Rescinded [2018-03-28] - Guidelines on Amended Corporate Plans and Budgets

• These guidelines, intended for use within the Treasury Board Secretariat, identify the factors to consider when determining whether an amended corporate plan, an amended capital budget, or an amended operating budget should be required from a Crown corporation subject to Part X of the Financial Administration Act (FAA).
• Unless the proposed activity or change in expenditures clearly triggers the requirements under one or more of the sections 122-124 in the FAA, judgement must be exercised. Historically that judgement reflects the collective wisdom, often including negotiations, of the Treasury Board Secretariat (TBS), the Crown corporation, sometimes the host department, and sometimes the office of the responsible Minister. In all cases, the final collective judgement reflects a balanced view. TBS wants to ensure that Ministers have the opportunity to decide to approve, reject or change a proposed activity or course of action that is material. Crown corporations often worry about preparing a submission for approval which does not add value to their original plans.
• The criteria used informally by TBS in the past to justify amended plans and budgets has included:
  • the uniqueness of the event or disparity with other approved activities;
  • the inconsistency of the activity with activities normally associated with the mandate of the corporation (i.e., extent of mandate-creep);
  • the deviation or variation from the conditions explicitly set by a previous Treasury Board decision;
  • the materiality of expenditures associated with the activity vis-à-vis the previously approved operating or capital expenditures and commitments (typically around five percent of capital expenditures or another appropriate reference point);
  • the likely value to the responsible Minister or Treasury Board Ministers of knowing about the proposed activity or course of action;
  • the ability of the appropriate Minister or Treasury Board Ministers to change the proposed activity or course of action, particularly to manage risk; and
  • the sufficient length of time which has lapsed since last approval of plan and budgets, or until the next cycle of corporate plans and budgets.

• Section 122(6) of the FAA requires an amended corporate plan where a Crown corporation proposes to carry on any business or activity in a manner that is not consistent with the last approved corporate plan.
• Section 123(3) requires an amended operating budget where a Crown corporation anticipates that the total amount of expenditures in respect of any major business or activity will vary significantly from the total amount projected for that major business or activity in the last approved operating budget. Similarly section 124(6) requires an amended capital budget when the Crown corporation anticipates that the total amount of capital expenditures or commitments to make capital expenditures in respect of any major business or activity will vary significantly from the total amount projected for that major business or activity in the last approved capital budget.
• The FAA does not define the specific words used in sections 122, 123 and 124 stipulating when amended plans and budgets are required (i.e., the words "not consistent with" or "vary significantly"). Thus, the statute often cannot provide the necessary guidance in all cases.

For further information or to comment on these guidelines, you are encouraged to contact: