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2007-08
Departmental Performance Report

Treasury Board of Canada Secretariat

Supplementary Information (Tables)

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Table of Contents

• Sources of Respendable and Non-respendable Revenue
• User Fees/External Fees
• Details on Project Spending
• Details on Transfer Payments Programs
• Sustainable Development Strategy
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations
• Travel Policies
• Financial Statements
• Supplementary Program Activity Information

Table 1: Sources of Respendable and Non-Respendable Revenue

Respendable Revenue
($ millions)

			2007-08
Program Activity	Actual 2005-06	Actual 2006-07	Main Estimates	Planned Revenue	Total Authorities	Actual
Management Policy Development and Oversight
Secretariat Operations
Revenue related to the administration of the Public Service Superannuation Act (PSSA)1	2,535	2,734	―	―	3,942	2,681
Expenditure Management and Financial Oversight
Centrally Managed Funds
Revenue related to Public Service Insurance2&3	157,726	165,250	142,200	142,200	280,817	280,817
Total Respendable Revenue	160,261	167,984	142,200	142,200	284,759	283,498

1. Respendable revenue is used to cover salaries and operating costs from Public Service Superannuation in respect of chargeable costs associated with administering the PSSA. Treasury Board approval to renew the respendable revenue authority was sought during 2007-08.

2. Respendable revenue is used to cover health care insurance plans costs from revolving funds and from departments and agencies that pay for employee benefit plans from a non-statutory appropriation. The recovery is based on 8 per cent of the total monthly personnel costs. This account is also used to record the pensioner's share of contributions to the Pensioners' Dental Services Plan.

3. As per Receiver General instructions, the Secretariat Financial Statements and Public Accounts treat this item as a recovery of expenditures as opposed to a respendable revenue. This difference in accounting treatment has no impact on the net expenditures of the Secretariat.

Non-Respendable Revenue
($ millions)

			2007-08
Program Activity	Actual 2005-06	Actual 2006-07	Main Estimates	Planned Revenue	Total Authorities	Actual
Recovery of health benefits costs in excess of respendable amount	―	14,229	―	―	―	―
Revenue from parking fees4	11,168	11,325	―	10,000	11,466	11,466
External revenue from Access to Information requests	1	3	―	―	1	1
Revenue related to the administration of the Public Service Superannuation Act (PSSA)	549	576	―	―	596	596
Refunds of previous years' expenditures	157	772	―	―	706	706
Disciplinary penalties	33	18	―	―	24	24
Proceeds from the disposal of surplus Crown assets	―	10	―	―	9	9
Other	―	3	―	―	229	229
Total Non-Respendable Revenue	11,909	26,935	―	10,000	13,031	13,031

4. This represents the parking fees collected from public service employees in government-owned or -leased facilities. This revenue is deposited directly to the Consolidated Revenue Fund and cannot be used to offset operating expenditures.

Table 2: User Fees―User Fees Act (Access to Information and Privacy Office, Treasury Board of Canada Secretariat)

Table 3: External Fees―Policy on Service Standards for External Fees (Access to Information and Privacy Office, Treasury Board of Canada Secretariat)

External Fee	Service Standard	Performance Result	Stakeholder Consultation
Fees charged for the processing of access requests filed under the Access to Information Act (ATIA)	Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The ATIA provides further details: http://lois.justice.gc.ca/en/showtdm/cs/A-1.	Statutory deadlines met 96% of the time.	The service standard is established by the Access to Information Act and the Access to Information Regulations. Consultations with stakeholders were undertaken for amendments done in 1986 and 1992.

Other Information:

Five complaints were filed with the Office of the Information Commissioner relating to delays or time extensions taken. Two were resolved to the satisfaction of the Information Commissioner; three others have been carried forward to 2008-09.

It is the Secretariat's practice to waive fees where the total owing per request amounts to less than $25, when the request has not been answered within the legislated time frames and additional costs would normally have been incurred, or there is a public interest in disclosure. There was a significant increase in the number of times fees were waived in 2007-08 due to the informal processing of monthly requests for the reports generated by the Coordination of Access to Information Requests System (CAIRS). It was also due to an electronic disclosure service that we offer. To reduce costs and increase efficiency, documents released are occasionally provided on CD-ROM, which means that no reproduction fees are charged to the applicant.

Table 4: Details on Project Spending

($ thousands)

				2007-08
Project	Current Estimated Total Cost	Actual 2005-06	Actual 2006-07	Main Estimates	Planned Revenue	Total Authorities	Actual
Management and Expenditure Performance
Expenditure Management Information System: Phase B―Budget Office Systems Renewal (BOSR)	14,942.0	―	4,427.0	9,867.0	9,867.0	9,867.0	8,000.9

Table 5: Details on Transfer Payment Programs (TPP)

During the 2007-08 reporting period, the Secretariat was not responsible for any Transfer Payment Programs. In accordance with the January 2007 changes in minister's responsibilities, the Toronto Waterfront Revitalization Initiative authority was transferred from the Secretariat to Environment Canada through the 2007-08 Supplementary Estimates.

Table 6: Sustainable Development Strategy

The Secretariat's Sustainable Development Strategy 2007-09 (SDS) is the core plan for making its operations and policies more sustainable.

The following table* outlines the Secretariat's progress in implementing the SDS for the 2007-08 fiscal year. While progress has been achieved, it should be noted that several commitments are ongoing and will require the full three-year SDS cycle.

The Secretariat's SDS can be found at www.tbs-sct.gc.ca/report/orp/2006/sds-eng.asp.

*Note that the first box contains the Secretariat's SDS goal, which supports the broader federal sustainable development (SD) goal found in the second box. More information on Environment Canada's guidance and the federal SD goals can be found at http://www.sdinfo.gc.ca/reports/en/sd_guide/toc.cfm. Guidance on greening government operations (GGO) and the federal GGO goals can be found at http://www.pwgsc.gc.ca/greening/text/publications/guidance-sds-e.html.

*Secretariat SDS Goal 3―greening departmental operations―is a collaborative initiative with the Department of Finance Canada and the CPSA, on the basis of shared corporate services and co-location at L'Esplanade Laurier.

Table 7: Response to Parliamentary Committees and External Audits

Table 8: Response to the Auditor General of Canada, including to the Commissioner of the Environment and Sustainable Development (CESD)

2007 May Report of the Auditor General of Canada

Chapter 1―Use of Acquisition and Travel Cards
Chapter 3―Human Resources Management―Foreign Affairs and International Trade Canada

2007 October Report of the Auditor General of Canada

Chapter 1―Safeguarding Government Information and Assets in Contracting

2007 October Report of the Commissioner of the Environment and Sustainable Development

Chapter 1―Sustainable Development Strategies

Table 9: Internal Audits and Evaluations

Internal Audits (current reporting period)

Over the past year, the Secretariat undertook significant efforts to strengthen and stabilize internal audit capacity and delivery processes. An annual review of the three-year Risk-Based Audit Plan was approved in the spring of 2008. Internal audit engagements, as identified in the 2008-09 Report on Plans and Priorities, are underway.

Other projects include a review of Translation and Editing Services and selected testing of Accounts Payable.

Evaluations (current reporting period)

A one-year Risk-Based Evaluation Plan was approved in September 2007. The Secretariat has focussed much attention on strengthening evaluation capacity in anticipation of requirements under the proposed Treasury Board Policy on Evaluation.

Table 10: Travel Policies

The Secretariat adheres to travel policies and parameters as established by the Special Travel Authorities and the Travel Directive.

Table 11: Financial Statements of Departments and Agencies (including Agents of Parliament)

Statement of Management Responsibility for Financial Statements

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2008, and all information contained in these statements rests with the management of the Treasury Board of Canada Secretariat (the Secretariat). These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Secretariat's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Secretariat's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded, and that transactions are in accordance with the Financial Administration Act, are executed in accordance with prescribed regulations, within parliamentary authorities, and are properly recorded to maintain accountability of government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements through careful selection, training, and development of qualified staff, through organizational arrangements that provide appropriate divisions of responsibility, and through communications programs aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the Secretariat.

