Complete text - 2014–15 Departmental Performance Report - Treasury Board of Canada Secretariat

© Her Majesty the Queen in Right of Canada,
represented by the President of the Treasury Board, 2015

Catalogue No. BT1-22E-PDF
ISSN: 1490-1498

Table of Contents

President’s Message

The Honourable Scott Brison

The Honourable
Scott Brison

I am pleased to present the 2014-15 Departmental Performance Report for the Treasury Board of Canada Secretariat.

As the new President of the Treasury Board, I have been given a mandate to lead the management agenda for the government and restore a culture of respect, openness, and transparency within, and for, the public service.

This will mean, for example:

  • building on the work of the Joint Task Force with the Public Service Alliance of Canada to provide federal public servants with a safe and productive workplace, free from harassment and sexual violence;
  • expanding and accelerating open data initiatives to make information available digitally in open, easy-to-use formats, guided by the principle that government data belongs to all Canadians;
  • improving the use of evidence and data in our policy and program decisions;
  • strengthening the oversight of taxpayer dollars; and
  • ending partisan advertising by the government and modernizing the Communications Policy of the Government of Canada to better inform and engage Canadians.

This plan is a plan for all Canadians, and we can't get it done without the help and support of the public service and the full engagement of the Canadian public.

I would like to thank all of the Secretariat's employees for their hard work, professionalism, and dedication in helping the Secretariat meet its objectives and contribute to Canadians' well-being. I look forward to working closely with TBS staff and the rest of the public service in the coming months and years to deliver results for Canadians.

The Honourable Scott Brison
President of the Treasury Board

Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Minister: The Honourable Scott Brison, President of the Treasury Board

Institutional Head: Yaprak Baltacioglu, Secretary of the Treasury Board

Ministerial Portfolio: The Treasury Board of Canada Secretariat and the Canada School of Public Service. Operating at arm's length and reporting to Parliament through the President of the Treasury Board are the Public Sector Pension Investment Board, the Office of the Commissioner of Lobbying of Canada and the Office of the Public Sector Integrity Commissioner of Canada.

Enabling Instruments: Financial Administration Act, R.S.C., 1985, c. F-11

Year of Commencement: 1966

Organizational Context

Raison d'être

The Treasury Board of Canada Secretariat (Secretariat) is the administrative arm of the Treasury Board, and the President of the Treasury Board is the Minister responsible for the Secretariat. This organization supports the Treasury Board by making recommendations and providing advice on program spending, regulations and management policies and directives, while respecting the primary responsibility of deputy heads in managing their organizations, and their roles as accounting officers before Parliament. In this way, the Secretariat strengthens the way government is managed and helps to ensure value for money in government spending and results for Canadians.

Responsibilities

The Secretariat supports the Treasury Board in each of its roles (see text box “Treasury Board Roles”). Within the Secretariat, the Comptroller General of Canada provides government-wide leadership, direction, oversight and capacity building for financial management, internal audit and the management of assets and acquired services. The Chief Human Resources Officer provides government-wide leadership on people management through policies, programs and strategic engagements and by centrally managing labour relations, compensation, pensions and benefits and contributing to the management of executives. The Chief Information Officer provides government-wide leadership, direction, oversight and capacity building for information management, information technology, government security (including identity management) and access to information, privacy, and internal and external service delivery.

The Treasury Board Portfolio consists of the Secretariat and the Canada School of Public Service. The Public Sector Pension Investment Board, the Office of the Commissioner of Lobbying of Canada and the Office of the Public Sector Integrity Commissioner of Canada are arm’s-length organizations that report to Parliament through the President of the Treasury Board.

When working with federal departments, agencies and Crown corporations, the Secretariat plays three central agency roles:

  • A leadership role in driving and modelling excellence in public sector management and in identifying and launching government-wide horizontal initiatives that target administrative efficiencies;
  • A challenge and oversight role that includes reporting on the government’s management and budgetary performance and developing government-wide management policies and standards; and
  • A community enabling role to help organizations improve management performance.

Strategic Outcome and Program Alignment ArchitectureFootnote 1

In 2014–, the Secretariat’s Program Alignment Architecture included six programs that contributed to the achievement of its Strategic Outcome, “Government is well managed and accountable, and resources are allocated to achieve results.” Detailed information about the Secretariat’s Strategic Outcome and about each program can be found in Section II: Analysis of Programs by Strategic Outcome.

2014– Program Alignment Architecture

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results.

  • 1.1 Program: Management Frameworks
    • 1.1.1 Sub-Program: Strategic Management and Governance
    • 1.1.2 Sub-Program: Sound Management and Decision Making
    • 1.1.3 Sub-Program: Service Modernization
    • 1.1.4 Sub-Program: Information Management, Access and Privacy
    • 1.1.5 Sub-Program: Management of Information Technology
    • 1.1.6 Sub-Program: Government Security
    • 1.1.7 Sub-Program: Communications and Corporate Identity
    • 1.1.8 Sub-Program: Regulatory Management
  • 1.2 Program: People Management
    • 1.2.1 Sub-Program: Direction Setting
    • 1.2.2 Sub-Program: Enabling Infrastructure
    • 1.2.3 Sub-Program: Comprehensive Management of Compensation
  • 1.3 Program: Expenditure Management
    • 1.3.1 Sub-Program: Results-Based Expenditure Management
    • 1.3.2 Sub-Program: Expenditure Management Advice and Reporting
    • 1.3.3 Sub-Program: Compensation Expenditure Management
  • 1.4 Program: Financial Management
    • 1.4.1 Sub-Program: Financial Management, Oversight and Reporting
    • 1.4.2 Sub-Program: Internal Audit
    • 1.4.3 Sub-Program: Assets and Acquired Services
  • 1.5 Program: Government-Wide Funds and Public Service Employer Payments
  • Internal Services

Organizational Priorities

In its 2014– Report on Plans and Priorities, the Secretariat established five organizational priorities that contribute to its Strategic Outcome:

  • Priority 1: Strengthen government financial and expenditure management to support value for money, ongoing cost-containment and increased operational efficiency;
  • Priority 2: Modernize people management to support a productive, high-performing, and affordable public service;
  • Priority 3: Provide leadership in information management (IM) and strategic use of information technology (IT) to enable more efficient and effective enterprise delivery of government programs and services;
  • Priority 4: Further reduce red tape for business, and streamline internal government rules to increase efficiency and reduce costs; and
  • Priority 5: Continue to implement the Secretariat’s workplace renewal initiative to modernize its office space, technology and internal operations and improve efficiency.

The results achieved under each priority are summarized below. Further information on results can be found in the “Performance Analysis and Lessons Learned” section of each of the Secretariat’s programs in Section II: Analysis of Programs by Strategic Outcome.

Priority 1: Strengthen government financial and expenditure management to support value for money, ongoing cost-containment and increased operational efficiency.
Typetable 1 note 1 Programs
Table 1 Note 1

Type is defined as follows: previously committed to—committed to in the first or second fiscal year prior to the subject year of the report; ongoing—committed to at least three fiscal years prior to the subject year of the report; and new—newly committed to in the reporting year of the RPP or DPR.

Return to table 1 note 1 referrer

Ongoing

Expenditure Management
Financial Management

Summary of Progress

In 2014–, the Secretariat:

  • Engaged the Costing Centre of Expertise to review more than 90 Cabinet documents, with combined cost estimates of over $100 billion.
  • Implemented the Guideline on Chief Financial Officer Attestation for Cabinet Submissions, to provide additional clarity and to support decision making by ensuring a consistent approach in departments' costing of funding proposals.
  • Enhanced the TBS InfoBase, a searchable online database that provides financial and human resources information on government operations.
  • Established the Financial Management Transformation (FMT) Program Management Office and developed plans for FMT work. This work includes standardizing and consolidating government-wide financial management systems and improving reporting and analytical tools across the Government of Canada.
Priority 2: Modernize people management to support a productive, high-performing, and affordable public service.
Type Programs

Ongoing

People Management

Summary of Progress

In 2014–, the Secretariat:

  • Developed the mandates, strategies and advice intended for the reform of the public service's disability and sick leave system.
  • Implemented the changes to the Public Service Health Care Plan negotiated in 2014, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .
  • Implemented performance management across the core public administration for employees subject to the Directive on Performance Management, using an automated process built around the Public Service Performance Management Application.
Priority 3: Provide leadership in information management (IM) and strategic use of information technology (IT) to enable more efficient and effective enterprise delivery of government programs and services.
Type Programs

Ongoing

Management Frameworks

Summary of Progress

In 2014–, the Secretariat:

  • Consolidated over 1,500 individual websites into Canada.ca through the Web Renewal initiative. In addition, over 40 departments contributed datasets to the Open Government portal on this website.
  • Continued to lead the Open Government initiative by publishing Canada's second Action Plan on Open Government.
  • Continued to support secure online service delivery that provides users with a single secure login to online services. Over 7 million active credentials are in use.
  • Developed a strategy to consolidate, standardize and increase the efficiency of the government's back office administrative systems and business processes. The strategy received government-wide support.
  • Strengthened the Enterprise Security Architecture framework, which is focused on providing standardized solutions for cost-effective, resilient and secure IT services.
Priority 4: Further reduce red tape for business, and streamline internal government rules to increase efficiency and reduce costs.
Type Programs

Ongoing

Management Frameworks

Summary of Progress

In 2014–, the Secretariat:

  • Renewed the Management Accountability Framework (MAF) assessment process and launched the new MAF portal. The Secretariat uses MAF to gain a broad perspective on the state of management practices and performance in the federal government, as well as to monitor key areas of policy compliance and implementation.
  • Launched a review of the Treasury Board policy suite to streamline policy requirements, improve coherence and clarity, and support cost-effective reporting and compliance.
  • Provided leadership on five horizontal commitments in the Destination 2020 report, including the launch of the Blueprint 2020 Internal Red Tape Reduction initiative. A tiger team was established to identify issues and derive solutions from the perspectives of the end-users.
  • Continued to offset administrative burden on business and eliminate regulations in accordance with the One-for-One Rule.
Priority 5: Continue to implement the Secretariat’s workplace renewal initiative to modernize its office space, technology and internal operations and improve efficiency.
Type Programs

Ongoing

All programs, including Internal Services

Summary of Progress

In 2014–, the Secretariat:

  • Finalized plans to move to new office accommodations in 2015–, with a view to consolidating and reducing office space. The plans included a move to 90 Elgin for 65 per cent of the Secretariat’s operations, the relocation of its records office to a space at 45 Sacré-Coeur, and an interim move to existing offices at 140 O’Connor for 35 per cent of its operations, with a planned move to renovated offices at 219 Laurier and a third location at a later date. The Secretariat also implemented technologies to support collaboration and a mobile and connected workforce.
  • Renewed its internal governance structure after a comprehensive review. The new structure provides oversight over the department’s project and resourcing issues, as well as over government-wide policy issues. The internal processes also make better use of new technology to transition from paper-based meeting materials to electronic formats.
  • Unified multiple transformation initiatives, including Blueprint 2020 initiatives, under the “This is TBS” steering committee, creating a more collaborative, open and agile organization with better enabling technologies and reduced office space.
  • Renewed its Strategic Outcome, Program Alignment Architecture and Performance Measurement Framework to better support resource alignment and management for results.

Risk Analysis

The Secretariat actively monitors its operating environment to identify and manage risks that could affect progress toward its Strategic Outcome and organizational priorities. Key risks are captured in the Secretariat's Corporate Risk Profile, which is updated annually. These risks are outlined in the table and narrative below.

Key Risks
Risk Risk Response Strategy Link to Program Alignment Architecture
1. Cyber-Security
There is a risk that a cyber-attack could breach current Government of Canada (GC) information systems and infrastructure, resulting in the compromise of sensitive data and information.

In 2014–, the Secretariat:

  • Led a coordinated response to a number of critical cyber-incidents across the GC, resulting in a lessons learned exercise and an ongoing action plan.
  • Revised the IT Incident Management Plan to incorporate lessons learned.
  • Further strengthened the Enterprise Security Architecture framework.

All responses for this year were completed as planned.

Government Security (1.1.6)

2. Back Office Transformation
There is a risk that the complexity and pace of the transformation agenda may exceed departments' and the Secretariat's capacity to drive the standardization and consolidation of the back office.

In 2014–, the Secretariat:

  • Developed a strategy to consolidate and increase the efficiency of the government's back office administrative systems and business processes, for which it received government-wide support.
  • Established governance structures for overseeing back office transformation.
  • Laid the groundwork for the development of the first GC-integrated IT Plan, enhancing the government's ability to manage the portfolio of IT applications and expenditures at the enterprise level.

All responses for this year were completed as planned.

3. Expenditure Management
There is a risk that gaps in the Secretariat's information and analytic capacity may limit its ability to perform a robust challenge function and to provide sound advice to ministers on costs and expenditure management.

In 2014–, the Secretariat:

  • Reviewed cost estimates through the Costing Centre of Expertise, to improve the quality of cost estimates presented to ministers, with total combined cost estimates of over $100 billion.
  • Engaged departments in the development of new project proposals to implement the federal infrastructure initiative and other budget decisions.
  • Strengthened the financial analysis capacity of its analysts across government through community development and training.

All responses for this year were completed as planned.

4. High-Performing Public Service
There is a risk that there is a misalignment between the skills and abilities required for an evolving and high-performing public service and the current people management policies and tools.

In 2014–, the Secretariat:

  • Fully implemented performance management across the core public administration for employees subject to the Directive on Performance Management.
  • Updated the key leadership competencies for the federal public service, to reflect the complexity and challenge of the current environment.
  • Reviewed the Performance Management Program for Executives.

All responses for this year were completed as planned.

In 2014–, the Secretariat continued to work in a dynamic environment to promote good governance and sound stewardship and enable efficient and effective service to Canadians. The Secretariat's top four risks were primarily driven by external factors—rapid technological change and the increased use of mobile devices, diminished fiscal flexibility, and the increased complexity of whole-of-government systems.

The Secretariat managed its top four risks by seeking to set clearer expectations for other government departments, by increasing engagement with departments, by strengthening the capacity of functional communities, and by improving governance over enterprise-wide initiatives.

The following risk analysis elaborates on the above-mentioned external factors and on the relevance of the identified risks.

1. Cyber-Security

While technological change provides opportunities for greater efficiency, it also presents potential risks from a security perspective. Rapidly evolving cyber-threats are an ongoing concern. In the face of such incidents, Canadian citizens and federal government partners (including industry and other jurisdictions) will demand that the Government of Canada protect their information so that program and service delivery is secure and resilient.

As the government-wide lead on IT security policy and standards, the Secretariat has a responsibility to work with other federal organizations to support a coordinated and strategic approach to cyber-security. Despite the maturity of its current risk response, this area of risk is ongoing. The Secretariat remains focused on progressively evolving its risk response in order to keep up with the pace of technology and counter significant threats.

2. Back Office Transformation

The government continues to use technology to increase efficiency and reduce the administrative costs associated with its back office functions (e.g., human resources, finance, and information management). This involves standardizing, consolidating and simplifying the administrative processes and systems that support the operations of federal organizations.

As a central agency, the Secretariat is well positioned to facilitate a strategic and coordinated approach across government to achieve intended reforms. Developing a government-wide strategy and staging the roll-out of individual back office initiatives is helping to reduce the risks associated with implementing back office transformation. However, this area of work is complex, and some uncertainty remains—particularly when adopting novel approaches and working in areas of shared accountability. The Secretariat is managing the risks by focusing on enterprise governance, change management, strategic communications, outcomes management and performance management.

3. Expenditure Management

The Secretariat continued to focus on providing comprehensive, accurate and reliable financial and non-financial information to Cabinet and Parliament to ensure sound financial decisions. Ongoing measures in this area include efforts to improve information management, business processes, data and analysis, financial community development, and due diligence.

4. High-Performing Public Service

After several years of reduced recruitment and workforce adjustments, the public service is again turning to attracting, developing and retaining talent in order to prepare for long-term demographic shifts.

The Secretariat is simultaneously coordinating multiple complex human resources initiatives to modernize people management and support a productive, high-performing and affordable public service. Specific steps are being taken to improve departmental and public service–wide analysis of workforce needs.

Actual Expenditures

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending
(authorities used)
Difference
(actual minus planned)

Note:
See Program 1.5 in Section II for an explanation of the variance between planned spending and actual spending.

7,364,924,114 7,364,924,114 5,255,176,055 3,221,689,682 -4,143,234,432
2014– Human Resources (full-time equivalents [FTEs])
Planned Actual Difference
(actual minus planned)
1,891 1,835 -56
Budgetary Performance Summary for Strategic Outcome and Programs (dollars)
Strategic Outcome, Programs and Internal Services 2014–15
Main Estimates
2014–15
Planned Spending
2015–16
Planned Spending
2016–17
Planned Spending
2014–15 Total Authorities Available for Use 2014–15
Actual Spending (authorities used)
2013–14
Actual Spending (authorities used)
2012–13
Actual Spending (authorities used)

Note: Any minor numerical differences are due to rounding.

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results
Management Frameworks 51,725,463 51,725,463     57,678,755 54,481,225 57,875,343 58,544,372
People Management 64,550,201 64,550,201     139,264,938 128,785,777 57,834,089 60,974,838
Expenditure Management 31,791,958 31,791,958     31,548,046 30,431,157 35,573,464 31,046,559
Financial Management 32,235,681 32,235,681     31,429,596 31,231,325 31,291,934 30,866,718
Government-Wide Funds and Public Service Employer Payments 7,106,195,208 7,106,195,208     4,905,924,725 2,898,360,909 2,629,221,633 2,500,372,808
Strategic Outcome: Good governance and sound stewardship to enable efficient and effective service to Canadians
Decision-Making Support and Oversight     47,506,141 47,927,651        
Management Policies Development and Monitoring     73,826,361 71,875,824        
Government-Wide Program Design and Delivery     50,671,220 48,051,421        
Government-Wide Funds and Public Service Employer Payments     6,645,161,074 6,333,254,397        
Subtotal 7,286,498,511 7,286,498,511 6,817,164,796 6,501,109,293 5,165,846,060 3,143,290,393 2,811,796,463 2,681,805,295
Internal Services Subtotal 78,425,603 78,425,603 75,279,537 64,308,499 89,329,995 78,399,289 80,724,486 80,220,719
Total 7,364,924,114 7,364,924,114 6,892,444,333 6,565,417,791 5,255,176,055 3,221,689,682 2,892,520,949 2,762,026,013

In 2015–, the Secretariat revised its Program Alignment Architecture to better reflect core business activities and support the achievement of expected results. Due to significant differences between the Secretariat's previous Program Alignment Architecture and the current structure, no historical spending has been restated leading to 2014–.

The above tables provide the Main Estimates, the planned spending, the total authorities available for use, and the actual spending (authorities used) related to each program for 2014–, which are explained by program in the Analysis of Programs by Strategic Outcome section. For comparison purposes, planned spending is provided for 2015– and 2016–, and actual spending is provided for 2012– and 2013–.

The Government-Wide Funds and Public Service Employer Payments program is the largest portion of the Secretariat's planned spending. Based on a three-year average, government-wide funds account for approximately 59 per cent of planned spending for this program. These funds are available for transfer to, and spending by, other departments and agencies. This includes the transfer of funding for centrally managed Votes such as government contingencies, government-wide initiatives, operating and capital budget carry forward, paylist expendituresFootnote 2 and compensation requirements (Central Votes 5, 10, 15, 25, 30 and 33) to other departments and agencies. The Secretariat's total funding available for use is reduced accordingly. The remaining 41 per cent is accounted for by public service employer payments, which go to paying the employer's share of the contributions to employee pensions and benefits plans, including statutory payments.

Overall, planned spending is projected to decrease by $800 million from 2014– to 2016–. This amount is based on an expected decrease of $877 million in spending, of which $850 million is due to a decrease in paylist-related expenditures following the elimination of severance benefits for voluntary separation (i.e., for retirement or resignation), offset by a projected increase of $77 million in spending—largely for an expected increase in Public Service Health Care Plan usage, an increase in service costs to deliver the Pensioners' Dental Services Plan and the Public Service Dental Care Plan, and higher employer contributions directly related to increases in the payroll envelope.

Actual spending increased by $329 million from 2013– to 2014–. This was primarily to address a funding shortfall within the plan to provide benefits to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission, and to implement approved benefit changes to the Public Service Health Care Plan totalling $268 million. In addition, there was an increase of $61.6 million mostly attributable to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit launched against the Crown, Buote Estate v. Canada, 2014 FC 773 (CanLII), involving the elimination of the Pension Act offset provision under the Royal Canadian Mounted Police Long Term Disability Insurance Plan.

For the previous year, actual spending from 2012– to 2013– increased by $130.5 million. This was mainly due to an increase in disability and health care expenditures, offset by reduced recoveries from the departments that remit the employer's share of public service insurance benefits related to their employees.

