section by section
Organization
Organization
Insert the English name of the portfolio department responsible for this submission (do not list the name of the Crown corporation here).
Title and synopsis
Title and synopsis
Title
The title should not exceed 20 words. For corporate plans, include the name of the Crown corporation and the period covered, indicating the applicable year‑end (calendar or fiscal). For incremental funding, include a brief description of intended use of funds.
Suggested wording
[Name of Crown corporation] [period covered, for example, 2023–24 to 2027–28] Corporate Plan
[Name of Crown corporation] [period covered, for example, 2023–24 to 2027–28] Corporate Plan and incremental funding to implement [name of initiative] in [time period]
Synopsis
The synopsis should not exceed 150 words. It should include the following:
- a summary of the authorities sought
- total cost (not only the amount of appropriations)
- a high-level description of the main activities and any significant changes in budget amounts from previous corporate plans, including incremental or reduced funding
- risk level
Suggested wording
The Minister of [portfolio], responsible for [name of Crown corporation], is seeking approval of the [YYYY–YY] corporate plan, the operating budget of [total amount $000,000,000], the capital budget of [total amount $000,000,000] for [YYYY–YY], and approval of incremental funds of [total amount $000,000,000] over [time period]. Key activities include [list main activities and provide an overview of new activities associated with incremental funds]. The overall level of risk is [low, medium or high].
Authorities sought from the Treasury Board
Authorities sought from the Treasury Board
Begin with “It is proposed that Treasury Board…” followed by a numbered list of the authorities being sought. Required wording for each authority follows.
Approval of corporate plan
It is proposed that the Treasury Board:
- pursuant to subsection 123(1) of the Financial Administration Act, approve the [YYYY–YY] operating budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsection 124(1) of the Financial Administration Act, approve the [YYYY–YY] capital budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsection 122(1) of the Financial Administration Act and Order in Council PC 2018‑0536, dated , approve the corporate plan of [name of Crown corporation] for the [YYYY–YY] to [YYYY–YY] planning period
- authorize the Treasury Board of Canada Secretariat to issue a letter informing the [president or chief executive officer] of the [Crown corporation name] of the Treasury Board decision
Approval to amend corporate plan
It is proposed that the Treasury Board:
- pursuant to subsections 123(1) and 123(4) of the Financial Administration Act, approve the amended [YYYY–YY] operating budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsections 124(1) and 124(6) of the Financial Administration Act, approve the amended [YYYY–YY] capital budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsections 122(1) and 122(6) of the Financial Administration Act and Order-in-Council PC 2018‑0536 dated , approve the amended corporate plan of the [name of Crown corporation] for the [YYYY–YY] to [YYYY–YY] planning period
- authorize the Treasury Board of Canada Secretariat to issue a letter informing the [president or chief executive officer] of the [Crown corporation name] of the Treasury Board decision
Approval of new funding from the fiscal framework to implement an existing or a new activity
It is proposed that the Treasury Board:
- provide authority to adjust organizational reference levels as set out in the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure (accessible only on the Government of Canada network)
- authorize the Treasury Board of Canada Secretariat to issue a letter informing the [president or chief executive officer] of the [Crown corporation name] of the Treasury Board decision
Approval of a specified period of a five-year corporate plan
It is proposed that the Treasury Board:
- pursuant to subsection 123(1) of the Financial Administration Act, approve the [YYYY–YY] operating budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsection 124(1) of the Financial Administration Act, approve the [YYYY–YY] capital budget, projected to be in the amount of $000,000,000 for the [name of Crown corporation]
- pursuant to subsections 122(1) of the Financial Administration Act and Order-in-Council PC 2018‑0536, dated , approve the portion of the [YYYY–YY] to [YYYY–YY] corporate plan of the [name of Crown corporation] relating to the period beginning on [month] [day], [year], and ending on [month] [day], [year]
- authorize the Treasury Board of Canada Secretariat to issue a letter informing the [president or chief executive officer] of the [Crown corporation name] of the Treasury Board decision
Approval of restricted transactions, such as real property transaction or specified dividends
A separate Governor in Council authorization may be required for approval of restricted transactions. For more information, contact your TBS analyst.
Context
Context
Explain why this submission is being brought forward (for example, because of a legislative requirement or to implement new activities).
The context section is not to exceed two pages. For simpler submissions, the context section should not exceed one page.
If you are submitting a corporate plan, mention subsections 122(1), 123(1) and 124(1) of the Financial Administration Act, which require that the corporate plan and the operating and/or capital budgets be approved annually.
If you are requesting approval of new activities or of deviations from previously approved capital or operating budgets, including new funding, indicate that clearly. Deviations can include:
- changes to the timing of approvals required for new activities
- unforeseen expenditures
- a need for funds through the supplementary estimates
- third-party commitments
Note that the context section should not:
- provide an extensive historical background
- repeat or justify the policy rationale for the initiative or repeat information that is available in other decision documents (memoranda to Cabinet or federal budget decisions)
- introduce policy uncertainty or arguments
It is enough to refer to other decision documents to establish that policy approval exists and that there is a confirmed source of funds.
Key activities
Key activities
Delete the heading “Design, delivery and implementation” of the TB submission template and replace it with “Key activities.”