The system of internal control is augmented by Internal Audit, which conducts periodic audits and reviews of different areas of the Secretariat's operations. In addition, the Chief Audit Executive has free access to the Audit Committee, which oversees management's responsibilities for maintaining adequate control systems and the quality of financial reporting, and which recommends the financial statements to the Secretary of the Treasury Board.

The financial statements of the Secretariat have not been audited.

Treasury Board of Canada Secretariat
Statement of Operations (Unaudited)
For the year ended March 31
($ thousands)

	2008	2007
EXPENSES (Note 4)
Expenditure Management and Financial Oversight	1,717,904	1,562,186
Management Policy Development and Oversight	149,498	147,699
Revitalization of Toronto Waterfront	―	35,048
TOTAL EXPENSES	1,867,402	1,744,933
REVENUES (Note 5)
Expenditure Management and Financial Oversight	11,493	11,347
Management Policy Development and Oversight	3,511	3,321
TOTAL REVENUES	15,004	14,668
NET COST OF OPERATIONS	1,852,398	1,730,265

The accompanying notes form an integral part of these financial statements.

Treasury Board of Canada Secretariat
Statement of Financial Position (Unaudited)
At March 31
($ thousands)

	2008	2007
ASSETS
Financial assets
Accounts receivable and advances (Note 6)	103,184	184,124
Non-financial assets
Prepaid expenses	36	-
Tangible capital assets (Note 7)	11,800	4,020
TOTAL ASSETS	115,020	188,144
LIABILITIES
Accounts payable and accrued liabilities (Note 8)	441,505	598,190
Vacation pay and compensatory leave	6,077	5,204
Employee severance benefits (Note 9)	23,703	20,531
TOTAL LIABILITIES	471,285	623,925
EQUITY OF CANADA	(356,265)	(435,781)
TOTAL LIABILITIES AND EQUITY	115,020	188,144

Contingent liabilities (Note 10)
Contractual obligations (Note 11)

The accompanying notes form an integral part of these financial statements.

Treasury Board of Canada Secretariat
Statement of Equity of Canada(Unaudited)
For the year ended March 31
($ thousands)

	2008	2007
Equity of Canada, beginning of year	(435,781)	(211,410)
Net cost of operations	(1,852,398)	(1,730,265)
Current year appropriations used (Note 3)	1,856,598	1,744,413
Revenue not available for spending	(12,325)	(26,163)
Change in net position in the Consolidated Revenue Fund (Note 3)	72,723	(224,906)
Services provided without charge from other government departments (Note 12)	14,918	12,550
Equity of Canada, end of year	(356,265)	(435,781)

The accompanying notes form an integral part of these financial statements.

Treasury Board of Canada Secretariat
Statement of Cash Flow (Unaudited)
For the year ended March 31
($ thousands)

	2008	2007
Operating activities
Net cost of operations	1,852,398	1,730,265
Non-cash items:
Amortization of tangible capital assets	(160)	(344)
Gain on disposal of tangible capital asset	8	10
Services provided without charge from other government departments	(14,918)	(12,550)
Variations in Statement of Financial Position:
(Decrease) in accounts receivable and advances	(80,940)	(10,612)
Increase in prepaid expenses	36	―
Decrease (increase) in accounts payable and accrued liabilities	156,685	(212,957)
(Increase) in vacation pay and compensatory leave	(873)	(887)
(Increase) in employee severance benefits	(3,172)	(3,286)
Cash used by operating activities	1,909,064	1,489,639
Capital investment activities
Acquisition of tangible capital assets	11,724	3,893
Transfer-in of tangible capital assets	―	26
Proceeds from disposition of tangible capital assets	(3,792)	(214)
Cash used by capital investment activities	7,932	3,705
Financing activities
Net cash provided by the Government of Canada	(1,916,996)	(1,493,344)

The accompanying notes form an integral part of these financial statements.

Treasury Board of Canada Secretariat
Notes to the Financial Statements (Unaudited)
For the year ended March 31

1. Authority and Objectives

Under the broad authority of sections 5 to 13 of the Financial Administration Act, the Secretariat supports the Treasury Board as a committee of ministers in its role as the general manager and employer of the core public administration. It is headed by a secretary, who reports to the president of the Treasury Board.

The mission of the Secretariat is to ensure that the rigorous stewardship of public resources achieves results for Canadians.

The core business of the Secretariat is currently organized into the following key areas of program activity:

a) Expenditure Management and Financial Oversight

This program activity provides advice on financial, expenditure, and project authorities, and resource allocation.

b) Management Policy Development and Oversight

This program activity establishes and monitors clear standards and expectations for federal public sector management.

c) Revitalization of Toronto Waterfront

The Toronto Waterfront Revitalization Initiative (TWRI) is both an infrastructure and urban renewal investment. The purpose of the TWRI is to revitalize the Toronto waterfront through investments in both traditional city-building infrastructure, such as local transportation and sewers, and more contemporary urban development, including parks, green spaces, tourism-related facilities, and the redevelopment of underutilized post-industrial areas.

This initiative was transferred to Environment Canada for the 2007-08 fiscal year.

2. Summary of Significant Accounting Policies

The financial statements have been prepared in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Significant accounting policies are as follows:

a) Parliamentary appropriations

The Secretariat is financed by the Government of Canada through parliamentary appropriations. Appropriations provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles because appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 to these financial statements provides a high-level reconciliation between the bases of reporting.

b) Net cash provided by the Government of Canada

The Secretariat operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the Secretariat is deposited to the CRF and all cash disbursements made by the Secretariat are paid from the CRF. The net cash provided by the Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments and agencies of the federal government.

c) Change in net position in the Consolidated Revenue Fund

The change in net position in the CRF is the difference between net cash provided by the government and appropriations used in a year, excluding the amount of non-respendable revenue recorded by the Secretariat. It results from timing differences between when a transaction affects appropriations and when it is processed through the CRF.

d) Revenues

Revenues are accounted for in the period in which the underlying transaction or event that gave rise to the revenues took place.

e) Expenses

Expenses are recorded on the accrual basis:

• Contributions are recognized in the year in which the recipient has met the eligibility criteria or fulfilled the terms of a contractual transfer agreement.
• Vacation pay and compensatory leave are expensed as the benefits accrue to employees under their respective terms of employment.
• Services provided without charge by other government departments for accommodation and legal services are recorded as operating expenses at their estimated cost.

f) Government-wide employee benefits

Eligible public service employees participate in the Public Service Pension Plan sponsored by the Government of Canada. Contributions to the Plan for all departments and agencies, including additional contributions in respect of any actuarial deficiencies, are funded by the Secretariat as centrally managed funds, and they are expensed in the year incurred. The Secretariat recovers a portion of the pension contributions from other departments and agencies.

The Government of Canada also sponsors a variety of other benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. These benefits are recognized to expenses when they become due. A portion of these benefits is also recovered from other departments and agencies.

For the pension benefits and other future employee benefits covered by these plans, actuarially determined liabilities and related disclosure are presented in the financial statements of the Government of Canada, the ultimate sponsor of these benefits. As administrator of the centrally managed funds, the Secretariat expenses these benefits or contributions as they become due and records no accruals for future benefits. This accounting treatment corresponds to the funding provided to the department through parliamentary appropriations.

g) Departmental employee future benefits

Pension benefits:Eligible employees of the Secretariat participate in the Public Service Pension Plan. The Secretariat's share of contributions pertaining to the current service cost of its employees is allocated to the expenses of the program activities of Expenditure Management and Financial Oversight and Management Policy Development and Oversight in the year incurred.

