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Section I: Overview

President's Message

The Honourable Vic ToewsIt is with pleasure that I present the Treasury Board of Canada Secretariat's Departmental Performance Report for 2006–07. This document summarizes the achievements of the Secretariat in meeting the objectives outlined in the 2006–07 Report on Plans and Priorities.

On April 11, 2006, Canada's New Government delivered on its number one priority by introducing the Federal Accountability Act. This landmark piece of legislation, which received Royal Assent on December 12, 2006, sets a new and higher standard for accountability in government.

The government has also put a premium on effective expenditure management and is focussed on results-based management and ensuring that Canadians receive value for their tax dollars through vigorous program review. The Secretariat, working with departments and its central agency and portfolio partners, has a clear role to play supporting the government's efforts to deliver on these priorities.

To further these efforts, the Secretariat established three key priorities for 2006–07: to enhance governance, accountability, and management practices; to strengthen results-based expenditure management; and to improve internal management. The Secretariat has made significant progress in these areas by:

  • streamlining and renewing the Treasury Board suite of policies, including three key reviews of policy areas required to support the implementation of the government's Action Plan on Accountability;
  • completing departmental management assessments using the Management Accountability Framework;
  • leading the renewal of the government's expenditure management system; and
  • launching a five-step implementation plan in support of the Management, Resources, and Results Structure Policy to determine a complete inventory of government programs.

Finally, we continue to enhance our processes for reporting to Parliament to ensure that parliamentarians and Canadians have the information they need to make well-informed decisions, as well as to support the Treasury Board's role in the expenditure management cycle. Overall, the Secretariat is moving forward to ensure that government is well managed and accountable, and that resources are allocated to achieve results.

As we continue to make progress in these and other areas, I would like to take this opportunity to recognize the efforts of the men and women of the Secretariat, and thank them for their continued support, dedication, and hard work.

The paper version was signed by

The Honourable Vic Toews, P.C., Q.C., M.P.
President of the Treasury Board


Management Representation Statement

I submit for tabling in Parliament the 2006–07 Departmental Performance Report for the Treasury Board of Canada Secretariat.

This document has been prepared based on the reporting principles contained in the Guide to the Preparation of Part III of the 2006–2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports.

  • It adheres to the specific reporting requirements outlined in the Treasury Board of Canada Secretariat guidance.
  • It is based on the department's Strategic Outcomes and Program Activity Architecture that were approved by the Treasury Board.
  • It presents consistent, comprehensive, balanced, and reliable information.
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it.
  • It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

The paper version was signed by

Wayne G. Wouters
Secretary of the Treasury Board


Summary Information

Raison d'tre: The raison d'tre of the Treasury Board of Canada Secretariat (the Secretariat) is to ensure that the government is well managed and accountable, and that resources are allocated to achieve results. The functions performed by the Secretariat have a direct impact on governance, accountability, and the quality of public-sector management, as well as an indirect impact on the efficiency and effectiveness with which the government's programs and services are delivered.

Departmental Mandate

The Secretariat supports the Treasury Board by providing advice to Treasury Board ministers on the management and administration of government; by overseeing government management performance, and expenditure and financial management; and by managing compensation, pensions, benefits, terms and conditions of employment, and labour relations. The Secretariat also supports the Treasury Board by providing advice on Governor-in-Council submissions and on federal regulatory policy.

The Treasury Board

The Treasury Board is a Cabinet committee of the Queen's Privy Council for Canada. It was established in 1867 and given statutory powers in 1869.

As the general manager of the public service, the Treasury Board has three main roles:

  • It acts as the government's management board by promoting improved management performance and developing policies and priorities to support the prudent and effective management of the government's assets, human, financial, information, and technology resources, as well as the management and oversight of the government's regulatory function.
  • It acts as the government's budget office by examining and approving the proposed spending plans of government departments and reviews the development of approved programs.
  • It acts as the employer of the core public administration and is responsible for human resources management in the federal public administration, including the determination of terms and conditions of employment and the management of compensation.

