Commonly Sought Authorities

Guidance is provided here for the types of authorities and approvals most often sought in Treasury Board (TB) submissions. Commonly Sought Authorities and Approvals provides information on the policy requirements and need for specific authorities or approvals, sample wording for TB submission proposals, and links to useful tools and additional information.

Information on the authorities and approvals most commonly sought from the Treasury Board is presented in the following sections:

Financial Management Authorities

Financial proposals presented to the Treasury Board usually affect an organization’s votes as listed in the Estimates or in the allotments within its individual votes (e.g., personnel costs, other operating costs, capital, grants and contributions). The submission’s financial tables should be at the level of the overall organization, rather than by program, unless otherwise specified.

Some financial authorities require a separate financial table to be inserted as an appendix to the submission. Such authorities will be specifically identified in this section.

Before contacting your program analyst at the Treasury Board of Canada Secretariat (Secretariat), you should first consult your organization’s financial management advisors for guidance on preparing all financial proposals, tables and appendices.

Financial Authorities Through Estimates Votes

New Funding

This type of proposal is required when an organization seeks access to new funding through the Estimates. A separate proposal paragraph is required for each vote for which you are seeking new funding. The amount should also be indicated under “New Funding” in the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Sample proposal wording for new funding

Provide authority to include an item in Supplementary Estimates and/or increase reference levels in [insert organization’s name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing], including employee benefit plans and excluding Public Works and Government Services Canada accommodation charges to [insert purpose].

If the new funding involves personnel, the following applies:

  • Your proposal paragraph should state that funding is also being sought for employee benefit plans (EBPs) and that it excludes the accommodation premium levied by Public Works and Government Services Canada (PWGSC);
  • The EBP amount (i.e., 20 per cent of personnel costs) must be included in the amount being requested in the proposal; and
  • If the accommodation premium (13 per cent of personnel costs) levied by PWGSC applies to your new salary resources, you must state this fact in a separate proposal (see Accommodation Premium).

Accommodation Premium

If applicable, a separate proposal is required to cover the 13-per-cent accommodation premium levied on new salary resources accommodated by PWGSC. If this premium does not apply to your submission (e.g., your organization owns its own facility), or only a portion of the salary is accommodated by PWGSC (e.g., 60 per cent of salaried personnel are in PWGSC accommodations and 40 per cent are in custodial laboratory facilities) you must explain the amount provided to PWGSC in a footnote to the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Sample proposal wording to cover the PWGSC accommodation premium

Provide authority to hold centrally in an earmarked reserve $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing], in order to offset Public Works and Government Services Canada’s accommodation requirements.

Shared Services Canada Central Earmark Authority

Sample Proposal Wording for a Shared Services Canada Central Earmark Authority

Provide authority to hold centrally in an earmarked reserve $[insert amount] in [insert fiscal year]; … ; [and ongoing], in order to offset Shared Service Canada’s incremental costs of providing core information technology services.

Reduction in Future-Year Funding

This type of proposal is required when your organization is seeking authority from the Treasury Board to permanently reduce spending on a specific initiative that affects future-year spending (e.g., as a result of a spending restraint initiative). The amounts to be reduced should be indicated in the “Existing Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Sample proposal wording to reduce reference levels

Provide authority to reduce reference levels in [insert organization name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] (including employee benefit plans), due to [insert reason].

If this proposal involves personnel, the following applies:

  • The proposal paragraph should state that the reduction includes EBPs; and
  • The EBP amount (i.e., 20 per cent of personnel costs) must be included in the proposed reduction.

For any associated in-year reductions for which your organization would have already received funding, a permanent frozen allotment needs to be established (see Permanent Frozen Allotments for sample proposal wording).

Transfers Between Votes (within or between organizations)

This type of proposal is required when you are seeking to transfer funds between votes within your organization or transfer funds to another organization. Transfers of funds within the same vote in the same organization do not require approval from the Treasury Board.

The amounts shown as being transferred from one vote to another vote must be the same. As a general rule, when transferring salaries from one organization to another, the increase in the personnel sub-allotment of the receiving organization should be offset by an identical reduction in the personnel sub-allotment of the sending organization. If that is not possible, the transfer to and/or from the operating budget allotment should be made entirely within the other operating costs sub‑allotment (which should also include the EBP amount).

The amounts to be transferred should be indicated under “Transfers” in the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

For transfers between organizations or between votes within an organization, the following applies:

  • Include the amount to be transferred in the “New Funding” or the “Existing Funding” areas of the sending organization’s Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure, as appropriate.
  • In the “Transfers” area of this table, indicate in “Sending Organization” and “Receiving Organization” the transfer by organization, vote and input factor (the “Sending Organization” amount will show as negative and the “Receiving Organization” amount will show as positive). The “Transfers” area should total to zero.
  • Then, under the “Transfers” section of the table, indicate in the “From” (sending organization) and “To” (receiving organization) areas, the transfer by organization, vote and input factor (the “From” amount will show as negative and the “To” amount will show as positive).  The “Transfers” section should total to zero.
Sample proposal wording to transfer funds between votes

Provide authority to transfer from [insert organization name] Vote [insert vote number] – [insert vote name] to [insert organization name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing], in order to [insert purpose].

Temporary Access to Treasury Board Vote 5 – Government Contingencies

Access to Treasury Board Vote 5 – Government Contingencies is generally sought when an organization has insufficient spending authority to cover existing requirements. Access to Treasury Board Vote 5 provides authorities that are urgently required before the next parliamentary supply process is completed. Similar to a loan, Treasury Board Vote 5 is then “repaid” once the supply is granted.

Treasury Board Vote 5 may also be used to provide authority for new grants that are within the legal mandate of the organization, or increases to existing grants before obtaining approval from Parliament through an appropriation Act as proposed in the associated Estimates.

For specific details on drafting this type of proposal, please refer to the Guidelines for reviewing departmental requests for access to the Government  Contingencies Vote. The amount sought from Treasury Board Vote 5 should be indicated in a footnote to the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Sample proposal wording for temporary access to Treasury Board Vote -5

Provide authority for temporary access to Treasury Board Vote 5 – Government Contingencies in an amount up to $[insert amount] in [insert fiscal year], in order to supplement [insert organization name] Vote [insert vote number] – [insert vote name] for [insert purpose], based on an updated cash flow to be provided to Treasury Board of Canada Secretariat to reaffirm actual requirements once the cash supply of the aforementioned organization vote is close to depletion. The amount granted from Treasury Board Vote 5 is to be reimbursed upon the approval of the appropriation Act related to Estimates providing funding for this initiative.

Deletion of Debt Owed to the Crown

Guidance is provided here on proposals related to the deletion of debts owing to the Government of Canada in accordance with the Financial Administration Act (FAA).

Before undertaking any deletion of debt activities, it is important that you clearly ascertain the legal framework that applies to the financial accounts relating to the debt. The government has put in place a comprehensive system of statutory and regulatory controls that must be followed when handling deletions. These controls can be derived from the specific program legislation under which the debt was created, such as the Income Tax Act or the FAA. When the program legislation specifically addresses the topic of deletion of debts, the deletion actions are based on that legislation.

When deleting a debt under the FAA, you also need to determine what type of financial transaction generated the debt that is to be deleted. Essentially, there are two types of transactions: budgetary and non-budgetary.

The decision to forego collection of a debt has a fiscal impact on the Government of Canada. Therefore, every debt deletion implicitly has a source of funds. There are instances where a minister has authority to delete debts under regulatory powers granted to him or her, i.e., write off budgetary debts. In instances where a TB submission is required, a source of funds will need to be confirmed before the submission is considered by the Treasury Board.

The default source of funds is the organization’s reference levels. It is generally confirmed through the establishment of a lapsing frozen allotment (see the Permanent Frozen Allotments section) that is equivalent to the amount of the debt being forgiven. Should your organization be unable to manage this pressure from existing reference levels, you should contact your program analyst at the Secretariat to discuss options.

The FAA authorizes four forms of debt deletion: write-off, forgiveness, remission, and waiver of interest and administrative charges. A summary of these forms of deletion can be found in the table Financial Administration Act (FAA) Debt Deletion Actions.

Note: In the case of forgiveness, remission and waiver of interest and/or administrative charges, the debt is legally extinguished. The Crown loses its right to collect or reinstate the debt, and authority is created to make an accounting entry that permanently removes the debt from government accounts.

Debt Write-Off

All or a portion of the debt may be written off under the Debt Write-off Regulations, 1994, if one or more of the following situations exists:

  • The debt is uncollectible;
  • Costs of collecting the debt outweigh the amount of the debt;
  • There is a Department of Justice Canada compromise settlement for the debt; and
  • There is a present value payment for a future debt.

Section 6 of the Debt Write-off Regulations, 1994 establishes when a debt is considered uncollectible. Under these regulations, an organization is allowed to write off debts that are considered uncollectible, with one exception. Treasury Board approval is required to write off debts resulting from accountable advances and overpayments of salaries, wages or employment-related allowances made to public servants who are currently employed.

When amounts are written off for budgetary transactions, no budgetary appropriation is charged because the organization has already charged the appropriation.

To process non-budgetary write-off transactions, subsection 25(2) of the FAA requires that a budgetary appropriation be charged for the amount of the debt and the related outstanding interest. This is required because Parliament did not grant a budgetary appropriation authority for the original expenditure outlay.

The approval process for these write-offs includes the following:

  • Organization’s internal review process set out in the Debt Write-off Regulations, 1994;
  • TB submission;
  • Appropriation Act (or another Act of Parliament), a source of funds being a precondition for an appropriation.

A new budgetary vote must be created in the Estimates in order to write off this debt.

Sample Proposal Wording to Write Off Debts

Write-off of non-budgetary debts:

Under the provisions of section 25 of the Financial Administration Act, authorize [insert organization name] to write off from its accounts $[insert amount] (including $[insert amount] of capital funds and $[insert amount] of interest) in [insert fiscal year] for [insert purpose].

Write-off of debts resulting from accountable advances and overpayments of salaries, wages or employment-related allowances made to public servants who are currently employed:

Under the provisions of the Debt Write-off Regulations, 1994, authorize [insert organization name] to write off from its accounts $[insert amount] (including $[insert amount] of capital funds and $[insert amount] of interest) in [insert fiscal year] for [insert purpose].

Note: You will also require an authority to include an item in the Estimates to write off these debts.

Forgiveness of a Debt

As per section 24.1(2) of the FAA, “No debt or obligation referred to in paragraph (1)(a) shall be forgiven unless the amount to be forgiven is included as a budgetary expenditure in an appropriation Act or any other Act of Parliament.” For non-budgetary transactions, a budgetary appropriation must be charged for the amount of the debt and related outstanding interest. Further, a source of funds is required for debt forgiveness.