Severance benefits: Employees are entitled to severance benefits, as provided for under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees of the Secretariat is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government of Canada as a whole.

h) Accounts receivable and advances

Accounts receivable and advances are stated at the amount expected to be ultimately realized. No allowance for doubtful accounts has been recorded and no deletions have been made.

i) Contingent liabilities

Contingent liabilities are potential liabilities that may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded. If the likelihood is not determinable or an amount cannot be reasonably estimated, the contingency is disclosed in the notes to the financial statements.

j) Tangible capital assets

All tangible capital assets and leasehold improvements having an initial cost of $10,000 or more are recorded at their acquisition cost. The Secretariat does not capitalize intangibles, works of art, and historical treasures that have cultural, aesthetic, or historical value.

Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization period
Machinery and equipment	3 to 5 years
Motor vehicles	3 years
Leasehold improvements	Term of lease
Assets under construction	Once in service, in accordance with asset class

k) Measurement uncertainty

The preparation of these financial statements in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable.

The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits, and the useful life of tangible capital assets. Actual results could differ significantly from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Appropriations

The Secretariat receives most of its funding through annual parliamentary appropriations. Items recognized in the Statement of Operations and the Statement of Financial Position in one year may be funded through parliamentary appropriations in a prior, current, or future year. Accordingly, the Secretariat has different net results of operations for the year on a government funding basis than on an accrual basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year appropriations used:
($ thousands)

	2008	2007
Net cost of operations	1,852,398	1,730,265
Adjustments for items affecting net cost of operations but not affecting appropriations: Add (Less):
Services provided without charge from other government departments	(14,918)	(12,550)
Revenue not available for spending	12,325	26,163
(Increase) in vacation pay and compensatory leave	(873)	(887)
(Increase) in employee severance benefits	(3,172)	(3,286)
Amortization of tangible capital assets	(160)	(344)
Other	2,091	1,068
Total	(4,707)	10,164
Adjustments for items not affecting net cost of operations but affecting appropriations: Add:
Acquisitions of tangible capital assets	7,942	3,893
Advances	965	91
Total	8,907	3,984
Current-year appropriations used	1,856,598	1,744,413

b) Appropriations provided and used
($ thousands)

	2008	2007
Voted authorities:
Vote 1―Program expenditures	191,012	77,739
Vote 2―Contributions	422	114,993
Vote 5―Government contingencies	750,000	594,031
Vote 10―Government-wide initiatives	2,044	3,503
Vote 20―Public service insurance	1,827,798	1,666,846
Vote 22a―Operating budget carry forward	218,264	―
Vote 23a―Paylist requirements	25,358	―
Total	3,014,898	2,557,112
Statutory authorities:
President of the Treasury Board―salary and motor car allowance	75	73
Contributions to employee benefit plans	17,632	14,689
Payments under the Public Service Pension Adjustment Act	4	15
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act	197	1,584
Unallocated employer contributions made under the Public Service Superannuation Act and other retirement acts, and the Employment Insurance Act	9,098	10,557
Spending of proceeds from the disposal of surplus Crown assets	20	17
Court awards	5	―
Total	27,031	26,935
Lapsed authorities:
Vote 1―Program expenditures	(14,531)	(20,775)
Vote 2―Contributions	(100)	(80,293)
Vote 5―Government contingencies	(750,000)	(594,031)
Vote 10-Government-wide initiatives	(2,044)	(3,503)
Vote 20―Public service insurance	(175,014)	(141,015)
Vote 22a―Operating budget carry forward	(218,264)	―
Vote 23a―Paylist requirements	(25,358)	―
Spending of proceeds from the disposal of surplus Crown assets	(20)	(17)
Total	(1,185,331)	(839,634)
Current-year appropriations used	1,856,598	1,744,413

c) Reconciliation of net cash provided by government to current-year appropriations used
($ thousands)

	2008	2007
Net cash provided by the Government of Canada	1,916,996	1,493,344
Revenue not available for spending	12,325	26,163
Change in net position in the Consolidated Revenue Fund:
Decrease in accounts receivable and advances	80,940	10,612
(Increase) in prepaid expenses	(36)	―
(Decrease) Increase in accounts payable and accrued liabilities	(156,685)	212,957
Increase in vacation pay and compensatory leave	873	887
Other	2,185	450
Total	(72,723)	224,906
Current-year appropriations used	1,856,598	1,744,413

4. Expenses

a) The following table presents details of expenses by category:
($ thousands)

	2008	2007
Transfer payments	322	34,700
Operating expenses:
Centrally managed funds (Note 4b)	1,660,795	1,523,483
Departmental salary and employee benefits	138,056	119,339
Professional and special services	41,057	43,258
Accommodation	11,455	9,211
Transportation and telecommunications	5,011	5,002
Machinery and equipment, including parts and consumable tools	3,479	3,470
Repairs and maintenance	3,308	1,639
Utilities, materiel, and supplies	1,138	1,478
Information	843	1,481
Rentals	758	895
Amortization	160	344
Other	1,020	633
Total operating expenses	1,867,080	1,710,233
Total Expenses	1,867,402	1,744,933

b) Centrally managed funds

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat funds the employer's contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, including additional contributions in respect of actuarial deficiencies.

The Secretariat also funds payments to or in respect of:

• the employer's share of contributions to the Public Service Death Benefit Account;
• the employer's share of Canada/Quebec Pension Plan contributions and Employment Insurance premiums;
• the employer's share of health, disability, and life insurance premiums and related Quebec sales tax;
• claims and related costs under the Public Service Dental Care Plan and the Pensioners' Dental Services Plan;
• provincial payroll taxes;
• pension, benefit, and insurance plans for employees engaged locally outside Canada by Canadian missions abroad; and
• returns to certain employees of their share of the Employment Insurance premium reduction.

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Quebec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds pro-rata, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies, and all revolving funds based on 7.0 per cent (7.5 per cent in 2007) of salaries and wages incurred.

A breakdown by major category is as follows:
($ thousands)

	2008	2007
Expenses
Public Service Pension Plan and Retirement Compensation Arrangement contributions	2,221,119	2,121,017
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits	9,500	9,500
Public Service Death Benefit Account contributions	9,924	9,668
Canada/Quebec Pension Plan contributions	542,989	514,423
Employment Insurance premiums	236,422	237,552
Employment Insurance premium reduction	1,291	1,214
Quebec Parental Insurance Plan premiums	23,575	22,194
Public Service Health Care Plan premiums	720,545	549,845
Public Service Dental Care Plan claims	229,227	207,833
Pensioners' Dental Services Plan claims	101,544	94,562
Provincial health insurance plan premiums	36,916	36,511
Provincial payroll taxes	434,840	419,201
Group disability and life insurance premiums	338,139	313,791
Pension and other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad	42,373	43,904
Pension and similar payments to former government employees	362	338
Miscellaneous special payments, e.g. court awards	197	1,584
Operating expenses	3,499	1,428
Total Expenses	4,952,462	4,584,565
Recoveries
Employer's contributions to government employee benefit plans recovered from government departments and agencies	3,010,850	2,881,603
Employer's contributions to government employee insurance plans recovered from government departments and agencies	121,060	138,051
Employees' contributions to Public Service Health Care Plan recovered from government departments and other organizations	114,582	―
Pensioners' contributions to the Pensioners' Dental Services Plan	45,175	41,428
Total Recoveries	3,291,667	3,061,082
Net Expenses	1,660,795	1,523,483

5. Revenues

The following table presents details of revenues by category:
($ thousands)

	2008	2007
Parking fees	11,466	11,325
Recovery of pension administration costs	3,277	3,313
Other	261	30
Total Revenues	15,004	14,668

 6. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:
($ thousands)

	2008	2007
Receivables from other government departments and agencies	101,390	183,827
Advances to external parties	983	96
Deposits in transit to the Receiver General	559	―
Receivables from external parties	195	162
Advances to employees	57	39
Total Accounts Receivable and Advances	103,184	184,124

7. Tangible Capital Assets

The following table presents the details of Tangible Capital Assets:
($ thousands)

Capital asset class	Cost				Accumulated amortization				Net book value
	Opening balance	Acqui- sitions	Disposals and writeoffs	Closing balance	Opening balance	Amorti- zation	Disposals and writeoffs	Closing balance	2008	2007
Machinery and equipment	942	11,631	(55)	12,518	724	93	―	817	11,701	218
Motor vehicles	89	38	(24)	103	51	30	(22)	59	44	38
Leasehold improvements	1,952	―	―	1,952	1,915	37	―	1,952	―	37
Assets under construction	3,727	55	(3,727)	55	―	―	―	―	55	3,727
Total	6,710	11,724	(3,806)	14,628	2,690	160	(22)	2,828	11,800	4,020

Acquisitions, Machinery and equipment and Disposals and write-offs, Assets under construction include an amount of $3,727 thousand that was transferred from Assets under construction upon completion of the asset. A transfer from Machinery and equipment to Assets under construction was also made for $55 thousand.

