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2008-09
Departmental Performance Report

Treasury Board of Canada Secretariat

Supplementary Information (Tables)

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Table of Contents

• Sources of Respendable and Non-respendable Revenue
• User Fees/External Fees
• Sustainable Development Strategy
• Green Procurement
• Response to Parliamentary Committees and External Audits
• Internal Audits and Evaluations
• Financial Statements
• Appendix: Other Accomplishments Aligned to Program Activities

Table 1: Sources of Respendable and Non-Respendable Revenue

The following table identifies the sources of respendable and non-respendable revenue at the program activity level.

Respendable Revenue
($ millions)

Program Activity	Actual 2006-07	Actual 2007-08	2008-09
			Main Estimates	Planned Revenue	Total Authorities	Actual
Management Policy Development and Oversight
Revenue related to the administration of the Public Service Superannuation Act (PSSA)	2,734	2,681	3,912	3,912	3,912	3,182
Government-wide Funds and Public Service Employer Payments
Revenue related to public service insurance	165,250	280,817	297,000	297,000	333,858	333,858
Total Respendable Revenue	167,984	283,498	300,912	300,912	337,770	337,040

Non-Respendable Revenue
($ millions)

Program Activity	Actual 2006-07	Actual 2007-08	2008-09
			Main Estimates	Planned Revenue	Total Authorities	Actual
Recovery of costs for health benefits in excess of respendable amount	14,229
Revenue from parking fees	11,325	11,466		11,500	11,643	11,643
External revenue from access to information	3	1			1	1
Revenue related to the administration of the PSSA	576	596		891	854	854
Refunds of previous year’s expenditure	772	706			630	630
Disciplinary penalties	18	24			33	33
Proceeds from the disposal of surplus Crown assets	10	9			7	7
Other	3	229			33	33
Total Non-respendable Revenue	26,936	13,031	―	12,391	13,201	13,201

 

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

 

Table 2-B: External Fees

External Fee	Service Standard	Performance Results	Stakeholder Consultation
Fees charged for the processing of access to information requests under the Access to Information Act (ATIA).	Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension is to be sent within 30 days after receipt of the request.	Statutory deadlines met 97 per cent of the time.	The service standard is established by the ATIA and related Regulations. Consultations with stakeholders were undertaken for amendments in 1986 and 1992.

1. As established pursuant to the Policy on Service Standards for External Fees:

• service standards may not have received parliamentary review; and
• service standards may not respect all performance standard establishment requirements under the User Fees Act (UFA) (e.g., international comparison and independent complaint address).

2. Performance results are not legally subject to section 5.1 of the UFA regarding fee reductions for unachieved performance.

Other Information:

There were no new complaints dealing with fees filed with the Office of the Information Commissioner for 2008–09.
It is the Secretariat’s practice to waive fees where the total owing per request amounts to less than $25.00, or when the request has not been answered within the legislated time frames and additional costs would normally apply, or where there is a public interest in the disclosure. The number of times fees were waived in 2008–09 was due to informal processing of monthly requests for reports generated by the Coordination of Access to Information Requests System (CAIRS). In order to reduce costs and increase efficiency, documents are also released occasionally on CD-ROM, which means that no reproduction fees are charged to the applicant.

 

Table 3: Sustainable Development Strategy

 

Table 4: Green Procurement

Meeting Policy Requirements

Green Procurement Targets

 

Table 5: Response to the Auditor General of Canada’s Recommendations

2008 May Report of the Auditor General of Canada: Chapter 1—Management of Fees in Selected Departments and Agencies

Auditor General of Canada Recommendation	Secretariat Response
Recommendation (1.83): The Secretariat should identify challenges with respect to the scope and application of the User Fees Act and provide the President of the Treasury Board with that analysis, with the view to tabling a report in Parliament, for Parliament’s consideration.	The Secretariat agrees that there have been challenges in the interpretation and application of the User Fees Act and will provide the President of the Treasury Board with its analysis of these by November 2008.
Recommendation (1.91): The Secretariat should finalize its guidance on establishing costs for fees and should update guidance on the factors organizations should consider in determining the amount to be charged for a fee.	Agreed. Following considerable analysis and departmental consultation, the Secretariat released a revised Guide to Costing in March 2008. The revised Guide, founded on generally accepted management accounting principles, promotes costing and the use of cost information as key tools of sound management and decision making. The Guide promotes a consistent seven-step approach that should be used in all costing exercises. Practical guidance contained in the revised Guide will foster better understanding of the costs of fee-related services and help strengthen the base upon which the appropriate amount of a user fee may be determined. The Secretariat will also undertake to update, by March 2009, its guidance on the factors to be considered in determining the amount of a fee