Alignment of Spending With the Whole-of-Government Framework

Alignment of 2014– Actual Spending with the Whole-of-Government Framework (dollars)
Strategic Outcome Program Spending Area Government of Canada Outcome 2014-15 Actual Spending

Government is well managed and accountable, and resources are allocated to achieve results.

1.1 Management Frameworks Government Affairs Well-managed and efficient government operations 54,481,225
1.2 People Management Government Affairs Well-managed and efficient government operations 128,785,777
1.3 Expenditure Management Government Affairs Well-managed and efficient government operations 30,431,157
1.4 Financial Management Government Affairs Well-managed and efficient government operations 31,231,325
1.5 Government-Wide Funds and Public Service Employer Payments Government Affairs Well-managed and efficient government operations 2,898,360,909
Total Spending by Spending Area (dollars)
Spending Area Total Planned Spending Total Actual Spending
Note: The figures above do not include Internal Services.
Economic Affairs N/A N/A
Social Affairs N/A N/A
International Affairs N/A N/A
Government Affairs 7,286,498,511 3,143,290,393

Departmental Spending Trend

Figure 1: Treasury Board of Canada Secretariat 2014– Actual Spending ($ millions)
Treasury Board of Canada Secretariat 2014–15 Actual Spending ($ millions). Text version below:
Figure 1. Treasury Board of Canada Secretariat 2014– Actual Spending ($ millions) - Text version

This graphic is a pie chart that illustrates the actual spending breakdown of $3.2 billion for the Secretariat in 2014-. The pie chart is broken down into two spending areas as follows: 10 per cent ($323 million) of total spending is attributed to the Secretariat's operations, and 90 per cent ($2,898 million) of total spending is attributed to centrally managed funds.

Any minor differences are due to rounding.

The Secretariat spent a total of $3.2 billion toward achieving its Strategic Outcome. Approximately 10 per cent of its total spending was directly related to operating expenditures. Most of the remainder related to Public Service Employer Payments, which the Secretariat manages in its role as the employer for the core public administration.

Figure 2: Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014– Actual Spending ($ millions)
Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014–15 Actual Spending ($ millions). Text version below:
Figure 2. Treasury Board of Canada Secretariat Public Service Employer Payments and Various Statutory Items 2014– Actual Spending ($ millions) - Text version

This graphic is a pie chart that illustrates the actual spending breakdown of $2.9 billion under public service employer payments and various statutory items in 2014-15. The pie chart is divided into six spending areas, broken down as follows: 22 per cent is attributed to provincial payroll taxes and health care premiums ($631 million); 31 per cent is attributed to the Public Service Health Care Plan ($886 million); 12 per cent is attributed to dental care plans ($344 million); 13 per cent is attributed to service income security insurance plan ($368 million); 8 per cent is attributed to disability insurance, and other ($224 million); and the remaining 15 per cent is attributed to statutory items ($444 million).

Any minor differences are due to rounding.

Total spending for Public Service Employer Payments was $2.5 billion in 2014–. The amount includes payments made toward 16 public service benefit plans and their associated administrative expenditures. Statutory payments, which relate to the employer contributions made under the Public Service Superannuation Act and other retirement acts and the Employment Insurance Act, totalled $444 million.

Figure 3: Departmental Spending Trend for Program Expenditures (Vote 1)
Departmental Spending Trend for Program Expenditures (Vote 1). Text version below:
Figure 3. Departmental Spending Trend for Program Expenditures (Vote 1) - Text version

This bar graph illustrates the spending trend for Secretariat program expenditures (Vote 1) related to actual spending for fiscal years 2012-, 2013- and 2014- and planned spending for fiscal years 2015-, 2016- and 2017-.  Financial figures are presented in dollars along the y axis, increasing by $50 million and ending at $350 million.  These are graphed against fiscal years 2012- to 2017- on the x axis.

There are two items identified for each fiscal year, the first one being statutory items, largely comprised of contributions to employee benefit plans, and the other, the Secretariat's program expenditures (Vote 1).

In 2012-, actual spending was $29,775,712 for statutory items and $231,877,492 for program expenditures.

In 2013-, actual spending was $29,075,263 for statutory items and $234,224,053 for program expenditures.

In 2014-, actual spending was $27,477,862 for statutory items and $295,850,911 for program expenditures.

Planned spending for statutory items goes from $27,681,925 in 2015-, to $26,794,261 in 2016- and to $26,569,830 in 2017-.

Planned spending for program expenditures goes from $219,601,334 in 2015-, to $205,369,133 in 2016-, and to $202,432,972 in 2017-.

In general, the Secretariat's operating expenditures include salaries, non-salary costs to deliver programs, and statutory items. These items primarily consist of contributions to the Secretariat's employee benefit plans.

There was an increase of $61.7 million in total program expenditures between 2012– and 2014–. The increase was mostly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. The subsequent decrease between 2014– actual spending and 2015– planned spending was mostly related to the payout of the same out-of-court settlement, as well as to reduced funding related to the Web Renewal initiative.

Decreases in program expenditures are expected to continue until 2017–, due to the sunsetting of initiatives such as the Workspace Renewal initiative, the Joint Learning Program, the Web Renewal initiative, the Federal Contaminated Sites Action Plan, and the Workplace Wellness and Productivity Strategy.

Figure 4: Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph
Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph. Text version below:
Figure 4. Public Service Employer Payments (Vote 20) and Various Statutory Items – Spending Trend Graph - Text version

This bar graph illustrates the spending trend for the public service employer payments (Vote 20) and various statutory items related to actual spending for fiscal years 2012-, 2013- and 2014- and planned spending for fiscal years 2015-, 2016- and 2017-. Financial figures are presented in dollars along the y axis, increasing by $500 million and ending at $3.5 billion.  These are graphed against fiscal years 2012- to 2017- on the x axis. 

There are two items identified for each fiscal year, the first one being statutory items, largely comprised of payments under the Public Service Pension Adjustment Act, and the other for public service employer payments.

In 2012-, actual spending was $443,023,226 for statutory items and $2,057,349,583 for public service employer payments.

In 2013-, actual spending was $443,088,925 for statutory items and $2,186,132,708 for public service employer payments.

In 2014-, actual spending was $444,049,205 for statutory items and $2,454,311,704 for public service employer payments.

Planned spending for statutory items will remain the same for fiscal years 2015- to 2017- in the amount of $443,000,000.

Planned spending for public service employer payments goes from $2,250,070,604 in fiscal year 2015-, to $2,337,061,397 for fiscal years 2016- to 2017-.

In general, expenditures for public service employer payments and statutory items include the employer's share of contributions required by the insurance plans sponsored by the Government of Canada. They also include statutory payments made under the Public Service Pension Adjustment Act and employer contributions made under the Public Service Superannuation Act, the Employment Insurance Act, and related acts.

Expenditures for public service insurance increased by $129 million from 2012– to 2013– following:

  • A premium rate increase to the employer for the Disability Insurance Plan;
  • Reinstatement of premiums for the Royal Canadian Mounted Police Long Term Disability Plan; and
  • Higher usage of the Public Service Health Care Plan.

This increase was offset by reduced recoveries from designated government departments that remit the employer's share of public insurance benefits related to their employees.

Public service employer payments increased by $268 million from 2013– to 2014–. This increase was mostly to address a funding shortfall within the plan to provide benefits to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission. It was also due to the implementation of the changes to the Public Service Health Care Plan negotiated in 2014 that increased premiums for pensioners with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

Planned spending between 2015– and 2017– is expected to increase by $87 million, largely due to an expected increase in Public Service Health Care Plan usage, an increase in service costs under the Pensioners' Dental Services Plan and the Public Service Dental Care Plan, and higher employer contributions directly related to increases in the payroll envelope.

Estimates by Vote

For information on the Secretariat's organizational Votes and statutory expenditures, consult the Public Accounts of Canada 2014 on the Public Works and Government Services Canada website.

Section II: Analysis of Programs by Strategic Outcome

Strategic Outcome: Government is well managed and accountable, and resources are allocated to achieve results.

Performance Measurement

Performance Indicator Target Actual Result
Canada’s ranking in The World Bank’s Worldwide Governance Indicators for the third indicator, “Government Effectiveness” Top 10 among Organisation for Economic Co-operation and Development (OECD) member countries The World Bank’s Worldwide Governance Indicators rank Canada 9th among 34 OECD countries for government effectiveness

The World Bank’s Government Effectiveness indicator is an index that captures perceptions about the quality of public services, the quality of the civil service, and the degree of its independence from political pressure. This indicator also measures the quality of policy formulation and implementation, and the credibility of the government’s commitment to these policies. In 2014, the last ranking released, Canada ranked 9th among the 34 OECD countries for this indicator. While the result represents a decrease from 2012 when Canada ranked 6th, it remains on target, and Canada retains its position in the 95th percentile of all countries measured. Canada’s lower ranking reflects improvements in government effectiveness in other OECD countries, rather than a drop in Canada’s effectiveness.

Program 1.1: Management Frameworks

The Management Frameworks program establishes principles for sound governance and management in the Government of Canada by helping ministers set government-wide policy direction in targeted areas. These areas include service and program modernization, information management, information technology, security, communications and regulatory management.

This program achieves its results by communicating clear expectations for deputy heads and by adopting principles-based approaches and risk-informed oversight. Working with departments, agencies and functional communities (e.g., regulation, information technology, security), the Secretariat provides leadership, oversight, assessment and guidance in areas related to management policy and regulatory development, compliance and performance reporting. This work also includes responding to emerging public sector management issues and promoting informed risk-taking, innovation, cost-effectiveness, efficiency, transparency and accountability.

This program is underpinned by a broad set of enabling legislation, including the Financial Administration Act and the Federal Accountability Act.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
51,725,463 51,725,463 57,678,755 54,481,225 2,755,762
2014– Human Resources (full-time equivalents [FTEs])
Planned Actual Difference
(actual minus planned)
382 385 3

The difference between planned spending and total authorities available for use is mainly due to additional funding received during the year for the Web Renewal initiative and Open Government, and this program’s portion of a one-time transition payment for salary in arrears for the Secretariat’s employees. The Web Renewal initiative and Open Government accounted for most of the increase in actual expenditures over planned expenditures. The increase was offset by project delays within the program and a transfer of funds to Industry Canada for the Canadian Open Data Experience, to promote the use of government data to develop consumer-friendly applications. Actual FTEs aligned with planned FTEs.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Sound governance and management in the Government of Canada Percentage of departments and agencies that obtained at least an “acceptable” MAF rating for citizen-focused service, management of security, integrated risk management, information management, and information technology management Not available No longer applicable due to changes in the MAF methodology. See narrative below.

Performance Analysis and Lessons Learned

To improve management practices in the Government of Canada, the Secretariat introduced significant changes to the Management Frameworks program in 2014–, including renewing the Management Accountability Framework (MAF) and launching the Internal Red Tape Reduction initiative.

The Secretariat uses the MAF to gain a broad perspective on the state of management practices and performance in the federal government and to monitor key areas of policy compliance and implementation. Following broad-based government-wide engagement, a renewed MAF was launched in 2014–. The renewed assessment process provides analysis relating to departmental management practices and policy compliance, as well as performance outcomes and other results.

More details on performance in key policy areas will be discussed in the associated sub-programs. Following are a few high-level results related to this performance indicator:

  • Integrated risk management: All departments and agencies assessed demonstrated that they had integrated risk management practices. This confirms that risk management is a well-established practice across the Government of Canada.
  • Management of security: Of the 20 departments and agencies assessed in this category, the majority had established governance processes for all security activity areas. While overall performance is improving in this area, the maturity level of security management practices remains generally low and varies considerably among federal organizations.
  • Citizen-focused service: On average, 17 per cent of external and internal enterprise services were e-enabled for the 11 departments assessed in this category.
  • Information management and information technology: The maturity level of IT stewardship varied considerably among federal organizations, but overall performance in this area improved. Recordkeeping maturity remained generally low, though some progress has been made.

The Secretariat launched the Blueprint 2020 Internal Red Tape Reduction initiative. Public servants who engaged in the Blueprint 2020 exercise reported that many rules and processes are overly complex, that they are developed from the top down and in isolation, and that they tend to lack coherence and consistency. The Secretariat recognizes that as a large, complex organization, the federal government needs internal controls and rules to ensure sound stewardship and accountability; however, these rules and processes must be reasonable and must improve the experience of those who are obliged to adhere to them. The Secretariat established a tiger team to take a bottom-up approach to identifying issues and deriving solutions.

In 2014–, the Secretariat also initiated a review of the Treasury Board policy suite. The objective of the review is to ensure that individual rules and requirements are proportional to the problems they are meant to address; that they align within the policy suite; and that they are cost-effective for departments and agencies to implement, comply with, and report on.

Sub-Program 1.1.1: Strategic Management and Governance

Through the Strategic Management and Governance sub-program, the Secretariat provides leadership across the Government of Canada to establish a broad management agenda and promote strategic approaches to cross-cutting policy issues on public sector management. Policy centres and federal institutions receive advice and support to maintain the integrity of the suite of Treasury Board policies and review and refine policy instruments to ensure they reflect government priorities, achieve management goals, appropriately manage risk and impose minimal administrative burden.

Sub-program 1.1.1 also identifies new and emerging management and governance issues; promotes increased productivity and innovation in management practices; advances modern reporting; and develops efficient, cost-effective approaches to planning, risk management and oversight and to strengthening the government's operating environment.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
3,922,779 3,552,266 -370,513
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
35 30 -5

Actual spending and FTEs aligned with planned spending and FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Federal institutions are equipped with policy instruments to meet their accountabilities and achieve results Percentage of active policy instruments that meet or exceed expected maturity milestones 100% Not applicable. See narrative below.
Performance Analysis and Lessons Learned

Maturity milestones refer to the four stages that Treasury Board policy instruments undergo as they are implemented: awareness, adoption, achieving results and optimization. The Secretariat monitors policy implementation in various ways, including through five-year policy reviews, horizontal audits and the annual MAF assessment.

In 2013–, the Secretariat committed to working with organizations to develop performance indicators that gauge the effectiveness of policy implementation. The expectation was to link maturity milestones to the five-year review requirements to give departments an overall status update on the amendments identified in their five-year reviews.

During 2014–, however, the Secretariat decided to undertake a more in-depth review of the Treasury Board policy suite as a whole. Due to this change in direction, maturity milestones are no longer an appropriate indicator of performance, and the above indicator cannot be reported on.

Sub-Program 1.1.2: Sound Management and Decision Making

Through the Sound Management and Decision Making sub-program, the Secretariat provides independent strategic advice, guidance and support to federal organizations for implementing and applying Treasury Board policies, government priorities, risk-management strategies and performance management in support of sound decision making.

Sub-program 1.1.2 includes the Secretariat’s advice and guidance on resource allocation, risks and policy compliance, provided to departments and agencies during the due diligence review of Treasury Board submissions.

It also includes the Secretariat’s MAF activities, which set out the Treasury Board’s expectations for good public service management. MAF is an integrated assessment tool that helps managers, deputy heads and central agencies assess progress and strengthen accountability for management results through indicators and measures that gauge performance over time. This sub-program captures the strategic direction and continuous evolution of MAF, which is informed by the management expectations set out in other sub-programs of the Secretariat’s PAA [Program Alignment Architecture].

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
14,067,476 13,724,446 -343,030
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
106 93 -13

Actual spending aligned with planned spending. Actual FTEs were less than planned FTEs because planned FTEs were revised to align with ongoing salary budgets.

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Advice and direction provided to departments and agencies supports sound management and decision making within departments and agencies Percentage of a representative group of deputy heads in agreement that the advice and direction provided by the Secretariat supports sound management and decision making 80% 94%
Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for use of information for decision making Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

Deputy heads from 29 departments and agencies provided feedback on the Secretariat’s advice and challenge function, and on the alternative approaches that were provided to address the challenges faced by their organizations. The Secretariat exceeded its target for this indicator, with 94 per cent of deputy heads saying that the Secretariat’s advice and direction met their needs. This represents a 19-percentage-point increase from last year’s results. In particular, deputy heads noted improvements to the Guidance for the Preparation of Treasury Board Submissions and in the capacity of the Secretariat’s analysts to engage with departments.

Other sub-program activities were focused on the renewal of the annual MAF assessment process following broad-based engagement with deputy heads and departments. The aim of the MAF renewal was to reduce the reporting burden of departments and agencies and to improve the information about management practices and performance available to deputy heads and the Secretariat.

In 2014–, a total of 37 large departments and agencies and 23 small departments and agencies were assessed through the renewed MAF assessment process. Rather than providing ratings, the assessment provided analysis relating to departmental management practices and policy compliance, as well as performance outcomes and other results. Final 2014– results were released to deputy heads through tailored departmental reports that included analysis and comparative information, allowing organizations to gauge their results. A government-wide report was also released that provided analysis of trends observed across the key areas of management assessed.

Follow-up discussions with deputy heads confirmed that the renewed MAF assessment process provided valuable information and useful reports that management teams could discuss. While deputy heads noted improvements to both the process and the results, they also identified a need to further refine the methodology to ensure accurate and comparable data.

Sub-Program 1.1.3: Service Modernization

Through the Service Modernization sub-program, the Secretariat provides direction and oversight to federal organizations to enhance internal and external service delivery efficiency and to improve service experiences and outcomes for individuals, businesses and employees.

Sub-program 1.1.3 works to promote client-centred service; build operational efficiency through a whole-of-government approach to service delivery; develop a culture of collaboration and service excellence; integrate multi-channel service delivery through effective use of modern technology; and enable the effective use of online technologies, including social media and collaborative technologies. This is accomplished through research, analysis, development and maintenance of policies and related policy instruments, community engagement, and leadership.

The authority for this sub-program is the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
3,150,476 5,843,742 2,693,266
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
31 48 17

Actual spending and FTEs were higher than planned spending and FTEs, mainly due to an in-year increase in funding to support the Web Renewal initiative.

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Departments and agencies are equipped with knowledge and guidance to implement sound service and Web 2.0 management practices Percentage of planned policy activities completed 80% 97%
Performance Analysis and Lessons Learned

The Secretariat exceeded its target for completion of planned policy activities to promote client-centred service, foster a culture of collaboration and service excellence, and enable the effective use of online technologies, including social media and collaborative technologies. The Secretariat completed several planned policy activities, notably the publication of the Guideline on Service Management to support the implementation of the new Policy on Service. It also developed and implemented government-wide guidance for the use of internal and external online collaborative technologies such as social media platforms.

Sub-Program 1.1.4: Information Management, Access and Privacy

Through the Information Management, Access and Privacy sub-program, the Secretariat seeks to ensure the continual improvement of the management of information across the Government of Canada by providing strategic direction and leadership to federal institutions on record keeping, business intelligence, data management, web content management, access to information, and privacy protection.

Sub-program 1.1.4 is focused on ensuring that information is safeguarded as a public trust and managed as a strategic asset. It further seeks to ensure that information is open to the public whenever possible, that Canadians can exercise their right to access and reuse information, and that personal information is protected against unauthorized collection, use and disclosure. The sub-program's objectives are accomplished by developing and maintaining policy instruments, encouraging collaboration between government institutions, monitoring and overseeing activities, providing leadership, and working with partners. This includes community development, learning and outreach activities.

The authority for this sub-program comes from the Financial Administration Act, the Access to Information Act and the Privacy Act.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,279,166 8,792,727 1,513,561
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
58 66 8

Actual spending and FTEs were higher than planned spending and FTEs, mainly due to internal reallocations made during the year to support Open Government.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Institutions are equipped with knowledge and guidance to safeguard information as a public trust, and manage it as a strategic asset Percentage of planned policy activities completed 75% 80%
Performance Analysis and Lessons Learned

The Secretariat exceeded its target for completion of planned policy activities to make it easier for Canadians to access government information and their personal information.

As committed to in Canada's Action Plan on Open Government 2014–, the Secretariat published the Directive on Open Government.

The Secretariat also published the Directive on Privacy Practices and guidance on information management (IM) practices to support the management of instant messages and email. Amendments to the Access to Information Manual were nearly completed, and amendments to the Privacy Manual were initiated. The Secretariat also revised the Recordkeeping Assessment Tool that was used to support the first round of the renewed MAF assessment, and developed an IM performance indicator tool that will be tested in 2015–.

Sub-Program 1.1.5: Management of Information Technology

Through the Management of Information Technology sub-program, the Secretariat provides federal organizations with strategic direction and leadership on the management of information technology (IT). Its whole-of-government strategies focus on standardizing, consolidating and re-engineering IT systems to enable effective program and service delivery. The Secretariat also optimizes Government of Canada IT investments through effective management and governance of IT-enabled projects, and supports Shared Services Canada, a centralized department that provides email, data centre and network services to the largest departments in the Government of Canada.