Amortization expense for the year ended March 31, 2008, is $160 thousand ($344 thousand in 2007).

8. Accounts Payable and Accrued Liabilities

The following table presents the details of accounts payable and accrued liabilities by category:
($ thousands)

	2008	2007
Accounts payable to other government departments and agencies	272,000	466,607
Accounts payable to external parties	169,505	131,583
Total accounts payable and accrued liabilities	441,505	598,190

9. Employee Benefits

a) Pension benefits

Eligible public service employees participate in the Public Service Pension Plan, which is sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2 per cent per year of pensionable service times the average of the best five consecutive years of earnings. The benefits are integrated with the Canada/Quebec Pension Plan benefits and they are indexed to inflation.

The Secretariat funds the employer contributions to the Public Service Pension Plan, including additional contributions in respect of actuarial deficiencies, on behalf of all government departments and agencies, and recovers a portion of those costs.

During the year, the Secretariat contributed $12,854 thousand ($10,826 thousand in 2007) in respect of its own employees, which represents approximately 2.1 times (2.2 times in 2007) the contributions made by its employees.

b) Severance benefits

The Secretariat provides severance benefits to its employees based on eligibility, years of service, and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. Information about the severance benefits, measured as at March 31, is as follows:
($ thousands)

	2008	2007
Accrued benefit obligation, beginning of year	20,531	17,245
Expense for the year	4,943	5,117
Benefits paid during the year	(1,771)	(1,831)
Accrued benefit obligation, end of year	23,703	20,531

10. Contingent Liabilities

Claims and litigations

Claims have been made against the Secretariat in the normal course of operations. Legal proceedings for claims totalling approximately $64 billion ($64 billion in 2007) were still pending at March 31, 2008. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded on the department's financial statements. No accrual for these contingent liabilities has been made in the financial statements.

The most significant of these legal actions is described as follows:

In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the Public Service (PSSA), RCMP (RCMPSA), and Canadian Forces (CFSA) superannuation plans. The new Act authorized the president of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the plaintiffs' actions were dismissed. In February 2008, all three plaintiffs appealed the decisions. No appeal dates have been scheduled to date.

11. Contractual Obligations

The nature of the Secretariat's activities can result in some large multi-year contracts and obligations whereby the department will be obligated to make future payments when the services or goods are received. Significant contractual obligations that can be reasonably estimated are categorized as follows:
($ thousands)

	2009	2010	2011	2012	2013 and thereafter	Total
Public Service Health/Dental Plans	34,653	37,622	40,881			113,156
Management consulting	11,224	1,157	381			12,762
Other professional services	7,495	1,469	100			9,064
Translation services	1,524	40				1,564
Total	54,896	40,288	41,362			136,546

12. Related-Party Transactions

Services provided without charge

The Secretariat is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The Secretariat enters into transactions with these entities in the normal course of business and on normal trade terms.

During the year, the Secretariat received without charge services from other departments as shown in the following table:
($ thousands)

	2008	2007
Accommodation	11,455	9,212
Legal services	3,463	3,338
Total	14,918	12,550

The government has structured some of its administrative activities for efficiency and cost-effectiveness purposes so that one department performs these on behalf of all departments without charge. The costs of these services, which include payroll and cheque issuance services provided by Public Works and Government Services Canada, are not included as an expense in the Statement of Operations.

13. Comparative Information

Comparative figures have been reclassified to conform to the current year's presentation.

Financial Resources for Management Policy Development and Oversight
($ thousands)

Financial Resources	2007-08
	Planned Spending	Total Authorities	Actual Spending
Portion for Management Policy Development and Oversight	90,400	106,720	94,322
Allocation for Corporate Strategy and Services	34,512	37,788	40,874
Total Management Policy Development and Oversight	124,912	144,508	135,196

Financial Resources for Expenditure Management and Financial Oversight―Secretariat Operations
($ thousands)

Financial Resources	2007-08
	Planned Spending	Total Authorities	Actual Spending
Portion for Expenditure Management and Financial Oversight―Secretariat Operations	46,279	44,310	41,523
Allocation for Corporate Strategy and Services	18,934	20,347	17,878
Total Expenditure Management and Financial Oversight―Secretariat Operations	65,213	64,657	59,401

Human Resources for Management Policy Development and Oversight
Full-Time Equivalent (FTE)

Human Resources	2007-08
	Planned FTEs	Actual FTEs	Difference FTEs
Portion for Management Policy Development and Oversight	628	668	-40
Allocation for Corporate Strategy and Services	269	258	11
Total Management Policy Development and Oversight	897	926	-29

Human Resources for Expenditure Management and Financial Oversight-Secretariat Operations
Full-Time Equivalent (FTE)

Human Resources	2007-08
	Planned FTEs	Actual FTEs	Difference FTEs
Portion for Expenditure Management and Financial Oversight―Secretariat Operations	298	267	31
Allocation for Corporate Strategy and Services	145	139	6
Total Expenditure Management and Financial Oversight―Secretariat Operations	443	406	37

Program Activity 1: Management Policy Development and Oversight

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

Performance Indicators	Performance Measures	Performance Summary	Result
Implementation of the FedAA is successfully coordinated under the leadership of the Treasury Board of Canada Secretariat (the Secretariat).	Commitments of all government departments under the FedAA are well coordinated and targets are monitored.	The FedAA is substantially in force. Work on the last two elements is complete, with an expected coming-into-force date of Q1 2008–09. Additional commitments under the Federal Accountability Action Plan are completed or in progress. Ongoing internal and external communications and activities are in place.	Increased transparency and oversight of government operations.
Leadership is provided by the Secretariat in implementing Secretariat elements of the FedAA.	The Lobbying Act is brought into force and accompanying regulations are developed.	Consultations are completed and regulations pre-published in the Canada Gazette. Work is completed to establish a Q1 2008–09 coming-into-force date for final regulations and statutory provisions. Coordination with the Privy Council Office and the Office of the Registrar of Lobbyists for related work is ongoing.	The FedAA is implemented and departments are supported with updated policies and directives.
	Guidance is developed and issued on the dispute resolution mechanisms for the accounting officer model.	Guidance is developed on how to settle disparate views on policy interpretation (expected Q1 2008–09). Communications on initiatives flowing from the FedAA are coordinated across government and communicated online.
	Fed AA amendments to the Access to Information Act and the Privacy Act are implemented.	The renewed Policy on Access to Information, the Policy on Privacy Protection and the Directive on the Social Insurance Number are expected to come into effect in Q1 2008–09. Scoping and consultations on the regulation of criteria surrounding coverage of institutions under the Access to Information Act and the Privacy Act was completed.
Reporting to Parliament is improved.	A plan is developed for public reporting on planned spending and results at a whole-of-government level, i.e. linkages to the Whole-of-Government Framework.	The RPP Overview for Parliamentarians website was launched in March 2007 and a plan for enhancing the website in 2008 was approved. An enhanced version of the RPP and DPR Overview websites, the Government of Canada Planning and Performance Gateway, was launched in March 2008. Two new Treasury Board central votes were included in the 2007–08 Supplementary Estimates and in the 2008–09 Main Estimates.	Parliamentarians and Canadians have easy, online access to better reports on government expenditures and performance.
	Parliamentarians are provided with a whole-of-government view of actual spending linked to results with the inclusion of spending information in Canada's Performance.	Canada's Performance 2006–07, which was tabled in Parliament in November 2007, includes actual spending information.
	In consultation with key stakeholders, the guidance and reporting requirements for reports on plans and priorities (RPP) and departmental performance reports (DPR) are streamlined.	Plans for streamlining reporting requirements were approved in July 2007. The Performance Reporting: Good Practices Handbook was released in August 2007. The RPPs of the four departments taking part in the Secretariat's concise reporting pilot project were tabled in Parliament in March 2008. Preparations were made in 2007–08 for the implementation in 2008–09 of the Concise DPR pilot project.
	Support is provided for the development of proposals for the implementation of accrual budgeting and appropriations.	The President of the Treasury Board sent letters to the chairs of both Public Accounts and Government Operations and Estimates Committees detailing the implementation plan to extend accrual accounting to departmental budgeting and appropriations.
	The form, content, and timeliness of Public Accounts continue to be improved.	The Public Accounts report that was tabled in Parliament in October 2007 includes improved disclosure on environmental liabilities and public debt.