2008 December Report of the Auditor General of Canada: Chapter 2—Governance of Small Federal Entities

Auditor General of Canada Recommendation	Secretariat Response
Recommendation (2.37): The Privy Council Office (PCO) and the Secretariat should improve their guidance on portfolio coordination, ensuring that expectations are clearly set out and communicated to portfolio departments and entities.	Agreed. The Secretariat and PCO agree that additional guidance should be provided. The Secretariat expects to have a guide available for portfolio deputy ministers and their departments by March 31, 2009. This guide will provide practical information and suggestions for the successful coordination of the federal organizations that comprise ministerial portfolios. Rather than setting out expectations for conduct in specific cases, it is intended to support the Secretariat’s annual assessment of portfolio coordination through the Management Accountability Framework (MAF). The Secretariat will also continue the practice of reviewing the portfolio coordination assessment criteria and guidance to departments before each MAF round.
Recommendation (2.45): The Secretariat should ensure that the MAF assessment of financial management and control in small entities relies upon sufficient and appropriate information.	Agreed. The MAF methodology used for Round IV in 2006 included an assessment of policy compliance by all organizations, including small agencies, in a number of areas of financial management and control. The methodology for financial management and control was significantly expanded in 2007 for Round V to include new measures and sub-measures and to collect additional information that the Office of the Auditor General of Canada did not audit.
Recommendation (2.60): The Secretariat and the Canada Public Service Agency should incorporate into their plans measures that adequately address the reporting burden in small entities, including expected outcomes, timelines, and performance indicators.	Agreed. The Secretariat is committed to reducing the reporting requirements for all departments and agencies, including small entities. The particular context and needs of small entities are being taken into consideration in the Web of Rules Action Plan, and special measures and support will be considered as appropriate to mitigate the burden for these entities, recognizing that capacity alone cannot determine the level of reporting required of any entity. Consideration of risk, performance, and accountability as well as the need to maintain effective oversight are also important factors. Reporting burden is a function of both the number of questions and the effort required to respond to them. Therefore, the Secretariat has not only reduced the number of questions on the online human resources reporting portal by 85 per cent, but has also simplified the questions that remain. Similar success has also been achieved with respect to reducing people management reporting requirements under MAF. Work to streamline the Treasury Board Portfolio policy suite from 180 to 44 policies continues, with a target of 25 per cent reduction in reporting requirements in policies by 2010.
Recommendation (2.76): The Secretariat should address the issues identified with respect to administrative shared services in small entities.	Agreed. The Secretariat is currently developing a service strategy that will include options for delivery of services and will take into consideration administrative shared services arrangements. The Secretariat will address the issues related to small entities in the overall strategy.

2008 December Report of the Auditor General of Canada: Chapter 3—Contracting for Professional Services—Public Works and Government Services Canada

Auditor General of Canada Recommendation	Secretariat Response
Recommendation (3.82): The Secretariat should update its guidance document on the treatment of amendments to contracts.	Agreed. Recent changes to the Treasury Board Contracting Policy, which came into effect September 1, 2008, now require the disclosure of contract amendments over $10,000. The Secretariat plans to issue new guidance to departments regarding the proactive disclosure of contract amendments no later than January 2009.

2009 February Report of the Auditor General of Canada: Managing Identity Information

Auditor General of Canada Recommendation

Secretariat Response

Recommendation (73): The Secretariat should: take action to standardize identity management practices and increase interoperability within the Government of Canada, with particular focus on the use of vital events information and online authentication; establish governance arrangements (such as clear mandates for interdepartmental committees) to manage interdepartmental initiatives concerning identity information and to achieve common results; and lead an assessment to identify the challenges (technical, financial, legislative, or policy) in current identity information management initiatives, determine whether current arrangements support effective and efficient delivery of government services while protecting privacy, and act on the results of the assessment.

Agreed. In the context of policy suite renewal, the Secretariat is enhancing government security policy instruments to address identity management. Specifically, these instruments will support the management of business processes related to the validation of identity information and online authentication and will encourage interoperability by ensuring that common direction and guidance is prescribed around identity management practices.   The new Policy on Government Security will address the authority for interdepartmental committees to lead in the domain of identity management, including interdepartmental identity information initiatives. The implementation of the new policy and related instruments is expected to commence next year, with full implementation expected within 3 years. The Secretariat will undertake an assessment to identify the challenges associated with existing identity management initiatives and make recommendations to the Secretary regarding the necessary and appropriate measures required to address the challenges identified. The assessment will be informed and directed by new governance arrangements, which will be established by the renewed Policy on Government Security and related directives. The Secretariat’s assessment will inform the evaluation of the policy over the next three to five years.

2009 March Report of the Auditor General of Canada: Chapter 1—National Security: Intelligence and Information Sharing

Auditor General of Canada Recommendation

Secretariat Response

Recommendation (1.47): The Privy Council Office and Public Safety Canada, with the assistance of the Department of Justice Canada and the Secretariat, should increase their efforts to examine and provide guidance on the sharing of information among government departments and agencies while balancing privacy concerns with national security concerns. (1.41–1.46)

Agreed. The Secretariat, along with the Privy Council Office, Public Safety Canada, and the Department of Justice Canada, agree to work together to address the recommendation. The Secretariat will continue efforts to share information while balancing privacy and national security concerns. It will assist departmental leads in these efforts by providing policy guidance and advice on matters relating to information management, privacy, and security. The Secretariat is also committed to providing regular summary reports to Justice Canada and Public Safety on issues related to information sharing and interoperability that are reported to the Secretariat through the Public Security Initiatives Annual Reporting Process.

 

Table 6: Response to Parliamentary Committees 2008–09

Standing Committee on Government Operations and Estimates: The Right Pay for Valuable Employees
(Adopted by the Committee on April 17, 2008; presented to the House on May 1, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Committee considered the problems in the federal government's compensation system from the perspective of the public interest. Recommendations were made to the government to address the classification of compensation advisors, the upgrading of the compensation system's technological infrastructure, and the turnover rate in the public service.	The Government Response addressed all recommendations and indicated that it has undertaken or will undertake actions with respect to most of the recommendations and highlighted its commitment to improving the effectiveness and timeliness of compensation to public service employees. The government has taken action to ensure equitable compensation for all employees in the federal public sector by tabling the Public Sector Equitable Compensation Act (PSECA) as part of the Budget Implementation Act 2009. The Response also highlighted the government's commitment to the development and consideration of an approach to modernize technology and processes to simplify the administration of pay for the Government of Canada. The 2009–10 Public Service Renewal Action Plan emphasized linking human resources needs with organizational business needs, one outcome of which would be more stability and fewer turnovers in the public service.	Second Report of the Standing Committee on Government Operations and Estimates: The Right Pay for Valuable Employees (Third Report of the Committee presented to the House during the Second Session of the 39th Parliament) (Presented to the House on September 14, 2009).