Sub-program 1.1.5 objectives are achieved through IT frameworks, policies, directives and standards, such as the Treasury Board Information Technology Standards (TBITS), that guide Government of Canada institutions in implementing specific technical issues. The Secretariat monitors departmental implementation of this sub-program through oversight, evaluation, and reporting activities, including a challenge function that seeks to ensure best value in IT and web investments on behalf of taxpayers.

The authority for this program is the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
5,997,281 8,335,606 2,338,325
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
53 63 10

Actual spending was higher than planned spending due to internal adjustments made at the beginning of the fiscal year to realign resources between the Management of Information Technology and Government Security sub-programs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Program roadmaps for back office IT applications are approved Percentage of five-year roadmaps approved 50% 97.5%
Departments and agencies are equipped to move toward standardization and consolidation of the Government of Canada's web presence and IT solutions Percentage of departmental IT plans that address Government of Canada IT modernization priority initiatives 50% 84%
Percentage of planned policy activities completed 75% 71%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat ensured that federal organizations continued to streamline and modernize core back office IT applications by exceeding its target for bringing organizations in line with IT modernization priority initiatives.

Back office transformation was advanced. The Secretariat exceeded its approval target for five-year roadmaps, developing and approving back office IT application plans for human resources, financial management and interoperabilityFootnote 3. A five-year roadmap for GCDOCS, the official document and records management solution for the Government of Canada, was also developed.

In 2014–, the Secretariat launched an in-depth review of the Treasury Board policy suite as a whole, including IT policy. During the year, an adjustment to the planned policy activities for 2014– was made to align with this review, leading to a gap between the original targets established in the Report on Plans and Priorities (RPP) and the year-end results.

The Secretariat advanced many planned policy activities, including drafting guidance on architecture review board operations, IT planning, application portfolio management, and IT expenditure reporting. In addition, the Secretariat established and launched a process to develop the first GC-integrated IT Plan, and published two IT policy implementation notices that provided government departments with direction on the secure use of portable data storage devices and on the disposal of Windows XP devices.

To implement its Web Renewal initiative, the Secretariat developed and implemented specifications for standardizing and consolidating departmental website content to Canada.ca, the new web presence for the Government of Canada. This initiative aims to help deliver easy online access to government information and services.

Sub-Program 1.1.6: Government Security

Through the Government Security sub-program, the Secretariat contributes to improving the Government of Canada's security by supporting departmental and government-wide security management to protect information, assets, individuals and services against internal and external threats. Sub-program 1.1.6 focuses on governance, departmental security management (including cyber security), identity management, individual security screening, physical security, security of information and information technology, security in contracting, and the continuity of government operations and services. These activities enable effective and efficient management of security within departments and throughout government.

The objectives of this sub-program are accomplished through developing and maintaining policy instruments; enabling the security community by providing guidance and sharing best practices; encouraging collaboration between departments; monitoring and overseeing security activities; providing leadership and working with partners; developing a cyber-authentication renewal and federating identity program in support of service modernization; and supporting Government of Canada strategic security initiatives, including initiatives related to Canada's Cyber Security Strategy.

The authority for this program derives from the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
11,382,125 8,818,357 -2,563,768
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
56 45 -11

Actual spending and FTEs were lower than planned spending and FTEs, due to internal adjustments made at the beginning of the fiscal year to reallocate resources from the Government Security sub-program to the Management of Information Technology sub-program.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies are equipped with knowledge, direction and guidance to implement and evolve sound security management practices Percentage of planned policy activities completed 75% 68%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat launched an in-depth review of the Treasury Board policy suite as a whole, including government security policy. During the year, an adjustment to the planned policy activities for 2014– was made to align with this review, leading to a gap between the original targets established in the RPP and the year-end results.

The Secretariat continued to revise the suite of government security policy instruments to enable efficient and effective security modernization. As part of the broad review of the policy suite, the mandatory requirements of the Policy on Government Security and its subordinate directives and standard were scrutinized to identify areas that could be simplified, and the security policy architecture was revised. Draft revised instruments were developed in consultation with the security community.

The Secretariat published a renewed Standard on Security Screening and finalized the draft Guideline on Identity Assurance. The Secretariat continued to demonstrate leadership and to openly engage the security community, providing guidance and leading practices, and fostering collaboration.

The Secretariat also advanced work on the Enterprise Security Architecture, which is focused on providing standardized solutions for cost-effective, resilient and secure IT services. This work was undertaken in collaboration with Communications Security Establishment Canada and Shared Services Canada.

Sub-Program 1.1.7: Communications and Corporate Identity

Through the Communications and Corporate Identity sub-program, the Secretariat helps Government of Canada departments and agencies effectively manage communications and corporate identity within their organizations. Sub-program 1.1.7 is necessary to ensure that federal organizations inform the public of government policies, programs, services and initiatives; consider the public's views and needs in their development; and visually identify government assets and activities through the official symbols of the Government of Canada.

To meet these goals, the Secretariat proposes government-wide policy direction to Treasury Board ministers, implements approved policy instruments, examines the extent to which departments are in compliance with key policy requirements, and takes corrective measures to address compliance issues. To assist compliance with policy requirements, the Secretariat provides policy interpretation, advice and outreach to all government departments and agencies, in particular to communications staff.

The legislative authority for this program is section 7 of the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
753,653 843,332 89,679
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
9 7 -2

Actual spending was higher than planned spending, mainly due to paylist expenditures. Actual FTEs aligned with planned FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Communications and corporate identity are effectively managed within departments in a manner consistent with the Communications Policy of the Government of Canada and the Federal Identity Program Policy Percentage of departments in compliance with selected requirements of the Communications Policy of the Government of Canada and the Federal Identity Program Policy, and their related instruments 80% 80%
Performance Analysis and Lessons Learned

Government departments met performance expectations set by the Secretariat in the area of communications and corporate identity. The compliance level attained provides a snapshot of the extent to which institutions effectively managed communications and corporate identity requirements.

Government-wide monitoring of selected requirements of the Communications Policy of the Government of Canada and the Federal Identity Program Policy was based on evidence submitted by organizations or available in the public domain. The increased compliance rate over the previous year (74 per cent) reflects outreach efforts by the policy centre and the common service organizations at Public Works and Government Service Canada, and shows that departments are knowledgeable about their obligations under the policy requirements selected for 2014–.

Sub-Program 1.1.8: Regulatory Management

Through the Regulatory Management sub-program, the Secretariat supports the Treasury Board as a committee of ministers in considering Governor in Council regulations and orders. Regulation is one of the key instruments to advance the government's policy agenda and to fulfill statutory responsibilities through a number of acts to protect the health, safety and security of Canadians, their environment and economy. Regulations must be developed and implemented in a way that reduces burden on business, makes it easier to do business with regulators, and improves service and predictability for all stakeholders. Canada's regulatory policy is the Cabinet Directive on Regulatory Management.

The Secretariat supports the Treasury Board for the continuum of regulatory development, implementation and monitoring through its three main business lines: 1) Challenge function—regulatory proposals are reviewed on a submission-by-submission basis to ensure quality design; 2) Policy leadership—guidelines and tools are developed to assist departments in complying with the directive when preparing regulatory submissions, including new requirements related to systemic regulatory reforms; and 3) Oversight—ongoing monitoring and reporting of regulatory system performance to support red tape reduction efforts.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
5,172,507 4,570,750 -601,757
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
34 34 0

Actual spending was lower than planned spending, mainly due to project delays. Actual FTEs aligned with planned FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Regulations approved by the Governor in Council address risks and limit new administrative burden on business via application of the reconciliation requirement of the One-for-One Rule Percentage of regulations approved by the Governor in Council that address risks while controlling administrative burden on business through the One-for-One Rule 90% 100%
Performance Analysis and Lessons Learned

The Secretariat achieved its performance expectations in the area of regulatory management. Federal organizations continued to offset administrative burden on business and eliminate regulations in accordance with the One-for-One Rule, while designing regulations that address risk. From 2012 until , the One-for-One Rule resulted in a net annual reduction of roughly $23.5 million in administrative burden on business, and an estimated annual savings of more than 340,000 hours in time spent dealing with regulatory red tape.

Other regulatory reforms also played an important role in addressing business irritants and controlling administrative burden arising from regulation. In 2014–, the Administrative Burden Baseline count was introduced. Departments and agencies were required to count their regulatory requirements and post the counts online. The baseline was established on time and will be updated annually.

Results on implementing all Red Tape Reduction Action Plan reforms were reported in the Annual Scorecard Report. At the end of , the Red Tape Reduction Act (Bill C-21) was being studied by the Standing Senate Committee on National Finance. It was subsequently passed by the Senate and received royal assent, giving the force of law to the One-for-One Rule.

Program 1.2: People ManagementFootnote 4

The People Management program supports activities of the Treasury Board in its role as the employer of the core public administration. The program’s primary objectives are to lead people management and promote leadership excellence, to support human resources infrastructure and to ensure the appropriate degree of consistency in people management across the public service. In certain instances, activities extend beyond the core public administration to separate agencies, members of the Royal Canadian Mounted Police and the Canadian Armed Forces, locally engaged staff, students and appropriation-dependent Crown corporations.

To support deputy heads and provide Parliament and Canadians with a clear view of the overall state of people management, this program enables the development and implementation of direction-setting strategic frameworks and policies for classification, executive management, official languages, and values and ethics; the establishment of people management indicators, measures, oversight and monitoring; and the collection and analysis of reliable and consistent data regarding the public service. This program enables prudent fiscal management of resources in the areas of classification, total compensation (collective bargaining, wages and salaries, terms and conditions of employment, pensions and benefits) and labour relations, and it supports departments in implementing decisions by the Government of Canada regarding expenditures and programs.

Responsibilities in areas other than classification and labour relations are shared with the Expenditure Management program. The People Management program is underpinned by a number of pieces of legislation, which are identified in the Policy Framework for People Management and the Policy Framework for the Management of Compensation.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
64,550,201 64,550,201 139,264,938 128,785,777 64,235,576
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
451 404 -47

The difference between planned spending and total authorities available for use is mainly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. Payouts made for the same settlement account for most of the difference between actual and planned spending, offset by a decrease in revenue related to the administration of the Public Service Superannuation Act and to frozen funds earmarked for Charter challenges. Actual FTEs were lower than planned FTEs, largely due to the transfer of programs to the Canada School of Public Service and staffing delays related to the administration of the Public Service Superannuation Act.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Effective people management in the Government of Canada Percentage of assessed departments and agencies that obtained a MAF rating of at least “acceptable” for people management Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of assessed departments and agencies that obtained a MAF rating of at least “acceptable” for areas of weakness identified in the previous round of assessment for people management Not available No longer applicable due to changes in the MAF methodology. See narrative below.

Performance Analysis and Lessons Learned

Effective people management was evaluated as part of the renewed MAF assessment process, which replaced aggregate ratings (described in the performance indicators above) with more detailed analysis and specific measures for official languages and values and ethics.

The assessment identified a number of areas of strength in people management:

  • Representation and recruitment of all four employment equity designated groups exceeded the workforce availability.
  • The first year’s implementation of the new Directive on Performance Management progressed well. Almost all employees government-wide had documented performance objectives (94.68 per cent). The majority (90.85 per cent) had mid-year conversations on performance, and 85.13 per cent of employees were rated and assessed at year-end.
  • The results of the 2014 Public Service Employee Survey (PSES) confirmed that most employees government-wide felt they are treated with respect; liked their job; and had the information, training, and equipment they need for a safe and healthy workplace.
  • Almost all organizations met the requirements of the Policy on Conflict of Interest and Post-Employment and the Policy on Official Languages.
  • The employee turnover remained low across large and small departments and agencies.

Areas for improvement in people management were also identified:

  • The 2014 PSES results showed that employee perceptions of harassment and discrimination in the workplace were significantly less positive than in 2011. Fewer than half of employees felt they could initiate a formal recourse process without fear of reprisal.
  • Confidence in senior management remained low; fewer than half of employees believed that senior management makes effective and timely decisions, and even fewer believed that unsatisfactory performance is managed effectively.
  • Promotions for Aboriginal persons and persons with disabilities were low, and their turnover was high compared with other federal government employees.
  • The time it takes to staff key positions and track sick leave trends was also identified as an area for improvement.

Sub-Program 1.2.1: Direction Setting

Through the Direction Setting sub-program, the Secretariat ensures that organizations of the core public administration receive high-quality advice, guidance and support for people management and related policy instruments.

Sub-program 1.2.1 includes developing and implementing strategic frameworks; establishing, assessing and monitoring performance expectations; and establishing risk-based policies in areas of employer responsibility.

This sub-program is supported by research, forecasting and business intelligence to enable evidence-based decision making.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
21,700,682 20,305,658 -1,395,024
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
151 140 -11

Actual spending and FTEs largely aligned with planned spending and FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual
Results
Federal organizations are equipped with the knowledge and guidance to address people management priorities Percentage of people management policy instruments that have been reviewed that comply with established review cycles 80% by 80%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat’s work in this sub-program focused on meeting the target for reviewing people management policy instruments, supporting the implementation of legislative changes made in 2014 to the Public Service Labour Relations Act, and providing guidance for responding to the Ebola outbreak.

The Secretariat continued to streamline and consolidate 12 policies, drafting the Policy on Workforce Excellence and the associated Directive on Duty to Accommodate, the Directive on Term Employment and the Standard on Building Emergency and Evacuation Team. Significant policy review work was undertaken on the Policy on Terms and Conditions of Employment and other labour relations instruments.

Work progressed in preparing for changes to the recourse system, required as a result of the 2013– legislative changes to the Public Service Labour Relations Act and the merging of tribunals to create the Administrative Tribunals Support Service of Canada.

Essential service designations were identified by all departments as per legislation, and consultations subsequently took place with bargaining agents. Legal decisions in other jurisdictions relating to labour relations were monitored, and their implications were analyzed in light of current federal government policy.

The Secretariat closely monitored the Ebola situation in West Africa and helped facilitate a program in conjunction with the Canadian Red Cross to allow public servants to volunteer. The Secretariat worked with other government entities to ensure that federal organizations were equipped with information and direction on the Ebola situation.

In addition, all organizations across government have demonstrated progress in engaging in dialogue on values and ethics.

Sub-Program 1.2.2: Enabling Infrastructure.

Through the Enabling Infrastructure sub-program, the Secretariat guides and supports deputy heads’ collective responsibility for putting in place efficient and effective people management through common business processes, information systems, best practice tools and sound data.

The objectives of sub-program 1.2.2 are achieved by strengthening the existing governance of human resources management; championing the human resources functional community; and establishing a broad engagement strategy to facilitate a shift in human resources practices, behaviours and relationships, while leveraging Web 2.0 technology. Defining a common way to deliver human resources services throughout the Government of Canada will establish a comprehensive blueprint for deriving data architecture and definitions.

The Secretariat builds on this foundation by maximizing investments made in information technology solutions for modernizing human resources services and programs and by increasing its capacity to define, capture and measure business intelligence, and understand the perceptions and needs of public servants.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
26,984,328 25,308,322 -1,676,006
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
207 178 -29

Actual spending and FTEs were lower than planned spending and FTEs, mainly due to the transfer of programs to the Canada School of Public Service.

Performance Results
Expected Result  Performance Indicators Targets Actual Results
Federal organizations are equipped with processes, tools, data or systems to continuously improve their people management practices Percentage of organizations that have adopted standardized processes, tools, data or systems 80% by 98%
Performance Analysis and Lessons Learned

In 2014–, the Secretariat focused on putting infrastructure in place to implement policy and collective bargaining requirements, as well as new human resources software and people management systems. As a result, the Secretariat exceeded its target for ensuring that federal organizations are equipped with the processes, tools, data and systems to continuously improve their people management practices.

Activities undertaken in this sub-program included the following:

  • The Directive on Performance Management was fully implemented across the core public administration. The Secretariat put in place an automated, online performance management application; mandatory requirements for performance management training for all core public administration managers; and performance management review panels.
  • The Secretariat ensured that government-wide labour relations policy advice and programs were consistent and coherent, and that deputy heads were supported in the implementation of their direct authorities.
  • The Secretariat piloted new software to streamline the advice it provides to departments on interpreting collective agreements. Tools were developed to help departments interpret collective agreements, employer policies, and terms and conditions of employment.
  • In partnership with Public Works and Government Services Canada, the Secretariat continued building and modernizing the Government of Canada human resources system, My GCHR, to include new functionality. Departments, representing a total of 32,000 FTEs, adopted the centrally managed standard as of , thereby contributing to a reduction in enterprise-wide costs and increasing the consistency of human resources service delivery.

Sub-Program 1.2.3: Comprehensive Management of Compensation

Through the Comprehensive Management of Compensation sub-program, the Secretariat provides advice to the Treasury Board, the Department of Finance Canada, the Privy Council Office and other federal organizations in support of the Treasury Board’s management office, employer and budgeting roles.

Comprehensive compensation management encompasses wages and other cash compensation, including pay equity and equitable compensation. It involves establishing and maintaining public service pensions and benefits and other non-monetary forms of compensation, such as terms and conditions of employment and other related workplace policies.

The Secretariat develops plans and strategies related to total compensation through collective bargaining; external, independent advisory committees; and active stakeholder engagement with organizations, bargaining agents and separate agencies, the Canadian Armed Forces and the Royal Canadian Mounted Police (RCMP). This allows the Government of Canada to appropriately recruit and retain its workforce. To support consistency and results, the Secretariat performs an oversight and performance management function in applying its workforce policies to ensure program delivery standards for all employees, including executives.

2014– Budgetary Financial Resources (dollars)
Planned Spending (revised) Actual Spending Difference
(actual minus planned)
15,865,191 83,171,798 67,306,607
2014– Human Resources (FTEs)
Planned (revised) Actual Difference
(actual minus planned)
93 85 -8

Actual spending was higher than planned spending, mainly due to new funding received for the payout of an out-of-court settlement to eligible claimants under the White class action lawsuit. Actual FTEs were lower than planned FTEs mainly due to delays related to the administration of the Public Service Superannuation Act.

Performance Results
Expected Result Performance Indicators Targets Actual Results
The comprehensive management of compensation supports the Government of Canada to meet its objectives for sustainable recruitment and retention and to fulfill its employer obligations Percentage of Government of Canada objectives met in the areas of recruitment and retention or employer obligations 100% by 100%
Performance Analysis and Lessons Learned

Progress on the comprehensive management of compensation continued. The Secretariat’s commitments in this area involve a wide range of initiatives and activities, including strategic expenditure management, pensions and benefits, disability and sick leave management, pay equity complaints management, and job classification renewal.

Regarding pensions, the Secretariat developed and guided legislative amendments to the Members of Parliament Pension Plan relating to suspended members to ensure that periods of suspension are not pensionable. The Secretariat also followed up on the recommendations of the 2014 Spring Report of the Auditor General of Canada pertaining to public sector pension plans.

The government remained committed to supporting the health and wellness of employees and retirees while ensuring that the Public Service Health Care Plan is affordable, sustainable and comparable with other employer-sponsored health care plans in Canada. Negotiated changes to the Public Service Health Care Plan were successfully implemented, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

A new round of collective bargaining was initiated with all 27 groups in 2014–. A total of 93 negotiation sessions were held with bargaining agents, representing all 27 groups.

Work progressed in aligning the compensation regimes of separate agencies, the Canadian Armed Forces and the Royal Canadian Mounted Police with that of the core public administration.

In addition, as part of its efforts to effectively manage compensation, the Secretariat supported departments and agencies in recruiting and retaining the right talent for their business needs. The Secretariat developed strategies to simplify recruitment, to create candidate pools for frequently needed work, and to pilot interdepartmental micro-missions to facilitate employee mobility and retention.

Program 1.3: Expenditure Management

The Expenditure Management Program aims to align resources to achieve government priorities in a way that maximizes value for money and provides a whole-of-government perspective on matters related to direct program spending.

Working with appropriated organizations and most Crown corporations, the Secretariat undertakes the review, analysis and challenge of plans and proposals that involve federal spending. This is achieved by developing expenditure forecasts and strategies, management of total compensation and promoting results-based management.

This work, as well as the production of government Estimates documents and reporting to Parliament, forms part of the Expenditure Management System. This is the framework for developing and implementing the government’s spending plans and priorities within the limits established by the budget in coordination with the Department of Finance Canada and the Privy Council Office.

The primary legislation underpinning program activities is the Financial Administration Act, as well as the appropriation acts associated with the Estimates.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
31,791,958 31,791,958 31,548,046 30,431,157 -1,360,801
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
261 231 -30

Planned spending and total authorities available for use largely aligned with actual spending. Actual FTEs were less than planned FTEs due to staffing delays.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Government expenditures facilitate the achievement of government priorities in a prudent, effective and accountable manner Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for managing for results Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of large organizations that obtained a MAF rating of at least “acceptable” for quality and use of evaluation Not available No longer applicable due to changes in the MAF methodology. See narrative below.