Responsibilities of deputy heads are clarified in accordance with the Federal Accountability Action Plan—streamlining rules while strengthening accountability and efficiency—through the renewal of the Treasury Board policy suite.

Performance Indicators	Performance Measures	Performance Summary	Result
The Treasury Board policy suite is streamlined and policies are renewed and implemented.	The Treasury Board policy suite is streamlined, clear, and consistent, with a reduction in the number of policies by at least 50 per cent.	An additional 20 policy instruments were rescinded, bringing the total of rescinded policy instruments to 55. The Policy on the Management of IT and the Policy on Information Management received Treasury Board approval and came into effect in July 2007.	Stewardship and management within the government is supported by clarified responsibilities and strengthened accountabilities.
	Treasury Board policies relating to service, information management (IM) and information technology (IT), terms and conditions of employment, communications, and government security are renewed.	A draft Service Policy was developed and is targeted for approval by March 31, 2009. Consultations on service agreements took place and are ongoing. Based on policy changes following consultations with partner departments, the Guide to Internal Services is no longer required; instead a draft Profile of Internal Services was completed Q2. Renewal of the Government Security Policy is delayed until 2008–09 due to additional work required, including the review of government-wide individual screening programs and the development of an IT Incident Management Plan in response to an independent panel.
	Policies are supported by sound implementation plans as well as communications and training to support departments in meeting requirements.	Communications policy revisions and directives are in the final round of consultations—aiming for Q2 2008–09. New products have been developed to help departments communicate new or renewed policies.
Renewed policies are developed and implementation plans put in place in response to the Federal Accountability Action Plan review of three key policy areas—grants and contributions, procurement, and financial management.	Treasury Board approval of revised policies on grants and contributions is sought resulting from the recommendations of the Independent Blue Ribbon Panel.	A revised Treasury Board Policy on Transfer Payments is expected to be approved in Q1 2008–09, with an anticipated effective date of October 1, 2008. The Directive on Transfer Payments was drafted. It is expected to be approved before October 1, 2008.	Responsibilities and accountabilities for ministers and deputy heads have been clarified.
	Treasury Board approval of revised policies on procurement is sought, resulting from the recommendations of the Independent Procurement Review.	Extensive senior-level consultations have taken place regarding plans and progress to meet the operational prerequisites to implementation. Treasury Board approval of the proposed policy will be sought in 2008. The corresponding Procurement Administrative Directive (PAD) is currently being developed.
	Treasury Board approval of revised financial management policies is sought, resulting from the recommendations of the Senior Committee on the Review of the Financial Management Framework.	A draft Policy on Financial Management Governance was developed and is targeted for approval by Q2 2008–09. The remaining financial management policies are under review.
	Policies are supported by sound implementation plans as well as communications and training to support departments in meeting requirements.	All renewed policies were accompanied with implementation plans and communicated to departments in a timely manner.
Compliance with policies and legislation is strengthened through the development and implementation of a compliance framework.	A compliance framework that includes consequences for non-compliance has been developed for consideration by Treasury Board ministers.	A Framework for the Management of Compliance, including consequences for non-compliance, has been developed for consideration by Treasury Board ministers.	Departments are adequately supported with respect to compliance management.
	Mechanisms are established to monitor compliance and an appropriate range of measures is identified to address instances of poor management.	All renewed policies include a monitoring and reporting section and a generic range of consequences for non-compliance. The Framework for the Management of Compliance has been drafted.
	A broad approach to the management of compliance, including discipline, is supported by a committee of deputy ministers to ensure fair, equitable, and consistent practices.	A Deputy Ministers Advisory Committee for the Management of Compliance was formed in April 2007 and held several meetings throughout 2007–08.

Management oversight is improved across government through the use of better tools, processes and information (e.g. the Management Accountability Framework).

Performance Indicators	Performance Measures	Performance Summary	Result
Departmental management practices are enhanced through better understanding, ownership, and use of the Management Accountability Framework (MAF) by deputy ministers.	Guidance and support are provided to departments and agencies to strengthen self-assessment and encourage the use of MAF findings in departmental decision making.	Departments and agencies received guidance on how to provide information in support of the assessments. Stakeholder engagement throughout the MAF assessment process was improved. Lessons-learned sessions were conducted, both internally and externally.	Government oversight of management performance has been enhanced.
Secretariat management oversight is strengthened through better processes and instruments for assessing management performance.	The MAF indicators and the methodologies for measuring and rating departmental performance are further refined in collaboration with the Treasury Board portfolio agencies and departments.	An online MAF portal and database were launched. A better suite of areas of management and lines of evidence were used for Round V of the MAF.	The government's ability to analyze departmental management performance is enhanced.
Secretariat analysis and advice on departmental and government-wide management performance is enhanced through the application of MAF findings.	Proposals are developed for reporting the results of MAF assessments to ministers and central agencies in support of decision making and parliamentary reporting.	Fifty-four departments and agencies were assessed using the MAF. MAF results were incorporated more systematically into advice to ministers in relation to expenditure decisions. MAF results provided key input to the Privy Council Office's performance assessments of deputy ministers.	Departmental performance management information is improved.

Financial management and auditing policies, practices, and capacity across the Government of Canada are strengthened.