Standing Committee on Public Accounts: Restoring the Honour of the RCMP: Addressing Problems in the Administration of the RCMP's Pension and Insurance Plans
(Adopted by the Committee on December 6, 2007; presented to the House on December 10, 2007)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The committee examined the RCMP's progress in responding to the allegations of fraud and abuse during the outsourcing of the administration of the force's pension and insurance plans. An investigation by the Ottawa Police Service and an audit by the Office of the Auditor General of Canada were completed prior to this Report. The 28 recommendations directed to the government call for RCMP follow-up action, RCMP administrative improvements, Treasury Board policy changes, and broader legislative instruments. In brief, these recommendations focus on the recovery of misappropriated funds, ensuring compliance with the Contracting Policy, strengthened rules for discipline and dismissal of public servants, improving protection for whistleblowers, and enhancing review and accountability of the RCMP. Overall, the Government Response expresses general support for these recommendations, noting that action has either been taken or is underway to address the recommendations.	The Government Response indicates that all of the policy recommendations are being reviewed as part of the Secretariat's Policy Suite Renewal Initiative. Consideration is also being given to clarifying the Secretariat's Guidelines for Discipline. A compliance framework is under development to ensure that both sides of compliance are addressed—preventative measures before and appropriate restorative measures after. It will also include training for employees and disciplinary codes to provide clarity on misconduct and related consequences.	Second Report of the Standing Committee on Public Accounts, "Restoring the Honour of the RCMP: Addressing Problems in the Administration of the RCMP's Pension and Insurance Plans" (Presented to the House on April 7, 2008)

Standing Committee on Public Accounts: The Expenditure Management System at the Government Centre and the Expenditure Management System of Departments  
(Adopted by the Committee on February 12, 2008; presented to the House on February 25, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Committee examined the Expenditure Management System within central agencies and departments. The Report focussed on the roles and responsibilities of central agencies, access to information, evaluation, alignment of funding to programs, the Expenditure Management Information System, conditions for funding, and the Supplementary Estimates process.	In each of its budgets, the government has underscored its commitment to developing a new approach to managing overall spending to ensure that all government programs are effective and efficient, are focussed on results, provide value for taxpayers' money, and are aligned with the government's priorities and responsibilities.	Fourth Report of the Standing Committee on Public Accounts, "The Expenditure Management System at the Government Centre and the Expenditure Management System in Departments"  (Presented to the House on July 16, 2008)

Standing Committee on Public Accounts: Protection of Public Assets – Office of the Correctional Investigator
(Adopted by the Committee on February 12, 2008; presented to the House on February 25, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Committee examined improper and questionable payments made to the Correctional Investigator up until October 2003. The Report focusses on corrective action taken to date and makes recommendations for measures to ensure these practices do not occur in the future.	The new financial management policy suite will outline the roles and responsibilities of the Comptroller General of Canada to monitor and ensure that chief financial officers understand and fulfill their duties. The Office of the Comptroller General of Canada will assess the extent of total internal audit coverage of small departments and agencies and will report relevant information in the most current annual Internal Audit Plan. The Management Accountability Framework (MAF) Directorate is in the final year of establishing a three-year rotational cycle for the assessment of small agencies.	Fifth Report of the Standing Committee on Public Accounts, "Protection of Public Assets – Office of the Correctional Investigator" (Presented to the House on July 16, 2008)

Standing Committee on Public Accounts: Departmental Answers to Questions about Government Responses (39th Parliament)
(Adopted by the Committee on February 14, 2008; presented to the House on February 25, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Report examines the effectiveness of the Committee in enacting change within the public service through committee report recommendations. The Report includes an analysis of the number of recommendations (in a sample of reports) and the actions of the public service in addressing said recommendations.	The recently introduced Federal Accountability Act contains many measures aimed at increasing the information available to Parliament for holding the government to account.	Sixth Report of the Standing Committee on Public Accounts, "Departmental Answers to Questions About Government Responses (39th Parliament)" (Presented to the House on July 16, 2008)

Standing Committee on Public Accounts: Large Information Technology Projects
(Adopted by the Committee on February 14, 2008; presented to the House on February 25, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Committee examined the progress the public service has made in the management of large-scale IT projects.	The action plan to improve project management is based on research into why projects fail. It attempts to find the right balance between being overly prescriptive and overly reliant on guidance—which by definition can be considered as optional. The action plan clarifies and strengthens the existing policies and guidance for the management of IT projects and introduces new requirements, such as independent reviews.	Seventh Report of the Standing Committee on Public Accounts, "Large Information Technology Projects" (Presented to the House on July 16, 2008)

Standing Committee on Public Accounts: Chapter 5, Passports Services – Passport Canada of February 2007 Report of the Auditor General of Canada
(Adopted by the Committee on February 28, 2008; presented to the House on March 5, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Report focusses on the progress Passport Canada has made toward meeting its service standards while factoring in heightened expectations for security with the growing demand for services.	The Secretariat has taken the lead on work to combine the various ways of developing a whole-of-government approach to this issue. However, because this is an unfunded priority without allocated resources, little progress has been made.	Ninth Report of the Standing Committee on Public Accounts, "Chapter 5, Passports Services – Passport Canada of February 2007 Report of the Auditor General of Canada" (Presented to the House on June 6, 2008)

Standing Committee on Public Accounts: Public Accounts of Canada 2007
(Adopted by the Committee on February 28, 2008; presented to the House on March 5, 2008)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Report focusses on the government's reporting of the Public Accounts of Canada (i.e., the consolidated financial statements of the Government of Canada).	The measures mentioned in the Response support improved reporting in the Public Accounts and positively address recommendations made by the parliamentary Committee and the Auditor General of Canada.	Eleventh Report of the Standing Committee on Public Accounts, "Public Accounts of Canada 2007" (Presented to the House on July 16, 2008)

Standing Committee on Public Accounts: Chapter 5, Managing the Delivery of Legal Services to Government – Department of Justice Canada of the May 2007 Report of the Auditor General of Canada
(Adopted by the Committee on February 12, 2009; presented to the House on February 25, 2009)

Summary of Report	Discussion of progress made to address recommendations	Link to the Secretariat's response
The Report focusses on recommendations for managing the delivery of legal services to the Government of Canada. Specifically, a recommendation was made for the Secretariat to undertake a feasibility study of reporting the government's total cost for legal services.	The Secretariat has reviewed the existing reporting of the costs of legal services to Parliament and reviewed the possibility of using the Management, Resources and Results Structures to further capture the costs of legal services to the government. With respect to existing reporting, the Public Accounts of Canada 2007 (Volume II, Section 17, and Volume III, Section 3) and the Department of Justice Canada Departmental Performance Report provide details on the majority of these costs.	Fourth Report of the Standing Committee on Public Accounts (recommendations contained in the 17th Report of the Committee presented to the House during the Second Session of the 39th Parliament) (Presented to the House on June 19, 2009)

 

Table 7: Internal Audits (current reporting period)

Name of Internal Audit	Audit Type	Status	Completion Date	Key Findings	Secretariat Response
Audit of Leave and Overtime	Assurance	Completed	December 2008	The Secretariat’s administration of leave and overtime was compliant with applicable laws, policies, and collective agreements. Recommendations were provided to strengthen the management control framework	A management action plan was developed, and work is underway to address recommendations. For example, full reporting of the cost of overtime is provided to senior management as part of the quarterly financial review. In addition, systems have been established to better forecast and review overtime expenditures.
Assurance Engagement: large payments to external vendors- Testing for duplicate payments report	Assurance	Completed	December 2008	No duplication of large payments to vendors during the periods studied. No recommendations were made. No management action plan is necessary.	The Secretariat agrees with the findings and will continue to apply systems already developed to ensure that results are maintained.
Audit of Pay and Related Benefits	Assurance	Completed	March 2009	Adequate administration of pay and benefits. Recommendations were provided where control weaknesses were observed	Management accepted all recommendations. A management action plan was developed and work is underway. For example, a new salary forecasting tool and expenditure monitoring regime was implemented in April 2008, and written procedures on the processing of pay recoveries and pay reimbursements were developed and communicated. Also, verification of user access rights to the regional pay system will be reviewed twice annually to ensure their validity and appropriateness.
Audit of the Secretariat Governance	Assurance	In progress	December 2009	Not yet available	Not applicable
Audit of the Disability Insurance Plan	Assurance	In progress	March 2010	Not yet available	Not applicable
Audit of Accounts Verification	Assurance	In progress	March 2010	Not yet available	Not applicable

 

Table 8: Evaluations (current reporting period)

Name of Evaluation	Program Activity	Evaluation Type	Status	Completion Date	Key Findings	Secretariat Response
Evaluation of the Research and Policy Initiative Assistance Program	Internal Services	Summative	Complete	March 2009	Program is meeting needs of Secretariat. Several recommendations were made to improve the program. Program is believed to be cost-effective.	The Secretariat agrees with the findings of the report and concurs with its recommendations. The Secretariat plans to adopt the recommendations in the next fiscal year.
Evaluation of the Treasury Board submission process	Involves several Secretariat program activities	Summative	In progress	September 2009	Not yet available	Not applicable
Evaluation of Management Accountability Framework	Management Policy Development and Oversight	Summative	In progress	August 2009	Not yet available	Not applicable

 

Financial Statements (Unaudited)
For the Year Ended March 31, 2009

Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements for the year ended March 31, 2009, and all information contained in these statements rests with the management of the Treasury Board of Canada Secretariat. These financial statements have been prepared by management in accordance with Treasury Board accounting policies, which are consistent with Canadian generally accepted accounting principles for the public sector.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management's best estimates and judgment, and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the Secretariat's financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada and included in the Secretariat's 2008–09 Departmental Performance Report is consistent with these financial statements.

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

The system of internal control is augmented by Internal Audit, which conducts periodic audits and reviews of different areas of the Secretariat's operations. In addition, the Chief Audit Executive has free access to the Audit Committee, which provides advice on management's responsibilities for maintaining adequate control systems and the quality of financial reporting. The Committee undertakes a review of the financial statements, including all significant accounting estimates and judgments therein, and would advise the Deputy Head on any apparent material concerns.

The financial statements of the Treasury Board of Canada Secretariat have not been audited.