The Treasury Board's powers and responsibilities are set out in various pieces of legislation, regulations, orders in council, policies, guidelines, and practices. While the primary statute setting out the legislative authorities of the Treasury Board is the Financial Administration Act, there are over 20 other contributing statutes.

The Treasury Board has a number of instruments at its disposal to fulfil its responsibilities. It establishes and oversees a suite of management policies that set the performance expectations of the government. The Treasury Board also sets standards for a range of reports to Parliament, determines the compensation for the core public administration, Canadian Forces, and Royal Canadian Mounted Police; approves terms and conditions of employment; and manages the various pension and benefit plans provided for public service employees. In addition, the Treasury Board serves as the Committee of the Queen's Privy Council for the purposes of scrutinizing and approving Governor-in-Council submissions for regulations and most orders in Council.

The Treasury Board Portfolio

A number of organizations form the Treasury Board Portfolio:

  • The Treasury Board of Canada Secretariat supports the Treasury Board by providing advice to Treasury Board ministers on the management and administration of government; by overseeing government management performance, and expenditure and financial management; by managing compensation, pensions, benefits, terms and conditions of employment, and labour relations; and by fulfilling the responsibilities of a central government agency. The Secretariat also supports the Treasury Board by providing advice on Governor-in-Council submissions and on federal regulatory policy.
  • The Canada Public Service Agency (formerly the Public Service Human Resources Management Agency of Canada) supports the Treasury Board by bringing together most human resources management functions, including human resources planning and accountability, the implementation and management of the Public Service Modernization Act, the management and reform of the classification system for the public service, the development and implementation of employment policies, leadership, values and ethics, employment equity and diversity, and official languages.
  • The Canada School of Public Service ensures that public service employees have access to the common learning tools they need to serve Canadians effectively.

For more information on the Canada Public Service Agency and the Canada School of Public Service, please consult their 2006–07 departmental performance reports.

The Secretariat

The mission of the Secretariat is to ensure that government is well managed and accountable, and that resources are allocated to achieve results. In fulfilling this mission, the Secretariat plays three key central agency roles in relation to the various government departments, agencies, and Crown corporations:

  • an oversight role, which includes setting policies and standards, and monitoring and reporting on overall management and budgetary performance within government;
  • an enabling role to help departments and agencies improve management performance across government; and
  • a leadership role, by leading on key initiatives advancing an integrated management agenda.

As described in its Program Activity Architecture (PAA), the two primary activities of the Secretariat are:[1]

  • Management policy development and oversight. Through this activity, the Secretariat provides support to the Treasury Board in its role as the management board of government and promotes good management practices across government. This includes its role as employer of the federal core public administration and manager of human resources in the federal public service.

The Secretariat supports its management board role by:

  • developing polices, directives, and standards to guide good management across government;
  • monitoring compliance and developing tools to measure and report on management performance; and
  • providing advice and support to functional communities.

To achieve its objectives under this program activity, the Secretariat also works closely with its portfolio partners, the Canada Public Service Agency and the Canada School of Public Service.

  • Expenditure management and financial oversight. Through this activity, the Secretariat exercises its role as the budget office and undertakes the following key functions in support of this role:
  • providing advice to ministers with respect to resource allocation and reallocation, and the provision of expenditure authorities;
  • undertaking government-wide expenditure and performance analysis, and oversight of estimates and government supply, including the determination of compensation within the federal government; and
  • ensuring that accurate and timely financial and performance information from departments and agencies is available to support decision making and reporting to Parliament.

The work of the Office of the Comptroller General, a distinct office within the Secretariat, also cuts across the Secretariat's two program activities. The Office of the Comptroller General is responsible for developing and implementing policies and practices to strengthen financial management, controls, and internal audit.

Overview[2] of Resources and Summary of Performance

Financial Resources ($ thousands) 


  

2006–07

 

Planned Spending

Total Authorities

Actual Spending

2,604,346

2,584,047

1,744,413



Human Resources


 

2006–07

 

Planned

Actual

Difference

1,351

1,179

172



Performance Status

The following table provides a summary of the department's overall performance in relation to the priorities as set in the 2006–07 Report on Plans and Priorities. Further details on expected results by program activity stemming from these priorities are found in Section II.