The debt or a portion of the debt for a non-budgetary transaction may be forgiven under section 24.1 of the FAA. There are no set criteria for determining when such debts may be forgiven, and any and all non-budgetary debts may be submitted for forgiveness. A budgetary transaction where a Crown corporation owes debts to the Crown requires forgiveness under section 24.1.

You must request forgiveness of the initial amount of the debt and the related outstanding interest through a TB submission. Forgiveness also requires parliamentary approval through legislation such as an appropriation Act (i.e., a new budgetary vote must be created in the Estimates). Forgiveness is effected by including the amount to be forgiven in the Main or Supplementary Estimates.

Sample proposal wording to forgive a debt

Under the provisions of section 24.1 of the Financial Administration Act, authorize [insert organization name] to forgive certain debts and accrued interest in the amount of $[insert amount] (including $[insert amount] of capital funds and $[insert amount] of interest) in [insert fiscal year] for [insert purpose].

Note: You will also require an authority to include an item in Supplementary Estimates to write off this debt.

Remission of a Debt

Remission of debts owed to the Crown is authorized by section 23 of the FAA. It is applicable to budgetary transactions only.

Taxes, penalties and associated interest may be remitted by an order-in-council on the recommendation of the appropriate minister. Other debts and associated interest may be remitted by the Governor in Council on the recommendation of the Treasury Board. Where Treasury Board approval is required, you must prepare a TB submission, which includes a copy of the order-in-council to approve the remission.

An associated Governor in Council (GIC) submission must be prepared, in accordance with the Process Guide for Governor in Council Submissions (Other than Regulations). The order-in-council and the explanatory note that accompany the GIC submission must state the actual or estimated amount of the debt being remitted and the justification for the remission. Once the debt remission is approved by the Governor in Council, the order-in-council and explanatory note are published in the Canada Gazette, Part II.

Remissions are granted where collecting the amounts would be:

  • Unreasonable;
  • Unjust; or
  • Not in the public interest. Instances include:
    • Compassion (e.g., severe hardship);
    • Equity (e.g., unfairness resulting from administrative errors);
    • Administrative ease (e.g., anticipation of a change in the law); and
    • Policy considerations (e.g., unfairness or unintended results).

When the amounts are remitted, no budgetary appropriation is charged because the organization has already incurred expenses in order to generate that revenue. A source of funds is required for debt remission.

Sample proposal wording for remission of a debt

Under the provisions of section 23 of the Financial Administration Act, recommend Governor in Council approval of the order-in-council attached to the submission approving the remission of up to $[insert amount] owing to the Crown on loans and accrued interest for [insert purpose].

Waiver of Interest and/or Administrative Charges

If the debt deletion involves only deleting the related interest and/or administrative charges, the debt may be waived by your minister under the Interest and Administrative Charges Regulations in certain situations set out in subsections 9(1) and 9(2). Administrative charges may be waived by your minister under subsections 12(1) and 12(2) of these regulations. Treasury Board authority is not required.

No budgetary appropriation is charged since the amounts are generated by normal budgetary expenditures.

Financial Administration Act (FAA) Debt Deletion Actions
Point Write-Off Forgiveness Remission Waiver
Table 1 Notes
Table 1 Note 1

Debt deletions that require a TB submission require that a source of funds be confirmed. The default source of funds is the organization’s existing reference levels.

Return to table 1 note 1 referrer

Transaction Type Budgetary Non-Budgetary Budgetary Non-Budgetary Budgetary Budgetary
Authority FAA, section 25 and Debt Write-off Regulations FAA, subsection 25(2) and Debt Write-off Regulations FAA, section 24.1 FAA, section 24.1 FAA, sections 23 and 24 Interest and Administrative Charges Regulations
Level of Approval Required for Deletion Departmental Parliamentary Parliamentary Parliamentary Governor in Council order on recommendations of appropriate minister (taxes, penalties) or the Treasury Board (other debts) Departmental
Applicability Applies to all budgetary debts. Applies to all non-budgetary debts. Under FAA, section 24.1, budgetary forgiveness applies to budgetary debts owing by a Crown corporation. Under FAA, section 24.1, non-budgetary forgiveness applies to debts a) included in the Statement of Assets and Liabilities where forgiveness would require a charge to a budgetary appropriation and b) non-budgetary debts owing by a Crown corporation. FAA, section 23 remission may be applied to debts not covered by the criteria of section 24.1. Interest may be included in the remission. Remission may also be applied to debts already paid. Applies to budgetary debts for interest and administrative charges.
Effect The debt is removed from the books of the account but is not extinguished. In the case of compromise settlements, the debt is extinguished. The debt is removed from the books of the account but is not extinguished. In the case of compromise settlements, the debt is extinguished. Debt is removed from the books of the account and extinguished, and the debtor is released from all liability. Forgiveness may be conditional or unconditional. Where forgiveness is conditional, it is deemed not to have been granted if the condition is not fulfilled. Debt is removed from the books of the account and extinguished, and the debtor is released from all liability. Forgiveness may be conditional or unconditional. Where forgiveness is conditional, it is deemed not to have been granted if the condition is not fulfilled. Debt is removed from the books of the account and extinguished, and the debtor is released from all liability. Remission may be conditional or unconditional. Where remission is conditional, it is deemed not to have been granted if the condition is not fulfilled. Debt is removed from the books of the account and is extinguished, and the debtor is released from all liability.
Criteria Criteria contained in sections 4 and 6 of the Debt Write-off Regulations, 1994. Criteria contained in sections 4 and 6 of the Debt Write-off Regulations, 1994. Parliamentary discretion – criteria not specified. Parliamentary discretion – criteria not specified. Debts may be remitted when collection is deemed unjust, unreasonable or not in the public interest. Criteria contained in sections 9 and 12 of the Interest and Administrative Charges Regulations.
Reporting Reported in the Public Accounts of Canada. Reported in the Public Accounts of Canada. Reported in the Public Accounts of Canada. Reported in the Public Accounts of Canada. Reported in the Canada Gazette, Part II, and the Public Accounts of Canada. Reported in the Public Accounts of Canada.
Appropriation ImpactsSee table 1 note 1 Debt deletion does not result in a charge to an appropriation. Debt deletion results in a charge to a budgetary appropriation. Debt deletion does not result in a charge to an appropriation. Debt deletion results in a charge to a budgetary appropriation. Debt deletion does not result in a charge to an appropriation. Debt deletion does not result in a charge to an appropriation.

Financial Authorities for Transfer Payments

Financial authorities required from the Treasury Board for administering transfer payments are quite specific. Examples of these financial authorities are provided in this section. Each item provides sample proposal wording for funding from existing reference levels and from new resources.

Non-financial authorities such as those related to establishing and managing transfer payments under Treasury Board’s Policy on Transfer Payments can be found in the Transfer Payments section.

Grants

In order for your organization to make a grant payment, the grant must be listed in the Estimates and have a source of funds. The following proposals will help you request a grant to be listed in the Estimates and, if required, seek funding for the grant.

1) New grants
a. Sample proposal wording if the grant is to be funded from existing reference levels

Provide authority to list a grant in the Estimates entitled [insert wording to be printed in the Estimates] [insert “under the program entitled (insert name of program),” if applicable].

The amounts to be included should be indicated in the “Existing Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

b. Sample proposal wording if the grant is to be funded from new resources:
  • Provide authority to include an item in Supplementary Estimates and/or increase reference levels in [insert organization name] Vote [insert number] – [insert vote name] in the amount(s) of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing], in order to [insert purpose]; and
  • Provide authority to list a grant in the Estimates entitled [insert wording to be printed in the Estimates] [insert “under the program entitled (insert name of program),” if applicable].

The amounts to be included should be indicated in the “New Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

2) Increase to an existing grant

In order for an organization to increase a grant payment, the increased grant must be listed in the Estimates and have a source of funds. Identified below are the required proposals to request that a grant be listed in the Estimates and, if required, to seek funding for the grant.

a. Sample proposal wording if increase to grant is to be funded from existing reference levels

Provide authority for [insert organization name] to increase the grant entitled [insert the wording already printed in the Estimates] by $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing][insert “under the program entitled (insert name of program,”  if applicable], due to [insert reason for the increase].

The amounts to be included should be indicated in the “Existing Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

b. Sample proposal wording if increase to grant is to be funded from new resources:
  • Provide authority to include an item in Supplementary Estimates and/or increase reference levels in [insert organization name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing], in order to [insert purpose]; and
  • Provide authority to increase by a corresponding amount the grant entitled [insert wording already printed in the Estimates] [insert “under the program entitled (insert name of program),” if applicable], in order to [insert purpose].

The amounts to be included should be indicated in the “New Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Contributions

A specific financial authority proposal is required to seek new or additional contribution funding only if it is not funded from existing reference levels.

Sample proposal wording if the contribution is to be funded from new resources

Provide authority to include an item in Supplementary Estimates and/or increase reference levels in [insert organization name] Vote [insert vote number], [insert vote name], in the amount[s] of $[insert amount] in [insert fiscal year], $[insert amount] in [insert fiscal year] [and ongoing] to [insert purpose].

The amounts to be included should be indicated in the “New Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

Financial Authorities for Allotments

Temporary Frozen Allotments

A proposal to establish and ultimately seek the release of a temporary frozen allotment is required if your organization has been directed by the Treasury Board or the Secretariat to withhold spending on a specific initiative until the organization has met one or more conditions. Usually either the sponsoring organization or the Secretariat proposes the establishment of these allotments.

The following financial table should be included as an appendix to a submission to establish or release a frozen allotment. The columns can be amended for different expenditure types (e.g., personnel, other operating, capital, grants or contributions). These allotments exclude charges for EBPs.

Sample Temporary Frozen Allotment Table

Temporary frozen allotment corresponding to proposal paragraph [insert paragraph number]

Organization:

Frozen Allotment Name:

Fiscal Year Vote X – [insert vote name]
(dollars)
Personnel Other Total
Note: If the proposal is to release a frozen allotment, this table should show negative amounts.
2013–14      
2014–15      
2015–16 and ongoing      
1) Establishing an allotment
a. Sample proposal wording to establish a temporary frozen allotment:

Provide authority to establish a frozen allotment to be entitled [insert allotment name] in [insert organization name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] (excluding employee benefit plans), if the following condition[s] [insert “is” or “are”] not fulfilled by the next eligible supply period:

  • [Insert first condition];
  • [Insert subsequent condition]; and
  • [Insert last condition].