Michelle d'Auray Secretary of the Treasury Board Ottawa, Canada July 24, 2009

Kelly Gillis, CA Chief Financial Officer               Ottawa, Canada July 24, 2009

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

($ thousands)

	2009	2008
Expenses (Note 4)
Government-wide Funds and Public Service Employer Payments	1,743,227	1,660,795
Management Policy Development and Oversight	172,574	149,383
Expenditure Management and Financial Oversight	55,798	57,224
Total Expenses	1,971,599	1,867,402
Revenues (Note 5)
Government-wide Funds and Public Service Employer Payments	11,697	11,490
Management Policy Development and Oversight	4,053	3,511
Expenditure Management and Financial Oversight	3	3
Total Revenus	15,753	15,004
Net Cost of Operations	1,955,846	1,852,398

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

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

($ thousands)

	2009	2008
Assets Financial assets
Accounts receivable and advances (Note 6)	230,049	103,184
Non-financial assets
Prepaid expenses	–	36
Tangible capital assets (Note 7)	13,126	11,800
Total Assets	243,175	115,020
Liabilities
Accounts payable and accrued liabilities (Note 8)	439,214	441,505
Vacation pay and compensatory leave	6,547	6,077
Employee severance benefits (Note 9)	28,888	23,703
	474,649	471,285
Equity of Canada	(231,474)	(356,265)
Total Liabilities and Equity	243,175	115,020

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

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

Treasury Board of Canada Secretariat
Statement of Equity of Canada (Unaudited)
At March 31

($ thousands)

	2009	2008
Equity of Canada, beginning of year	(356,265)	(435,781)
Net cost of operations	(1,955,846)	(1,852,398)
Current year appropriations used (Note 3)	1,959,625	1,856,598
Revenue not available for spending	(12,571)	(12,325)
Change in net position in the Consolidated Revenue Fund (Note 3)	116,365	72,723
Services received without charge from other government departments (Note 12)	17,218	14,918
Equity of Canada, end of year	(231,474)	(356,265)

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

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

($ thousands)

	2009	2008
Operating activities
Net cost of operations	1,955,846	1,852,398
Non-cash items:
Amortization of tangible capital assets	(1,225)	(160)
Gain on disposal of tangible capital asset	7	8
Services received without charge from other government departments	(17,218)	(14,918)
Variations in Statement of Financial Position:
Increase (decrease) in accounts receivable and advances	126,865	(80,940)
Increase (decrease) in prepaid expenses	(36)	36
Decrease in accounts payable and accrued liabilities	2,291	156,685
(Increase) in vacation pay and compensatory leave	(470)	(873)
(Increase) in employee severance benefits	(5,185)	(3,172)
Cash used by operating activities	2,060,875	1,909,064
Capital investment activities
Acquisition of tangible capital assets	2,551	11,724
Proceeds from disposition of tangible capital assets	(7)	(3,792)
Cash used by capital investment activities	2,544	7,932
Financing activities
Net cash provided by the Government of Canada	(2,063,419)	(1,916,996)

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

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 public administration. It is headed by a Secretary, who reports to the President of the Treasury Board.

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

The core business of the Secretariat is currently organized into three program activities that were updated and approved by Treasury Board in June 2007 (see note about Internal Services at the beginning of these financial statements). Therefore, figures for 2007–08 in the Statement of Operations are redistributed for comparison purposes.

The program activities are described as follow:

a) Government-wide Funds and Public Service Employer Payments

Primarily payments and receipts made on behalf of other government departments for the employer's share of Public Service pension plan and group insurance obligations.

b) Management Policy Development and Oversight

Through the Management Policy Development and Oversight program activity, the Secretariat provides support to the Treasury Board in its role as the management board of government and promotes good management practices across government. This includes its role as employer of the federal public service. The Secretariat supports its management board role by developing policies, directives and standards to guide good management across government; monitoring compliance and developing tools to measure and report on management performance; and providing advice and support to functional communities. To achieve its objectives under this program activity, the Secretariat also works closely with its portfolio partners, the Public Service Human Resources Management Agency of Canada and the Canada School of the Public Service.

c) Expenditure Management and Financial Oversight

The Secretariat exercises its role as the budget office and undertakes the following key functions in support of this role:

• providing advice to Ministers with respect to resource allocation and re-allocation, and the provision of expenditure authorities;
• undertaking government-wide expenditure and performance analysis, and oversight of estimates and government supply; and
• ensuring that accurate and timely financial and performance information from departments and agencies is available and reported to support Public Accounts and budget office functions.

Structural Changes

Two significant structural changes took place in early 2009 that will impact the Secretariat. Order in Council P.C. 2009-0181 approved the amalgamation of the Public Service Human Resources Management Agency of Canada with the Treasury Board Secretariat, effective March 2, 2009. Order in Council P.C. 2009-0112 approved the transfer from the Department of Finance to the Treasury Board of Canada Secretariat of the control and the supervision of portions of the federal public administration related to shared corporate services in the Department of Finance, effective February 1, 2009.

Although these mergers occurred late in 2008–09, separate financial statements were produced due to the fact that parliamentary authorities remained distinct and there continued to be a requirement to provide a separate Departmental Performance Report to Parliament for the Public Service Human Resource Management Agency of Canada.  The transfer of funding to the Secretariat will occur in 2009–10, and the financial impact will be reported in the Secretariat 2009–10 Financial Statements.