Priority 1: Strengthening governance, accountability, and management practices


Commitment

Status[3]

Highlights

1.1 Trust and confidence in government is enhanced through the implementation of the Federal Accountability Act and supporting measures and through improved reporting to Parliament.

Met most expectations.

  • The Federal Accountability Act received Royal Assent on December 12, 2006, and implementation is proceeding. By the end of 2006–07, the majority of the provisions of the Act had come into force or the dates upon which they would come into force had been fixed by order in council.
  • The new website for parliamentarians is live and provides access to planning and performance information, and Web tools. It also helps users to navigate through departmental RPPs and provides a whole-of-government view of planned spending over a three-year time horizon.

1.2 Responsibilities of deputy heads are clarified—streamlining rules while strengthening accountability and efficiency—through the renewal of the Treasury Board policy suite.

Met most expectations.

  • Work on the policy suite renewal is progressing well. To date, 31 policy instruments have been approved by the Treasury Board, including 4 frameworks, 9 policies, and 18 directives and standards.

1.3 Management oversight is improved through the use of better tools, processes, and information.

Met most expectations.

  • Management oversight was improved through a better, streamlined set of Management Accountability Framework (MAF) indicators and through enhanced analytical capability to produce better quality of information on departmental management performance.

1.4 Financial management and auditing capacity across the Government of Canada are enhanced.

Met some expectations.

  • The report of the Senior Committee on the Review of the Financial Management Framework was completed and its results are under consideration as part of the overall policy suite renewal.
  • Draft policies and supporting directives related to financial management, including the chief financial officer model, are progressing and expected to be completed by year-end.
  • Guidance materials and tools for departments and agencies to advance the Treasury Board Policy on Internal Audit were developed, including a first-generation maturity model to assess departmental internal audit capabilities and establishment of the Audit Committee Recruitment and Development Secretariat .

1.5 Management performance is strengthened through the development of strategies and tools to support service transformation.

Met most expectations.

  • The Service Transformation Alignment Roadmap was completed, identifying opportunities for a more cohesive approach to whole-of-government internal and external service transformation initiatives.
  • A horizontal governance structure for service transformation initiatives was established with an accountability regime to monitor and report on the achievement of service transformation outcomes.
  • Considerable progress was made in the development of a business case for corporate administrative shared services, with extensive collaboration from departments and agencies involved.

 Priority 2: Strengthening Results-Oriented Expenditure Management


Commitment

Status

Highlights

2.1 Leadership is provided in reviewing the government's expenditure management system and strengthening the role of the Treasury Board.

Met most expectations.

  • Proposals to strengthen the government's expenditure management system were developed in support of the November 2006 Economic and Fiscal Update and Budget 2007 announcements.
  • Analysis and advice were provided on expenditure performance, capacity, and risks to ensure the allocation and reallocation of resources based on sound financial performance.
  • A complete model of accrual-based budgeting and appropriations is under development for discussion and debate by Parliament.

2.2 Results-based management and information on programs and spending across government are improved.

Met most expectations.

  • An implementation process to strengthen results-based management and performance information in departments was launched.
  • Guidance was provided to departments in confirming their inventory of programs.
  • Progress was made in identifying systems requirements in support of the budget office systems renewal project.
  • A prototype for internal monthly expenditure reports is under development.

 Priority 3: Enhancing the Internal Management of the Secretariat


Commitment

Status

Highlights

3.1 Secretariat support to the Treasury Board is strengthened through the adoption of a renewed approach to Treasury Board operations.

Met some expectations.

  • Plans to develop a Secretariat charter were expanded into a more comprehensive change management exercise to reposition the Secretariat to better carry out its management board and budget office roles in support of the Treasury Board.
  • An assessment of the Secretariat's change readiness was carried out and critical transformation success factors were identified.
  • A new Secretariat intranet site was developed and launched.

3.2 Internal management practices are improved in response to the Secretariat's MAF assessment and the survey on workplace well-being.

Met most expectations.