If this proposal involves personnel, the following applies:

  • The proposal paragraph also states that the frozen amount excludes EBPs; and
  • The specific EBP amount (i.e., 20 per cent of personnel costs) that is excluded must be stated in the proposal paragraph.

If you also wish to seek the Treasury Board’s delegation of its authority to release a frozen allotment, add the following wording to proposal (a) above, immediately following the conditions.

b. Sample proposal wording to seek delegation of the Treasury Board’s authority to release a temporary frozen allotment:
and

Provide authority to release all or part of this frozen allotment upon confirmation by the [insert “program executive director” or other specified position] that the aforementioned condition[s] has/have been met.

2) Releasing a frozen allotment without delegated authority

In this case, you are required to seek a separate authority using the following sample proposal wording, once the condition or conditions have been met.

Sample proposal wording to seek the release of a temporary frozen allotment where the Treasury Board has not delegated its authority to release the allotment

Provide authority to release the frozen allotment entitled [insert allotment name] in [insert the organization’s name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] since [insert condition] has been met.

Permanent Frozen Allotments

A proposal to establish a permanent frozen allotment is required if your organization has been directed by the Treasury Board to permanently withhold spending on a specific initiative that affects the current fiscal year or the next fiscal year, as applicable. For example, you would seek this authority to reprofile funds to future years (i.e., to seek to move funds in your organization’s reference levels in a given fiscal year to a future fiscal year). The amounts to be included are to be indicated in the “Existing Funding” section of the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

In addition, the following financial table is to be included as an appendix to a submission to establish a permanent frozen allotment. Columns can be amended for different expenditure types (e.g., personnel, other operating, capital, grants or contributions). These allotments exclude charges for EBPs.

Sample Permanent Frozen Allotment Table

Permanent frozen allotment corresponding to proposal paragraph [insert paragraph number]

Organization:

Frozen Allotment:

Fiscal Year Vote X – [insert vote name]
(dollars)
Personnel Other Total
2013–14      
2014–15 (if applicable)      
Sample proposal wording to establish a permanent frozen allotment

Provide authority to establish a permanent frozen allotment to be entitled [insert allotment name] in [insert organization’s name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] (excluding employee benefit plans), due to [insert reason].

If this proposal involves personnel, the following applies:

  • The proposal paragraph also states that the frozen amount excludes employee EBPs; and
  • The EBP amount (i.e., 20 per cent of personnel costs) must be stated in the proposal paragraph.

Special Purpose Allotments

This type of proposal is required when either the Secretariat recommends or your organization proposes to create a special purpose allotment (SPA). It is used to “fence” or set aside a portion of an organization’s voted appropriation for a specific program or initiative, thereby prohibiting its use for another program. An SPA is established, for example, when the Treasury Board wishes to impose special expenditure controls.

Any unspent funds remaining at year‑end in an SPA are not eligible to be carried forward to the next fiscal year under the Secretariat’s operating budget carry‑forward guidelines, unless authorization to do so has been obtained under a separate Treasury Board approval. If such an approval has been received, then that amount within the SPA is carried forward and placed in an SPA the next fiscal year.

The following financial table is to be included as an appendix to a submission to establish, increase or reduce an SPA. Columns can be amended for different expenditure types (e.g., personnel, other operating, capital, grants or contributions). These allotments exclude charges for EBPs.

Sample Special Purpose Allotment Table

Special purpose allotment corresponding to proposal paragraph [insert paragraph number]

Organization:

Special Purpose Allotment Name:

Fiscal Year Vote X – [insert vote name]
(dollars)
Personnel Other Total
2013–14      
2014–15      
2015–16 and ongoing      
1) To establish a special purpose allotment
Sample proposal wording to establish an SPA

Provide authority to establish a special purpose allotment to be entitled [insert allotment name] in [insert organization’s name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] (excluding employee benefit plans) upon the next eligible supply period, in order to [insert purpose].

If this proposal involves personnel, the following applies:

  • The proposal paragraph also states that the SPA amount excludes EBPs; and
  • The specific EBP amount (i.e., 20 per cent of personnel costs) that is excluded must be stated in the proposal paragraph.
2) To increase or decrease a special purpose allotment
Sample proposal wording to increase or decrease an SPA

Provide authority to [insert “increase” or “decrease”] the special purpose allotment entitled [insert allotment name] in [insert organization’s name] Vote [insert vote number] – [insert vote name], in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] (excluding employee benefit plans) upon the next eligible supply period, in order to [insert purpose of adjustment].

If this proposal involves personnel the following applies:

  • The proposal paragraph also states that the SPA amount excludes EBPs; and
  • The specific EBP amount (i.e., 20 per cent of personnel costs) that is excluded must be stated in the proposal paragraph.

Financial Authorities for Vote-Netted Revenue

This section of the guide should be used for establishing or modifying vote-netted revenue within your organization. For useful information on vote-netted revenue, refer to the Policy on Special Revenue Spending Authorities.

Parliamentary approval is required for your organization to apply revenues toward related costs incurred for specific activities. Parliament votes the net financial requirements (i.e., estimated total expenditures minus estimated revenues) for one fiscal year at a time (except for organizations that have parliamentary approval to spend their net financial requirements over two fiscal years). This arrangement permits users to finance a program’s cost, either in whole or in part, while any remainder is financed by other sources of government revenue (i.e., appropriations).

Vote-netted revenue authority is provided through Section 29.1(2) of the FAA in conjunction with an organization’s specific vote wording in the annual appropriation Acts. Your organization must present a TB submission to establish a vote-netted revenue arrangement or to add any activities or sources of revenue to an existing vote-netted revenue authority (i.e., net vote).

The information required in a submission seeking Treasury Board approval to establish and use vote netting will vary according to the nature of the operation. However, the estimated amount of revenue that may be used to offset expenditures needs to be indicated in the Authorities Sought From the Treasury Board section of the submission and also in the “Adjustments to Vote-Netted Revenue” section in the Cost, Funding Requirements and Source of Funds Table by Estimates Vote Structure.

1) Establishing a vote-netted revenue activity

a. Sample proposal wording to establish vote-netted revenues

Provide authority to establish vote-netted revenues in [insert organization name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $[insert amount] in [insert fiscal year]; [and ongoing] from [insert activity or sources of revenue] with an offsetting increase to the operating budget.

If there are any elements of revenues collected that do not represent the recovery of expenditures (e.g., employee benefit plans) charged against your organization’s vote, the following sentence should be added to the above proposal.

b. Sample proposal wording for recovery of expenditures not charged against the vote

Furthermore, direct [insert organization’s name] to record, as non‑respendable, non‑tax revenue, the recoveries associated with expenditures not charged against the vote.

Note: The estimated amount requested for vote-netted revenue authority excludes the elements of revenues to be collected that relate to expenditures not charged against the vote. Once the Treasury Board has approved the submission, the Secretariat will amend your organization’s vote wording in the next Estimates for subsequent approval from Parliament. The amended vote wording will include the following text:

Operating (or program) expenditures … and, pursuant to paragraph 29.1(2)(a) of the Financial Administration Act, authority to expend revenues received from [list of activities or sources of revenue] to offset related expenditures incurred in the fiscal year.

When an organization establishes a vote-netted revenue authority for an activity being funded through appropriations, the organization’s reference levels will be reduced as a consequence. This will result in the creation of a frozen allotment in the current year and a reduction to the vote in future years to reflect that the activity is now funded from revenues rather than appropriations. Please consult your program analyst at the Secretariat for further direction.

2) Modifying the approved amount of vote-netted revenue authority to which the organization can offset expenditures

This section refers to modifications related to an increase or decrease in the amount of revenues to be collected (i.e., changes due to volumes). The vote wording in the Estimates is not likely to change for modifications related to an increase or decrease in the amount of revenue to be collected, as long as the activity or source of revenue remains the same; therefore, Parliament’s authority is not required. However, Treasury Board approval is required for these modifications.

The following proposal paragraph wording should be included in a TB submission:

a. Sample proposal wording to increase or decrease vote-netted revenues

Provide authority to [insert “increase” or “decrease”] vote-netted revenues in [insert organization’s name] Vote [insert vote number] – [insert vote name] in the amount[s] of $[insert amount] in [insert fiscal year]; $ [insert amount] in [insert fiscal year]; [and ongoing] from [insert activities or sources of revenue], with an offsetting [insert “increase” or “decrease”] to the operating budget.

If there are any elements of revenues collected that do not represent the recovery of expenditures  charged against your organization’s vote, the following sentence should be added to the above proposal.

b. Sample proposal wording for recovery of expenditures not charged against the vote.

Furthermore, direct [insert organization’s name] to record, as non‑respendable, non‑tax revenue, the recoveries associated with expenditures not charged against the vote.

Note: The estimated amount requested for vote-netted revenue authority excludes the elements of revenues to be collected that relate to expenditures not charged against the vote.

Financial Authorities for Revolving Funds

As a funding mechanism for certain cost-recovery activities, a revolving fund is a non‑lapsing authorization by Parliament to make payments out of the Consolidated Revenue Fund (CRF), in excess of revenues collected, up to a stipulated limit (e.g., the drawdown authority). Generally, revolving funds are suited for activities that are large and self-sustaining, that operate on a business cycle (usually three to five years) and that have identifiable client groups to which full costs can be charged. Revolving funds are not intended to accumulate significant surpluses or deficits over a business cycle.

During a business cycle, all cash surpluses should be accessed prior to requesting access to the drawdown authority. The drawdown authority is similar to a bank line of credit, and any access to the drawdown must be repaid with interest. If the financial risk is deemed high, the Treasury Board may require a source of funds to guarantee repayment to the CRF.

Planned access to these unused authorities should be included in the annual multi‑year business plan that is required for each revolving fund and submitted to the Secretariat for approval during the Annual Reference Level Update (ARLU) exercise.

Any amendment to a revolving fund’s drawdown limit must be approved by the Treasury Board and by Parliament. For Parliament to approve the new drawdown limit, approval must go through an appropriation Act. The Secretariat will create a new vote with the required wording for inclusion in the appropriation bill.

Sample proposal wording for a revolving fund requiring an increase or decrease to the drawdown authority

Provide authority to include an item in Supplementary Estimates for [insert fiscal year] in a new vote for [insert organization name] for the purpose of [insert “increasing” or “decreasing”] the drawdown authority for [insert name of revolving fund] from $[insert amount] to $[insert amount] in [insert fiscal year] [and ongoing], due to [insert reason why your organization requires the adjustment].  

For more information you can consult the Policy on Special Revenue Spending Authorities.