2. Summary of Significant Accounting Policies

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

Significant accounting policies are as follows:

a) Parliamentary appropriations

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

b) Net cash provided by the Government of Canada

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

c) Change in net position in the Consolidated Revenue Fund

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

d) Revenues

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

e) Expenses

Expenses are recorded on the accrual basis:

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

f) Government-wide employee benefits

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

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

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

g) Departmental employee future benefits

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

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

h) Accounts receivable and advances

Accounts receivable and advances are stated at amounts expected to be ultimately realized.

i) Contingent liabilities

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

j) Tangible capital assets

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

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

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

Asset class	Amortization period
Machinery and equipment	3 to 10 years
Motor vehicles	3 years
Leasehold improvements	Lesser of the remaining term of the lease or useful life of the improvement
Assets under construction	Once in service, in accordance with asset class

k) Measurement uncertainty

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

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

3. Parliamentary Appropriations

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

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

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

($ thousands)

	2009	2008
Net cost of operations	1,995,846	1,852,398
Adjustments for items affecting net cost of operations but not affecting appropriations:
Add (Less):   Services received without charge from other government departments	(17,218)	(14,918)
Revenue not available for spending	12,571	12,325
(Increase) in vacation pay and compensatory leave	(470)	(873)
(Increase) in employee severance benefits	(5,185)	(3,172)
Amortization of tangible capital assets	(1,225)	(160)
Other	13,169	2,091
	1,642	(4,707)
Adjustments for items not affecting net cost of operations but affecting appropriations:
Add (Less):   Acquisitions of tangible capital assets	2,551	7,942
Advances	(414)	965
	2,137	8,907
Current year appropriations used	1,959,625	1,856,598

 b)  Appropriations provided and used

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

($ thousands)

	2009	2008
Appropriations provided
Vote 1—Program expenditures	196,337	191,012
Vote 2—Contributions	-	422
Vote 5—Government contingencies	651,565	750,000
Vote 10—Government-wide initiatives	7,141	2,044
Vote 15—Compensation adjustments	1	-
Vote 20—Public service insurance	1,862,944	1,827,798
Vote 22a—Operating budget carry forward	-	218,264
Vote 23a—Paylist requirements	-	25,358
Vote 25—Operating budget carry forward	113,426	-
Vote 30—Paylist requirements	-	-
	2,831,414	3,014,898
Statutory authorities:
Contributions to employee benefit plans	20,835	17,632
Unallocated employer contributions made under the Public Service Superannuation Act and other retirement acts and under the Employment Insurance Act	9,481	9,098
Payments for the pay equity settlement pursuant to section 30 of the Crown Liability and Proceedings Act	(972)	197
President of the Treasury Board—Salary and car allowance	77	75
Other statutory authorities	20	29
	29,441	27,031
Less:
Lapsed authorities:
Vote 1—Program expenditures	(12,129)	(14,531)
Vote 2—Contributions	-	(100)
Vote 5—Government contingencies	(651,565)	(750,000)
Vote 10—Government-wide initiatives	(7,141)	(2,044)
Vote 15—Compensation adjustments	(1)	-
Vote 20—Public service insurance	(116,951)	(175,014)
Vote 22a—Operating budget carry forward	-	(218,264)
Vote 23a—Paylist requirements	-	(25,358)
Vote 25—Operating budget carry forward	(113,426)	-
Vote 30—Paylist requirements	-	-
Spending of proceeds from the disposal of surplus crown assets	(17)	(20)
	(901,230)	(1,185,331)
Current year appropriations used	1,959,625	1,856,598

c) Reconciliation of net cash provided by Government to current year appropriations used

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

($ thousands)

	2009	2008
Net cash provided by the Government of Canada	2,063,419	1,916,996
Revenue not available for spending	12,571	12,325
Change in net position in the Consolidated Revenue Fund:
Decrease (increase) in accounts receivable and advances	(126,865)	80,940
Decrease (increase) in prepaid expenses	36	(36)
(Decrease) in accounts payable and accrued liabilities	(2,291)	(156,685)
Increase in vacation pay and compensatory leave	470	873
Other	12,285	2,185
	(116,365)	(72,723)
Current year appropriations used	1,959,625	1,856,598

4. Expenses

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

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

($ thousands)

	2009	2008
Transfer payments	228	322
Operating expenses:
Centrally managed funds (Note 4b)	1,743,227	1,660,795
Departmental salaries and employee benefits	160,983	138,056
Professional and special services	39,519	41,057
Accommodation	13,523	11,455
Transportation and telecommunications	5,064	5,011
Machinery and equipment	3,257	3,479
Utilities, materials, and supplies	1,524	1,138
Rentals	969	758
Information	733	843
Repairs and maintenance	432	3,308
Amortization	1,225	160
Other	1,005	1,020
Total operating expenses	1,971,371	1,867,080
Total Expenses	1,971,599	1,867,402

b) Centrally managed funds

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

The Secretariat also funds payments to or in respect of:

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

Generally, Public Service Pension Plan contributions, Public Service Death Benefit Account contributions, Canada/Quebec Pension Plan contributions, and Employment Insurance premiums are recovered from all departments, agencies, and revolving funds pro-rata, based on salaries and wages incurred. Contributions to health care plans are recovered from certain departments and agencies, and all revolving funds based on 8.0 per cent (7.0 per cent in 2008) of salaries and wages incurred.