Performance Analysis and Lessons Learned

The Policy on Management, Resources and Results Structures supports evidence-based decision making through the development of a common government-wide approach to identifying programs and to collecting, managing, and reporting on financial and non-financial information related to those programs.

As a result of MAF renewal, the Secretariat replaced aggregate ratings for managing for results (described in the performance indicators above) with a more tailored analysis. The 2014– MAF assessment process indicated that federal organizations’ Program Alignment Architectures and Performance Measurement Frameworks comply with the Policy on Management, Resources and Results Structures and are being used for planning, reporting, managing for results, and trend analysis. The Secretariat continued to work with organizations to further improve the overall quality of Program Alignment Architectures and Performance Measurement Frameworks.

The Policy on Evaluation supports the collection of credible, neutral evidence about the relevance and performance of direct program spending. Such information is used to improve policies and programs, to manage expenditures, to provide advice for Cabinet decisions, and to report to the public.

As a result of MAF renewal, the assessment of the evaluation function as part of the MAF was placed on hold. Nonetheless, the performance of the government-wide evaluation function was monitored through the Annual Report on the Health of the Evaluation Function. In general, it was found that organizations complied with the Policy on Evaluation and demonstrated acceptable evaluation coverage, quality and use. The Secretariat continued to work with organizations to improve the collection of performance measurement data needed to support the evaluation of program effectiveness, efficiency and economy.

Sub-Program 1.3.1: Results-Based Expenditure Management

Through the Results-Based Expenditure Management sub-program, the Secretariat aims to ensure that program spending focuses on results, provides value for taxpayers’ money, and aligns with government priorities.

The Secretariat undertakes outreach activities, provides guidance and assesses performance so that federal organizations are equipped with the knowledge, tools and resources needed to manage for results. The Secretariat also supports reviews of government spending to drive excellence in program performance and services to Canadians, and to ensure value for money.

The Policy on Management, Resources and Results Structures and the Policy on Evaluation underpin this sub-program.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
4,662,759 4,264,883 -397,876
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
42 36 -6

Actual spending aligned with planned spending. Actual FTEs were lower than planned FTEs, mainly due to staffing delays.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies are equipped with the tools and guidance they need to manage for results Percentage of departments that “mostly” or “strongly” agree the tools or guidance received from results-based management are useful 80% 73%
Percentage of large departments that obtained a MAF rating of at least “acceptable” for the use of evaluations to support decision making Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

Deputy heads from 29 departments and agencies provided feedback on the usefulness of the Secretariat’s tools and guidance for implementing the Policy on Management, Resources and Results Structures. A total of 73 per cent of deputy heads “mostly” or “strongly” agreed that the tools and guidance were useful, which represents a 13-percentage-point increase from last year’s result. Deputy heads recognized the Secretariat’s efforts in engaging with departments and agencies and improving the provision of guidance.

In 2014–, the Secretariat released guidance and questions and answers on internal services expenditures, with the goal of achieving greater consistency and comparability in reporting across departments. A guide for reporting on horizontal initiatives was also released.

In response to findings from a review of the Policy on Management, Resources and Results Structures, the Secretariat worked to strengthen the approach to collecting, using and reporting on performance information. This work involved engaging and sharing information with large and small departments and agencies.

The Secretariat approved the final report on the Evaluation of the 2009 “Policy on Evaluation. Assessing both the application and the performance of the Policy on Evaluation, the report recommended renewing the policy by adding flexibility to the core requirements and requiring departments to consider the needs of the range of evaluation user groups. The report also recommended engaging the Secretariat’s policy centres to guide departments in collecting financial management data and structuring performance measurement.

Sub-Program 1.3.2: Expenditure Management Advice and Reporting

Through the Expenditure Management Advice and Reporting sub-program, the Secretariat supports sound decision making by providing reliable, detailed and timely information and by reporting on spending and resource allocation.

In support of the Treasury Board’s budget management role in the government-wide expenditure cycle (i.e., expenditure planning, resource allocation and decision making), the Secretariat provides independent analysis and advice to the Treasury Board and exercises a challenge function for expenditure and other proposals from federal organizations.

The Secretariat also develops departmental and whole-of-government views of expenditure management and provides support during the annual budget process, as well as advice on access to the Treasury Board’s Central Votes and management reserve. The Secretariat leads the process for obtaining parliamentary approval of appropriation acts by preparing the government’s Main and Supplementary Estimates for tabling in the House of Commons; explaining Estimates requirements to parliamentary committees; and providing ongoing guidance and strategic advice to government departments and agencies in preparing their Reports on Plans and Priorities and Departmental Performance Reports.

This sub-program also includes reporting to Parliament and Canadians more broadly at the whole-of-government level.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
19,717,100 19,274,034 -443,066
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
161 145 -16

Actual spending aligned with planned spending. Actual FTEs were lower than planned FTEs to align with ongoing salary budgets.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Decision makers have the necessary financial and non-financial information to make departmental and government-wide expenditure management decisions Percentage of Secretariat officials with direct access to tools presenting integrated departmental and government-wide expenditure management information that better support decision makers 100% 100%
Percentage of expenditure management reporting targets achieved 100% 100%
Performance Analysis and Lessons Learned

The Secretariat met expectations in this area by providing complete and direct access to tools that present integrated departmental and government-wide expenditure management information. The provision of this information, which is both financial and non-financial, supports informed decision making.

In 2014–, the Secretariat added new features and content to the TBS InfoBase. This is a searchable online database that provides access to detailed government information. The TBS InfoBase was updated to include current and historical financial and people management information for all government organizations that receive appropriations, and to provide new options for finding, navigating, and comparing the information.

The Secretariat met its expenditure management reporting target by posting the Estimates to its website when the documents were tabled in Parliament.

Sub-Program 1.3.3: Compensation Expenditure Management

Through the Compensation Expenditure Management sub-program, the Secretariat provides advice to the Treasury Board, the Department of Finance Canada, the Privy Council Office and other federal organizations in support of the Treasury Board’s role in managing total compensation expenditures across the federal government. This role includes identifying total compensation and pensions and benefits cost pressures.

The Secretariat develops analysis and recommendations for managing compensation, including wages and other cash compensation, pensions and insurance benefits, and paid time off. As part of this sub-program, the Secretariat also provides advice on managing the compensation reserve.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,412,099 6,892,240 -519,859
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
58 50 -8

Actual spending and FTEs largely aligned with planned spending and FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
The Government of Canada is able to manage compensation expenditures in line with the principles laid out in the Policy Framework for the Management of Compensation Percentage of compensation decisions that support alignment with the external market 90% Not applicable
Performance Analysis and Lessons Learned

Overall, the Government of Canada has continued to manage affordable compensation expenditures that are aligned with the external market. No new collective bargaining settlements were reached in 2014– in the core public administration.

Program 1.4: Financial Management

The Financial Management program provides oversight and direction to federal organizations on improving the stewardship of taxpayers’ dollars and government assets. The program works to strengthen financial management, internal audit, management of real property and materiel, investment planning, project management and procurement across the federal public service.

Program objectives are accomplished by providing direction to departments; demonstrating leadership; developing and maintaining policies, guidance and practices; nurturing sustainable and professional communities (e.g., finance, procurement, audit); and helping improve government operations. The primary legislation issuing program authority is the Financial Administration Act.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
32,235,681 32,235,681 31,429,596 31,231,325 -1,004,356
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
212 215 3

Planned spending and total authorities available for use largely aligned with actual spending. Actual FTEs largely aligned with planned FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Sound comptrollership in the Government of Canada Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for financial management and control, internal audit, and management of acquired services and assets Not available No longer applicable due to changes in the MAF methodology. See narrative below.

Performance Analysis and Lessons Learned

Canadians and parliamentarians expect timely, reliable information on how the government spends public funds to achieve results. The Secretariat continued to help prepare accurate financial information for the Public Accounts of Canada and The Fiscal Monitor, in support of greater transparency and accountability.

As a result of MAF renewal, the assessment of the internal audit function as part of the MAF was placed on hold. The MAF continues to assess financial management and the management of acquired services and assets.

For financial management, the renewed MAF assessment process indicated that, as a whole, the total number of errors identified in the financial information submitted to the Receiver General and the Secretariat for the Public Accounts of Canada declined in comparison with the previous two years. The financial information used in preparing the Public Accounts of Canada and The Fiscal Monitor was reported in a timely manner by the vast majority of government organizations. The Secretariat also continued its focus on chief financial officer (CFO) talent management. The majority of departments and agencies that hired new CFOs consulted the Secretariat in the appointment process.

Regarding internal audit, practice inspections demonstrated the maturity and strength of the internal audit function across the Government of Canada. The performance narrative for sub-program 1.4.2: Internal Audit provides more detailed information on the performance of this aspect of the Financial Management program.

The renewed MAF results for the management of acquired services and assets demonstrated that departments adopted key policy requirements in the areas of investment planning, project management, procurement, real property, and materiel management.

Sub-Program 1.4.1: Financial Management, Oversight and Reporting

Through the Financial Management, Oversight and Reporting sub-program, the Secretariat seeks to strengthen financial management, oversight of financial performance in departments and agencies, and financial reporting in the Government of Canada. The Secretariat establishes performance expectations for effective financial management and assists departments and agencies in achieving these expectations.

The Secretariat provides advice on the interpretation of financial policy instruments, clarifies the roles and responsibilities of policy stakeholders, monitors compliance with policy instruments, and reviews government financial statements to ensure they comply with accounting standards. It also provides enabling functions, community development and capacity building.

These activities are ultimately intended to improve the financial management function across government, as well as the quality and timeliness of the financial information provided to parliamentarians and Canadians on the state of government-wide financial results.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
15,032,546 16,516,985 1,484,439
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
100 104 4

Actual spending was higher than planned spending, mainly due to the creation of the Costing Centre of Expertise. Actual FTEs largely aligned with planned FTEs.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Government departments and agencies are equipped to implement and sustain performance in financial management, oversight and reporting Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” for financial management and control Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Performance Analysis and Lessons Learned

As a result of MAF renewal, the Secretariat replaced aggregate ratings (described in the performance indicators above) with more tailored analysis. The renewed MAF assessment process analyzed results relating to departments’ compliance with financial management policies. Efforts in 2014– to advance the transformation of the financial management function government-wide centred on building capacity to manage and direct change.

The Secretariat implemented the Guideline on Chief Financial Officer Attestation for Cabinet Submissions to provide chief financial officers with a framework and practical guidance for reviewing Cabinet submissions and to ensure a consistent approach in departments’ costing of funding proposals. In 2014–, more than 90 Cabinet documents were reviewed, with combined cost estimates of over $100 billion. Through the Costing Centre of Expertise, the quality of cost estimates presented to ministers has begun to improve.

Sub-Program 1.4.2: Internal Audit

Through the Internal Audit sub-program, the Secretariat provides leadership in applying the internal audit function across government and promotes independent audit assurance through internal audit practices. The Secretariat establishes performance expectations for effective internal audit. It assists departments and agencies in achieving these expectations by providing them with advice on the interpretation of the Policy on Internal Audit, clarifying the roles and responsibilities of policy stakeholders and monitoring compliance.

To further strengthen the internal audit function government-wide, the Secretariat promotes professionalism and capacity building in the internal audit community and supports the recruitment, appointment and development of external audit committee members. The Secretariat also leads horizontal audits in large departments and agencies; performs horizontal and core control audits in small departments and agencies; and, since , provides internal audit services to the regional development agencies.

The Secretariat performs this work to increase and strengthen stewardship, accountability, risk management, governance and internal controls within departments and agencies across the federal government.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
9,228,631 7,706,062 -1,522,569
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
61 61 0

Actual spending was lower than planned spending, mainly due to internal adjustments made during the year to support the Costing Centre of Expertise. Actual FTEs aligned with planned FTEs.

Performance Results
Expected Results Performance Indicators Targets Actual Results
Internal audit functions in departments and agencies provide independent assurance to their deputy heads on governance, risk management, and control processes Percentage of departments and agencies that obtained a MAF rating of at least “acceptable” to sustain the effective delivery of internal audit services Not available No longer applicable due to changes in the MAF methodology. See narrative below.
Percentage of departments and agencies that have received a rating of “generally conforms” on their practice inspection 95% 100%
Performance Analysis and Lessons Learned

All planned horizontal audits and Regional Development Agency internal audits were delivered as scheduled, with the exception of the Horizontal Internal Audit of IT Security. Its delay was cleared with the audit committees. The Secretariat also completed or substantially completed seven core control audits in 2014–; three more were initiated and underway as of .

The implementation of management action plans for horizontal audits, core control audits, and Regional Development Agency audits is monitored annually for all small departments and Regional Development Agencies.

Internal Audit was not assessed as part of MAF in 2014–; however, departmental internal audit functions did undertake third-party external practice inspections. As of , a total of 37 out of 37 assessed organizations received a “generally conforms” rating on their practice inspections. This exceeds the Secretariat’s target and demonstrates the maturity and strength of the internal audit function across the Government of Canada.

Sub-Program 1.4.3: Assets and Acquired Services

Through the Assets and Acquired Services sub-program, the Secretariat monitors performance on the management of real property, materiel, procurement, projects and investment planning. The Secretariat provides leadership and oversight to inform decision making by ministers and officials in central agencies and departments. It develops and implements Treasury Board’s policies to support efficient management of public assets and acquired services.

To help departments achieve performance expectations, the Secretariat provides advice on the interpretation of policies and standards, monitors compliance and facilitates capacity development within the relevant functional communities.

2014– Budgetary Financial Resources (dollars)
Planned Spending Actual Spending Difference
(actual minus planned)
7,974,504 7,008,278 -966,226
2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
51 49 -2

Actual spending was lower than planned spending largely due to an in-year transfer of expenditures to Internal Services for maintenance and support of the Directory of Federal Real Property and the Federal Contaminated Sites Directory. Actual FTEs largely aligned with planned FTEs.

Performance Results
Expected Result Performance Indicators Targets Actual Results
Departments and agencies have the tools and policies they need to implement and sustain effective acquired services and asset management practices and performance Percentage of large departments and agencies that have an approved or acknowledged investment plan 100% 84%
Percentage of small departments and agencies that have an approved or acknowledged investment plan 100% 57%
Performance Analysis and Lessons Learned

Assets and acquired services policies are being assessed as part of a broader review of the Treasury Board policy suite. Analysis has revealed the potential for streamlining the requirements, and has opened up opportunities for improving their horizontal linkages, particularly in the areas of decision making and accountability, life-cycle management, and performance and monitoring. Based on these findings, potential changes to the assets and acquired services policies are being considered.

Although the Secretariat’s targets for approved or acknowledged investment plans in both small and large departments were not met, the plans that were approved or acknowledged covered over 90 per cent of the government’s spending on assets and acquired services. This result supports an effective regime for planning and decision making.

Program 1.5: Government-Wide Funds and Public Service Employer PaymentsFootnote 5

The Government-Wide Funds and Public Service Employer Payments program accounts for funds that are held centrally to supplement other appropriations, from which allocations are made to, or payments and receipts are made on behalf of, other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Treasury Board as the employer of the core public administration, including employer obligations under the public service pension and benefits plans.

The administration of these funds falls under the Expenditure Management program and the People Management program, but their financial resources are shown separately in the Program Alignment Architecture for visibility and reporting purposes.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities
Available for Use
Actual Spending (authorities used) Difference
(actual minus planned)
7,106,195,208 7,106,195,208 4,905,924,725 2,898,360,909 -4,207,834,299

The budgetary financial resources for this program can be broken down into two components: government-wide funds and the public service employer payments.

Government-Wide Funds (Central Votes) (dollars)
2014– Main Estimates
(revised)
2014– Planned Spending
(revised)
2014– Total Authorities Available for Use 2014– Actual Spending (authorities used) 2014– Difference (actual minus planned)
4,403,193,000 4,403,193,000 1,955,741,113 0 -4,403,193,000

The variance between planned and actual spending in this program is mainly attributable to the way that government-wide funds are transferred between the Secretariat and other government organizations. Every year, the Secretariat includes funding in its reference level to be transferred to other government organizations once specific criteria are met (in 2014–, this amount was roughly $4.4 billion). The organizations who receive the transfers include the additional funding in their appropriations, and incur expenditures against it; therefore, no actual spending is incurred by the Secretariat under government-wide funds.

Government-wide funds include funding to support other government departments and agencies for expenditures such as paylist requirements (to cover parental benefits and severance payments); compensation adjustments (to adjust for salary increases); Operating Budget Carry Forward (to carry forward eligible lapsing funds from the previous fiscal year); and Capital Budget Carry Forward (to carry forward lapsing capital funds from the previous fiscal year).

Public Service Employer Payments and Various Statutory Items (dollars)
2014– Main Estimates
(revised)
2014– Planned Spending
(revised)
2014– Total Authorities Available for Use 2014– Actual Spending (authorities used) 2014– Difference (actual minus planned)
2,703,002,208 2,703,002,208 2,950,183,612 2,898,360,909 195,358,701

Public service employer payments pertain to group insurance and benefit programs, and various statutory payments. Planned spending (equal to Main Estimates) was $2.7 billion.

During the year, funding was increased by $247 million. This was mainly to address a funding shortfall within the plan due to the increased number of medically released Canadian Armed Forces members following the Afghanistan mission. The increase was also due to the implementation of changes to the Public Service Health Care Plan negotiated in 2014, with a view to achieving a 50-50 cost-sharing ratio with pensioners by .

2014– Human Resources (FTEs)
Planned Actual Difference
(actual minus planned)
N/A N/A N/A
Performance Results
Expected Result Performance Indicators Targets Actual Results
Allocations, payments and receipts managed by the Secretariat are made, as required Percentage of allocations and payments made as required 100% 100%

Performance Analysis and Lessons Learned

Planned spending included $4.4 billion for government-wide funds in Treasury Board Votes 5, 10, 25, 30 and 33, and $2.7 billion for public service employer payments for Vote 20 and for payments made under the Public Service Pension Adjustment Act.

Total authorities available for use for Votes 5, 10, 25, 30, and 33 totaled roughly $2.0 billion at the end of the fiscal year. The Secretariat received approximately $4.4 billion in the Main Estimates and $0.6 billion in-year through the Supplementary Estimates. The Secretariat's actual spending included $2.9 billion in Treasury Board Vote 20 for public service employer payments and statutory payments under the Public Service Pension Adjustment Act, and for employer contributions made under the Public Service Superannuation Act.

Internal ServicesFootnote 6

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These groups are Management and Oversight Services, Communications Services, Legal Services, Human Resources Management Services, Financial Management Services, Information Management Services, Information Technology Services, Real Property Services, Materiel Services, Acquisition Services, and Travel and Other Administrative Services. Internal Services include only those activities and resources that apply across an organization and not those provided to a specific program.

2014– Budgetary Financial Resources (dollars)
Main Estimates Planned Spending Total Authorities Available for Use Actual Spending (authorities used) Difference (actual minus planned)
78,425,603 78,425,603 89,329,995 78,399,289 -26,315
2014– Human Resources (FTEs)
Planned (revised) Actual Difference (actual minus planned)
585 599 14

The difference between planned spending and total authorities available for use was mainly due to transfers from Treasury Board Central Votes for items such as Operating Budget Carry Forward, a one-time transition payment for salary in arrears for the Secretariat's employees, the Web Renewal initiative, collective agreement increases, and internal reallocations within the Secretariat. Most of the difference between actual spending and total authorities available for use is due to a re-profiling of funds for the Workspace Renewal initiative from 2014– to 2015–. Planned spending and FTEs aligned with actual spending and FTEs.

Performance Analysis and Lessons Learned

In 2014–, the Secretariat completed a number of internal initiatives to better support programs and meet corporate obligations more effectively.

The Secretariat finalized planning for its move in 2015– to new office accommodations, with a view to consolidating and reducing office space. It also implemented technologies to support collaboration and a mobile and connected workforce.

After a comprehensive review process, the Secretariat renewed its governance structure. The new structure provides oversight over the department’s project and resourcing issues, as well as over government-wide policy issues. Its internal processes make effective use of new technology to transition from paper-based meeting materials to electronic formats such as tablets.

In addition, the Secretariat unified multiple transformation initiatives, including Blueprint 2020 initiatives, under “This is TBS,” to create a more collaborative, open and agile organization with better enabling technologies and reduced office space.

The Secretariat renewed its Strategic Outcome, Program Alignment Architecture and Performance Measurement Framework to better support resource alignment and management for results.

Section III: Supplementary Information

Financial Statements Highlights

The highlights presented in this section are drawn from the Secretariat's financial statements and are prepared on an accrual basis. The financial statements were prepared using Government of Canada accounting policies, which are based on Canadian public sector accounting standards.