Changes to Vote Wording

You do not need to include a proposal to amend or create the vote wording, if an authority has an effect on your organization’s vote wording in the Estimates (e.g., debt write-off, establishment or modification of vote-netted revenue). Once the Treasury Board has approved the related submission, officials at the Secretariat will amend your organization’s vote wording in the next Estimates period for parliamentary approval. You can identify the proposed change to the vote wording in the main body of  the relevant Treasury Board submission

Amortizable Capital Assets and Land Acquired With New Funding

If new funding is included for spending on amortizable capital assets or land, you must complete and append to the submission an appropriate funding table, based on the sample table illustrated below.

In the table, provide the cash profiles of new funding to be used for purchases of land and amortizable capital assets. In addition, for amortizable capital assets, provide the full amortization profile.

If the amortizable capital asset(s) have a salvage value at the end of their useful life, this amount is deducted from the cost of the asset before you calculate amortization amounts. You can show the salvage value in the “Total” row in the “Salvage Value of Amortizable Capital Asset(s)” column. The total cash amount of new funding for the “Amortizable Capital Asset(s)” column should be equivalent to the total amortization amount in column 3, plus the salvage value amount in column 4 for the same asset(s).

Sample Table for Amortizable Capital Assets and Land Acquired With New Funding
Fiscal Year Land
(cash profile of new funding)
(1)
Amortizable Capital Asset(s)
(cash profile of new funding)
(2)
Amortizable Capital Asset(s)
(amortization profile of new funding)
(3)
Salvage Value of Amortizable Capital Asset(s)
(4)
2011–12        
2012–13        
(add as many rows as required for full profiles to be displayed)        
Total        

Management, Resources and Results Structures

The Policy on Management, Resources and Results Structures supports the development of a common, government‑wide approach to collecting, managing and reporting financial and non‑financial information about performance. In keeping with this policy, organizations are to ensure that their respective Management, Resources and Results Structures (MRRS) are current and consistent with how they manage their programs and allocate resources to achieve expected results.

A key part of the MRRS is the Program Alignment Architecture (PAA), which is an inventory of a department’s programs. These programs are arranged in a hierarchical manner to depict the logical relationship of the programs to each other and of each program to the strategic outcomes it contributes to. Treasury Board approval is required for a new organization seeking approval of its MRRS. For previously approved strategic outcomes and programs, the Treasury Board has delegated its authority, as follows:

  • Amendments resulting in a change in the nature or scope of a strategic outcome or program are approved by the President of the Treasury Board; and
  • Amendments resulting in a refinement of the wording of a strategic outcome or program title or description are approved by the Secretary of the Treasury Board.

The President and the Secretary of the Treasury Board may refer these changes back to Treasury Board ministers for approval. In such cases, an organization must prepare a submission to adjust its PAA at the strategic outcome or program level.

Sample proposal wording to adjust an organization’s PAA at the strategic outcome or program level

Approve the strategic outcomes, programs and program descriptions for [insert organization’s name] as provided in Appendix [insert appendix number] as the basis for the [insert fiscal year] and future‑year Estimates and Public Accounts display.

For more information, you may wish to consult the Guide to the Approval of Strategic Outcomes and Program Alignment Architectures for Departments.

Transfer Payments

Transfer payments are monetary payments or transfers of goods, services or assets that are made on the basis of an appropriation to third parties, including Crown corporations. Transfer payments do not result in the acquisition by the Government of Canada of any goods, services or assets.

This section describes authorities that can be requested from the Treasury Board for managing transfer payments in compliance with the Policy on Transfer Payments and the related Directive on Transfer Payments. For the financial authorities required from the Treasury Board in relation to transfer payments, see the Financial Authorities for Transfer Payments section.

Unless otherwise directed, departments as defined in section 2 of the FAA are required to obtain Treasury Board approval in the following areas:

  • New terms and conditions or funding agreements for grant or contribution programs;
  • Terms and conditions or funding agreements for up-front multi-year transfer payments;
  • Exemptions from the Policy on Transfer Payments;
  • Exceptions from existing terms and conditions;
  • Amendment(s) of terms and conditions or funding agreements, as applicable (if previously approved by the Treasury Board); and
  • A program or financial authority not covered or addressed under a Treasury Board policy, directive or legislation, as applicable.

You may also wish to consult three guidelines that complement the Policy on Transfer Payments and its directive:

Note: In the first four examples that follow, the complete terms and conditions are to be attached to the submission as an appendix for approval.

1) Sample proposal wording for new terms and conditions for grant or contribution programs

Approve new terms and conditions for [insert title of grant or contribution program] attached as Appendix [insert number or letter] to be listed in the Estimates as [insert name to appear in the Estimates].

2) Sample proposal wording for amendments to terms and conditions for grant or contribution programs

Approve the amendment(s) to the terms and conditions for the [insert “grant” or “contribution”] program [insert title of program] attached as Appendix [insert number or letter].

In the Rationale section of the submission, the proposed changes should be identified individually or as a whole, depending on the context, with appropriate rationale to support and explain what is being proposed.

If the amendment to the terms and conditions results in incremental costs that would not otherwise have been incurred under the program, indicate the amount of incremental costs, total program costs, and the source of funds in the text of the Cost, Funding Requirements and Source of Funds section of the submission, as follows:

The amendment to the terms and conditions of this program will result in incremental yearly costs of $[insert amount], bringing the total yearly anticipated costs to $[insert amount]. The source of funds is the organization’s existing reference levels.

If the amendment does not result in incremental costs, this should also be identified in the text of the Cost, Funding Requirements and Source of Funds section. For example:

The amendment to the terms and conditions of this program will not result in incremental costs. Total yearly program costs are $[insert amount], as previously approved by the Treasury Board.

3) Sample proposal wording for approval of a funding agreement

Approve the funding agreement in order to make a [insert “grant” or “contribution”] in the amount of $[insert amount] to [insert name of the recipient] under the program [insert title of program].

4) Sample proposal wording for approval of an upfront multi-year payment

Approve the [insert “funding agreement” or “terms and conditions”] in the form of an upfront multi-year payment to [insert name of the recipient or the group of recipients] for an amount of $[insert amount], to be listed in the Estimates as [insert name to appear in the Estimates].

Note: Adequate justification for the following three proposals must be provided in the Rationale section of the submission.

5) Sample proposal wording for approval of an exemption from the Policy on Transfer Payments

Approve the following exemption(s) [identify each section of the policy] from the Policy on Transfer Payments for [insert the title of the program or the title of the grant or contribution].

6) Sample proposal wording for approval of an exception from existing terms and conditions

Approve the exception(s) [identify each item] from the terms and conditions of the [insert title of grant or contribution].

7) Sample proposal wording for approval to enter into a funding agreement that exceeds a minister’s financial authority

Provide approval to [insert “enter into a contribution agreement with” or “make a grant payment to”] [insert name of recipient] for an amount of $[insert amount] under the [insert name of transfer payment program].

External User Fees

If your organization is a department (as defined in section 2 of the FAA) that plans to recover expenditures or costs through fees or charges from persons or entities that are not government departments under the definition, please consult your program analyst at the Secretariat early in the process. You should also consult your organization’s legal services early on to determine whether the proposed fees or charges are subject to the User Fees Act.

Subsection 19(1) and section 19.1 of the FAA allow the Governor in Council, on the recommendation of the Treasury Board, to prescribe the use of facilities, licences, permits or other authorizations by regulation fees or charges for services. These fees or charges are paid by external users, i.e., those other than government departments (as defined in section 2 of the FAA).

Similar fee-setting authorities other than the FAA can also be found in the enabling statutes of various organizations. Pursuant to these other authorities, the recommendation or approval of the Treasury Board may also be required.

The Governor in Council may, on the recommendation of the Treasury Board, authorize a minister to prescribe those external fees or charges. When the Governor in Council authorizes a minister to prescribe fees, the authorization is subject to the terms and conditions specified by the Governor in Council. In either case, the Statutory Instruments Act applies, and the regulatory process, in accordance with the Guide to the Federal Regulatory Development Process must be followed, which includes publication in the Canada Gazette.

In some limited cases, the enabling statutes of some organizations authorize a minister to establish external fees and charges without specifying that they be set by a regulation or an order. In these cases, the organization is not required to follow the regulatory process; however, these statutes usually require publication of the fee or charge in the Canada Gazette.

In addition to the regulatory process requirements, fees or charges established pursuant to subsection 19(1) or section 19.1 of the FAA may be subject to the provisions of the User Fees Act, such as the requirement to table a user fee proposal in Parliament. If so, tabling and parliamentary review should occur before Treasury Board consideration.

More details are available under User Fees in the Office of the Comptroller General section of the Secretariat’s website.

Procurement

The Treasury Board provides policy direction on federal government contracting to ensure fairness, openness and transparency. Treasury Board approval is required for entry into certain contracts and contractual arrangements. A “contract” is an agreement between a department or an agency and a private party (i.e., person or firm) to provide a good, perform a service, or carry out a construction. A “contractual arrangement” is an agreement between a department or agency and a Crown entity (e.g., provinces, some Crown corporations, some municipalities) to provide a good, perform a service, or carry out a construction.

Policies require Treasury Board approval for organizations to do the following:

  • Enter into (or amend) a contract or contractual arrangement when the contract value (including all taxes) exceeds limits in Appendix C – Treasury Board Contracts Directive of the Contracting Policy;
  • Create or amend a department or agency’s contracting entry limits in Appendix C – Treasury Board Contracts Directive, including exceptional contract entry limits;
  • Make advance payments if the contract, contractual arrangement or amendment requires Treasury Board approval;
  • Obtain an exemption from Treasury Board policies;
  • Obtain ratification when a department or agency had not previously obtained Treasury Board approval for entry into a contract or contractual arrangement, when such approval was required;
  • Indemnify a proposed contractor;
  • In some instances, enter into a contract or contractual arrangement containing provisions that limit the proposed contractor’s liability;
  • In some instances, take title to intellectual property arising under a contract; or
  • Establish certain expenses or remuneration in service contracts (applicable only to some organizations and Commissions of Inquiry, where required by legislation).

Drafting a Procurement Proposal

Treasury Board approval to enter into or amend a contract does not convey other approvals or authorities to the sponsoring minister. You are to bring separate proposals to the Treasury Board for real property transaction approval, project approval, expenditure authority and any other necessary approval or authority. You may, however, include all of these in the same TB submission.

Your organization is to use the Authorities Sought From the Treasury Board section of the submission to seek Treasury Board approval of contract entry, contract amendments, or policy exemptions. The section should also provide a brief descriptive text on the proposed work. You need to clearly indicate the type of proposal (i.e., to enter into or to amend a contract), the name and address of the contractor and the work description, such as the goods, services or construction being acquired. For a multi-year contract, you also need to state the proposed duration of the contract.