  • The Secretariat's 2006 MAF assessment indicates that the Secretariat made significant progress in a number of areas, including project management; procurement; and performance information. In addition, the Secretariat's PAA was revised and used as the basis for a renewed governance structure and an integrated approach to corporate planning.
  • Ninety-six per cent of Secretariat executives received the required training on the Public Service Employment Act.
  • A development program was implemented for Secretariat analysts in the Economics, Sociology, and Statistics (ES) Group.
  • The Secretariat's draft Business Continuity Plan was developed and is being refined.

Overview of Performance

Operating Environment

The Canadian public demands both increased accountability on the part of public officials and increased value for money. There are mounting expectations for faster delivery of more services for the same tax dollar, more efficient and effective use of public resources, greater transparency, and assurances that the decisions and actions of government officials meet a high standard of public service values and ethics. In this context, it is important to ensure that resource allocations are better linked to government priorities.

Management excellence

An effective, high-performing public service is essential to achieving accountability and improved expenditure management. The Secretariat, and the Treasury Board Portfolio as a whole, must work to ensure that the public service strives for excellence, remains connected to the needs and expectations of Canadians, and has a positive effect on their lives. In moving forward on its priorities, it is important for the Secretariat to continue to demonstrate leadership with respect to improved management practices.

Accountability and management practices

Canadians expect their government to be accountable, transparent, and effective. Over the last few years, there has been an unprecedented focus on improving management performance. To this end, it is critical to ensure that the appropriate balance is struck between strengthening accountability and promoting an environment that encourages innovation. A key aspect of this is avoiding an over-reliance on rules and addressing the web of rules in the public service.

With the increased focus on accountability, the Secretariat has concentrated its efforts on setting the broad policy framework for public service management; the expenditure framework within which the government operates; the accountability regime that shapes how the government performs; and a human resources management framework based on public service values and ethics.

A key response to Canadians' demand for accountability was the Federal Accountability Act, which received Royal Assent on December 12, 2006. It made substantive changes to over 45 statutes and created two new statutes to deliver on the government's promise to put in place a five-year lobbying ban, to eliminate corporate and union donations to political parties, and to protect whistleblowers, among other reforms. Over the past year, the Secretariat has focussed its efforts on coordinating the overall implementation of the Federal Accountability Act and Action Plan, and will, over the next year, complete the work in response to the key policy reviews that were launched as part of the Action Plan.

Improved expenditure management

At the same time, Canadians are concerned not only with how government functions, but also with whether they are getting value for their tax dollars. In response, the government has put increased emphasis on effective expenditure management, in order to meet public demand for value for money and demonstrable results. This includes a focus on restraining growth in government spending and on managing for results.

As a result, and in accordance with Budget 2006, the Secretariat, in collaboration with the Privy Council Office and the Department of Finance Canada, undertook a fundamental reassessment of the expenditure planning, budgeting, and decision-making processes of the government. From this assessment, an integrated package of renewal measures for the Expenditure Management System has been developed to ensure that federal programs are effective, efficient, focussed on results, aligned with the government's priorities and responsibilities, and that they provide value for money.

The new approach is intended to strengthen the management of overall spending through measures to support managing and decision making for results by establishing clear responsibilities for departments to better define the expected outcomes of new and existing programs. Regular strategic reviews will ensure that new programs are fully and effectively integrated with existing programs by reviewing spending to ensure efficiency, effectiveness, and ongoing value for money. Additionally, the Secretariat is working to improve the quality of departmental and government-wide reporting to Parliament. The Secretariat has begun implementation of the renewed Expenditure Management System to support the Treasury Board in its budget office role.

Responding to these challenges

The performance outlined in this report reviews how the Secretariat, as a department, is working to become a leader in fostering management excellence, is ensuring greater accountability across government and, as such, is contributing to its strategic outcome that government is well managed and accountable, and resources are allocated to achieve results.

An overview of progress made in each of the three key priority areas, summarizing the Secretariat's commitments, achievements, and lessons learned is provided below.