The variance between the figures provided in other sections of this report, which were prepared on an expenditure basis, and the figures that follow, which were prepared on an accrual basis, relates to accrual entries such as the recognition of services without charge received from other government departments and the acquisition of capital assets and related amortization expenses, as well as to accrued liability adjustments.

Treasury Board of Canada Secretariat
Condensed Statement of Operations (unaudited)
For the Year Ended
(dollars)
Financial Information 2014– Planned Results 2014– Actual 2013– Actual Difference (2014– actual minus 2014– planned) Difference (2014– actual minus 2013– actual)
Note: Refer to the Secretariat's 2014– Future-Oriented Statement of Operations.
Total expenses 2,988,982,070 3,185,488,729 2,959,400,132 196,506,659 226,088,597
Total revenues 14,141,304 10,782,961 10,480,950 (3,358,343) 302,011
Transferred operations –expenses 0 0 111,448 0 (111,448)
Net cost of operations before government funding and transfers 2,974,840,766 3,174,705,768 2,949,030,630 199,865,002 225,675,138

The Secretariat's total expenses in 2014– include approximately $2.9 billion related to public service employer payments for government-wide benefit programs, such as the employer's share of the Public Service Health Care Plan, the Public Service Dental Care Plan, and other insurance and pension programs. Total expenses also include contributions to the Public Service Pension Plan in respect of actuarial deficits. The Secretariat's total net revenues of $10.8 million in 2014– mainly include internal support services of $6.2 million that the Secretariat provided to other government departments and the recovery of Public Service Pension Plan administration costs.

The difference of $226 million between 2014– and 2013­– actual expenses and of $196 million between 2014– planned results and 2014– actual expenses is mainly due to an increase related to public service employer payments.

Treasury Board of Canada Secretariat
Condensed Statement of Financial Position (unaudited)
As at
(dollars)
Financial Information 2014– 2013– (Restated) $ Difference (2014– minus 2013–)
Total net liabilities 817,619,442 483,337,524 334,281,918
Total net financial assets 725,314,297 391,432,308 333,881,989
Departmental net debt 92,305,145 91,905,216 399,929
Total non-financial assets 22,825,001 12,864,442 9,960,559
Departmental net financial position (69,480,144) (79,040,774) 9,560,630

The Secretariat's liabilities consist mainly of accounts payable to other government organizations and to claims for benefits under the Public Service Health Care Plan and the Public Service Dental Care Plan. The Secretariat's assets consist mainly of accounts receivable from other government departments and agencies related to employee benefit plans and amounts due from the Consolidated Revenue Fund.

The increase in total net liabilities resulted mainly from an increase in accounts payable to Public Works and Government Services Canada for actuarial deficits associated with the Public Service Pension Plan and related accounts in the amount of $443 million. This amount is expensed annually by the Secretariat. In 2014–, the invoice was not received by March 31, and the amount was therefore not expensed during the reporting period—an accounts payable was set up and paid early in 2015–. This increase was partially offset by a decrease in accounts payable to other government departments and agencies related to employee benefit plans ($65 million) and a decrease in accrued liabilities to external parties ($54 million).

The increase in total net financial assets resulted from an increase in the due from the Consolidated Revenue Fund ($301 million), which represents amounts that can be paid out from the Consolidated Revenue Fund, including the accounts payable mentioned above, without further charges to the Secretariat's authorities. The increase in total net financial assets also resulted from a rise in accounts receivable from other government departments and agencies related to employee benefit plans ($32 million).

The increase of $9.6 million in the departmental net financial position, which is the difference between the departmental net debt and the total non-financial assets, resulted from an increase in total non-financial assets ($9.9 million) consisting largely of tangible capital assets.

Financial Statements

See the complete Treasury Board of Canada Secretariat Financial Statements for the Year Ended March 31, 2015, which include the Statement of Management Responsibility Including Internal Control Over Financial Reporting and its Annex for fiscal year 2014–.

Supplementary Information Tables

The supplementary information tables listed in the 2014– Departmental Performance Report can be found on the Treasury Board of Canada Secretariat's website.

Tax Expenditures and Evaluations

The tax system can be used to achieve public policy objectives through the application of special measures such as low tax rates, exemptions, deductions, deferrals and credits. The Department of Finance Canada publishes cost estimates and projections for these measures annually in the Tax Expenditures and Evaluations publication. The tax measures presented in the Tax Expenditures and Evaluations publication are solely the responsibility of the Minister of Finance.

Section IV: Organizational Contact Information

Treasury Board of Canada Secretariat
90 Elgin Street
Ottawa, Canada K1A 0R5

Toll free: 1-877-636-0656
Teletypewriter (TTY): 613-369-9371
Email: questions@tbs-sct.gc.ca
Website: www.tbs-sct.gc.ca

Appendix: Definitions

appropriation ( crédit):
Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures ( dépenses budgétaires):
Includes operating and capital expenditures; transfer payments to other levels of government, organizations or individuals; and payments to Crown corporations.
Departmental Performance Report ( rapport ministériel sur le rendement):
Reports on an appropriated organization's actual accomplishments against the plans, priorities and expected results set out in the corresponding Report on Plans and Priorities. These reports are tabled in Parliament in the fall.
full-time equivalent ( équivalent temps plein):
Is a measure of the extent to which an employee represents a full person-year charged against a departmental budget. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.
Government of Canada outcomes ( résultats du gouvernement du Canada):
A set of 16 high-level objectives defined for the government as a whole, grouped in four spending areas: economic affairs, social affairs, international affairs and government affairs.
Management, Resources and Results Structure ( Structure de la gestion, des ressources et des résultats):
A comprehensive framework that consists of an organization's inventory of programs, resources, results, performance indicators and governance information. Programs and results are depicted in their hierarchical relationship to each other and to the Strategic Outcome(s) to which they contribute. The Management, Resources and Results Structure is developed from the Program Alignment Architecture.
non-budgetary expenditures ( dépenses non budgétaires):
Includes net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance ( rendement):
Is what an organization did with its resources to achieve its results; how well those results compare to what the organization intended to achieve; and how well lessons learned have been identified.
performance indicator ( indicateur de rendement):
A qualitative or quantitative means of measuring an output or outcome, with the intention of gauging the performance of an organization, program, policy or initiative respecting expected results.
performance reporting ( production de rapports sur le rendement):
The process of communicating evidence-based performance information. Performance reporting supports decision making, accountability and transparency.
planned spending ( dépenses prévues):

For Reports on Plans and Priorities (RPPs) and Departmental Performance Reports (DPRs), planned spending refers to those amounts that receive Treasury Board approval by . Therefore, planned spending may include amounts incremental to planned expenditures presented in the Main Estimates.

A department is expected to be aware of the authorities that it has sought and received. The determination of planned spending is a departmental responsibility, and departments must be able to defend the expenditure and accrual numbers presented in their RPPs and DPRs.

plan ( plan):
The articulation of strategic choices, which provides information on how an organization intends to achieve its priorities and associated results. Generally a plan will explain the logic behind the strategies chosen and will tend to focus on actions that lead up to the expected result.
priorities ( priorité):
Plans or projects that an organization has chosen to focus and report on during the planning period. Priorities represent the things that are most important, or what must be done first to support the achievement of the desired Strategic Outcome(s).
program ( programme):
A group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results, and that are treated as a budgetary unit.
Program Alignment Architecture ( architecture d'alignement des programmes):
A structured inventory of an organization's programs depicting the hierarchical relationship between programs and the Strategic Outcome(s) to which they contribute.
Report on Plans and Priorities ( rapport sur les plans et les priorités):
Provides information on the plans and expected performance of appropriated organizations over a three-year period. These reports are tabled in Parliament each spring.
result ( résultat):
An external consequence attributed, in part, to an organization, policy, program or initiative. Results are not within the control of a single organization, policy, program or initiative; instead, they are within the area of the organization's influence.
statutory expenditures ( dépenses législatives):
Expenditures that Parliament has approved through legislation other than appropriation acts. The legislation sets out the purpose of the expenditures and the terms and conditions under which they may be made.
Strategic Outcome ( résultat stratégique):
A long-term and enduring benefit to Canadians that is linked to the organization's mandate, vision and core functions.
sunset program ( programme temporisé):
A time-limited program that does not have an ongoing funding and policy authority. When the program is set to expire, a decision must be made whether to continue the program. In the case of a renewal, the decision specifies the scope, funding level and duration.
target ( cible):
A measurable performance or success level that an organization, program or initiative plans to achieve within a specified time period. Targets can be either quantitative or qualitative.
voted expenditures ( dépenses votées):
Expenditures that Parliament approves annually through an appropriation act. The Vote wording becomes the governing conditions under which these expenditures may be made.
whole-of-government framework ( cadre pangouvernemental):
Maps the financial contributions of federal organizations receiving appropriations by aligning their programs to a set of 16 government-wide, high-level outcome areas, grouped under four spending areas.

Treasury Board of Canada Secretariat Financial Statements (Unaudited) for the Year Ended

Table of Contents

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended , and all information contained in these statements rests with the management of the Treasury Board of Canada Secretariat (Secretariat). These financial statements have been prepared by management using the government's accounting policies, which are based on Canadian public sector accounting standards.

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 is also responsible for maintaining an effective system of internal control over financial reporting designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities and policies.

Management 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; through communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the Secretariat; and through conducting an annual risk-based assessment of the effectiveness of the system of internal control over financial reporting.

A risk-based assessment for the year ended , was completed in accordance with the Policy on Internal Control, and the results and action plans are summarized in the annex.

The system of internal control over financial reporting is designed to mitigate risks to a reasonable level based on an ongoing process to assess key risks and the effectiveness of associated key controls and to make any necessary adjustments.

The system of internal control is monitored 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 and provides advice to management on its responsibilities for maintaining adequate control systems and the quality of financial reporting. This committee undertakes a review of the financial statements, including all significant accounting estimates and judgments therein, and advises the Secretariat on any apparent material concerns.

The financial statements of the Secretariat have not been audited.

Yaprak Baltacioğlu
Secretary of the Treasury Board
Ottawa, Canada

Renée Lafontaine
Chief Financial Officer
Ottawa, Canada

Treasury Board of Canada Secretariat
Statement of Financial Position (Unaudited)
as at
(in thousands of dollars)
  2015 2014 Restated
(note 13)

Table notes:

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

  • For contractual obligations, see Note 8.
  • For contingent liabilities, see Note 9.
Liabilities
Accounts payable and accrued liabilities Note 4)
797,265 465,563
Vacation pay and compensatory leave
7,665 7,888
Employee future benefits ( Note 5)
12,689 9,814
Lease obligation for tangible capital assets
0 73
Total liabilities 817,619 483,338
Financial assets
Due from Consolidated Revenue Fund
483,662 182,955
Accounts receivable and advances ( Note 6)
242,184 208,989
Total gross financial assets 725,846 391,944
Financial assets held on behalf of government
Accounts receivable and advances ( Note 6)
(532) (511)
Total financial assets held on behalf of government (532) (511)
Total net financial assets 725,314 391,433
Departmental net debt 92,305 91,905
Non-financial assets
Prepaid expenses
106 31
Tangible capital assets ( Note 7)
22,719 12,833
Total non-financial assets 22,825 12,864
 
Departmental net financial position (69,480) (79,041)

Yaprak Baltacioğlu
Secretary of the Treasury Board
Ottawa, Canada

Renée Lafontaine
Chief Financial Officer
Ottawa, Canada

Treasury Board of Canada Secretariat
Statement of Operations and Departmental Net Financial Position (Unaudited)
for the Year Ended March 31
(in thousands of dollars)
  2015
Planned Results
2015 2014

Table Notes

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

  • For segmented information, see Note 12.
  • Planned results were presented in the 2014–15 Future-Oriented Statement of Operations and included in the Secretariat's 2014–15 Report on Plans and Priorities (RPP), based on plans as at (see also Note 2a).
Expenses
Government-Wide Funds and Public Service Employer Payments ( Note 12b)
2,699,379 2,899,672 2,610,909
Management Frameworks
55,697 56,434 59,014
People Management
77,151 84,711 138,956
Expenditure Management
34,513 31,760 36,490
Financial Management
34,258 32,811 31,659
Internal Services
87,984 80,100 82,372
Total expenses 2,988,982 3,185,488 2,959,400
Revenues
Internal support services
6,709 6,220 6,808
Recovery of pension administration costs
8,885 5,554 4,518
Parking fees – Government-wide
3,370 3,491 3,355
Other
30 140 1,012
Gross revenues
18,994 15,405 15,693
Revenues earned on behalf of government
(4,853) (4,622) (5,212)
Total net revenues 14,141 10,783 10,481
Net cost from continuing operations 2,974,841 3,174,705 2,948,919
Transferred operations
Expenses
0 0 112
Net cost of transferred operations 0 0 112
Net cost of operations before government funding and transfers 2,974,841 3,174,705 2,949,031
Government funding and transfers
Net cash provided by government
  2,870,426 2,912,605
Change in due from Consolidated Revenue Fund
  300,707 (39,910)
Services provided without charge by other government departments ( Note 10)
  19,260 23,100
Transfer of the transition payments for implementing salary payments in arrears ( Note 11)
  (6,106) 0
Transfer of tangible capital assets to other government departments
  (21) (2,046)
Total government funding and transfers   3,184,266 2,893,749
Net cost of operations after government funding and transfers   (9,561) 55,282
Departmental net financial position – Beginning of year   (79,041) (23,759)
Departmental net financial position – End of year   (69,480) (79,041)
Treasury Board of Canada Secretariat
Statement of Change in Departmental Net Debt (Unaudited)
for the Year Ended March 31
(in thousands of dollars)
  2015 2014

Table notes:

  • The accompanying notes form an integral part of these financial statements.
Net cost of operations after government funding and transfers (9,561) 55,282
Change due to tangible capital assets
Acquisition of tangible capital assets
11,702 7,955
Acquisition of leased tangible capital assets
0 97
Amortization of tangible capital assets
(1,795) (1,034)
Proceeds from disposal of tangible capital assets
(12) 0
Gain (loss) on write-off and disposal of tangible capital assets
12 (209)
Transfer to other government departments
(21) (2,046)
Total change due to tangible capital assets
9,886 4,763
Change due to prepaid expenses
75 (5)
Net increase in departmental net debt 400 60,040
Departmental net debt – Beginning of year 91,905 31,865
Departmental net debt – End of year 92,305 91,905
Treasury Board of Canada Secretariat
Statement of Cash Flows (Unaudited)
for the Year Ended March 31
(in thousands of dollars)
2015 2014

Table notes:

  • The accompanying notes form an integral part of these financial statements.
Operating activities
Net cost of operations before government funding and transfers 3,174,705 2,949,031
Non-cash items:
Amortization of tangible capital assets
(1,795) (1,034)
Gain (loss) on write-off and disposal of tangible capital assets
12 (209)
Services provided without charge by other government departments ( Note 10)
(19,260) (23,100)
Transition payments for implementing salary payments in arrears
(Note 11)
6,106 0
Variations in Statement of Financial Position:    
Increase in accounts receivable and advances
33,174 37,513
Increase (decrease) in prepaid expenses
75 (5)
Increase in accounts payable and accrued liabilities
(331,702) (72,997)
Decrease in vacation pay and compensatory leave
223 110
Decrease (increase) in employee future benefits
(2,875) 15,317
Cash used in operating activities 2,858,663 2,904,626
Capital investing activities
Acquisitions of tangible capital assets
11,702 7,955
Proceeds from disposal of tangible capital assets
(12) 0
Cash used in capital investing activities 11,690 7,955
Financing activities
Lease payments for tangible capital assets
73 24
Cash used in financing activities 73 24
Net cash provided by the Government of Canada 2,870,426 2,912,605

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. The Secretariat is headed by a Secretary, who reports to the President of the Treasury Board.

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

The core business of the Secretariat is currently organized into the following key programs:

a) Government-Wide Funds and Public Service Employer Payments

The Government-Wide Funds and Public Service Employer Payments program accounts for funds that are held centrally to supplement other appropriations from which allocations are made to, or payments and receipts are made on behalf of, other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Treasury Board as the employer of the core public administration, including employer obligations under the public service pension and benefits plans.

b) Management Frameworks

In support of the Treasury Board’s role as management board, the Secretariat provides the framework for the management of government operations. It does so by developing specific policies, regulations, directives and guidelines that, once approved by the Treasury Board, provide the parameters within which deputy heads manage their departments. The Secretariat also helps build understanding and capacity by reaching out to the different communities within departments and agencies (e.g., finance, human resources) that support deputy heads in implementing Treasury Board policies.

c) People Management

The People Management program supports Treasury Board activities in its role as the employer of the core public administration. The program’s primary objectives are to lead people management and promote leadership excellence, to support human resources infrastructure, and to ensure the appropriate degree of consistency in people management across the public service. In certain instances, activities extend beyond the core public administration to separate agencies, members of the Royal Canadian Mounted Police and the Canadian Forces, students and appropriation-dependent Crown corporations.

d) Expenditure Management

The Expenditure Management program helps align resources to achieve government priorities in a way that maximizes value for money and provides a whole-of-government perspective on matters related to direct program spending. Working with all federal organizations that are subject to budget appropriation, the Secretariat undertakes the review, analysis and challenge of plans and proposals that involve departmental spending, expenditure forecasting and strategies, expenditure management of total compensation, and results-based management.

e) Financial Management

The Financial Management program provides oversight and direction to federal organizations to improve the stewardship of taxpayers’ dollars and government assets.

The program works to strengthen financial management, internal audit, management of real property and materiel, investment planning, project management and procurement across the federal public service. This is accomplished by providing direction to departments; demonstrating leadership; developing and maintaining policies, guidance and practices; nurturing sustainable and professional communities (e.g., finance, procurement, audit); and helping to improve government operations.

f) Internal Services

Internal Services are groups of related activities and resources that are administered to support the needs of programs and other corporate obligations of an organization. These include support functions such as communications, financial and human resources management, real property, information technology, legal services and procurement.

Internal Services include only those activities and resources that apply across an organization and do not include those provided for a specific program.

2. Summary of Significant Accounting Policies

These financial statements have been prepared using the government’s accounting policies, which are based on Canadian public sector accounting standards. The presentation and results using the accounting policies stated below do not result in any significant differences from Canadian public sector accounting standards.

The significant accounting policies are as follows:

a) Parliamentary authorities

The Secretariat is financed by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the Secretariat do not parallel financial reporting according to generally accepted accounting principles since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and Departmental Net Financial Position and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament.

Note 3 provides a reconciliation between the bases of reporting. The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations and Departmental Net Financial Position are the amounts reported in the Future-Oriented Statement of Operations included in the 2014–15 Report on Plans and Priorities. Planned results are not presented in the “Government funding and transfers” section of the Statement of Operations and Departmental Net Financial Position and in the Statement of Change in Departmental Net Debt because these amounts were not included in the 2014–15 Report on Plans and Priorities.

b) Net cash provided by government

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 government is the difference between all cash receipts and all cash disbursements, including transactions between government departments.

c) Amounts due from/to the Consolidated Revenue Fund (CRF)

Amounts due from or to the Consolidated Revenue Fund (CRF) are the result of timing differences at year-end between the time when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the Secretariat is entitled to draw from the CRF without further authorities to discharge its liabilities.

d) Revenues

Revenues are accounted for in the period in which the related transaction or event that gave rise to the revenues occurred.

Revenues that are non-respendable are not available to discharge the Secretariat’s liabilities. While the Secretary is expected to maintain accounting control, she has no authority regarding the disposition of non-respendable revenues. As a result, non-respendable revenues are considered to be earned on behalf of the Government of Canada and, therefore, are presented as a reduction of the entity’s gross revenues.

e) Expenses

Expenses are recorded on an accrual basis:

  • Transfer payments are recorded as expenses when authorization for the payment exists and the recipient has met the eligibility criteria or the entitlements established for the transfer payment program. Transfer payments that become repayable as a result of the realization of conditions specified in the contribution agreement are recorded as a reduction to transfer payment expenses and are set up as a receivable.
  • Vacation pay and compensatory leave are accrued as the benefits are earned by 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

(i) Pension and other employee benefits

Eligible public service employees participate in the Public Service Pension Plan (the Plan), a defined benefit pension plan sponsored by the Government of Canada. In support of the Treasury Board’s role as employer for the public service, the Secretariat funds employer contributions to the Plan for all departments and agencies, including additional contributions in respect of any actuarial deficits, via statutory authorities.

Starting in 2012–13, and based on the , triennial actuarial valuation of the Plan tabled in Parliament on , an annual adjustment of $435 million will be made to the Pension Fund for a period of 13 years ending in 2025. This amount, along with an annual adjustment of $8 million for Retirement Compensation Arrangement Account No. 2, comprises the $443 million that has been expensed in the Secretariat’s financial statements (refer to Note 12b).

Employer contributions to the Plan are expensed in the year incurred, and the Secretariat recovers a portion of the employer contributions from other departments and agencies.