Performance Indicators	Performance Measures	Performance Summary	Result
Leadership is provided in improving departmental financial management practices in support of renewed policies.	Directives, standards, and other guidance is developed and issued; implementation of policy changes is commenced in the areas of grants and contributions and financial management.	The revised Policy on Transfer Payments expects to be approved in Q1 2008–09 and its directives are being revised to reflect the Independent Blue Ribbon Panel's recommendations. Approval of the draft Policy on Financial Management Governance is anticipated for July 2008. Work is continuing on remaining financial management policies and directives and their implementation before the end of the year. The revised Guide to Costing was issued in March 2008. Readiness assessments were completed and action plans are underway to prepare the largest departments to be in a position to undergo a controls-reliant audit of their financial statements in the future.	Departmental efforts to improve their financial management practices are supported by improved human resources (HR) capacity and clear policy guidance.
	Implementation of a comprehensive multi-year HR strategy for the financial management and internal audit communities is underway through the development of methodologies and tools that support enhanced professional capacity and community-based approaches.	Comprehensive HR frameworks for the financial management and internal audit communities have been completed and related HR strategies are being finalized. Discussion with the Canada Public Service Agency about moving forward on the review of the Financial Administration (FI) and Internal Audit (IA) classification standards was held. Classification issues analysis with IA community members has been conducted. Development of the Competency Architecture and Dictionaries, Competency Profiles, and various tool kits as part of the Professional Development Program (PDP) Guide is in progress. The development of a communications and engagement framework for the IA community was completed. Departmental communications and consultations regarding new policy requirements and implementation issues are continuing. Collective staffing initiatives have been undertaken by both FI and IA communities, in collaboration with the Public Service Commission of Canada, to address capacity issues. Learning curricula are being developed in partnership with the Canada School of Public Service.
Internal audit plans, operations, and practices across government are enhanced.	The Directive on Departmental Audit Committees is supported by leading the recruitment, qualification, selection, placement, and ongoing development of external members for departmental audit committees.	Treasury Board has appointed 48 individuals from outside the federal public administration to the audit committees of 18 departments. Treasury Board's appointment process and instruments are approved. The appointment of 49 members was accomplished on schedule. An initiation workshop, tools, and instruments were delivered to chief audit executives of all departments. Five sessions on "How Government Works" were delivered to new Departmental Audit Committee (DAC) members. A change management advisor was engaged in July.	Capacity and clarity surrounding internal audit functions are strengthened.
	A program of horizontal audits of small and large departments and agencies is planned and initiated.	Reports on the first two horizontal audits are being readied for release. Horizontal audits of Contracting Information Systems and Monitoring and Contracting for Professional and Technical Services have been launched. The first risk-based Government-Wide Horizontal Internal Audit Plan has been completed and communicated. Incremental funding allocations of about $30 million have been made to large departments and agencies to support compliance with the new requirements of the Policy on Internal Audit. IA guidance documents have been developed. A plan for and overview of the Comptroller General's Horizontal Audit Plan and priorities across departments has been released.
	Technological and other enablers (e.g. an omnibus contracting arrangement) to leverage the internal audit resource base across government are developed.	Bids closed on the omnibus supply arrangement—over 100 proposals were received. The bid evaluation process for eight separate service lines is complete. Availability of the supply arrangement to departments is targeted for July 2008.
	A performance measurement and assessment strategy for the Policy on Internal Audit is developed and implemented.	An IA performance measurement strategy was outlined with an emphasis placed on comprehensive MAF assessment criteria and results. A business plan for internal audit practice inspections across government was completed. The Taking Stock: Status at Oct. 2007 document was completed and distributed. Three studies have considered the status of policy implementation. An interim assessment of policy implementation is slated to commence summer 2008.
	In response to reports of the Auditor General of Canada, guidance is developed and issued to audit committees on monitoring and reporting on departmental commitments.	The Guide for Departmental Audit Committees was released to chief audit executives and to new DAC members. The Office of the Auditor General of Canada (OAG) provided additional specific guidance to chief audit executives on responsibilities (including reporting) for major follow-up exercises. Investigation of opportunities for the automation of monitoring systems is occurring. Horizontal professional practice inspection is planned to focus on monitoring and tracking systems.

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

Performance Indicators	Performance Measures	Performance Summary	Result
Strategies are developed and implemented to address horizontal issues and improve alignment of service transformation initiatives.	Forums are created to promote leadership of service transformation and facilitate the sharing of leading practices among deputy ministers (DM), assistant deputy ministers (ADM), and management communities.	Two interdepartmental ADM-level committees were created to bring a community of leaders of service transformation together to improve awareness of the variety of initiatives underway. Two additional events were held to provide deputy ministers with the opportunity to share leadership insights and best practices regarding service transformation initiatives.	Leadership and performance management related to service transformation initiatives is strengthened.
	A process is developed to enable senior officials to review, steer, align, and measure the progress of service transformation initiatives that are underway.	A reporting instrument was developed to monitor the progress of service transformation initiatives. Analysis of the data collected by the progress-monitoring reporting instrument helped senior executives recognize specific obstacles that were common to several service transformation initiatives.
	Labour relations and change management issues are identified and discussed with affected collective bargaining agents.	The ADMs responsible for Corporate Administrative Shared Services (CASS) and bargaining agents were regularly briefed. Support and advice were provided to departments to address workforce issues related to transformation initiatives.
Secretariat leadership and collaboration from departments are provided to move forward with CASS.	A detailed plan for the implementation of a proof of concept for CASS is developed and brought forward to Treasury Board for consideration.	There was continued leadership and support for back office renewal of the Government of Canada. Acceptance and momentum with five early-adopter departments and key stakeholders were achieved through extensive dialogue, which included two deputy-level meetings, twice monthly ADM-level meetings, a two-day workshop to align major HR transformation initiatives with CASS, and various monthly committees and working groups. An overall vision for corporate administrative renewal has been developed and is being launched through an initial project that is currently pending approval.	The Secretariat is better positioned to commence implementation of the CASS vision, starting with the HR business solution.
Leadership is provided on key Government of Canada initiatives to implement more effective approaches to technology, information, and service.	Strategies are developed on whole-of-government approaches to identification, authentication, and authorization; personalized Web services; and inventory of direct external services.	Awareness of the current status and potential for improved alignment of service transformation initiatives was enhanced through the engagement of senior officials in horizontal governance mechanisms.	The Government of Canada's ability to meet the service expectations of Canadians is improved.
	A detailed examination of linkages between employee engagement, service quality, and citizen satisfaction in the public service value chain is undertaken and results are reported.	A report, Finding Common Ground, summarizing research findings on what drives employee engagement in the public sector was produced. This research was used to examine questions on employee engagement. Collaborative public sector research on service performance and client satisfaction was completed. An intergovernmental Citizens First 5 survey was completed; publication is expected summer 2008.
Enhanced capacity is built and supported to enable effective management of technology, information, and service in the Government of Canada.	A plan is developed to strengthen IM capacity in a manner that supports increased transparency of government operations and enables effective and efficient program and service delivery.	IM Problem and Definition was completed, including an initial report on the IM Initiatives Inventory in Q1. GC Enterprise IM Framework was developed in Q2. Gap analysis and ideal states were identified for each framework element completed in Q3. Initiative selection for Year 1 activities to support the enterprise IM Strategy was completed. GC IM Strategy and Action Plan were completed in Q4. IM Internal Services Profile Summary was completed in Q4.	HR management within the IM and IT business areas is strengthened.
	Services and products are created to support the growth and development of leadership and HR capacity in key service transformation communities.	Collective Staffing Initiative was completed in Q2. Official transfer of the Organizational Readiness Office from Public Works and Government Services Canada to the Secretariat occurred in Q3. Government-wide IM and IT Human Capacity Plan, IM Generics, and Standards for IM Competencies in GC were approved. New intake for Leadership Development Program was completed in Q4.
The effectiveness of oversight of significant investments and projects in technology, information, and services is strengthened.	Management expectations are clarified and guidance is strengthened in the oversight of IT, IM, and service transformation projects.	Working closely with program sectors through regular meetings, early interventions, and sharing of information ensured timely assessment of Treasury Board submissions and monitoring in excess of 22 major projects. The Enhanced Management Framework Web presence was updated in Q2. An analysis guide to improve Secretariat processes for reviewing departmental proposals for IT-enabled projects was developed in Q3. There was continued renewal of project management policy guidance instruments for management of major IM- and IT-enabled initiatives in Q4, including development of such tools as the Business Case Standard and Guide as well as the Project Charter Standard and Guide.	Oversight of major Government of Canada IT projects and IT investment initiatives is improved.

Canada's regulatory management is improved through a modern approach to smart regulation.