When ministers require approval for advance payments, a separate proposal is required. For only one advance payment, the timing and amount should be presented in the Authorities Sought From the Treasury Board section. For more than one advance payment, you also need to set out the timing and amounts of the advance payments in the Cost, Funding Requirements and Source of Funds section of the submission.

You are to include planned amendments, such as exercising contractor options for additional work, as part of the initial contract value when determining whether a contract exceeds the limits set out in Appendix C – Treasury Board Contracts Directive of the Contracting Policy.

For contracts requiring Treasury Board approval, the value of planned options is included in the submission that seeks approval to enter into the contract. Thus, the total contract entry amount approved by the Treasury Board includes the estimated value of the planned options.  Descriptions of when and how contract options will be exercised are included in the main body of the submission

If the value of an additional or unplanned amendment exceeds the approval limits in Appendix C – Treasury Board Contracts Directive, your organization is required to seek Treasury Board approval as early as possible. The submission should include information about the initial contract award process, contract governance, reasons for the unplanned amendment, and information about how the contract is being managed to avoid or mitigate the risk of future unplanned amendments.

For a non-competitive procurement, the contract is to be treated as a sole-source contract, and the lower contract entry limits apply. Any proposed contracts with former public servants are analyzed against references in the Contracting Policy.

Supplementary information on procurement is available under Contract Management in the Office of the Comptroller General section of the Secretariat’s website.

1) Sample proposal wording to enter into a contract or contractual arrangement

Approve entry into a [insert “competitive” or “non-competitive”] [insert “contract” or “contractual arrangement”] with [insert name of contractor, city, province] to provide [describe goods or service] for [insert name of department or agency] from [insert award date] to [insert end date] at a total cost [insert “not to exceed” or “of up to”] $[insert amount], including $[insert amount] of [insert “GST,” “HST” or other applicable taxes].

2) Sample proposal wording to amend a contract or contractual arrangement

Approve amending a [insert “competitive” or “non-competitive”] [insert “contract” or “contractual arrangement”] with [insert name of contractor, city, province] to cover [describe additional goods or services] for [insert name of department or agency] by extending the end of the contract period from [insert current end date] to [insert new end date], at a total cost not to exceed $[insert amount] (including $[insert amount] of [insert “GST,” “HST” or other applicable taxes]), for which $[insert amount] (including $[insert amount] of [insert “GST,” “HST” or other applicable taxes]) was approved.

3) Sample proposal wording to make advance payments (if the contract or amendment requires Treasury Board approval)

Approve the amount and timing of an advance payment of $[insert amount] on [insert date of advance payment or “as detailed in the Cost, Funding Requirements and Source of Funds section”].

4) Sample proposal wording to obtain exemptions from the Contracting Policy

Exempt proposal [specify which proposal is being recommended for exemption] from the Contracting Policy, [insert number and section title].

Drafting a Procurement Submission

The Rationale section of a submission seeking a procurement approval should include the following information:

  • Full identification of the work being contracted, including its relationship to a specific program and/or project and other associated contracts in order that the full context of the work is clearly understood. Indicate whether it is likely that a further phase may be required;
  • Other relevant authorities, such as a prior Treasury Board decision or order-in-council;
  • An explicit statement of the urgency of a submission (if required), including such information as the expiry date of the received bids, or the effect of any delay on your organization’s operations or project coordination;
  • Reference to any Treasury Board policies, guidelines or socio-economic factors that impact the proposed contract;
  • Whether there was an interdepartmental procurement review and, if so, the results;
  • Whether the contractor has provided a certificate of commitment to implement employment equity;
  • Information pertaining to the applicability of regulations (e.g., the Government Contracts Regulations), trade agreements or government or Treasury Board contracting policies to the contract, including any exceptions to or derogations from regulations, trade agreements, or policies;
  • Information about fairness monitoring measures;
  • Details and supporting rationale for the evaluation methodology, criteria and basis of selection;
  • Information on the bid evaluation results, including the number of bidders and relative evaluation results for unsuccessful bidders;
  • Information pertaining to price negotiation, as applicable, providing a complete price breakdown; citing historical prices, profit level and comparisons; and indicating whether the contract is a firm price contract or a unit price contract;
  • Information identifying the basis of payment, cost control mechanisms, governance and contract administration that will be undertaken;
  • Information regarding the proposed start date, location of the work, delivery schedule and contract completion date;
  • An explanation of why advance payments are required, as applicable; and
  • An explanation of risk responses for non-performance, such as a penalty for late delivery.

The following websites provide further guidance on procurement:

Investment Planning

In , the Treasury Board approved two new policies under the Policy Framework for the Management of Assets and Acquired Services. The Policy on Investment Planning – Assets and Acquired Services replaced the Policy on Long-Term Capital Plans, which was rescinded on . All departments (as defined in section 2 of the FAA) are now subject to the Policy on Investment Planning – Assets and Acquired Services.

Furthermore, the three policies governing the management of Government of Canada projects (the Project Approval Policy, the Project Management Policy and the Policy on the Management of Major Crown Projects) were also rescinded on . They have been replaced by the Policy on the Management of Projects.

Under the Policy on Investment Planning – Assets and Acquired Services, the investment plan covers five years at a minimum and is submitted to the Secretariat at least every three years. If requested by the Secretariat, the plan is to be submitted to Treasury Board ministers for approval. The Secretariat’s decision will be based on the consideration of a number of factors, including the significance and risk of your organization’s planned investments, the organization’s management performance established through appropriate management accountability mechanisms and other monitoring activities, and the magnitude of, or capacity to deliver, the changes in planned investments.

Treasury Board approval should be sought for the management principles, processes and practices that led to the production of the organizational investment plan. In addition, in order to obtain a project approval limit above $1 million, organizations are also to seek approval for the assessed organizational project management capacity class, in accordance with the Standard for Organizational Project Management Capacity.

A separate proposal paragraph in the TB submission is needed to seek approval for the organizational project management capacity class. The investment plan should provide the relevant context for the project approval authority limit established by the organizational project management capacity assessment (see the Assessment Tool), since it provides Treasury Board ministers with an understanding of the capacity of the organization to manage all planned projects in the planning horizon. The content of the TB submission should highlight the key elements of the investment plan, thereby demonstrating the organization’s regime for planning, decision making and governance. This is the basis for Treasury Board approval of organizational project management capacity class.

The investment plan is not a vehicle to seek new funding and, as such, should be funded from an organization’s existing reference levels. Notwithstanding this requirement, your organization may include, as part of its investment plan submission, funding that has been earmarked in the fiscal framework but not yet incorporated into existing reference levels. Should the investment plan submission also include a request for funds for amortizable capital assets or land, the requirement to complete the appropriate table would apply (see the section Amortizable Capital Assets and Land Acquired With New Funding).

In addition, your organization’s investment plan submission can include an authority for funding in reference levels where the project is within your organization’s project approval limit, i.e., your organization still needs to seek the Treasury Board’s authority to bring the funding into reference levels.

The investment plan is not a vehicle for Treasury Board approval of individual projects, contracts, real property transactions or other activities cited in the plan. Individual projects that exceed an organization’s project approval authority limit, as described in Appendix A of the Policy on the Management of Projects, require separate and explicit Treasury Board project approval and expenditure authority, before any project funds are expended.

The submission should include the elements of the investment plan that warrant Treasury Board consideration such as, for example:

  • A brief summary of the organizational context described in the investment plan;
  • Confirmation of the affordability of the investment plan and the sustainability of operations over the planning horizon;
  • A description of the organizational governance and processes for making resource allocation and re-allocation decisions, highlighting any changes from your organization’s most recent investment plan;
  • A general summary of planned investments;
  • A brief, high-level summary of each of the high-profile, complex and high-risk investments included in the plan;
  • A brief description of the most critical risks identified by the organization in the planning horizon, along with the relevant mitigation strategies; and
  • Reference to any major project risks that warrant Treasury Board attention.

As required by the Treasury Board Policy on Investment Planning – Assets and Acquired Services, the investment plan is to be included as an appendix to the submission. A table of all planned projects above $1 million should also be appended to the submission. The table is to include all available Project Complexity Risk Assessment (PCRA) levels approved for your organization (see the PCRA Tool), along with total project costs, timelines and other key details (see Annex A of the Guide to Investment Planning – Assets and Acquired Services).

The assessed organizational project management capacity class being proposed to the Treasury Board is expected to reflect an appropriate capacity for effectively managing all planned projects to achieve project outcomes, while limiting risks and demonstrating value for money and sound stewardship.

Individual projects that exceed the organization’s project approval limit require separate and explicit Treasury Board project approval and expenditure authority. If you are leveraging an investment plan submission to seek additional authorities and approvals relating to projects, contracts or real property, or to transition projects previously approved under the rescinded Project Approval Policy, the request for approval is to be explicitly stated in the Authorities Sought From the Treasury Board section of the submission. The submission lists and briefly describes each project to be considered by the Treasury Board for transition to the new policy.

The Policy on Investment Planning – Assets and Acquired Services states that deputy heads are responsible for ensuring that their respective organizations consult the Secretariat when determining the appropriate investments to highlight in an investment plan.

For more information on investment planning and the content of investment plans, please consult the Appendix to the Policy on Investment Planning – Assets and Acquired Services and the Guide to Investment Planning – Assets and Acquired Services.

1) Sample proposal wording for approval of an investment plan

Approve the management principles, processes and practices reflected in the [insert organization’s name] Investment Plan [insert fiscal year] to [insert fiscal year], attached as Appendix [insert number or letter] for the period ending three years from the date of Treasury Board approval.

2) Sample proposal wording for approval of an organizational project management capacity class

Approve the [insert the organization’s name] organizational project management capacity class [insert class number and type], thereby establishing the [insert organization’s name] project approval authority limit, for the period ending three years from the date of Treasury Board approval.

3) Sample proposal wording for approval of transition projects approved under the previous Project Approval Policy

Approve the application of the [insert organization name]’s organizational project management capacity–based project approval authority limit [insert class number and type], approved by the Treasury Board on [insert month and year] to the [insert number of projects] projects listed below, each of which previously received [insert “Preliminary Project Approval,” “Effective Project Approval” or both] under the Project Approval Policy:

  1. [Insert name of first project to be transitioned], [insert total estimated cost], [insert PCRA level]; and
  2. [Insert name of second project to be transitioned], [insert total estimated cost], [insert PCRA level].

Project Approval

Management of Projects

Government of Canada projects have the following characteristics:

  • They consist of an activity or series of activities with a beginning and an end;
  • Produce defined outputs and realize specific outcomes in support of a public policy objective, within a clear schedule and resource plan; and
  • Are undertaken within specific time, cost and performance parameters.