Eligible employees of the Secretariat also participate in the Plan. The Secretariat’s financial reporting responsibility in respect of its own employees’ participation in the Plan is limited to its employer contributions.

The Government of Canada also sponsors a variety of other employee benefit plans that the Secretariat is responsible for administering and/or funding through its centrally managed funds. Benefit payments for these plans are recognized as expenses in the Secretariat’s financial statements when they become due, and no accruals are recorded for future benefits. A portion of these benefits is also recovered from other departments and agencies. This accounting treatment corresponds to the funding provided to the Secretariat through parliamentary appropriations.

For all pension and other employee future benefits, the actuarial liabilities and related disclosures as well as actuarial surpluses or deficiencies for the whole of government are recognized in the financial statements of the Government of Canada. It is the government as the sponsor of the defined benefit plans that ultimately bears the actuarial and investment risks inherent to these plans.

(ii) Severance benefits

Certain employee groups are entitled to severance benefits 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 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.

As a result of collective agreement negotiations with certain employee groups and changes to conditions of employment for executives and certain non-represented employees, the accumulation of severance benefits under the employee severance pay program ceased for these employees, commencing in 2012. Employees subject to these changes have been given the option to be immediately paid the full or partial value of benefits earned to date or to collect the full or remaining value of benefits on termination from the public service. As a result, the obligation related to these employee groups has ceased to accumulate.

g) Accounts receivable and advances

Accounts receivable and advances are stated at the lower of cost or net recoverable value. A valuation allowance has been recorded for receivables where recovery is considered uncertain.

h) 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 is 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.

i) 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
Computer hardware 3 years
Computer software 3 to 10 years
Machinery and equipment 3 to 10 years
Motor vehicles 5 years
Assets under construction Once in service, in accordance with asset type
Leasehold improvements Lesser of the remaining term of the lease or useful life of the improvement
Leased tangible capital assets Over the lease term

Assets under construction are recorded in the applicable capital asset class in the year that they become available for use, and are not amortized until they become available for use.

j) Measurement uncertainty

The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of the assets, liabilities, revenues and expenses in the financial statements. At the time of the 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 claims incurred but not yet reported under the public service health and dental care plans, the liability for employee future benefits, and the useful life of tangible capital assets. The actual results could significantly differ from the estimated results. Management’s estimates are reviewed periodically; as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary Authorities

The Secretariat receives most of its funding through expenditure authorities provided by Parliament. Items recognized in the Statement of Operations and Departmental Net Financial Position and the Statement of Financial Position in one year may be funded through the parliamentary authorities of prior, current or future years. Accordingly, the Secretariat’s net results of operations for the year on a government funding basis differ from its net results of operations on an accrual accounting basis. The differences are reconciled in the following tables:

a) Reconciliation of net cost of operations to current year authorities used

($ thousands)
  2015 2014
Net cost of operations before government funding and transfers 3,174,705 2,949,031
Adjustments for items affecting net cost of operations but not
affecting authorities:
Amortization of tangible capital assets
(1,795) (1,034)
Gain (loss) on write-off and disposal of tangible capital assets
12 (209)
Services provided without charge by other government departments
(19,260) (23,100)
Decrease in vacation pay and compensatory leave
223 110
Decrease (increase) in employee future benefits
(3,108) 15,108
Refund of prior years’ expenditures
50,457 19,668
Decrease (increase) in accrued liabilities
2,017 (74,600)
Other
(42) 109
Subtotal 28,504 (63,948)
Adjustments for items not affecting net cost of operations but
affecting authorities:
Acquisitions of tangible capital assets
11,702 7,955
Lease payments for tangible capital assets
73 24
Transition payments for implementing salary payments in arrears
6,106 0
Increase (decrease) in advances
600 (541)
Subtotal 18,481 7,438
Current year authorities used 3,221,690 2,892,521

b) Authorities provided and used

($ thousands)
  2015 2014
Authorities provided
Vote 1 — Program expenditures
321,759 246,328
Vote 5 — Government contingencies
750,000 749,999
Vote 10 — Government-wide initiatives
103 2,093
Vote 20 — Public service insurance
2,506,134 2,268,180
Vote 25 — Operating budget carry-forward
460,112 173,454
Vote 30 — Pay list requirements
608,192 487,699
Vote 33 — Capital budget carry-forward
137,334 0
Subtotal 4,783,634 3,927,753
Statutory authorities:
Contributions to employee benefit plans
27,398 28,996
Unallocated employer contributions made under the Public Service Superannuation Act, other retirement acts, and the Employment Insurance Act
444,043 443,000
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act
0 84
President of the Treasury Board – Salary and car allowance
80 79
Payments under the Public Service Pension Adjustment Act
6 4
Spending of proceeds from the disposal of surplus Crown assets
15 3
Subtotal 471,542 472,166
Total authorities provided 5,255,176 4,399,919
Less:
Lapsed or transferred authorities:
Vote 1 — Program expenditures
(25,908) (12,104)
Vote 5 — Government contingencies
(750,000) (749,999)
Vote 10 — Government-wide initiatives
(103) (2,093)
Vote 20 — Public service insurance
(51,822) (82,047)
Vote 25 — Operating budget carry-forward
(460,112) (173,454)
Vote 30 — Pay list requirements
(608,192) (487,699)
Vote 33 — Capital budget carry-forward
(137,334) 0
Spending of proceeds from the disposal of surplus Crown assets
(15) (2)
Subtotal (2,033,486) (1,507,398)
Current year authorities used 3,221,690 2,892,521

4. Accounts Payable and Accrued Liabilities

The following table presents the details of the Secretariat’s accounts payable and accrued liabilities:

($ thousands)
  2015 2014
Restated
(note 13)
Accounts payable to other government departments and agencies 691,164 312,988
Accounts payable to external parties 18,681 19,100
Total accounts payable 709,845 332,088
Accrued liabilities 87,420 133,475
Total accounts payable and accrued liabilities 797,265 465,563

5. Employee Future Benefits

a) Pension benefits

The Secretariat’s employees participate in the Public Service Pension Plan (the 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 Canada/Québec Pension Plan benefits, and they are indexed to inflation.

Both the employees and the Secretariat contribute to the cost of the Plan. Due to the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan (EAP) 2012, employee contributors have been divided into two groups:

  1. Group 1 relates to existing Plan members as of ; and
  2. Group 2 relates to members joining the Plan as of .

Each group has a distinct contribution rate. The 2014–15 employer expense amounts to $18.7 million ($20.4 million in 2013–14). For Group 1 members, this expense represents approximately 1.41 times (1.6 times in 2013–14) the employee contributions; for Group 2 members, it represents approximately 1.39 times (1.5 times in 2013–14) the employee contributions.

Employee contribution rates for both groups are gradually being increased to allow the employee-employer cost-sharing ratio to reach 50:50 by 2017–18.

b) Severance benefits

The Secretariat provides severance benefits to certain employee occupational groups based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future authorities. Information about the severance benefits, measured as at year ended , is as follows (see also Note 2f (ii)):

($ thousands)
  2015 2014
Accrued benefit obligation – Beginning of year 9,814 25,131
Expense for the year 4,958 (2,673)
Benefits paid during the year (2,083) (12,644)
Accrued benefit obligation – End of year 12,689 9,814

6. Accounts Receivable and Advances

The following table presents details of the Secretariat’s accounts receivable and advance balances:

($ thousands)
  2015 2014
Receivables – Other government departments and agencies 240,054 207,869
Receivables – External parties 2,319 1,201
Advances to employees 9 11
Subtotal accounts receivable and advances 242,382 209,081
Less allowance for doubtful accounts on external receivables (198) (92)
Gross accounts receivable and advances 242,184 208,989
Accounts receivable held on behalf of government (532) (511)
Net accounts receivable and advances 241,652 208,478

The bulk of receivables from other government departments and agencies are related to receivables established at year-end as a result of employee benefit plans.

7. Tangible Capital Assets

The following table presents the details of tangible capital assets:

($ thousands)
  Cost Accumulated amortization Net book value
Capital asset class Opening balance Acquisitions Adjustmentstable note * Closing balance Opening balance Amortization Adjustmentstable note * Closing balance 2015 2014

Table Notes

Table Note 1

The adjustments columns include assets under construction that were put into use during the reporting period; retirements of a motor vehicle and leased computer hardware; and the transfer of a motor vehicle to Western Economic Diversification Canada.

Return to table note * referrer

Assets under construction 7,571 11,677 (6,245) 13,003 0 0 0 0 13,003 7,571
Machinery and equipment 820 0 1,184 2,004 180 246 0 426 1,578 640
Motor vehicles 146 25 (54) 117 121 4 (33) 92 25 25
Leasehold improvements 1,952 0 0 1,952 1,952 0 0 1,952 0 0
Leased computer hardware 97 0 (97) 0 8 89 (97) 0 0 89
Computer hardware 63 0 2,287 2,350 10 18 0 28 2,322 53
Computer software 6,501 0 2,274 9,275 2,046 1,438 0 3,484 5,791 4,455
Total 17,150 11,702 (151) 28,701 4,317 1,795 (130) 5,982 22,719 12,833

8. Contractual Obligations

The nature of the Secretariat’s activities can result in some large multi-year contracts and obligations whereby the Secretariat is obligated to make future payments when the services or goods are received. Significant contractual obligations that can be reasonably estimated are summarized in the following table:

($ thousands)
  2016 2017 2018 2019 2020 and thereafter Total
Public service health and pensioners’ dental insurance plans 42,837 23,899 0 0 0 66,736
Information technology services and acquisitions 7,836 443 0 0 0 8,279
Management consulting 2,477 0 0 0 0 2,477
Rentals 924 960 0 0 0 1,884
Other professional services 1,714 35 29 20 37 1,835
Translation services 1,001 0 0 0 0 1,001
Total 56,790 25,337 29 20 37 82,213

9. Contingent Liabilities

Claims and litigations

Claims have been made against the Secretariat in the normal course of operations. These claims include items with pleading amounts and others for which no amount is specified. While the total amount claimed in these actions is significant, their outcomes are not determinable. The Secretariat has recorded an allowance for claims and litigations where it is likely that there will be a future payment and a reasonable estimate of the loss can be made. Claims for which the outcome is not determinable and a reasonable estimate can be made by management amount to approximately $80 million ($210 million in 2013–14) as at . No accrual for these contingent liabilities has been made in these financial statements.

10. Related-Party Transactions

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. In addition, the Secretariat has the responsibility to administer and fund on behalf of other government departments the employer’s contribution to health, dental and other employee insurance plans and payroll benefits through its centrally managed funds (refer to Note 10b).

During the year, the Secretariat received and provided common services as disclosed in the following sections.

a) Common services provided without charge by other government departments

The Secretariat received accommodation and legal services from certain common service organizations. These services were provided without charge and have been recorded in the department’s Statement of Operations and Departmental Net Financial Position as follows:

($ thousands)
  2015 2014
Accommodation 16,398 19,639
Legal services 2,862 3,461
Total 19,260 23,100

In order to achieve efficiency and cost-effectiveness and to deliver programs economically to the public, the government has centralized some of its administrative activities. As a result, the government uses central agencies and common service organizations so that one department performs services for all other departments and agencies without charge. The cost of these services, such as the payroll and cheque issuance services provided by Public Works and Government Services Canada and the email, network and data centre services and the workplace technology devices provided by Shared Services Canada, are not included in the Secretariat’s Statement of Operations and Departmental Net Financial Position.

b) Common services provided without charge to other government departments

The Secretariat provided services without charge to other government departments for the provision of the employer’s contribution to health, dental and other employee insurance plans and payroll benefits in the amount of $1.7 billion in 2014–15 (compared with $1.6 billion in 2013–14).

c) Other transactions with related parties

($ thousands)
  2015 2014
Expenses – Other government departments and agencies 22,625 23,575
Revenues – Other government departments and agencies 10,771 11,324

Expenses and revenues disclosed in (c) exclude common services provided without charge, which have already been disclosed in (a) and (b). The expenses are related to various goods and services and to salary transactions with other departments and agencies. The revenues are mainly related to internal support services and the recovery of public service pension administration costs.

11. Transfer of the transition payments for implementing salary payments in arrears

The Government of Canada implemented salary payments in arrears in 2014–15. As a result, a one-time payment was issued to employees and will be recovered from them in the future. The transition to salary payments in arrears forms part of the transformation initiative that replaces the pay system and also streamlines and modernizes the pay processes. This change to the pay system had no impact on the expenses of the Secretariat. However, it did result in the use of additional spending authorities by the Secretariat. Prior to year-end, the transition payments for implementing salary payments in arrears were transferred to a central account administered by Public Works and Government Services Canada, who is responsible for the administration of the government pay system.

12. Segmented Information

a) Main programs

Presentation by segment is based on the Secretariat’s program alignment architecture. This presentation is based on the same accounting policies described in the summary of significant accounting policies in Note 2. The following table presents the expenses incurred and revenues generated for the main programs, by major category of expenses and revenues.

($ thousands)
GF &
PSEP
MF PM EM FM IS 2015 Total 2014
Legend:
  • GF & PSEP – Government-Wide Funds and Public Service Employer Payments
  • MF – Management Frameworks
  • PM – People Management
  • EM – Expenditure Management
  • FM – Financial Management
  • IS – Internal Services
Transfer payments
Industry
0 45 0 0 250 0 295 257
Total transfer payments 0 45 0 0 250 0 295 257
Operating expenses
Government-wide funds and public
service employer payments
2,899,672 0 0 0 0 0 2,899,672 2,610,909
Salary and employee benefits
0 44,963 46,133 27,313 24,740 56,121 199,270 195,686
Professional and special services
0 6,797 13,126 1,815 5,335 11,829 38,902 43,965
Accommodation
0 3,444 3,607 1,968 1,968 5,411 16,398 19,639
Transport and telecommunications
0 348 383 52 167 411 1,361 1,831
Machinery, equipment, parts and tools
0 639 215 178 67 499 1,598 1,992
Repair and maintenance
0 7 16 1 0 2,305 2,329 508
Utilities, materiel and supplies
0 39 180 25 32 339 615 618
Information
0 14 78 16 33 196 337 435
Rentals
0 107 192 48 102 2,142 2,591 3,169
Amortization
0 0 642 330 102 721 1,795 1,034
Other subsidies and expenses
0 31 20,139 14 15 126 20,325 79,357
Total operating expenses 2,899,672 56,389 84,711 31,760 32,561 80,100 3,185,488 2,959,143
Total expenses 2,899,672 56,434 84,711 31,760 32,811 80,100 3,185,488 2,959,400
Revenues
Internal support services
0 0 0 0 0 6,220 6,220 6,808
Parking fees and other revenues
3,524 0 89 0 12 6 3,631 4,367
Recovery of pension administration costs
0 0 5,554 0 0 0 5,554 4,518
Revenues earned on behalf of government
(3,524) 0 (1,094) 0 0 (4) (4,622) (5,212)
Total net revenues 0 0 4,549 0 12 6,222 10,783 10,481
Net cost from continuing operations 2,899,672 56,434 80,162 31,760 32,799 73,878 3,174,705 2,948,919

b) Government-wide funds and public service employer payments

The Government of Canada sponsors defined benefit pension plans covering most of its employees. The Secretariat also funds payments to, or in respect of, the following:

  • Employer’s share of contributions to the Public Service Death Benefit Account;
  • Employer’s share of Canada/Québec Pension Plan contributions and Employment Insurance premiums;
  • Employer’s share of health, disability, and life insurance premiums and related Québec sales tax;
  • Employer’s share of the Québec Parental Insurance Plan premium;
  • Claims and related costs under the Public Service Dental Care Plan and the Pensioners’ Dental Services Plan;
  • Provincial payroll taxes in respect of employees who work in the provinces of Quebec, Ontario, Manitoba and Newfoundland and Labrador. The payroll tax is levied on employers in each province to help fund their respective health plans; 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/Québec Pension Plan contributions and Employment Insurance premiums are recovered from all departments, agencies and revolving funds based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments, agencies and all revolving funds based on a percentage of salaries and wages incurred.

The following table presents a breakdown by major category.

($ thousands)
  2015 2014
Table Notes
Table Note 1

These amounts include contributions to the Public Service Pension Plan and Retirement Compensation Arrangement, the Canada/Québec Pension Plan, Employment Insurance and the Public Service Death Benefit Account.

Return to table note 1 referrer

Table Note 2

This amount consists mainly of contributions to health, dental and disability plans including any related taxes or premiums payable to Canadian provinces.

Return to table note 2 referrer

Employer's contributions to government employee benefit plans (statutory)table note 1 3,382,395 3,568,860
Public Service Health Care Plan claims (Vote 20) 1,093,988 978,370
Group disability and life insurance premiums (Vote 20) 745,061 560,342
Provincial payroll taxes (Vote 20) 522,644 535,927
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits (statutory) 443,000 443,000
Public Service Dental Care Plan claims (Vote 20) 263,982 265,284
Pensioners' Dental Services Plan claims (Vote 20) 165,700 158,872
Provincial health and Québec Parental Insurance Plan premiums (Vote 20) 74,849 73,452
Other expenses (Voted and statutory) 8,235 7,906
Total expenses 6,699,854 6,592,013
Recoveries
Employer's contributions to government employee benefit plans recovered from government departments and agencies (statutory) 3,381,351 3,568,860
Employee, pensioner and employer contributions to group insurance plans (Vote 20)table note 2 418,831 412,244
Total recoveries 3,800,182 3,981,104
Net expenses 2,899,672 2,610,909

13. Accounting Change

The future benefits liability for pensioners under the health and dental care plans is recorded centrally in the Public Accounts of Canada. Prior to 2015, a portion of this liability was reported as an accounts payable in the Secretariat's financial statements. During 2015, a review of the accounting determined that all amounts should be recorded centrally and are no longer recorded as a liability in the Secretariat's financial statements. These changes have been applied retroactively, and comparative information for 2014 has been restated as shown below:

($ thousands)
Statement of Financial Position: 2014 As previously stated Effect of the adjustments 2014 Restated
Accounts payable and accrued liabilities 518,507 (52,944) 465,563
Total liabilities 536,282 (52,944) 483,338
Due from Consolidated Revenue Fund 235,899 (52,944) 182,955
Total gross financial assets 444,888 (52,944) 391,944
Total net financial assets 444,377 (52,944) 391,433
Departmental net debt 91,905 0 91,905
Departmental net financial position (79,041) 0 (79,041)

14. Comparative Information

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

Departmental Sustainable Development Strategy

Overview of the Federal Government's Approach to Sustainable Development

The Federal Sustainable Development Strategy (FSDS) 2013–, tabled on , guides the Government of Canada's sustainable development activities, as required by the Federal Sustainable Development Act (FSDA). In keeping with the objectives of the FSDA, namely, to make environmental decision making more transparent and accountable to Parliament, the Treasury Board of Canada Secretariat (Secretariat) supports the implementation of the FSDS through the activities found in this departmental strategy.

Accordingly, the Secretariat's Departmental Sustainable Development Strategy (DSDS) presents the results for commitments for Theme IV – Shrinking the Environmental Footprint – Beginning With Government, based on the 2010– FSDS.

Theme IV: Targets and Implementation Strategies
Goal 7: Waste and Asset Management
Table Note 1

On December 8, 2015, the applied title of the Department of Public Works and Government Services changed from Public Works and Government Services Canada (PWGSC) to Public Services and Procurement Canada (PSPC).

Return to table note 1 referrer

Target 7.2: Green Procurement

As of April 1, 2014, the Government of Canada will continue to take action to embed environmental considerations into public procurement, in accordance with the federal Policy on Green Procurement.

Scope and Context [optional]

This target applies to procurement activities generated to support departmental operations at the Treasury Board of Canada Secretariat.

Link to Department's PAA [optional]

Program Activity: Internal Services

Financial Performance Expectations [optional]

N/A

Performance Measurement
Expected result

Environmentally responsible acquisition, use and disposal of goods and services.

Performance Indicator Performance Target

Departmental approach to further the implementation of the Policy on Green Procurement in place as of April 1, 2014.

Fully implemented

100%

Number and percentage of specialists in procurement and/or materiel management who have completed the Canada School of Public Service Green Procurement course, or equivalent, in the given fiscal year.

17

100%

Achieved

Number and percentage of managers and functional heads of procurement and materiel whose performance evaluation includes support and contribution towards green procurement, in the given fiscal year.

6

100%

Achieved

Departmental Green Procurement Target:

By , 100% of vehicles purchased are rightsized for operational needs and are the most fuel efficient vehicle in their class in the Government Motor Vehicle Ordering Guide and/or are an alternative fuel vehicle.

Performance Indicator Performance Target

Number of vehicle purchases that meet the target relative to the total number of all vehicle purchases in the given year.

100%

Achieved

Departmental Green Procurement Target:

By , monitoring purchases to ensure a higher recycled content and increase in green purchases are achieved.