Priority 1: Strengthening Governance, Accountability, and Management Practices

Context and commitment

The Secretariat, in collaboration with its portfolio partners, aims to make government as a whole more accountable and to increase openness, transparency, and the quality of information that federal organizations provide to Parliament so that Canadians are better able to hold the government to account for public policy and administration choices. In its role as the management board of government, the Secretariat promotes good management practices across government by:

  • developing polices, directives, and standards to guide good management across government;
  • monitoring compliance and developing tools to measure and report on management performance; and
  • providing advice and support to functional communities.

In support of this, the Secretariat made the following commitments in fiscal year 2006–07:

  • enhancing trust and confidence in government through the implementation of the Federal Accountability Act and supporting measures, and through improved reporting to Parliament;
  • clarifying responsibilities of deputy heads—streamlining rules while strengthening accountability and efficiency—through the renewal of the Treasury Board policy suite;
  • improving management oversight through the use of better tools, processes, and information;
  • enhancing financial management and auditing capacity across the Government of Canada; and
  • strengthening management performance through the development of strategies and tools to support service transformation.

Main achievements

The Secretariat has delivered on most of these commitments and has made important progress in others.

  • The implementation of the Federal Accountability Act is proceeding. By the end of 2006–07, the majority of the provisions of the Act had come into force or the dates on which they would come into force had been fixed by order in council. In 2007–08, the government will bring into force the remaining provisions of the Act related to the new rules on lobbying and the establishment of the position of Procurement Ombudsman.
  • Through the renewal of the policy suite, the Treasury Board has to date approved 31 policy instruments, including 4 frameworks, 9 policies, and 18 directives or standards. Work on renewing the suite of Treasury Board policies is progressing well, with draft policies having been prepared in a number of areas as the basis for consultation and with work on other policies well advanced. Work on the directives and standards will carry forward into 2008–09. Close monitoring of implementation continues to be essential for the successful implementation of renewed policies.
  • Management oversight was improved through implementing improvements to the Management Accountability Framework (MAF), the Secretariat's integrated instrument for assessing management performance in departments. In addition, MAF results were incorporated more systematically into advice to ministers in relation to expenditure decisions and were a key input to the Privy Council Office for the performance assessments of deputy ministers.
  • Work was undertaken to develop financial management policies and supporting directives. The Senior Committee on the Review of the Financial Management Framework of the Government of Canada, established as part of the Federal Accountability Action Plan, undertook a review of the proposed financial management policy framework. The results of the review are now being examined as part of the overall policy suite renewal.
  • Incremental funding allocations were made to departments for implementation of the new Policy on Internal Audit. Accountability measures were established involving 40 departments and agencies. Additionally, the Office of the Comptroller General (OCG) is nearing the completion of two horizontal audits and has developed extensive range of policy guidance materials to advance policy implementation.
  • The OCG launched the Audit Committee Recruitment and Development Secretariat to support the requirement for departmental audit committees legislated through the passing of the Federal Accountability Act.
  • The Secretariat completed an environmental scan to inform development of the government's service transformation agenda and develop strategies for future improvements to government services.

Priority 2: Strengthening Results-Oriented Expenditure Management

Context and commitment

The Secretariat plays a key role in overseeing government expenditures from a whole-of-government perspective by advising Treasury Board officials on expenditure management decisions, risks and opportunities, the administration of the Estimates cycle, and by reporting to Parliament, including through the Public Accounts. Effective and integrated expenditure and financial management helps maintain balanced budgets, aligns resources with government priorities, and increases the efficiency of programs and operations.

In support of these responsibilities, the Secretariat made the following commitments in 2006–07:

  • provide leadership in reviewing the government's expenditure management system and strengthening the role of the Treasury Board; and
  • improve results-based management and information on programs and spending across government.

Main achievements

The Secretariat made significant progress on most of these commitments. To improve expenditure management across government, departments and agencies must continue to improve the quality of both financial and non-financial information on the value for money and results achieved by programs and services. The changes that are being made to the Expenditure Management System are transformative in nature and will require dedicated effort over the next few years. Implementation of such transformative initiatives will require continued focus and attention.