Government projects support organizational mandates and contribute to the expected results of individual organizations. They can also relate to government-wide (i.e., enterprise) objectives and horizontal initiatives. Such projects are not limited to capital, lease and information technology investments, nor are they limited to those initiatives that are funded through the capital vote. The underlying principle is whether the project activity or series of activities would benefit from the application of project management practices. Your organization’s program analyst at the Secretariat can provide further information about what constitutes a project.

The Government of Canada has established a number of policies related to managing projects to support its significant investments in the design, development and acquisition of various types of assets and services. Sound project management addresses value for money by controlling the costs, scope and schedule of projects. By seeking to ensure that risks are effectively identified and mitigated, project management contributes to the successful delivery of programs and ensures results for Canadians while demonstrating sound stewardship of public funds.

The three policies governing the management of projects (the Project Approval Policy, the Project Management Policy and the Policy on the Management of Major Crown Projects) were rescinded on , and replaced with the Policy on the Management of Projects, which came into effect on . Organizations had until , to transition to the new policy. For a department to have a project approval limit above $1 million, the Treasury Board must have approved a new, capacity-based limit in accordance with the Standard for Organizational Project Management Capacity.

Under the new Policy on the Management of Projects, project approval authority limits are based on an organization’s assessed capacity to manage its planned portfolio of projects and the complexity and risk of those individual projects. The policy states that deputy heads are responsible for ensuring that their organization’s capacity to manage projects is accurately assessed, to comply with the Standard for Organizational Project Management Capacity, and that this assessment meets the requirements of the standard.

A department or agency that has an organizational project management capacity assessment (OPMCA) class of zero or that does not have a Treasury Board approved OPMCA class, has a limited expenditure authority for project approval of $1 million. For projects that were approved prior to Treasury Board approval of a department’s OPMCA class, there is a choice. You can choose to have the project subject to the policies that were in effect at the time it was approved or subject to the Policy on the Management of Projects through a TB submission.

Under the Policy on the Management of Projects, deputy heads are responsible for ensuring that government organizations conduct an accurate assessment of each project above $1 million according to the Standard for Project Complexity and Risk. The Secretariat also has a responsibility to review assessments of project complexity and risk, and an online application is in place to support this activity. Deputy heads are responsible for ensuring that project complexity and risk assessments (PCRAs) are updated during the life of the project when there are significant changes in risk or complexity. If these changes increase the PCRA level such that it exceeds the organization’s Treasury Board–approved capacity class, you are required to seek approval through a TB submission.

The project approval limits set out in the Policy on the Management of Projects provide the threshold above which ministers are required to seek approval and expenditure authority from Treasury Board ministers. The authority to proceed with projects differs from the authority to enter into contracts or to complete real property transactions. For a project that includes a real property transaction and exceeds your organization’s project approval limit, Treasury Board approval is required; a separate real property transaction approval may also be required.

For contracts, Treasury Board approval is required if the value of the contract is above the limits set out in Treasury Board policy. PWGSC is normally the contracting authority for large, complex goods and services contracts, which can often represent the major cost of a project.

Information Requirements for Submissions Related to Project Approval

Project Approval

Under the Policy on the Management of Projects, preliminary project approval (PPA) has been replaced by project approval (PA). Project approval authority limits provide the threshold above which ministers are to seek project approval and expenditure authority from the Treasury Board. Government organizations normally request project approval when the initial project planning and identification phase is complete, but before the project definition phase starts.

In providing project approval, Treasury Board ministers agree that a program requirement has been identified and that there is adequate justification for meeting that requirement through a particular project. Project approval is to be obtained before seeking the expenditure authority required to expend resources to fully define the selected project option.

Project approval or expenditure authority from the Treasury Board does not convey other approvals or authorities to the sponsoring minister. You are to bring separate proposals to the Treasury Board for real property transaction approval, approval to enter into or amend a contract, and any other necessary approval or authority. You may, however, include all of these in the same TB submission.

The project approval proposal in the submission is to include either a total indicative cost estimate or total substantive cost estimate for the entire project. Project cost estimates are to include the full costs of all activities and deliverables that are necessary to realize specific outcomes and support public policy objectives, regardless of the source of funds. The cost estimate is expected to include such provisions as the costs of employee benefit plans (i.e., 20-per cent of salaries), for all salaries charged to the project, and normal contingencies, such as for inflation and foreign exchange. For multi-year undertakings, costs are to be expressed in both constant and current dollars.

Project cost estimates in the project approval proposal include all activities and deliverables from the project definition phase through to and including project close out. Therefore, project approval proposals are not to include costs that are part of the project planning and identification phase, such as an initial analysis of possible options. Nor are they to include operations and maintenance costs that will be incurred once the project output is in service. Additional guidance on project costing is available from the Secretariat, and you are encouraged to consult your Secretariat program sector analyst.

Under the Policy on the Management of Projects, the TB submission for a project approval needs to establish the project parameters, which include cost, schedule and performance. The submission should also include a project brief in an appendix. The requirements for a project brief are described in Appendix B of the policy, in accordance to which the brief is to contain all the baseline data and information concerning the project and provide a synopsis of the business case, project charter and the project plan. The ‘Rationale section of the submission is to summarize key information featured in the Project Brief.

In addition, a project close-out report is expected at the completion of each project, and the report is to be submitted to the Treasury Board for information. Please see Appendix F of the rescinded Project Management Policy for further information on the project evaluation and close-out reports.

Government organizations are encouraged and enabled through policy to consider innovative approaches and solutions for delivering their projects. The project proposal is expected to reflect the management framework that best positions the proposed project to achieve its defined outcomes and should ensure that the Treasury Board is appropriately engaged at all key decision points over its planned lifecycle.

To better position projects to fully meet the business requirements they are intended to achieve, additional guidance and tools are available, including the following:

Many IT-enabled business projects face significant risks and have unique challenges. These are projects that have an information technology (IT) component that is critical to achieving the intended business outcomes.

Project submissions for IT-enabled business projects are expected to address the additional information requirements detailed in the various project management references provided here. Specifically, you are expected to demonstrate how the project will comply with and implement the following policies and standards:

Project Expenditure Authority

Government organizations are required to seek and secure expenditure authority (EA) along with project approval before starting any defined phase of a project. The cost estimate for expenditure authority is to be substantive in nature. Only those specific phases of the project that have been appropriately defined and costed can be approved.

The total estimated project costs indicated in the TB submission for project approval may differ in subsequent submissions seeking expenditure authority. If at the time you request expenditure authority the estimated project costs significantly exceed the indicative estimate included in the project approval proposal, the options analysis is to be reviewed to ensure that the selected option continues to represent the most cost-effective approach to fulfilling the defined requirements.

Furthermore, under the Policy on the Management of Projects, an amended project approval decision is required when you are seeking expenditure authority if there are any significant changes to the project parameters (i.e., cost, schedule or performance) established by the previous project approval decision, as determined by the Secretariat. The Amended Project Approval and Amended Expenditure Authority section provides more information on project decision amendments. An exception to this general concept is that the Treasury Board, in its role of granting project approval, may wish to impose a cap or other constraint on the project. This would force the project to use a design-to-cost approach during the project definition phase.

The sample proposal wording provided below is for projects that are divided in two distinct phases: a definition phase and an implementation phase.

1) First submission seeking project approval for the project and expenditure authority for the definition phase
Sample proposal wording for project approval and expenditure authority for the definition phase:
  • Provide project approval for [insert name of project] at an indicative cost estimate of $[insert amount] (including GST/HST of $[insert amount]) in order to [insert description of issue or opportunity the project is addressing]. In providing project approval (PA), Treasury Board ministers agree that a program requirement has been identified and that there is adequate justification for meeting that requirement through a particular project. PA also provides authorization to seek expenditure authority and expend resources to fully define the selected project option, or the next phase of the project; and  
  • Provide expenditure authority to undertake [insert description of activities, deliverables or phase] at a substantive cost estimate of $[insert amount] (including GST/HST of $[insert amount]).
2) Second submission seeking expenditure authority for the implementation phase, with a note to ministers regarding project approval
Sample proposal wording of note to ministers regarding project approval

Note that there have been no significant changes to the project parameters established in the most recent project approval decision and that the project now has a  total substantiveFootnote * cost estimate of $[insert amount] (including GST/HST of $[insert amount]).

Sample proposal wording to request expenditure authority for the implementation phase

Provide expenditure authority for the [insert description of activities, deliverables or phase] of [insert name of project] at a substantiveFootnote * cost estimate of $[insert amount] (including GST/HST of $[insert amount]).

You may also wish to consult Example 1: Sample proposal wording for a project with definition and implementation phases, and no significant changes to the initial project baseline, for further illustration.

In the following figure you will find a comparison, under both the rescinded Project Approval Policy and the Policy on the Management of Projects, of a typical two-stage submission gating process for a case where there are no significant changes to the parameters established by the initial project approval decision (i.e., in Submission 1).

Comparison of TB submission project proposals for a project with no significantSee table 2 note 1 changes to parameters established by the initial project approval decision
  Project Approval Policy Policy on the Management of Projects
Table 2 Notes
Table 2 Note 1

The term “significant” only applies to the PPA or PA; it does not apply to the EA as the cost objective of an EA cannot be exceeded.

Return to table 2 note 1 referrer

Table 2 Note 2

A specific request for EA is not required in the case of EPA.

Return to table 2 note 2 referrer

Table 2 Note 3

Under the new Policy on the Management of Projects, in cases where there have been no significant changes to the cost, schedule or performance parameters established by the PA decision, the Authorities Sought From the Treasury Board  section of the second submission is to include a note to ministers that the project remains within the cost, schedule and performance parameters established by the PA decision.

Return to table 2 note 3 referrer

Submission 1 Preliminary Project Approval (PPA) Expenditure Authority (EA) Project Approval (PA) Expenditure Authority (EA)
Submission 2 Effective Project Approval (EPA) Expenditure Authority (EA)See table 2 note 2 NoteSee table 2 note 3 Expenditure Authority (EA)

Amended Project Approval and Amended Expenditure Authority

Under the Policy on the Management of Projects, deputy heads are responsible for ensuring that a department’s capacity to manage projects is accurately assessed, to comply with the Standard for Organizational Project Management Capacity, and that the assessment meets the requirements of the standard. Deputy heads are responsible for ensuring that departments assess the project complexity and risk level of all projects above $1 million using the Project Complexity and Risk Assessment (PCRA) Tool.