A breakdown by major category is as follows:

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

($ thousands)

	2009	2008
Expenses
Public Service Pension Plan and Retirement Compensation Arrangement contributions (Statutory)	2,323,497	2,221,119
Public Service Health Care Plan (Vote 20)	790,469	720,545
Canada/Quebec Pension Plan contributions (Statutory)	590,851	542,989
Provincial payroll taxes (Vote 20)	464,549	434,840
Group disability and life insurance (Vote 20)	355,677	338,139
Employment Insurance premiums (Statutory)	248,404	236,422
Public Service Dental Care Plan (Vote 20)	227,128	229,227
Pensioners' Dental Services Plan (Vote 20)	110,840	101,544
Pension and other government employee benefits in respect of locally engaged staff employed in Canadian missions abroad (Vote 20)	47,384	42,373
Provincial health insurance plan premiums (Vote 20)	35,626	36,916
Quebec Parental Insurance Plan premiums (Vote 20)	27,307	23,575
Public Service Death Benefit Account contributions (Statutory)	10,430	9,924
Public Service Pension Plan and Retirement Compensation Arrangement contributions in respect of actuarial deficits (Statutory)	9,500	9,500
Operating expenses (Vote 20)	5,566	3,499
Pension and similar payments to former government employees (Vote 20 and Statutory)	2,689	362
Employment Insurance premium reduction (Vote 20)	1,341	1,291
Miscellaneous special payments (Statutory)	(972)	197
Total expenses	5,250,289	4,952,462
Recoveries
Employer's contributions to government employee benefit plans recovered from government departments and agencies (Statutory)	3,173201	3,010,850
Employer's contributions to government employee insurance plans recovered from government departments and agencies (Vote 20)	156,180	121,060
Employee's contributions to Public Service Health Care Plan recovered from government departments and other organizations (Vote 20)	129,256	114,582
Pensioners' contributions to the Pensioners' Dental Services Plan (Vote 20)	48,422	45,175
Total recoveries	3,507,059	3,291,667
Net Expenses	1,743,227	1,660,795

5. Revenues

The following table presents details of revenues by category:

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

	2009	2008
Parking fees	11,643	11,466
Recovery of pension administration costs	4,036	3,277
Other	74	261
Total Revenues	15,753	15,004

6. Accounts Receivable and Advances

The following table presents details of accounts receivable and advances:

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

($ thousands)

	2009	2008
Receivables from other federal government departments and agencies	229,142	101,390
Advances to external parties	564	983
Receivables from external parties	271	195
Advances to employees	60	57
Deposits in transit to the Receiver General	12	559
Total Accounts Receivable and Advances	230,049	103,184

7. Tangible Capital Assets

The following table presents the details of Tangible Capital Assets:

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

($ thousands)	Costs				Accumulated Amortization				Net Book Value
Capital Asset Class	Opening  Balance	Acquisitions	Disposals  and Write-offs	Closing  Balance	Opening  Balance	Amortization	Disposals  and Write-offs	Closing  Balance	2009	2008
Machinery and equipment	12,518	2,577	(11)	15,084	817	1,199	(11)	2,005	13,079	11,701
Motor vehicles	103	29	(30)	102	59	26	(30)	55	47	44
Leasehold improvements	1,952	-	-	1,952	1,952	-	-	1,952	-	-
Assets under construction	55	(55)	-	-	-	-	-	-	-	55
Total	14,628	2,511	(41)	17,138	2,828	1,225	(41)	4,012	13,126	11,800

Amortization expense for the year ended March 31, 2009, is $1,225 thousand ($160 thousand in 2008).

8. Accounts Payable and Accrued Liabilities

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

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

($ thousands)

	2009	2008
Accounts payable to other government departments and agencies	254,804	272,000
Accounts payable to external parties	184,410	169,505
Total Accounts Payable and Accrued Liabilities	439,214	441,505

9. Employee Benefits

a)  Pension benefits

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

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

During the year, the Secretariat contributed $15,043 thousand ($12,854 thousand in 2008) in respect of its own employees, which represents approximately 2.0 times (2.1 times in 2008) the contributions made by its employees.

b)  Severance benefits

The Secretariat provides severance benefits to its employees based on eligibility, years of service and final salary. These severance benefits are not pre-funded. Benefits will be paid from future appropriations. The liability for severance for 2008–09 is determined using a government-wide estimate of 26.92% (compared to 23.27% in 2007–08) and applying it to the Secretariat annual gross payroll related to indeterminate employees. Information about the severance benefits, measured as at March 31, is as follows:

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

($ thousands)

	2009	2008
Accrued benefit obligation, beginning of year	23,703	20,531
Expense for the year	7,149	4,943
Benefits paid during the year	(1,964)	(1,771)
Accrued benefit obligation, end of year	28,888	23,703

10. Contingent Liabilities

Claims and litigations

Claims have been made against the Secretariat in the normal course of operations. Legal proceedings for claims totalling approximately $62 billion ($64 billion in 2008) were still pending at March 31, 2009. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded on the financial statements. No accrual for these contingent liabilities has been made in the financial statements.

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

In September 1999, the Public Sector Pension Investment Board Act (Bill C-78) was passed by Parliament, providing for improvements in the financial management of federal public service pension plans, including the Public Service (PSSA), RCMP (RCMPSA), and Canadian Forces (CFSA) superannuation plans. The new Act authorized the President of the Treasury Board to debit the accounts in order to reduce the amount of certain excess balances in the superannuation accounts. In late 1999, the major public service unions and pensioner associations launched three lawsuits against the Crown challenging the validity of the legislation. On November 20, 2007, the actions were dismissed. In February 2008, all 3 plaintiffs appealed the decisions. No appeal dates have been scheduled to date.