This section presents the planned activities of the Crown corporation so that TB ministers can determine whether the activities:
- are consistent with the corporation’s mandate, public policy objectives and strategic direction
- are aligned with government priorities
- provide value for money
Present the Crown corporation’s mandate and key activities, including the strategies planned to achieve desired objectives drawn from the corporate plan.
Differentiate between new activities, activities being ended, and ongoing activities. Indicate whether there will be any horizontal impacts on other government programs or initiatives, either in the minister’s portfolio or in other government organizations. Indicate the strategies that the corporation will take to implement the activities.
Provide the department’s analysis and assessment of the Crown corporation’s planned activities using a portfolio lens to highlight the policy coherence and possible impacts across all related portfolio activities under the minister’s responsibility. Expectations for future reporting by the Crown corporation should also be noted.
Include information about the relationship between the department and the Crown corporation, such as:
- regular meetings
- mandate letters
- the coordination of communications materials for Parliament and for the public
Costs and budget summary
Costs and budget summary
Indicate, in general, the expected costs of the activities described in the corporate plan.
If the submission includes a request to access new funds, refer to the “Cost and source of funds” section in Guidance for Drafters of Treasury Board Submissions for required information in this section.
Clearly indicate whether the planned expenditures will be self-funded by the Crown corporation or whether government appropriations will be used.
Highlight key areas such as:
- planned spending
- carry-overs from the previous year
- anticipated financial pressures
- funding for new activities
- major planned investments
- planned revenue generation or increases
- data collection costs for the purposes of monitoring, evaluation and reporting
Summarize, on a cash basis, the total operating budget and/or capital budget to be approved and any planned expenditures for new activities. Refer to the operating and capital budget tables over five years that are included in the corporate plan.
Provide the department’s analysis and assessment of the planned spending by the corporation, including:
- overall financial health of the corporation
- how costs are being contained
- how value for money is being achieved
- due diligence measures undertaken when developing the planned spending forecasts
- credibility of the cost estimate(s) range and supporting rationale
- return on investment
For appropriated Crown corporations, describe departmental controls in place to manage and administer payments from the Consolidated Revenue Fund, consistent with the Directive on Payments (section 4.5).
Also in this section, discuss the Crown corporation’s profitability and sustainability in the context of any operating or capital pressures and based on the statement of income in the corporate plan.
Borrowing plans
If there is a borrowing plan that requires approval by the Minister of Finance, explain any specific or directed terms of use and explain increases or decreases in the plan.
Dividend plans
If there is a dividend plan, explain and provide the department’s view of the corporation’s level of retained cash and minimum cash requirements to support regular business operations.Footnote 1
Results
Results
In a maximum of two pages, explain how the Crown corporation’s activities benefit Canadians. Provide an overview of the Crown corporation’s planned results (and outcomes, and how its key activities will help achieve them) and its strategies for achieving its main objectives. Base this overview on the planned results and performance measures that are set out in the planned results appendix of the corporate plan. Crown corporations that receive government appropriations should indicate how their activities relate to:
- their core responsibilities
- key performance indicators
- government-wide priorities and expectations communicated by the responsible minister
Provide the department’s analysis and assessment of the Crown corporation’s planned results, including any that may be integrated with other portfolio organizations under the minister’s responsibility.
Consider including information from past performance, findings from past evaluations, and audits or results-related risks and mitigations.
Risks
Risks
In no more than two pages, provide a high-level summary of the Crown corporation’s key risks (financial and non-financial, including legal risks) and risk mitigation activities that are described in detail in the risk and risk response appendix of the corporate plan.
Be sure to include:
- actions being taken to address recent special examination audit findings
- the overall initial risk level of the submission, major mitigation measures, and the resulting residual risk level
Provide the department’s assessment and analysis of the corporation’s stated risk and risk mitigation measures, including consideration of broader risks within the portfolio or government as a whole.
Legal risks
A high-level overview of legal risks and the rationale for determining the overall level of risk should be included. The range for each legal risk level is the following:
- low: below 30%
- moderate: 30% to 50%
- balanced: 50%
- elevated: 50% to 70%
- high: above 70%
The legal risk level selected should consider mitigation measures that the organization commits to implementing. If multiple legal risks have been identified, the legal risk level is determined by reference to the issue that presents the highest level of legal risk. Legal risks must be reflected in the rating even if it’s unlikely that there would be any legal consequences. The legal risk assessment must be drafted by the legal services unit that serves the portfolio department. The legal risk analysis is an assessment led by the Department of Justice Canada and is based on its Legal Risk Framework.
If the corporate plan mentions a legal risk or legal considerations and these are mentioned in the submission, it should be clearly indicated that the Crown corporation had previously identified a legal risk or concern.
Contact
Contact
Insert the contact information for the portfolio department that supports the minister in their responsibility for the Crown corporation.
Appendices
Appendices
In most cases, the only appendix required for TB submissions that are seeking approval of an annual corporate plan is the five-year corporate plan, which includes the corporation’s operating and capital budgets. For submissions that seek approval of new funding, provide a Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure appendix (accessible only on the Government of Canada network).
Any additional required appendices will be determined on a case-by-case basis in consultation between TBS and departments.
If the TB submission has material that is appended, don’t reproduce information in that material that already appears in the corporate plan or its appendices. Instead, cross-reference such information in the relevant appendix in the TB submission. For more information, consult Guidance for Crown Corporations on Preparing Corporate Plans and Budgets.