Performance Indicators	Performance Measures	Performance Summary	Result
A strengthened, modern approach to regulating is implemented.	An action plan on the implementation of a new directive on regulating is developed by the Secretariat for internal and external use.	The Cabinet Directive on Streamlining Regulation (CDSR) Action Plan was developed for internal and external use and the supporting Treasury Board submission was approved. The CDSR came into force in April 2007.	Regulatory processes are improved to increase efficiency while protecting the public interest.
	Mechanisms for monitoring and reporting are developed.	A review of compliance with the CDSR in the first year of implementation was undertaken to establish a baseline for its performance measurement mechanisms. Initial assessment of 48 medium- and high-impact proposals was undertaken between April and December 2007.	Areas where compliance can be strengthened were identified.
Support to regulatory departments for the implementation of the regulatory policy is improved.	Guidance for the implementation of a new directive on regulating is developed.	The following four guides were developed to support the implementation of the CDSR: 1) Canadian Cost-Benefit Analysis Guide: Regulatory Proposals; 2) Assessing, Selecting, and Implementing Instruments for Government Action; 3) Guidelines on International Regulatory Obligations and Cooperation; and 4) Guidelines for Effective Regulatory Consultations. The Centre of Regulatory Expertise (CORE) became operational in October 2007. By March 2008, CORE had over 25 active files from 11 departments and agencies.	Departments are supported in developing their capacity to implement the CDSR.
	A curriculum to strengthen the skills of the regulatory community is developed in collaboration with the Canada School of Public Service.	The following three courses were developed: 1. Introduction to Regulating; 2. Regulatory Performance Measurement and Evaluation; and 3. Cost-Benefit Analysis and Risk Analysis for Regulators. The introductory course was attended by 195 people.
Regulatory cooperation is strengthened and coordinated.	A strategy for the strengthening of regulatory cooperation and coordination among departments is proposed.	An ADM Steering Committee was established to advise on and coordinate the implementation of the CDSR.	International and interdepartmental regulatory coordination and cooperation is strengthened.
	Expert advice is provided on national and international regulatory cooperation.	A regulatory cooperation agreement was implemented with the US and Mexico (vehicle safety regulations for immobilizers were amended to enable acceptance of American vehicles) and another with the European Union.

Program Activity 2: Expenditure Management and Oversight

Better information and advice is provided to Cabinet and the Treasury Board on new and existing programs to support decision making on resource allocation.

Performance Indicators	Performance Measures	Performance Summary	Result
Treasury Board submission requirements are strengthened and support provided to the Privy Council Office to strengthen requirements for Memoranda to Cabinet to ensure they provide more detail and context to support resource allocation decisions.	The Privy Council Office is supported in the development of proposals for strengthening the information content of Memoranda to Cabinet in conjunction with the requirements for Treasury Board submissions being strengthened to better support Cabinet review of new spending proposals.	The Secretariat provided comments on Cabinet documents, as required. The updated Guide to Preparing Treasury Board Submissions has been online since July 2007 and has been updated as required.	Financial and program information content found in Cabinet proposals and used in strategic reviews is strengthened.
	The requirements of the new Expenditure Management System regime are communicated to client departments and agencies.	All departments and agencies were briefed on strategic review requirements. Departments and agencies involved in the 2007 and 2008 rounds of strategic reviews were briefed at the DM and corporate ADM levels.
The first round of systematic reviews of program spending is conducted.	A process and methodology for strategic periodic reviews of program spending are developed, including the development of selection and sequencing criteria for reviews, the selection of candidates for review, and the launch of the first year of reviews.	The first round of strategic reviews has been completed. The results of the first round of strategic reviews have been successfully communicated through Budget 2008. Lessons-learned sessions were undertaken to inform the 2008 strategic review process and the terms of reference for strategic reviews.	Government priorities received increased funding from reallocations through the strategic reviews.
Advice to the Treasury Board on resource allocation is strengthened using improved financial and expenditure information as well as audit and evaluation information.	The quality of financial, management, and program performance information in the Management, Resources, and Results Structure (MRRS) of departments is improved and made available.	The Secretariat launched the second phase of the MRRS Policy Implementation Plan in July 2007. Performance measurement frameworks (PMF) have been developed for the vast majority of strategic outcomes and programs of the federal government.	Treasury Board decisions are better supported through improved expenditure and performance information.
	Active oversight of evaluation reports is increased and the use of evaluation findings is enhanced to inform Treasury Board policy and expenditure management decision making.	There was continued review of departmental evaluation reports and refinement of assessment criteria.
	Progressive implementation of an enhanced sign-off role in departments and the Office of the Comptroller General is commenced.	Implementation of the enhanced sign-off role in departments was deferred to the new target date of Q2 2008–09 due to delays in the funding and approval of the new financial management policies.

Capacity is strengthened to provide clear and timely information on expenditures to support oversight and reporting.

Performance Indicators	Performance Measures	Performance Summary	Result
Secretariat capacity for oversight, analysis, and forecasting of expenditures is improved through the timely provision and consolidation of actual spending data.	Use of administrative data systems is enhanced to track expenditures during the year to support the management of parliamentary authorities and better forecast year-end spending.	Products delivered include the prototype Expenditure Monitor, lapse forecasts for budgets, and various related analytical products and briefing materials.	The Government of Canada has access to more accurate expenditure forecasting information.
	Data and methodologies to support a total compensation planning approach are improved.	Total compensation comparability studies (TCC) were conducted for four bargaining units; two more TCCs are planned for 2008–09. Total compensation cost projections were improved to better reflect key assumptions affecting the future cost of various compensation components.
	A strategic planning approach for National Joint Council (NJC) employee reimbursement policies is developed, including developing key principles for decision making.	A mandating process for the review of NJC directives has been established. A first draft of principles has been developed, with consultations to follow in 2008–09. A tracking tool was developed and is being further refined. Costs related to the NJC reimbursement policies are now reflected as a pressure in the fall 2007 compensation plan. Discussions with the NJC are expected to be completed by Q1 2008–09.
More detailed and reliable information is provided to parliamentarians and the public on government spending.	Standards are developed for departmental financial analysis and communication of internal and external results.	The use of MAF to identify best practices is planned for the new target date of Q2 2008–09. Information on new votes will be tabled in the Estimates in Q3 and Q4.	Parliamentarians and Canadians have access to better departmental expenditure information.
	The development of tools, training, and guidance to support enhanced departmental financial analysis is ongoing.	MAF assessment criteria are being used to communicate expectations to departments.

Results-based management is strengthened, and information on programs and spending is improved.

Performance Indicators	Performance Measures	Performance Summary	Result
The quality of program performance information is improved through Secretariat leadership in the implementation of the MRRS Policy.	Departmental program activity architectures (PAA) reflecting all programs are developed in accordance with the MRRS Policy to provide a comprehensive inventory of the government's programs.	PAAs for all organizations in the federal government subject to the MRRS Policy were approved by Treasury Board in May 2007.	Expenditure decisions are supported by enhanced performance monitoring and reporting information.
	Client departments and agencies are supported in the development of their PAA and performance indicators.	Through workshops, presentations, and awareness sessions, the Secretariat provided guidance and support to organizations as they developed their PAAs and PMFs.
	Business requirements for the Budget Office Systems Renewal (BOSR) project are identified by users.	Under the implementation of MRRS Policy, business requirements for the BOSR project have been identified and updated to reflect additional requirements.
Secretariat capacity to collect and analyze audit and evaluation information to support decision making is strengthened.	Internal audit reporting requirements, strategies, and mechanisms are defined.	Key reporting requirements have been mapped. A guide has been prepared to streamline internal audit reporting and to improve timeliness. A departmental chief audit executive was identified as the champion for reporting practices. Best practices were presented at a conference for chief audit executives. An updated template was prepared to support assessments of audit reports prepared by departments. An Internal Audit Report Registrar function is being established. A prototype for an enhanced monitoring system will be operational in the near term.	Audit and evaluation information provided to parliamentarians is improved.
	A registry of evaluation reports is maintained and the ability of the Secretariat to use evaluation information to inform decision making is enhanced.	A three-month backlog of information needing to be added to the audit and evaluation database, noted in the previous report, was eliminated in January 2008.

Strengthening the evaluation function is achieved.