11. Contractual Obligations

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

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

($ thousands)	2010	2011	2012	2013	2014 and there after	Total
Public Service Health/Dental Plans	29,222	39,096	42,921	-	-	111,239
Other professional services	16,614	5,205	4,763	1,691	1,460	29,733
Management consulting	9,853	678	-	-	-	10,531
Accounting and audit services	1,038	1,730	490	-	-	3,708
Protection services	1,975	-	-	-	-	1,975
Translation services	1,601	70	70	29	-	1,770
Computer services	1,403	236	-	-	-	1,639
Total	61,706	47,015	48,694	1,720	1,460	160,595

12. Related-party Transactions

Services received without charge

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

Also, during the year, the Secretariat received without charge services from other departments as shown in the following table:

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

($ thousands)

	2009	2008
Accommodation	13,523	11,455
Legal services	3,695	3,463
Total	17,218	14,918

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

 13. Comparative Information

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

 

Appendix: Other Accomplishments Aligned to Program Activities

Program Activity 1: Management Policy Development and Oversight

Advancing risk-based management approaches

In 2008–09, the Secretariat developed a risk management framework that sets out specific principles for managing risks within the federal government. The Secretariat aims to foster a culture of informed risk taking to achieve objectives and outcomes. In 2009–10, the Secretariat will seek approval of the framework and begin its implementation.

What is the impact? Achievements will enable a more consistent approach to risk management across government—supporting effective governance, management, business planning, and decision making. This helps ensure value-for-money and demonstrates sound stewardship and accountability in program delivery.

Oversight of IT-enabled projects and IT security

To improve the oversight and management of large IT-enabled projects, the Secretariat developed templates for business cases, project charters, and third-party reviews as well as other guidance products that are now being adopted by various government departments. The Secretariat also developed standards and common approaches for government security relating to individual screening, IT incident management, and proactive defence against cyber attacks.

What is the impact? A more consistent approach and level of rigour will be applied to a variety of informatics domains across government. This will provide individual departments and the Government of Canada as a whole with an improved ability to manage large IT-enabled projects and protect the security of government information.

Program Activity 2: Expenditure Management and Financial Oversight

Implementation of the Policy on Management, Resources and Results Structures

Implementation of the MRRS policy supports the development of a common, government-wide approach to the collection, management, and reporting of financial and non-financial performance information.

• Over 50 outreach activities were undertaken to promote the MRRS policy and its implementation, including federal government and international events, which led to increased awareness and capacity government-wide.
• Critical policy issues associated with MRRS implementation were identified and resolved with stakeholders.
• Departmental PAAs and associated PMFs were reviewed and rated in accordance with MRRS instructions.
• Due to delays in integrating non-financial performance data into Phase C of the Expenditure Management Information System (EMIS), efforts to monitor and report on departmental performance in real-time will continue to be hampered by a lack of full systems support. The eventual establishment of a fully integrated data system for financial and non-financial program performance information will strengthen Secretariat efforts to advance many aspects of Expenditure Management System (EMS) renewal.

What is the impact? With Steps 1 and 2 of the MRRS road map now completed, departments have the necessary program architectures and performance measurement tools to undertake strategic reviews in a thorough and robust manner. Experience over two years has demonstrated the importance of these tools for a successful strategic review process. Going forward, it is expected that departments will improve the quality of their performance information by collecting actual data on their indicators. Phase C of EMIS is of critical importance to this.

Program Activity 3: Government-wide Funds and Public Service Employer Payments

Planned spending in this program activity relates mainly to Vote 20—Public service insurance.

Vote 20—Public service insurance

This vote, which supports the Treasury Board’s role as employer of the core public administration, is used for the following:

• public service pensions, benefits, and insurance, including payment of the employer’s share of health, income maintenance, and life insurance premiums;
• payments to or in respect of provincial health insurance plans;
• payment of provincial payroll taxes and Quebec sales tax on insurance premiums;
• costs associated with the pension, benefit, and insurance plans for employees engaged locally outside Canada; and
• the return to certain employees of their share of the employment insurance premium reduction.

Contingency funds are available to government departments if required, with expenditures identified under their program activities. The following votes are therefore excluded from the Secretariat’s planned spending:

Vote 5—Government contingencies

This vote provides the government with the authority and flexibility to meet unforeseen or urgent expenditures until parliamentary approval can be obtained. Most of the items in this vote are considered temporary advances to cover items that will be included in subsequent Supplementary Estimates for other departments and agencies and reimbursed when the associated appropriation act is passed.

Vote 10—Government-wide initiatives

This vote supplements other departments and agencies’ appropriations that support the implementation of strategic management initiatives across the public service. Historically, this vote has been used to support such initiatives as Government On-Line, comptrollership innovation and modernization, the Financial Information Strategy (FIS), employment equity, and program evaluation and internal audit.

Vote 25—Operating budget carry forward

This vote allows for routine operating budget carry-forward (OBCF) amounts, as established under the OBCF policy, to be transferred directly to departments and agencies, in a timely manner, once eligible amounts have been confirmed by the Secretariat and approved by Treasury Board ministers. The $1.2 billion in this vote, which represents no additional cost to the government, corresponds to the approximate amount of potential requirements that would otherwise have been presented in multiple Supplementary Estimates by departments and agencies.

Vote 30—Paylist requirements

This vote covers departments and agencies’ paylist shortfalls related to parental benefits, severance, and other allowances. To avoid discrimination in hiring practices, paylist costs related to these expenditures have been covered centrally since the introduction of the operating budget regime in 1993. This vote provides relief from cash management challenges departments and agencies face for these legal obligations.

Vote 35—Budget implementation initiatives

This new Treasury Board central vote is for the implementation of certain programs included in Budget 2009. For the period commencing April 1, 2009, and ending June 30, 2009, Vote 35 will supplement other appropriations and provide applicable government organizations with appropriations for initiatives announced in Budget 2009. The appropriations will cover expenditures that are within the organizations’ legal mandates but not otherwise provided for, including new grants and increases in grant amounts listed in the Estimates.