Performance Indicator Performance Target

By , 95% of copy paper and stationery acquisitions will contain a minimum of 30% recycled content and be certified to a recognized environmental standard to reduce the environmental impact of its production.

100%

Achieved

By , 90% of toner cartridges are recycled at end of life.

100%

Achieved

Departmental Green Procurement Target:

By , information on green procurement is provided on the InfoSite contracting, procurement and materiel management.

Performance Indicator Performance Target

Ensure that green procurement information is easily accessible on the InfoSite under Contracting, Procurement and Materiel Management.

Achieved

Information is easily accessible on the information site.

Implementation Strategy Element or Best Practice Performance Target

7.2.1.5. Leverage common use procurement instruments, where available and feasible.

Achieved

The Secretariat always uses Public Services and Procurement Canadatable note 1 procurement instruments, when they are available and it is feasible to use them.

Best Practice

7.2.3. Train acquisition cardholders in green procurement.

Achieved

It is mandatory that all acquisition cardholders take a green procurement course.

Best Practice

7.2.4. Increase awareness of the Policy on Green Procurement among managers.

Achieved

The Secretariat provided training sessions that included information on green procurement. The intranet site was refreshed, and the information was easily accessible.

Additional Activities Performance Target

Ensure green procurement training for employees that manage low dollar value (LDV) acquisitions.

Achieved

LDV training sessions and acquisition cardholder prerequisite training both include information on green procurement.

Target 7.3: Sustainable Workplace Operations

As of , the Government of Canada will update and adopt policies and practices to improve the sustainability of its workplace operations.

Scope and Context [optional]

This target applies to select internal services areas that support departmental operations at the Secretariat.

Link to department's PAA [optional]

Program Activity: Internal Services

Financial Performance Expectations [optional]

N/A

Performance Measurement
Expected Result

Departmental workplace operations have a reduced environmental impact.

Performance Indicator Performance Target

An approach to maintain or improve the sustainability of the departmental workplace is in place by .

Achieved

The Secretariat continued the campaign to improve sustainability by cleaning up, streamlining and improving departmental workplace operations and by increasing the scanning, shredding and recycling of paper documents.

Implementation Strategy Element or Best Practice Performance Target

7.3.1.1. Engage employees in greening government operation practices.

Achieved

The Secretariat continued to engage the administrative services community, and departmental employees more broadly, in challenges and opportunities related to document management and reduction, in order to prepare for the relocation of 65% of employees to the James Michael Flaherty Building.

7.3.1.2. Integrate environmental considerations into corporate policies, processes and practices in accordance with departmental refresh cycles.

Achieved

Continued to adhere to asset/materiel life cycle management guidance outlined in the Asset Management Framework.

7.3.1.3. Maintain or improve existing approaches to sustainable workplace practices (i.e., printer ratios, paper usage, and green meetings).

Printer ratios: An 8:1 average ratio of office employees to printing units, where building occupancy levels, security considerations, and space configuration allow.

Exceeded: The Secretariat reached a 10:1 average ratio of employees to printing units.

Green meetings: By 2015–, 100% of employees have access to a mobile device (tablet or laptop) to reference meeting material digitally and avoid printing.

In progress

Paper usage: The Secretariat continues to reduce paper consumption. The new target has increased to 25% from the baseline target of a 20% reduction in paper consumption, set in 2011–.

Achieved

7.3.1.4. Minimize the ratio of information technology (IT) assets per employee.

Achieved

The Secretariat ensured a maximum of two network access devices per employee by adopting mobile computing and telephony (laptops or tablets and mobile phones). Employees that have an elevated level of security or network access requirements are excluded.

7.3.1.5. Select and operate IT and office equipment in a manner that reduces energy consumption and materiel usage.

Achieved

All multi-functional devices are set to hibernate when not in use.

7.3.1.6. Dispose of e-waste in an environmentally sound and secure manner.

Achieved

Continued to adhere to e-waste guidance outlined in the Asset Management Framework.

7.3.1.7. Reuse or recycle workplace materiel and assets in an environmentally sound and secure manner.

Achieved

Continued to adhere to reuse and recycling guidance outlined in the Asset Management Framework.

7.3.1.9. Increase the population density in office buildings, and space utilization in special purpose buildings.

In Progress

By 2015–16, the Secretariat will have a minimum of 65% of its employee population adhering to the Workplace 2.0 office space utilization standards. The Secretariat has no special purpose buildings.

7.3.1.10. Maintain or improve sustainable fleet management.

Achieved

Adherence to the Directive on Fleet Management: Executive Vehicles, subsection 5.4, for the purchase and use of executive vehicles.

Horizontal Initiatives

Name of horizontal initiative: Workplace Wellness and Productivity Strategy (WPS)

Name of lead department: Treasury Board of Canada Secretariat (Secretariat)

Federal partner organizations

Public Services and Procurement CanadaFootnote 7 (PSPC) – Acquisitions Branch and Accounting, Banking and Compensation Branch: The Acquisitions Branch provided expertise to prepare for potential procurement of a new short-term disability plan and retendering of the long-term disability plan. The Accounting, Banking and Compensation Branch is supporting the development of the technological solution required for interoperability with the People Soft–based absence management system and human resources and pay systems in the federal public service.

Employment and Social Development Canada (ESDC) – Labour: The Labour Program is identifying options for improving the administration of occupational claims under the Government Employees Compensation Act.

Health Canada: This organization is supporting the provision of an updated Policy on Employee Assistance Program and related departmental advice. Its activities are also helping to streamline the application process for medical retirement under the Public Service Superannuation Act.

Non-federal and non-governmental partners: N/A

Start date:

End date: 2018–

Total federal funding allocation (from start date to end date) (dollars):

The amount of $25,010,838 in total funding has been allocated over a four-year period for the Secretariat, PSPC, ESDC and Health Canada to carry out a range of activities to modernize the current system of disability and sick leave management. The total allocated funding includes an amount of $21,092,649 from the fiscal framework and an amount of $3,918,189 from existing departmental reference levels.

Funding contributed by non-federal and non-governmental partners (dollars): N/A

Description of the horizontal initiative (including funding agreement):

Under the Disability Management Initiative in 2009, several structural problems related to the existing disability management framework were identified. The Workplace Wellness and Productivity Strategy (WPS) was developed in response to the identified gaps. The goal of the WPS is to modernize the management of disability and sick leave in the federal public service.

The Government of Canada earmarked $21.1 million over four years for WPS. The funding is allocated between the Secretariat ($13.5 million), ESDC – Labour ($2.4 million) and PSPC ($5.2 million).

In 2014, the Government of Canada embarked on formal negotiations with several bargaining units. The Secretariat is formally negotiating with bargaining agents on aspects of WPS that relate to collective agreements. Negotiations are expected to continue into 2016–.

Shared outcomes:

The Secretariat and its partners aim to modernize key elements of the disability and sick leave management regime in the federal public service, with a view to creating a seamless, integrated and sustainable system to support employee wellness and productivity.

All employees in the federal public service are to have the following:

  • Appropriate incentives and access to services to maintain their mental and physical health; and
  • Support to recover and stay at work, if possible, when illness or injury occurs, or to return to work as soon as it is safe to do so, with any necessary accommodation. If return to work is not possible due to the severity of the disability, employees will have assurance of reasonable income security.

Governance structure:

A project charter and brief, reviewed by senior officials from each of the partner organizations, provides details on the WPS initiative and spells out the roles, responsibilities and deliverables of each of the partners.

In addition, the initiative put in place a detailed governance structure to support effective, collaborative and timely decision making to resolve ongoing emerging issues. The governance structure includes oversight at the highest levels through the Deputy Minister Project Governance Committee and the ADM Steering Committee. A working-level group of work stream committees cover each of the initiative's major activities.

The chair of each of the work stream committees is responsible for monitoring work, directing corrective actions as required, reporting regularly on progress, and submitting deliverables to the project management office. The latter has core responsibility for monitoring progress, directing any required corrective actions and approving deliverables. The senior project director chairs the project management office and is responsible for the overall progress of the project.

Performance highlights for 2014–:

Through National Joint Council working group meetings in 2014–, the WPS sought consultation opportunities with different bargaining groups. These consultations were intended to inform bargaining groups and to solicit their inputs on plan design elements during the development of the Request for Information (RFI) and Request for Proposals (RFP).

Three RFIs were subsequently issued to industry in 2014–. Since the commencement of formal collective bargaining, all engagements with industry have been temporarily placed on hold, to respect the bargaining process. Going forward, continuous reporting and monitoring of the WPS will continue in order to deliver the initiative within the intended timeline.

Comments on variances:

The WPS initiative and funding were approved in late fall 2013. The planned activities described in this supplementary information table cover 2014–. A majority of these activities are ongoing.

Delivery of identified objectives was delayed because of bargaining table activities. This prevented industry consultations from continuing and delayed input from the bargaining agents on the plan design. Given the situation, the project partners reduced the level of activity in order to preserve monies that will be required at a later date to deliver the remaining planned activities.

Contact information:

Ashique Biswas, A/Executive Director
Office of the Chief Human Resources Officer
8th Floor, 140 O'Connor St.
Ottawa, Ontario K1A 0G5
Telephone: 613-952-3261

Workplace Wellness and Productivity Strategy
Federal organization Link to department’s Program Alignment Architecture Contributing programs and activities Total allocation (from start date to end date) 2014–15
Planned spending
2014–15
Actual spending
2014–15
Expected results
2014–15  Actual results against targets

Secretariat

People Management

Direction Setting
Comprehensive Management of Compensation

$15,623,157

$4,447,426

$3,845,839

Project leadership, coordination and oversight

Plan design and policy development

Input into the collective bargaining process

Change management activities

The project management office was established to provide governance, leadership, coordination and oversight of project activities.

Funding of the WPS was approved, as was the Secretariat’s authority to lead the project.

Key project documents were developed outlining the structural gaps in the current system with respect to leading industry practices in other public jurisdictions; options were proposed and a timeline projected.

Working group meetings were held with bargaining agents as part of the bargaining agent engagement and input solicitation process.

Preliminary consultations with industry participants were held to gather information on available services and current practices.

PSPC

Acquisitions

Federal Pay and Pension Administration

 

$5,227,999

$1,831,000

$474,687

Support for the development of the Request for Information (RFI) and Request for Proposals (RFP)for potential procurement of short-term and long-term disability plans

Activities in support of implementing pay and pension information system changes required for the short-term and long-term disability plans

Following up from an initial RFI in 2013-14, a second and third RFI were developed and issued to gather information on current industry practices.

ESDC

Labour

 

$2,412,000

$798,000

$667,863

Activities focused on modernizing systems and arrangements involving occupational injury or illness claims filed under the Government Employees Compensation Act, in order to reduce reporting times and improve data collection and information available to departments and agencies

Work was initiated and is ongoing regarding discussions and consultations with Workers’ Compensation Boards to align policy and business requirements for the Disability and Sick Leave Management System (DSLM) solution.

Work was initiated and is ongoing to identify required system changes to Labour Program’s claims payment system.

Health Canada

Specialized Health Services

 

$1,747,682

$579,948

$665,773

Activities in support of an updated Policy on Employee Assistance Program and related departmental advice

Activities in support of a streamlined application process for medical retirement under the Public Service Superannuation Act (PSSA)

Work was initiated and is ongoing to identify required policy updates and changes to integrate ergonomics in line with the DSLM solution.

Work was initiated and is ongoing to identify required business process changes to application process for medical retirement under the PSSA.

Total for all federal organizations

$25,010,838

$7,656,374

$5,543,162    

Internal Audits and Evaluations

Internal Audits Completed in 2014–
Title of Internal Audit Internal Audit Type Completion Date

Audit of the Expenditure Management Component System

Information Systems Project Management

Audit of the Treasury Board of Canada Secretariat's Management Control Framework of the Public Service Health Care Plan

Management Control Framework

Evaluations in Progress or Completed in 2014–
Link to Department's Program Alignment Architecture  Title of the Evaluation Status Deputy Head Approval Date

Management Frameworks

Evaluation of the Oversight and Enablement of High Risk, Complex IT-Enabled Projects

Completed

People Management

Horizontal Evaluation of Student Employment Programs (joint evaluation with the Public Service Commission of Canada)

Completed

Financial Management

Evaluation of the Right of First Refusal for Guard Services

Completed

Response to Parliamentary Committees and External Audits

Response to parliamentary committees

Standing Committee on Access to Information, Privacy and Ethics:

Report 1 – Statutory Review of the Conflict of Interest Act

(adopted by the Committee on ; presented to the House on )

Summary of report

The Committee noted that although amendments to the Conflict of Interest Act were proposed, the testimony suggested that the Act is generally working well but could benefit from targeted improvements.

The Committee made 16 targeted recommendations to improve the Conflict of Interest Act, divided into four categories: definitions, prohibited activities, administration and enforcement of the Act, and consistency of the Act with other related acts and codes.

Two of the recommendations made by the Conflict of Interest and Ethics Commissioner in her submission to the Committee overlap with the Committee's recommendations.

Discussion of progress made to address recommendations

The Government of Canada welcomed the Committee's report.

The response indicated that the Government would consider how best to implement the improvements in a manner that furthers the purposes of the Act.

Link to the Government response

Government response:
(presented to the House on )

Standing Committee on the Status of Women:

Report 2 – A Study on Sexual Harassment in the Federal Workplace

(adopted by the Committee on ; presented to the House on )

Summary of report

The Committee report made 14 recommendations regarding the process for addressing sexual harassment in the federal workplace. The report summarized information the Committee had received on the current legal and regulatory framework, the incidence and prevalence of sexual harassment in the federal workplace, the processes for responding to complaints of sexual harassment, and factors affecting sexual harassment in the federal workplace.

Discussion of progress made to address recommendations

The Government of Canada welcomed the report.

The Government also noted that the Treasury Board Policy on Harassment Prevention and Resolution and the Directive on the Harassment Complaint Process promote the establishment and maintenance of a respectful and harassment-free workplace and the prompt resolution of related complaints.

A number of the Committee's recommendations were addressed in a joint communications initiative from the Treasury Board of Canada Secretariat, Status of Women Canada, and the Labour Program that emphasized deputy heads' responsibilities under the Treasury Board Policy on Harassment Prevention and Resolution and the Canada Occupational Health and Safety Regulations.

Link to the Government response

Government response:
(presented to the House on )

Standing Committee on Government Operations and Estimates:

Report 5 – Open Data: The Way of the Future

(adopted by the Committee on ; presented to the House on )

Summary of report

The Committee’s report summarized information and testimony on users’ needs in relation to the Government of Canada’s open data initiative, the social benefits of using open data, and the best open data practices of other jurisdictions.

The report made 22 recommendations covering three thematic areas:

  • maximizing the effectiveness of open data for Canadians by establishing and promoting common metadata and formatting standards across Canada;
  • providing mandatory policy direction to federal organizations to drive the effective release of open data, while ensuring security; and
  • reporting on the progress of the Government’s open data initiatives and promoting related international commitments.
Discussion of progress made to address recommendations

The Government welcomed the Committee’s report.

In , the Government issued the Directive on Open Government, which sets mandatory, government-wide policy requiring federal organizations to maximize the release of data in standardized, open formats—free of charge and without restrictions on reuse.

In , the Government hosted the third International Open Data Conference entitled “Enabling the Data Revolution.”

Link to the Government response

Government response:
(presented to the House on )

Standing Committee on Public Accounts:

Report 4 – Chapter 2, Access to Online Services, of the Fall 2013 Report of the Auditor General of Canada

(adopted by the Committee on ; presented to the House on )

Summary of report

The Committee's report largely reinforced the findings of the 2013 Fall Report of the Auditor General of Canada on access to online services,  highlighting testimony heard from the Secretariat, Employment and Social Development Canada, Veterans Affairs Canada and Industry Canada (the entities) during the course of the study.

The Committee's substantive recommendation was that the Secretariat and Employment and Social Development Canada provide the Committee with a government-wide service delivery strategy. The Committee also recommended that the entities give the Committee an overview of their integrated strategies and plans for service delivery, upon completion.

Discussion of progress made to address recommendations

The Government of Canada welcomed the Committee's report.

The Government agreed with the Committee's two recommendations and committed to providing the Committee with a government-wide service delivery strategy by . Regarding the second recommendation, the Government stated that the entities would provide their strategies and plans for service delivery by the end of fiscal year 2015–16.

Link to the Government response

Government response:
(presented to the House on )

Standing Committee on Public Accounts:

Report 9 – Chapter 1, Public Sector Pension Plans, of the Spring 2014 Report of the Auditor General of Canada

(adopted by the Committee on ; presented to the House on )

Summary of report

The Committee's report largely supported the findings of the 2014 Spring Report of the Auditor General of Canada on public sector pension plans, highlighting elements of the testimony heard during the course of the study.

The Committee's substantive recommendation was that the Secretariat, National Defence, the Royal Canadian Mounted Police and the Department of Finance Canada (the entities) report back to the Committee on the progress made in responding to the Auditor General's recommendation.

Discussion of progress made to address recommendations

The Government of Canada welcomed the Committee's report and highlighted the recent changes to the public sector pension plans—increasing contribution rates and raising the age of retirement under the public service pension plan from 60 to 65.

The Government committed to reporting back to the Committee on its recommendations by .

Link to the Government response

Government response:
(presented to the House on )

Senate Standing Committee on Human Rights:

Report 2 – Employment Equity in the Public Service: Staying Vigilant for Equality

(adopted by the Committee on ; presented to the Senate on )

Summary of report

The Committee's  report made several recommendations on employment equity in the federal public service under two themes:

  • monitoring and evaluation; and
  • advocacy and employee participation.

The report summarized information the Committee received in testimonies from various entities in 2011, 2012 and 2013. The Committee's report showed that the core public administration has made significant progress in achieving employment equity goals over the years.

Discussion of progress made to address recommendations

The Government of Canada thanked the Committee for the in-depth work undertaken to examine and assess employment equity in the public service.

With respect to monitoring and evaluation, the response highlighted that the Government currently produces and tracks a significant amount of data related to employment equity. The Government committed to sharing enhanced data and information on employment equity through platforms such as the Open Data Portal.

The Government agreed in principle with the recommendations regarding advocacy and employee participation in employment equity issues. With respect to the recommendation to create an Employment Equity Champions and Chairs Committee for women, the Government noted that women have not chosen to organize as an employment equity group in the federal public service, as others have done.

Link to the Government response

Government response:
(presented to the Senate on )

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

2014 Spring Report of the Auditor General of Canada

Chapter 1—Public Sector Pension Plans

The audit focused on the public service pension plan, the Canadian Forces pension plan, and the Royal Canadian Mounted Police (RCMP) pension plan. Together, these three plans represent 95 per cent of the government's public sector pension liability.

The objective of the audit was to examine whether the Treasury Board of Canada Secretariat (the Secretariat), the RCMP, National Defence, and the Department of Finance Canada, in keeping with their respective responsibilities, had considered the relevant information, analyses and scenarios that could affect the plans' costs and thereby impact their sustainability. The Office of the Auditor General also examined whether these entities had carried out selected key aspects of their governance and management responsibilities regarding the pension plans. Finally, the audit examined whether the information provided to stakeholders, who include taxpayers and parliamentarians, was clear and understandable.

The Secretariat received four recommendations. The Secretariat's responses can be found in this chapter's Appendix B—List of recommendations.

Chapter 2—Procuring Relocation Services

The objective of the audit was to examine whether Public Works and Government Services Canada (PWGSC), National Defence, the RCMP, and the Secretariat had fulfilled their responsibilities in awarding the 2009 contract for the Integrated Relocation Program in accordance with the Treasury Board Contracting Policy, Government Contracts Regulations, and the PWGSC Supply Manual. The audit also examined whether the decisions and actions of these organizations had facilitated access and encouraged competition.

The chapter made one recommendation in collaboration with the Secretariat; however, no management response was required.

2014 Fall Report of the Commissioner of the Environment and Sustainable Development

Chapter 5—Departmental Progress in Implementing Sustainable Development Strategies

This audit is part of the Commissioner's annual monitoring of sustainable development strategy commitments. The audit focused on commitments made in the Government of Canada's 2010 Federal Sustainable Development Strategy to strengthen consideration of the environment through the use of strategic environmental assessments.

The audit examined whether departments, the Secretariat and the Privy Council Office had the mechanisms in place to support compliance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and related guidelines, and to ensure that environmental implications and considerations are integrated into proposals submitted to ministers, Cabinet or the Treasury Board.

The following departments were selected for the audit: Aboriginal Affairs and Northern Development Canada, Citizenship and Immigration Canada, Health Canada, Natural Resources Canada, and Transport Canada.

The Secretariat did not receive any recommendations.