Performance Indicators	Performance Measures	Performance Summary	Result
The Evaluation Policy is renewed and an implementation plan developed.	The Evaluation Policy is renewed, along with its supporting directive and standards.	Stakeholder consultations on the Evaluation Policy were held to continue refining the policy and to build awareness among departmental evaluation officials of the objectives of the policy renewal process. Work to align the policy with the overall Secretariat policy renewal framework continued.	Work on the renewed Evaluation Policy has been completed.
	The Evaluation Implementation Action Plan is developed.	Implementation options were developed to help inform decision making around the renewal of the policy.
Evaluation tools are developed and improved in support of broadened evaluation coverage.	New evaluation standards and guidelines are established to support use of the new evaluation tools and implementation of the renewed Evaluation Policy.	Testing and refinement, including a third-party review, of the value-for-money assessment tool continued.	Departments are more aware of the potential requirements of the new Evaluation Policy and its implementation.
	A new suite of evaluation approaches is introduced to support timelier and broader evaluation coverage and to tailor the chosen evaluation approach to an assessment of program risk.	Development of guidance documents related to the renewed policy's implementation continued. This work involved stakeholder consultations on the suite of evaluation approaches, which resulted in a series of enhancements to those approaches. Their potential contribution to the policy's successful implementation has been clarified as a result.
New tools and other support are provided to improve competencies and increase capacity.	Core evaluation competencies are developed in collaboration with stakeholders and delivery agents.	A comprehensive list of core competencies for heads of evaluation and evaluators has been developed in consultation with evaluation stakeholders.	The Secretariat is better positioned to support capacity building within the evaluation community in a manner that is consistent with its current resources.
	A certification process is developed and a professional development program for government evaluators is launched.	A scaled-back alternative is under development, with a target date of March 2011.

Program Activity 3: Corporate Strategy and Services

Corporate enabling strategies are developed and implemented within the Secretariat and across departments, consistent with the renewed role of the Treasury Board.

Performance Indicators	Performance Measures	Performance Summary	Result
Internal and interdepartmental engagement strategies are developed and implemented to support the Government of Canada Management Agenda.	An action plan is developed and implemented within the Secretariat, focussed on key management initiatives and on new approaches to working with the Treasury Board, other departments, and central agencies.	The implementation of the internal strategy included the following: 1. Development of an employee engagement strategy; 2. Creation of a tool kit for managers; 3. Dialogue sessions with 1,000 employees from across 15 sectors; 4. The EX Conference of October 2007; 5. Creation of a page dedicated to Management Excellence on the Secretariat InfoSite; 6. Brown Bag Lunches with the Secretary; and 7. A successful Secretariat town hall meeting in February focussing on the change management agenda.	The Government of Canada Management Agenda is supported by internal and external awareness and engagement initiatives.
	Learning strategies are developed and implemented in support of the action plan.	Principles of the change agenda were embedded into all learning event presentations and materials.
	Results of the action plan are communicated, and outreach plans are developed to support the engagement strategy.	A Speakers' Bureau was established; 14 presentations were initiated by the Secretariat since June and 15 email requests were received from departments. Prototypes for a corporate look for the management agenda are being developed as well as supporting materials, such as a brochure.
Treasury Board operations are strengthened through implementation of new approaches and tools.	The updated Guide to Preparing Treasury Board Submissions is posted on the Secretariat website.	The Guide to Preparing Treasury Board Submissions was published in July 2007, was updated in September and December 2007, and will continue to be updated to ensure information remains current and accurate.	Treasury Board decision making is facilitated by higher quality Treasury Board submissions and clearer internal Secretariat processes.
	Internal processes to improve support to Treasury Board are updated to meet the requirements of a new directive on regulating.	Internal processes for improving support to Treasury Board were updated. The implementation of the CDSR included a new Regulatory Impact Analysis Statement and a review of the triage framework. A new triage approach was developed to support the CDSR.
The Secretariat Sustainable Development Strategy 2007–09 is implemented.	Departmental progress contributes to the improved management of and accountability for sustainable development within the Government of Canada.	The Guide to Preparing Treasury Board Submissions was revised to include guidance on sustainable development. The Secretariat is working with Environment Canada to revise the 2007–08 DPR guidance.	Departments are supported in the implementation and management of their sustainable development strategies.
	The Secretariat contributes to the progress on federal priorities related to sustainable development.	A guide for fleet management, which provides a checklist for green fleet management, was posted in July 2007. Departmental fleets are managed with sound environmental stewardship in accordance with the directives on fleet management. The Annual Federal Fleet Workshop was chaired in October 2007. The Federal Contaminated Sites Inventory provides current information on the progress custodians are making in addressing their contaminated sites.
	Environmental stewardship of Secretariat operations is improved.	An innovative program to compost pulverized paper to increase waste diversion from 53 per cent to 77.5 per cent was implemented.

Internal management practices continue to be improved in response to the Secretariat's MAF assessment and workplace surveys.

Performance Indicators	Performance Measures	Performance Summary	Result
HR management is improved, with progress on an open and transparent process for staffing, strengthened linkages to Secretariat business planning, and implementation of an HR plan.	An HR plan is completed in accordance with the Public Service Modernization Act.	The HR plan was completed within prescribed timelines, posted on the Secretariat website, and communicated to all staff. HR capacity is improved to provide support to Secretariat leaders in organizational renewal and transformation.	The Secretariat is better positioned to achieve its current and future business objectives.
	A corporate resourcing and recruitment plan that is aligned with the Secretariat's business requirements is developed, implemented, and integrated within the business planning process.	The HR plans of all sectors were analyzed and results and linkages with business plans were discussed with senior managers for integration in 2008–09 plans.
	The Secretariat's career development programs for key communities are strengthened and expanded.	Secretariat learning and competency-based management programs were developed for ES and AS occupational categories. An approach and tools for an EX-02 and EX-03 talent management program were developed.
	Bilingualism continues to be strengthened, and public service values are promoted in the workplace.	Workshops on "Giving Shape to the Public Service Values at the Secretariat" were held in February and March. A Values and Ethics Network and an Employment Equity and Diversity Advisory Committee were established.
Internal stewardship is improved, with a continued emphasis on improving financial reporting and strengthening IM	Significant progress is made on the documentation of key controls to support control-based audit.	Phases 1 and 2 of the readiness assessment were completed and an action plan established. Monitoring processes are being established to track progress on addressing the observations noted by Deloitte.	The Secretariat is well positioned to continue to strengthen its internal stewardship.
	A risk-based audit plan and a risk-based evaluation plan are developed to identify the audits and evaluations that should take place over the planning period.	A Risk-Based Audit Plan was approved in June 2007. A one-year evaluation plan was approved by the Management Infrastructure Committee on November 27, 2007.
	A departmental IM policy is developed, and a pilot project is completed to support development of IM directives and standards.	A draft IM Policy and IM-IT Strategic Framework was developed by March 2008. The Secretariat's IM pilot project has been put on hold; whether the project is needed will be re-examined in the context of the new strategic framework, once it is approved.
Continued progress is made on efforts to strengthen governance and strategic direction, which include the following: continued integration of strategic, HR, and business planning; the implementation of a corporate risk profile (CRP); and development of a PMF.	Interim directives are developed based on the Information Technology Security Policy.	Security standards and directives for network computers and for the protection of sensitive information have been developed.	The Secretariat is better managed and therefore better able to deliver results to Canadians.
	Secretariat strategic planning processes are further refined in accordance with the MRRS Policy and MAF expectations.	The Secretariat participated in the RPP pilot project, which resulted in its 2008–09 RPP being much more concise and user-friendly and less bureaucratic. The RPP incorporated the Secretariat CRP and was based on the integrated sector business plans, which included HR planning as a key element.
	A Secretariat CRP is used to support senior management discussions and to guide strategic and business planning.	A Secretariat CRP was developed, and it contributed to discussions on establishing Secretariat priorities and to the development of the 2008–09 RPP. All sector business plans highlighted those aspects of the CRP that were of greatest concern.
	The Secretariat PMF is developed in accordance with timelines established for all departments.	The PMF was developed and submitted, although its completion was delayed to Q4 2008–09 due to the complexity of the task. Identifying appropriate performance measures for policy-based activities proved particularly challenging.