Deputy heads are also responsible for providing the Secretariat with relevant information, including PCRAs, to support the Secretariat’s monitoring responsibilities. Deputy heads are responsible for ensuring that PCRAs are updated during the life of projects when there are significant changes in risk or complexity.

If these changes increase a project’s PCRA level so that it exceeds the department’s Treasury Board–approved capacity class, then a TB submission is required for project approval. If the project has already received Treasury Board approval, any significant changes to the cost, schedule or performance parameters and objectives, established by the previous project approval or expenditure authority decision, requires an amended project approval decision and/or an amended expenditure authority decision, as appropriate, by the Treasury Board.

If, at the time of a subsequent submission requesting expenditure authority, the estimated project costs significantly exceed the indicative estimates in the project approval proposal, the options analysis is to be reviewed to ensure that the selected option continues to represent the most cost-effective approach to fulfilling the defined requirements. You are encouraged to discuss such changes to a project with your program analyst at the Secretariat as soon as possible.

The following information is to be included in the submission seeking to amend the applicable Treasury Board decision:

  • Reasons for the proposed amended project approval and/or amended expenditure authority decision, along with an explanation of what actions have been taken or considered by your organization; 
  • Treasury Board approval decisions to date, including any contract approvals, that have led to the currently approved project baseline;
  • A comprehensive explanation for any changes that are required to the cost, schedule, performance, industrial and regional benefits, or other approved parameters and objectives, and to the estimated cash flow, referencing changes required to contracts where relevant;
  • Reference to a communications plan, if the subject matter is likely to attract public attention that requires a response from the government; and
  • Updated project brief.

The following sample proposal wording is for projects that are divided in two distinct phases: a definition phase and an implementation phase.

Sample proposal wording for a submission seeking amended project approval and amended expenditure authority for the implementation phase:
  • Provide amended project approval for [insert name of project] at a revised total substantiveFootnote ** cost estimate of $[insert amount] (including GST/HST of $[insert amount]) to [insert description of issue or opportunity that project is addressing]. This represents an increase of $[insert amount] (including GST/HST of $[insert amount]) from the total indicative cost estimate established by the previous project approval decision on [insert month and year]; and
  • Provide amended expenditure authority to undertake [insert description of activities, deliverables or phase] in support of [insert name of project] at a revised substantive cost estimate of $[insert amount] (including GST/HST of $[insert amount]). This represents an increase of $[insert amount] (including GST/HST of $[insert amount]) from the total substantiveFootnote ** cost estimate established by the previous expenditure authority decision on [insert month and year].

You may also wish to consult Example 2: Sample proposal wording for a project with definition and implementation phases and a significant change to the initial project baseline and Example 3: Sample proposal wording for a project with definition and implementation phases, with a significant change to the initial project baseline and the need for additional funding, for further illustration.

In the following figure you will find a comparison, under both the rescinded Project Approval Policy and the Policy on the Management of Projects, of TB submission project proposals in a typical two-stage submission gating process where there are significant changes to project parameters established by the initial project approval decision (i.e., in Submission 1).

Comparison of TB submission project proposals for a project with significantSee table 3 note 1 changes to any of the cost, schedule or performance parameters established by the initial project approval decision
  Project Approval Policy Policy on the Management of Projects
Table 3 Notes
Table 3 Note 1

The term “significant” only applies to the PPA or PA; it does not apply to the EA since the cost objective of an EA cannot be exceeded.

Return to table 3 note 1 referrer

Table 3 Note 2

A specific request for EA authority is not required in the case of EPA.

Return to table 3 note 2 referrer

Table 3 Note 3

An amended PA decision establishes a new set of parameters (cost, schedule, performance) for the project.

Return to table 3 note 3 referrer

Submission 1 Preliminary Project Approval (PPA) Expenditure Authority (EA) Project Approval (PA) Expenditure Authority (EA)
Submission 2 Effective Project Approval (EPA) Expenditure Authority (EA)See table 3 note 2 NoteSee table 3 note 3 Expenditure Authority (EA)

Under the Policy on the Management of Projects, an amended project approval decision is required when seeking expenditure authority in the case of any significant changes to the cost, schedule or performance parameters established by the previous project approval decision, as determined by the Secretariat.

In the following figure you will find a comparison, under both the rescinded Project Approval Policy and the Policy on the Management of Projects, of the process for a typical two-stage submission gating process where a project experiences changes to the project baseline established by the effective project approval or expenditure authority decision in a second submission.

Comparison of TB submission project proposals for a project with changes to the baselineSee table 4 note 1 established by the effective project approval or expenditure authority decision of a second submission
  Project Approval Policy Policy on the Management of Projects
Table 4 Notes
Table 4 Note 1

The project baseline consists of the approved project objectives, as described or explicitly referred to in the proposal paragraphs and/or the Cost, Funding Requirements and Source of Funds section.

Return to table 4 note 1 referrer

Table 4 Note 2

A specific request for EA is not required in the case of EPA.

Return to table 4 note 2 referrer

Table 4 Note 3

Under the Policy on the Management of Projects, in cases where there has been no significant changes to the cost, schedule or performance parameters established by the PA decision, the Authorities Sought From the Treasury Board section of the second submission is to include a note to ministers to the effect that the project remains within the cost, schedule and performance parameters established by the PA decision.

Return to table 4 note 3 referrer

Table 4 Note 4

An amended PA decision establishes a new set of parameters (cost, schedule, performance) for the project.

Return to table 4 note 4 referrer

Table 4 Note 5

An amended EA decision establishes a new project baseline (i.e., Treasury Board–approved project objectives forming the baseline).

Return to table 4 note 5 referrer

Submission 1 Preliminary Project Approval (PPA) Expenditure Authority (EA) Project Approval (PA) Expenditure Authority (EA)
Submission 2 Effective Project Approval (EPA) Expenditure Authority (EA)See table 4 note 2 NoteSee table 4 note 3 Expenditure Authority (EA)
Submission 3 Amended Effective Project Approval (A/EPA) Amended Expenditure Authority (A/EA)See table 4 note 2,See table 4 note 5 Amended Project Approval (A/PA)See table 4 note 4 Amended Expenditure Authority (A/EA)See table 4 note 5

Real Property

The Treasury Board provides policy direction on real property transactions to ensure fairness, openness and transparency. Treasury Board approval is required for entry into certain transactions when the value of the property being acquired or disposed of is greater than transaction limits and conditions; when policy requirements are not being met; and when the legislative authority requires Governor in Council approval on the recommendation of the Treasury Board. 

Real property transactions can be either acquisitions or disposals of real property by purchase, lease, licence, exchange, gift, easement, expropriation, transfer or acceptance of administration, and transfer or acceptance of administration and control.

The authority to undertake real property transactions is provided through legislation. You must always confirm the legislation under which your minister is required to make a real property transaction and follow any conditions or requirements specified in the legislation. Authority is given specifically in such legislation as the Expropriation Act, the National Capital Act, the Canada National Parks Act, the Nunavut Act, the Canada Wildlife Act and the Broadcasting Act.

If there is no authority under any other Act to acquire or dispose of real property, your organization would complete the transaction under the authority of the Federal Real Property and Federal Immovables Act or the Federal Real Property Regulations.

Your minister must seek Treasury Board approval when the value of the transaction exceeds the approval limits and conditions for a real property transaction, or when a transaction does not comply with other policy requirements. Your minister may also request approval for transactions that are under your organization’s limits but that carry risk, sensitivities or complexities that would warrant Treasury Board approval.

Legislation may require that a real property transaction be approved by the Governor in Council. Such circumstances may include, for example, transactions with the provinces under the Federal Real Property and Federal Immovables Act. Transactions using the authority of the Federal Real Property and Federal Immovables Act require a recommendation by the Treasury Board.  In such cases, your organization’s legal services should be consulted to determine the process and proper wording of the order-in-council, and your regulatory affairs analyst should be consulted.

Treasury Board approval of a real property transaction does not convey other approvals or authorities to the sponsoring minister. You are to bring separate proposals to the Treasury Board for approval to enter into or amend a contract and for project approval, expenditure authority and any other necessary approval or authority. You may, however, include all of these in the same TB submission.

Real property submissions often require that you examine a number of considerations such as links to your organization’s broader strategies and acquisition or disposition issues, Aboriginal interests or obligations, and environmental or heritage factors. These are detailed in the document Considerations for Real Property Submissions.

Your minister may also seek Treasury Board approval of special transaction approval limits for real property transactions based on your organization’s needs and capacity. When requesting special limits, your submission will include an assessment of operational needs; the inherent risks, sensitivities and complexities of your organization’s typical transactions; and the capacity of your organization to manage those transactions.

The following Treasury Board real property policies and publications provide guidance on all aspects of real property management:

Real property submissions must also demonstrate compliance with other related Treasury Board policy instruments, such as the following:

Your submission may also be required to demonstrate compliance with other applicable legislation, such as the following Acts:

Following are other Treasury Board tools that can help you prepare real property submissions:

A comprehensive list of document references is provided in the Guide to the Management of Real Property.

1) Sample proposal wording to enter into a lease

Approve entry into a lease with [insert name of lessor] for [insert number] square metres of [insert type(s) of space] space at [insert address/location of property] for [insert number of years specifying options] years at an (estimated) annual consideration of $[insert amount per year] and an (estimated) total consideration of $[insert amount for the full life of the lease including options].

Note: If your submission seeks a lease approval, in the Cost, Funding Requirements and Source of Funds section you need to indicate the initial fit-up costs (if they are part of the lease); the base rental costs per year; and the total cost of the lease plus option periods, as appropriate. You need to be clear whether the lease price is fixed throughout the lease or is estimated based on utility usage, an escalation clause or other factors. 

2) Sample proposal wording for authority to purchase real property

Approve the purchase from [insert name of individual or entity] of (describe property) located at [insert address of property, municipality and province] for $[insert amount].

3) Sample proposal wording for authority to sell real property

Approve the sale of [describe property] located at [insert address or property municipality and province] for $[insert amount] to [insert name of individual or entity].

4) Sample proposal wording for approval to transfer or accept transfer of administration and control to or from a province when an order-in-council is required:

Recommend to the Governor in Council approval (to transfer or accept) the transfer of administration and control (to or from) the Province of [insert name] for $[insert amount] of real property in [insert city and province], described in the attached order-in-council.

5) Sample proposal wording for transferring administration between federal organizations

Approve the transfer of administration of the property located at [insert address of property] from the [insert name of organization] to [insert name of organization] for $[insert amount].

Crown Corporation Corporate Plans

Crown corporations listed under Schedule III, Part I, of the FAA are required to submit, each year, a corporate plan for Governor in Council approval, as well as operating and capital budgets for Treasury Board approval. Crown corporations listed under Schedule III, Part II, of the FAA may have to submit only a corporate plan and a capital budget (Canada Post Corporation is the only exception). The TB submission package includes 10 copies of the plan in both official languages.