2014 Fall Report of the Auditor General of Canada

Chapter 4—Providing Relocation Services

The objective of the audit was to examine whether the Canadian Armed Forces (CAF) and the RCMP had fulfilled their responsibilities in managing selected requirements of the 2009 Integrated Relocation Program contract in accordance with the relevant government authorities and terms and conditions of the contract. The audit assessed the extent to which the CAF and the RCMP had monitored the services provided under the contract and had taken corrective action, when necessary, in the areas of financial management and performance measurement.

Relocation services for federal public service employees were not included in the scope of the audit. The Office of the Auditor General did not audit PWGSC's role as contract authority, or the Secretariat's role in leading policy development and interpretation for client departments. Moving services for household goods and effects, which are provided at an additional cost under separate contracts, were also not within the scope of this audit.

The Secretariat was a third party in the audit and did not receive any recommendations.

Chapter 5—Support to the Automotive Sector

The objective of the audit was to examine whether Industry Canada, the Department of Finance Canada, and Export Development Canada, in fulfilling their respective roles and responsibilities, had managed the financial support to the automotive sector in a way that contributed to the viability of the companies and the competitiveness of this sector in Canada.

The Office of the Auditor General examined whether Industry Canada had managed the Automotive Innovation Fund in a manner that took risks into account, and had monitored and reported measurements on the results against the program's objectives.

The Secretariat was a third party in the audit and did not receive any recommendations.

Chapter 7—Documentary Heritage of the Government of Canada—Library and Archives Canada

The objective of the audit was to examine whether Library and Archives Canada had fulfilled its responsibilities for acquiring and preserving government documentary heritage from federal institutions, and for facilitating access to these records for current and future generations.

The following five government institutions were consulted as part of the audit: Employment and Social Development Canada, Parks Canada, the National Film Board, Natural Resources Canada, and the Truth and Reconciliation Commission of Canada.

The Secretariat was a third party in the audit and did not receive any recommendations.

Status Report on Projects Operating with Specific Treasury Board Approval

Program 1.6: Internal Services; Sub-Program 1.6.3.1: Real Property Services

Project Name and Project Phase Original Estimated Total Cost (dollars) Revised Estimated Total Cost (dollars) Actual Total Cost (dollars) 2014– Main Estimates (dollars) 2014– Planned Spending (dollars) 2014– Total Authorities (dollars) 2014– Actual Spending (dollars) Expected Date of Close-Out
Workspace Renewal Initiative – Implementation Phase 54,000,000 54,000,000 18,347,654 19,389,883 19,389,883 19,389,883 9,861,295 2017–

The above project exceeded the Secretariat's then project approval limit, prompting the request for specific Treasury Board approval. This approval was prior to the increased authorities afforded to the Secretariat as a result of the approval of its Investment Plan ().

Expenditures include salary (FTEs), contracts (services) and assets (goods), but do not include GST/HST.

The original and revised estimated total cost includes funding for the Secretariat and Shared Services Canada. The other dollar amounts reflect Secretariat figures only. 

An amount of $9,467,467 was reprofiled for 2015–, to address project delays in the construction and fit-up of 90 Elgin Street.

User Fees, Regulatory Charges and External Fees

Reporting on the User Fees Act

General Information
Fee name Fees for processing requests filed under the Access to Information Act
Fee type Other products and services
Fee-setting authority Access to Information Act
Year last amended Current fees allowed since 1983
Performance standard Response is to be provided within 30 days following receipt of request. The response time may be extended pursuant to section 9 of the Access to Information Act. Notice of extension is to be sent within 30 days after receipt of the request.
Performance results Statutory deadline met 96 per cent of the time.
Financial Information, 2014– (dollars)
Forecast revenue Actual revenue Full cost
2,800 2,200 489,000
Financial Information, 2015– , 2016– and 2017– (dollars)
Planning year Forecast revenue Estimated full cost
2015– 2,400 580,000
2016– 2,500 600,000
2017– 2,600 620,000

Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting

Table of Contents

  1. Introduction
  2. Departmental System of Internal Control Over Financial Reporting
  3. Assessment Results in Fiscal Year 2014–15
  4. Departmental Action Plan

1. Introduction

This document provides a summary of the measures taken by the Treasury Board of Canada Secretariat (the Secretariat) to maintain an effective system of internal control over financial reporting (ICFR), which includes information on internal control management, assessment results and related action plans.

Detailed information on the Secretariat's authority, mandate and programs can be found in its Report on Plans and Priorities and Departmental Performance Report.

2. Departmental System of Internal Control Over Financial Reporting

2.1 Internal Control Management

The Secretariat has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. This structure is formalized in the department's Financial Management and Internal Control Framework, approved by the Secretary, and includes the following:

  • Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers in their areas of responsibility for control management;
  • A Values and Ethics Office, which provides educational and awareness programs and has developed a departmental code of conduct;
  • Ongoing communication and training on the legislative and policy requirements for sound financial management and control;
  • A group dedicated to ICFR under the direction of the Chief Financial Officer, with a primary focus on maintaining internal control documentation and conducting assessments to support management and oversight of the system of ICFR; and
  • Monitoring of, and regular updates on, internal control management, as well as provision of related assessment results and action plans to the Secretary, departmental senior management and the Secretariat's Government of Canada Audit Committee (GCAC).

The GCAC is an independent and objective advisory committee to the Secretary. Its responsibilities include providing advice to the Secretary on the Secretariat's systems of internal control, financial reporting and financial disclosures. It also provides advice, as applicable, on risk-based assessment plans and associated results regarding the effectiveness of the departmental system of ICFR.

The GCAC comprises the Secretary, the Associate Secretary and three members who are external to the federal public administration. An external member chairs the committee. Given the independent nature of the Committee, it plays an essential role in ensuring the integrity of corporate reporting as well as providing an objective and broader perspective on risks and controls. For example, the Committee reviewed and provided comments regarding the Secretariat's Departmental Performance Report and Corporate Risk Profile, as well as risk-based internal audit plans and engagement reports that provide assurance over the adequacy of controls. The Secretariat's Chief Financial Officer and the Chief Audit Executive, as well as the Comptroller General of Canada, attend all meetings of the GCAC. The GCAC meets at least four times a year and may convene for additional meetings as required.

2.2 Service Arrangements Relevant to Financial Statements

2.2.1 Secretariat reliance on other federal government organizations

As a department, the Secretariat relies on other organizations to process certain transactions that are recorded in its financial statements. There are two types of service arrangements, as detailed below: common arrangements used by most departments and specific arrangements used by the Secretariat.

Common arrangements
  • Public Works and Government Services Canada (PWGSC) centrally administers the payment of salaries and the procurement of goods and services, as per its delegation of authority, and provides accommodation services;
  • The Secretariat, as a government central agency, provides information that is used to calculate various accruals and allowances, such as the accrued severance liability;
  • The Department of Justice Canada provides legal services; and
  • Shared Services Canada provides information technology (IT) infrastructure services to the Secretariat in the areas of data centre and network services. The scope and responsibilities are addressed in the interdepartmental arrangement between Shared Services Canada and the Secretariat.
Specific arrangements
  • PWGSC performs the day-to-day administration of the Public Service Pension Plan (PSPP);
  • The Office of the Chief Actuary within the Office of the Superintendent of Financial Institutions Canada prepares a triennial actuarial valuation of the PSPP; and
  • PWGSC performs the day-to-day administration of some centrally funded expenses, such as the employer's share of Canada and Québec Pension Plan (CPP/QPP) contributions, employment insurance premiums and provincial payroll taxes. These types of expenses are recorded on the Secretariat's financial statements as government-wide funds and reflect the Treasury Board's role as the employer of the public service.
2.2.2    Secretariat reliance on non-governmental service providers

The Secretariat relies on the internal controls of a number of insurance companies that provide specific services such as health care plan administration, dental plan administration and insurance services.

2.2.3    Secretariat services upon which other departments rely

Other government departments rely on the Secretariat to process certain transactions and to provide information that impacts their financial statements.

Common arrangements
  • The Secretariat provides all departments with percentage ratios, derived from the actuarially determined liability for severance benefits for the entire public service population. Departments use these ratios when calculating their severance pay liability for the purposes of their departmental financial statements;
  • The Secretariat provides all departments with a percentage amount that allows them to calculate an annual dollar figure for the services they receive without charge for the public service insurance benefit plans funded centrally; and
  • The Secretariat provides all departments with details regarding the calculation required to determine the employer's share of employee benefit plans. These plans include costs to the government for the employer's contributions and payments to the public service superannuation, the CPP/QPP, the death benefit and employment insurance accounts.
Specific arrangements

The Secretariat provides certain corporate services to several organizations, including the Department of Finance Canada, the Privy Council Office, the Canada School of Public Service, the Canadian Transportation Agency, the Immigration and Refugee Board of Canada, the Office of the Superintendent of Financial Institutions Canada, and the Administrative Tribunals Support Service of Canada.

3. Assessment Results in Fiscal Year 2014–15

Business cycle controls at the Secretariat are grouped into two categories: business processes that concern the Secretariat in its role as manager of government-wide funds and public service employer payments, and business processes that concern the Secretariat as a department.

As a manager of government-wide funds and public service employer payments, the Secretariat continued to advance in remediating issues resulting from prior years' assessments. This included enhancing internal reviews and approval processes, and progressively formalizing business process documentation of key benefits plans to reflect the current environment.

3.1 Design Effectiveness Testing of Key Controls

At the end of 2014–15, the Secretariat completed the remediation actions resulting from prior years' assessments of business processes controls for the pension and benefit plans, with the exception of one design gap relating to the employer's contribution paid with respect to employee's benefit plans and for which further work is required. The outstanding issue is in relation to the need for enhanced supporting documentation for those payments made through interdepartmental settlements and for which the Secretariat must rely on controls performed by other government departments. Additional consultation is required with internal and external stakeholders to define the supporting documentation requirements that will meet departmental needs of assurance over the approval of those types of payments, as well as financial management policy expectations.

Results of the design effectiveness testing of the capital assets process conducted in 2014–15 indicated that there was a need to review and update the Secretariat's policy on capital assets to better clarify which items are to be capitalized and which are to be expensed. In addition, the policy should be approved in accordance with the Secretariat's policy approval process.

3.2 Operating Effectiveness Testing of Key Controls

3.2.1 Entity Level Controls

The Secretariat has reached the ongoing monitoring stage for its entity level controls (including control environment, risk assessment, information and communication and monitoring activities), as design and operating effectiveness stages were completed in prior years. These activities are reported in section 3.3 of this document.

3.2.2 Information Technology General Controls

The Secretariat continued to advance in remediating issues that were outstanding from prior years' operating effectiveness testing of the IT general controls for the SAP financial system. By the end of 2014–15, the recommendations were implemented and the Secretariat has reached the ongoing monitoring stage.

3.2.3 Business Process Controls

As manager of government-wide funds and public service employer payments, the Secretariat completed most of the remediation actions identified in the 2013–14 operating effectiveness testing of the major pension and benefit plans that was conducted with the assistance of Ernst & Young (EY). The results of this testing identified a need to review the approval process and the frequency of the reversal of payables at year-end. Remediation included a review of the process and accounting requirements related to health and dental claims resulting in a change in reporting for these transactions in the Secretariat's financial statements.

In its role as a department, the Secretariat continued to advance in its operating effectiveness stage. In 2014–15, the Secretariat completed operating effectiveness testing for the budgeting and forecasting process. As a result of this assessment, no significant weaknesses were found.

In addition, the Secretariat completed the remediation activities identified in last year's assessment of the revenues and accounts receivable process. The results of this assessment had determined a need to strengthen the financial verification process.

The Secretariat is scheduled to complete operating effectiveness testing of internal control over financial reporting in 2015–16 for the following areas:

  • The payroll and benefits process that was planned to be assessed in 2013–14 was deferred due to the centralization of pay services at PWGSC. The transfer of pay administration and payroll files was completed at the end of fiscal year 2014–15. Limited responsibilities remain within the Secretariat following completion of the transfer of the TBS pay accounts to PWGSC. Given the significance of those changes, more time will be required to obtain a good understanding of the impact of those changes on the control environment, as well as to update our process description. This is planned to be completed in 2015–16.
  • The travel expenses sub-process was planned to be assessed in 2013–14 but was postponed to 2015–16 due to the implementation of the Shared Travel Services System, launched in April 2014. As was the case for the payroll and benefits process, there will be a need to gain an understanding of the changes and update our process description. This is planned to be completed in 2015–16.
  • Design effectiveness testing of the capital assets process was completed in 2014–15. Work on remediation actions resulting from the design effectiveness testing is proceeding, and operating effectiveness testing is planned to be completed in 2015–16.

Once these assessments are completed, the Secretariat's entire system of internal controls over financial reporting will have been tested.

3.3 Ongoing Monitoring of Key Controls

The Secretariat's Internal Audit and Evaluation Bureau (IAEB) assesses the effectiveness and efficiency of the Secretariat's internal control system through the conduct of periodic audits and reviews of different areas of the Secretariat's operations. Some IAEB and Internal Control Unit activities are complementary. In these cases, both groups work together to ensure alignment of complementary activities to maximize results.

In 2014­–15, IAEB completed the review of the Secretariat's internal governance framework and concluded that the governance structure is well articulated, mature and flexible. However, areas of improvement were identified to break down silos across the Secretariat and allow broader-based input to operational decision making. Implementation of recommendations is underway. This review is in relation to entity-level controls.

In 2014–15, the Secretariat's Internal Control Unit undertook ongoing monitoring activities that were focused mainly on following up on the few remaining remediation actions from previous years' assessments of IT general controls. This follow-up is in relation to actions outstanding from the review conducted by the Integrated Financial and Materiel System Program Office in 2012–13.

The Secretariat plans an external assessment of its IT general controls on a regular basis to provide the level of assurance required to meet interdepartmental service arrangements with the clients of the Secretariat's financial system cluster. The Secretariat has contracted EY to perform a first external assessment of the IT general controls beginning in 2015–16.

In addition, in the fourth quarter of fiscal year 2015–16, the Secretariat will conduct an external review of SAP financial system by the Integrated Financial and Material System Program Office. This review will also be planned to occur every three years.

4. Departmental Action Plan

4.1 Progress in Fiscal Year 2014–15

The Secretariat continued its progress in completing its assessments according to approved plans and in following up on remediation actions. Table 1 provides a summary of this progress.

Table 1. Progress Summary 2014–15
Element in Previous Year’s Action Plan Status
Secretariat as a department
IT general controls: Remediation resulting from operating effectiveness testing; follow-up on action plan as a result of the review of security and authorization in SAP conducted in 2012–13 by the Integrated Financial and Material System Program Office. Remediation actions are completed.
Payroll and benefits: Operating effectiveness testing and remediation. Deferred due to the centralization of pay services at PWGSC. Scheduled to be completed in 2015–16 as per plan.
Operating expenses and accounts payable: Operating effectiveness testing and remediation. Completed for the operating expenses and accounts payable process. Travel expenses are identified as a sub-process for which operating effectiveness testing and assessment was postponed to 2015–16 due to the implementation of the new Shared Travel Services system in 2014–15.
Revenues and accounts receivable: Remediation resulting from prior year’s assessment. Completed.
Budgeting and forecasting: Operating effectiveness testing and remediation. Completed.
Capital assets: Design effectiveness testing and remediation. Testing completed.
Secretariat as manager of government-wide funds and public service employer payments
Public Service Pension Plan (PSPP): Remediation resulting from prior year’s assessment. Remediation in progress.
Disability Insurance Plan (DI): Remediation resulting from prior year’s assessment. Remediation in progress.
Public Service Health Care Plan (PSHCP): Remediation resulting from prior year’s assessment. Completed.
Public Service Dental Care Plan (PSDCP): Remediation resulting from prior year’s assessment. Completed.
Provincial payroll taxes: Remediation resulting from prior year’s assessment. Remediation in progress.
Employment Insurance (EI) premiums: Remediation resulting from prior year’s assessment. Remediation in progress.
Canada/Québec Pension Plan (CPP/QPP) contributions: Remediation resulting from prior year’s assessment. Remediation in progress.
Pensioners’ Dental Services Plan (PDSP): Remediation resulting from prior year’s assessment. Completed.
Public Service Management Insurance Plan (PSMIP): Remediation resulting from prior year’s assessment. Remediation in progress.
Provincial Health Insurance Plan premiums: Remediation resulting from prior year’s assessment. Remediation in progress.
Québec Parental Insurance Plan: Remediation resulting from prior year’s assessment. Remediation in progress.
Supplementary Death Benefit Plan: Remediation resulting from prior year’s assessment. Remediation in progress.
Service Income Security Insurance Plan (SISIP): Remediation resulting from prior year’s assessment. Discussions are underway to transfer the SISIP program to National Defence by fiscal year 2016–17. As a result, SISIP has been scoped out.

4.2 Status and Action Plan for the Next Fiscal Year and Subsequent Years

The Secretariat has continued to make significant efforts to meet its target for completing design and operating effectiveness testing across all control areas, including entity level controls, IT general controls and process level controls.

At the end of 2014–15, design effectiveness testing was completed for all control areas, with a few remaining remediation actions to be completed. Building on progress to date, the Secretariat is positioned to complete operating effectiveness testing of the remaining processes and reach the ongoing monitoring stage by 2015–16 for the majority of its 21 processes that are subject to internal control assessment. At that time, the Secretariat will apply its rotational ongoing monitoring plan to reassess control performance on a risk basis across all areas. The status and action plan for the completion of the identified control areas for the next fiscal year and subsequent years is outlined in Table 2.

Table 2. Status and Action Plan Going Forward
Key Control Areas Assessment Elements
Design Effectiveness Stagetable note 1 Operating Effectiveness Stage Ongoing Monitoring Rotation
Testingtable note 1 Remediationtable note 2
Table 2 Notes
Table Note 1

“Completed” implies that the process and controls have gone through a full assessment for design and/or operating effectiveness.

Return to table note 1 referrer

Table Note 2

Remediation actions have been identified as a result of the assessment phase.

Return to table note 2 referrer

Table Note 3

Remediation actions for a few of the remaining observations are to be completed in 2016–17.

Return to table note 3 referrer

Table Note 4

Additional work is required to address the issue in relation to those payments made through Interdepartmental Settlements for which the Secretariat must rely on other government departments to exercise controls.

Return to table note 4 referrer

Table Note 5

Discussions are underway to transfer the SISIP program to National Defence by fiscal year 2016–17; therefore, this plan has been scoped out.

Return to table note 5 referrer

Table Note 6

The specific year for ongoing monitoring will be determined based on factors such as results of operating effectiveness testing, separate evaluations and audits, as well as risk ranking and capacity. The rotational ongoing monitoring plan will be applied using a five-year cycle, with more frequent testing in higher-risk areas.

Return to table note 6 referrer

Table Note 7

The Secretariat plans an external assessment of IT general controls on a periodic basis. The first assessment is planned for 2015–16.

Return to table note 7 referrer

Secretariat as a department
Entity level controls Completed Completed N/A Future yearstable note 6
IT general controls under departmental management Completed Completed Completed 2015–16table note 7
Payroll and benefits Completed 2015–16 Dependent on testing results Future yearstable note 6
Operating expenses and accounts payable Completed Testing is completed for the operating expenses process. The travel expense sub-process will be completed in 2015–16 Dependent on testing results for the travel expense sub-process 2016–17
Financial reporting and closing cycle Completed Completed N/A 2017–18
Revenues and accounts receivable Completed Completed Completed 2016–17
Budgeting and forecasting Completed Completed Completed Future yearstable note 6
Capital assets Completedtable note 3 2015–16 Dependent on testing results Future yearstable note 6
Secretariat as manager of government-wide funds and public service employer payments
Public Service Pension Plan (PSPP) Completedtable note 3 Completed Completed 2015–16
Disability Insurance Plan(DI) Completedtable note 3 Completed Completed 2015–16
Public Service Health Care Plan (PSHCP) Completed Completed Completed 2016–17
Public Service Dental Care Plan (PSDCP) Completed Completed Completed 2016–17
Provincial payroll taxes Completedtable note 3 Completed 2016–17table note 4 2017–18
Employment Insurance (EI) premiums Completedtable note 3 Completed 2016–17table note 4 2017–18
Canada/Québec Pension Plan (CPP/QPP) contributions Completedtable note 3 Completed 2016–17table note 4 2017–18
Pensioners’ Dental Services Plan (PDSP) Completed Completed Completed 2016–17
Public Service Management Insurance Plan (PSMIP) Completedtable note 3 Completed Completed Future yearstable note 6
Provincial Health Insurance Plan premiums Completedtable note 3 Completed 2016–17table note 4 Future yearstable note 6
Québec Parental Insurance Plan Completedtable note 3 Completed 2016–17table note 4 Future yearstable note 6
Supplementary Death Benefit Plan Completedtable note 3 Completed 2016–17table note 4 Future yearstable note 6
Service Income Security Insurance Plan (SISIP) See note5 See note5 See note5 See note5

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