To date, the Secretariat has:

  • conducted a review of the expenditure management system in support of the November 2006 Economic and Fiscal Update and Budget 2007 announcements, and developed proposals to strengthen and renew the government's expenditure management system;
  • provided analysis and advice on expenditure performance, capacity, and risks to ensure the allocation and reallocation of resources is based on sound financial performance;
  • developed proposed approaches for accrual-based budgeting and appropriations as the basis for presentations to the House of Commons Standing Committee on Government Operations and Estimates, and the House of Commons Standing Committee on Public Accounts—a complete model of accrual-based budgeting and appropriations will follow;
  • launched a five-step implementation plan in support of the Management, Resources, and Results Structure Policy (MRRS) to strengthen results-based management and performance information on programs in departments. The Secretariat worked closely with departments to implement the first step of this process: a complete inventory of departmental programs;
  • made progress in identifying information systems requirements to support the budget office systems renewal; and
  • developed a prototype for monthly expenditure reports that is currently being readied for pilot testing, to support more accurate and timely analysis of departmental spending.

Priority 3: Enhancing the Internal Management of the Secretariat

Context and commitment

Delivering on the Secretariat's commitments to strengthen the Treasury Board's management board and budget office roles will help ensure that government is able to deliver on its priorities for the coming years. To do this effectively, while supporting ongoing core business functions, the Secretariat must continuously examine and improve its own internal management practices.

Over the long term, improving its internal management will allow the Secretariat, and the government, to effectively tackle new issues and priorities as they arise. To support this priority, the Secretariat made the following key commitments for 2006–07:

  • strengthen Secretariat support to the Treasury Board through the adoption of a renewed approach to Treasury Board operations; and
  • improve internal management practices in response to the Secretariat's MAF assessment and the survey on workplace well-being.

Main achievements

As demonstrated by its 2006 MAF assessment, the Secretariat made significant progress on most of these commitments and continues to advance efforts in others. As part of an internal change management exercise, progress was made in identifying how to strengthen departmental business processes to better support the Treasury Board. The Secretariat is working to implement an integrated approach to risk management with the recent completion of a corporate risk profile.

To date the Secretariat has:

  • improved its corporate planning by aligning internal governance and decision making with the revised Program Activity Architecture and further integrating human resources planning with business planning;
  • made progress in examining new risk-based approaches to departmental and Treasury Board business in an effort to bring a more strategic approach to management board and budget office issues;
  • refined its plans to develop a Secretariat charter, as part of its internal change management, to better carry out its management board and budget office roles and developed an action plan to implement change management initiatives within the Secretariat;
  • provided training to 96 per cent of its executives on the Public Service Employment Act;
  • implemented a development program for Secretariat analysts in the Economics, Sociology, and Statistics (ES) Group to recruit, develop, and retain highly skilled, well-rounded employees who understand the Secretariat's mandate and are able to contribute to all areas within the Secretariat; and
  • redeveloped and implemented its intranet site.

Further work will be required to:

  • finalize and implement plans for a more strategic approach to Treasury Board operations; and
  • refine the Secretariat's draft Business Continuity Plan to further align it with the government-wide Public Service Readiness Plan, currently under development.

Alignment with Government of Canada Outcomes

The Secretariat's strategic outcome that government is well managed and accountable, and resources are allocated to achieve results contributes to the achievement of the Government of Canada's "Government Affairs" outcome.

Collectively, the Secretariat's priorities seek to ensure the government is well managed and accountable, and that resources are allocated to achieve results. Achievement of these priorities will help the Secretariat in fulfilling its three key central agency roles in relation to other government departments, agencies, and Crown corporations:

  • an oversight role, which includes setting policies and standards, and monitoring and reporting expectations on overall management and budgetary performance within government;
  • an enabling role to help departments and agencies improve management performance across government; and
  • a leadership role, leading by example in advancing an integrated management agenda.

The Secretariat has developed tools and resources to help fulfil these roles, such as:

  • the MAF, which sets out a comprehensive and coherent accountability regime that specifies the management expectations of deputy heads; and
  • the Management, Resources, and Results Structure Policy (MRRS) and the PAA, which provide information on programs, their performance expectations, and their relation to departmental strategic outcomes.

Collectively, these initiatives have begun and will, once at full maturity, provide public service officials, parliamentarians, and Canadians with improved information on public-sector management and the results being achieved.