The content requirements for corporate plans and budgets are set out in Part X of the FAA and in the Crown Corporation Corporate Plan, Budget and Summaries Regulations. In general terms, the corporate plan of a parent Crown corporation must encompass all the businesses and activities, including investments, of the corporation and any wholly owned subsidiaries.

As per the discussion in the section Treasury Board Approval of Orders-in-Council Under Certain Management Policies, the Treasury Board can approve the capital and operating budgets, as well as make a recommendation to the Governor General for Governor in Council approval through a single TB submission. In this case, an order-in-council is required with a submission containing proposals to approve a corporate plan, an amended corporate plan or a restricted transaction. The order-in-council (to support Governor in Council approval of the corporate plan) is usually prepared by the portfolio department’s legal counsel on behalf of the responsible minister.

This section provides general guidance. However, the proposal wording must always copy the wording used in the order-in-council. As such, the order-in-council is the definitive source for the wording of proposal paragraphs for each specific TB submission.

The section Treasury Board Approval of Orders-in-Council Under Certain Management Policies also provides examples for approval of these orders-in-council.

1) Sample proposal wording for approval of corporate plans and budgets with an April to March fiscal year:

  • Approve the [insert fiscal year] operating and capital budgets of [insert name of Crown corporation]; and
  • It is also proposed that the Governor in Council, pursuant to subsection 122(1) of the Financial Administration Act, approve the corporate plan of [insert name of Crown corporation] for the [insert fiscal year] to [insert fiscal year] planning period.

2) Sample proposal wording for approval of corporate plans and budgets with a January to December (calendar) fiscal year:

  • Approve the [insert calendar year] operating and capital budgets of [insert name of Crown corporation]; and
  • It is also proposed that the Governor in Council, pursuant to subsection 122(1) of the Financial Administration Act, approve the corporate plan of [insert name of Crown corporation] for the [insert fiscal year] to [insert fiscal year] planning period.

3) Sample proposal wording for approval of amended corporate plan and budgets:

  • Approve the amended [insert fiscal or calendar year] [insert operating and/or capital] budget(s) of [insert name of Crown corporation]; and
  • It is also proposed that the Governor in Council, pursuant to subsection 122(1) of the Financial Administration Act, approve the amendment to the corporate plan of [insert name of Crown corporation] for the [insert fiscal year] to [insert fiscal year] planning period.

In the above cases, the proposal to approve the capital and operating budgets (or amendments to them) precedes the proposal seeking Governor in Council approval of the corporate plan or amendment to the corporate plan.

Presenting Crown Corporation Budget Information in the Cost, Funding Requirements and Source of Funds Section of a Submission

The cost of the Crown corporation’s planned operating and capital budgets on a cash basis should be identified in the Cost, Funding Requirements and Source of Funds section of the submission, along with the source of funds.

For Crown corporations that do not receive parliamentary appropriations, the source of funds can be identified as revenues. For appropriated or partially appropriated Crown corporations, the source of funds will be a combination of existing funding, new funding and/or revenues, as the case may be.

If the corporate plan submission also includes authority to incorporate new funding for land or amortizable capital into reference levels, an Amortizable Capital Assets and Land Acquired With New Funding table should be completed and appended to the submission.

For non-appropriated Crown corporations, the following example can guide completion of the text in the Cost, Funding Requirements and Source of Funds section:

On a cash basis, the total cost is $[insert amount] in [insert fiscal or calendar year], consisting of $[insert amount] for the operating budget and $[insert amount] for the capital budget, sourced from revenues.

For appropriated or partially appropriated Crown corporations, the following example can guide completion of the text in the Cost, Funding Requirements and Source of Funds section. This example includes new funding for land and capital:

On a cash basis, the total cost is $[insert amount] in [insert fiscal or calendar year], consisting of $[insert amount] for the operating budget and $[insert amount] for the capital budget. Of this amount, $[insert amount] is sourced from existing reference levels, $[insert amount] is sourced from revenues and $[insert amount] is sourced from the fiscal framework.

The related accrual expenses are $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; and $[insert amount] in [insert fiscal or calendar year]. Remaining amortization expenses of $[insert amount] will be incurred over years [insert fiscal or calendar year] to [insert fiscal or calendar year].

The total costs of the remaining four years of the corporate plan are $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; and $[insert amount] in [insert fiscal or calendar year]. Of these amounts, $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; and $[insert amount] in [insert fiscal or calendar year] are funded from existing reference levels, while $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; $[insert amount] in [insert fiscal or calendar year]; and $[insert amount] in [insert fiscal or calendar year] are funded from revenues. New funding of $[insert amount] in [insert fiscal or calendar year] and $[insert amount] in [insert fiscal or calendar year] is funded from the fiscal framework.

In this example, given that the authority to include new funding for amortizable capital assets and land is being sought from the Treasury Board, the submission would also include an Amortizable Capital Assets and Land Acquired With New Funding table as an appendix.

Non-Delegated Organization and Classification of Executive (EX) Positions

The Policy on the Management of Executives identifies where the Treasury Board retains its authority to organize or classify executive (EX) positions in the core public administration, as defined in Schedules I and IV of the FAA. Treasury Board approval is required for an organization to increase its total baseline of EX-04 and EX-05 positions or to increase the number of EX-05 positions in its approved EX-04 and EX-05 baseline.

You are expected to provide your submission and supporting documentation (e.g., job descriptions, classification rationales and organization charts) to your Secretariat program analyst, who will consult with the Office of the Chief Human Resources Officer.

1) Sample proposal wording for approval to establish a baseline

Approve, effective [insert date], the establishment of a new baseline for [insert name of organization] consisting of [insert number] EX-4 positions and [insert number] EX-5 positions.

2) Sample proposal wording for approval to increase a departmental baseline

Approve, effective [insert date], the following changes to the [insert name of organization] baseline:

  • An increase of [insert number] EX-5 positions; and/or
  • An increase of [insert number] EX‑4 positions, resulting in a new departmental baseline of [insert number]. 

Governor in Council Approvals

Treasury Board Approval of Orders-in-Council Under Certain Management Policies

Since 2001, the Treasury Board can serve as the Cabinet committee advising the Governor General on the approval of orders-in-council for the following management matters:

  • Federal-provincial-territorial agreements, federal-territorial agreements, or federal–First Nations agreements;
  • Assets or real property management;
  • Crown corporation corporate plans and other corporate transactions; and
  • Pension plan benefits for federal employees, which can include regulations.

See the section Requirement for Treasury Board Recommendation of Orders-in-Council Under Certain Management Policies in TB Submissions Overview for additional details.

You should consult your Secretariat program analyst and regulatory affairs analyst to confirm whether a proposal qualifies as one of the above cases. Once confirmed, you work with your program analyst to prepare the TB submission, including the necessary order-in-council documentation.

If your organization is required to prepare such an order-in council, you prepare both a TB submission and a GIC submission. The documentation requirements are detailed in Submissions Requiring Governor in Council Approval under the section Forwarding Signed Submissions to the Secretariat. Guidance on the wording for the GIC submission is provided below. Examples of orders-in-council may also be found on the Privy Council Office’s Orders-in-Council Database.

This section provides general guidance. However, the proposal wording must always copy the wording used in the order-in-council. As such, the order-in-council is the definitive source for the wording of proposal paragraphs for each specific TB submission.

1) If the legislation enabling the order-in-council requires a recommendation from the Treasury Board to the Governor in Council, the following wording applies.

a. Sample proposal wording for a TB submission

In addition to the specific program authorities and approvals sought from the Treasury Board, it is proposed that the Treasury Board:

  • Recommend that the Governor in Council authorize the Minister of [insert legal title] to [insert required authority]; and
  • It is also proposed that the Governor in Council authorize the Minister of [insert legal title] to [insert required authority].
b. Sample proposal wording for an order-in-council

His Excellency the Governor General in Council, on the recommendation of the Minister of [insert legal title] and the Treasury Board, hereby [insert required text].

2) If the legislation enabling the order-in-council does not require a recommendation from the Treasury Board to the Governor in Council, the following wording applies.

This scenario will apply to most Crown corporation corporate plan approvals.

a. Sample proposal wording for a TB submission

In addition to the specific program authorities and approvals sought from the Treasury Board, it is also proposed that the Governor in Council authorize the Minister of [insert legal title] to [insert required authority].

Or, in the case of Crown corporation corporate plans:

It is also proposed that the Governor in Council, pursuant to subsection 122(1) of the Financial Administration Act, approve the corporate plan of [insert name of Crown corporation] for the [insert fiscal year] to [insert fiscal year] planning period

b. Sample proposal wording for an order-in-council

His Excellency the Governor General in Council, on the recommendation of the Minister of [insert legal title] hereby [insert required text].

Examples of orders-in-council may be found on the Privy Council Office’s Orders in Council Database.

Treasury Board Recommendation of Orders-in-Council

An order-in-council for matters other than those covered in the section TB Submissions Overview under TB Submissions Overview and in the Treasury Board Approval of Orders-in-Council Under Certain Management Policies section may require the recommendation of the Treasury Board to the Governor in Council as per the legislation enabling the order. In these cases, both a TB submission and a GIC submission are prepared. The Governor in Council can also request that the Treasury Board approve related program authorities or approvals, such as funding or terms and conditions. The TB submission is sent to the Treasury Board Submission Centre, while the GIC submission is sent to Privy Council Office’s Orders in Council Division. The two groups work together to seek the required approvals.

a. Sample proposed wording for a TB submission

In addition to the specific program authorities and approvals sought from Treasury Board, it is proposed that the Treasury Board:

Recommend that the Governor in Council authorize the Minister of [insert legal title] to [insert required authority].

b. Sample proposed wording for an order-in-council

His Excellency the Governor General in Council, on the recommendation of the Minister of [insert legal title] and the Treasury Board, hereby [insert required text].

Examples of orders-in-council may be found on the Privy Council Office’s Orders in Council Database.

In some cases, program authorities may be required from the Treasury Board in relation to proposals that relate to a GIC submission, but where Treasury Board does not need to recommend the order or regulation to the Governor in Council. In these cases,  the TB submission is sent to the Treasury Board Submission Centre, while the GIC submission is sent to PCO’s Orders in Council Division, who work together to seek the required approvals. The Rationale section of the related Treasury Board submission may reference the related OIC (e.g. for a regulation) for information purposes only.

If your organization wishes to bring forward an order-in-council that does not require a TB submission, consult with your organization’s regulatory affairs analyst at the Secretariat.

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