ARCHIVED - Treasury Board of Canada Secretariat - Report

• Previous Page
• Table of Contents
• Next Page

This page has been archived.

Section II: Analysis of Program Activities by Strategic Outcome

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

Additional Information

Results achieved in support of the Secretariat's strategic outcome strengthen the effectiveness and efficiency of the federal government, support decision making by Parliament, Treasury Board and Cabinet, and ensure that Canadians are well served by a government that is accountable and transparent. The strategic outcome is supported by six program activities. Effective government contributes to Canada's competitive advantage, providing a strong foundation for security, stability and prosperity.

The following section describes each of the Secretariat's program activities and reports progress against their expected results, performance indicators and targets in line with the Policy on Management, Resources and Results Structures. This section also presents the financial and human resources for each program activity, as well as specific initiatives that represented key investments in 2010–11.

Program Activity 1: Management Frameworks

Program Activity Descriptions

The Management Frameworks Program Activity (PA) establishes guiding principles and expectations for public sector management. It includes setting government-wide policy directions in targeted areas such as governance, regulatory management, the Management Accountability Framework (MAF), service, information management and technology. Working with all federal organizations, the Secretariat provides leadership, challenge, and a community enablement function in areas related to policy development, compliance, performance reporting, and functional community development. This work includes new and emerging issues and priorities related to the management of the Public Service, and promoting a cultural shift in how government deals with risk and innovation. In turn, this work informs the policies in the Expenditure, Financial, and People Management program activities. This program activity is underpinned by a broad set of enabling legislation, including the Financial Administration Act.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
60,412	65,806	65,382

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
480	487	7

For Program Activity 1, the increase of approximately $5 million between planned spending, total authorities and actual spending can be attributed to the subsequent approval of funding to improve financial systems and to support financial decision making in the Government of Canada, the cyber security strategy and funding provided for paylist requirements.^[8] These approved funding increases supported an increased FTE usage.

Expected Results	Performance Indicators	Targets	Performance Status
Continuous improvement in the quality of public service management in the Government of Canada.	Averaged percentage improvement in overall MAF scores across departments and agencies for identified areas of weakness from previous round.	5% (end of fiscal year 2010–11)	Met all

Performance Summary and Analysis of Program Activity

The Secretariat successfully enabled continuous improvement in the quality of public service management in 2010–11 as evidenced by the positive results of the annual MAF assessments. Results from the 46 organizations assessed in 2010–11 show that overall management performance continues to improve. These results reflect the progress made in implementing Treasury Board policies, advances in the renewal of the Treasury Board policy suite (see Section I, "Organizational Priorities") and other ongoing efforts by the Secretariat to reduce the web of rules. Results also reflect efforts to build capacity in communities of practice within the federal government, such as the financial management community (see Program Activity 4: Financial Management).

Most federal departments and agencies assessed through MAF demonstrated effective governance regimes and annual business planning processes. A growing number of organizations improved the integration of their business planning through strategic priority setting, corporate risk identification and other planning activities (e.g., investment planning). There was also improvement in financial planning processes to allow for the allocation of budgets to managers earlier in the fiscal year.

MAF assessments found that the state of IT management across government continues to improve. Most organizations have solid IT plans and are continuing to develop performance measurement frameworks. The focus of MAF has increasingly been on the management of IT-enabled projects and management of IT assets. One area where management results varied across organizations was in meeting Treasury Board expectations for the management of IT security.

While the majority of organizations have IM plans and strategies in place, MAF assessments found that the management of electronic information continues to be an area of challenge. Nevertheless, compliance with legislative Access to Information and Privacy (ATIP) requirements is improving, particularly in large organizations. Details on the Secretariat's 2010–11 MAF results for the People Management, Expenditure Management and Financial Management program activities are presented in the program activities that follow.

The Secretariat also provided expert advice internationally this year on building frameworks such as MAF to improve public sector management performance (see text box "International Work").

The Administrative Services Review emerged as a significant focus in 2010–11, to which the Secretariat made an important contribution through the Management Frameworks program activity. It conducted analysis and provided advice on options for consolidating internal and external services, and standardizing government business processes. The Secretariat also advanced a number of initiatives in preparation for implementing this review. For example, the Secretariat:

• Led a pilot project for a common people management IT platform to reduce the time and costs associated with HR;
• Created an inventory of government IT applications systems and conducted a baseline assessment of the state of aging IT across government. This will be used to drive the renewal of aging systems through an approach that balances risk, departmental investments and interdepartmental collaboration, and that factors in the opportunities for consolidation to be generated through the implementation of Administrative Service Review initiatives.
• Established a shared services liaison to work with small departments and agencies to identify common business requirements and solutions. It also advanced the Human Resources Information System, which will become the new HR system for small departments and agencies; and
• Developed, in consultation with departments and agencies, a Government of Canada model to be used for IT expenditure reporting for subsequent fiscal years. Forty-six departments and agencies used a new standardized IT expenditure model to initially report 2009–10 expenditure information to the Secretariat on IT assets, services and personnel; these departments will continue to report expenditures going forward. The standardized expenditure model makes it possible to provide the government with an expenditure baseline to inform IT management and benchmarking for the next phases of the Administrative Services Review, the Strategic and Operating Review, and Treasury Board decision making.

The Secretariat also undertook a number of initiatives to increase access to government information. As part of an expansion of Open Government announced in March 2011, the Secretariat piloted an open data portal that offers government data in more useful, machine readable formats. Over 260,000 government data sets are available free of charge to citizens, the private sector and non-government organizations to leverage in innovative and value-added ways. It also developed standards to ensure that Government of Canada websites are usable and accessible to the public, which will be launched in 2011. It continued to support new ways to manage and share knowledge within government, including the use of GCPEDIA, an internal Web-based collaborative tool (i.e., a wiki) where public service employees can upload and edit information.

The Secretariat modernized and reduced the cost of the government's online authentication services as part of its Cyber Authentication Renewal strategy by developing a Government of Canada Access Key service for electronic credential management. This service allows users—citizens and businesses—to securely access many government programs online through the use of an external online credential. The Government of Canada Access Key is an industry standards–based credential that is non-proprietary. This enables the credential to evolve with advances in technology and to be more adaptable to emerging security threats. It is also more cost-effective to operate than the previous e-pass credential. The transition to the new Access Key system was completed in December 2010 by all departments and agencies that offer online services and assured service continuity for Canadians. The transition has reduced the ongoing costs to the Government of Canada for this service by over 40 per cent. In collaboration with other jurisdictions, the Secretariat has also been contributing to the development of the Pan-Canadian Strategy for Trusted Identities.

As part of the government's cyber security strategy, the Secretariat launched a government-wide initiative aimed at improving Internet security. Recent surveys on the number of internet access points in government demonstrate that departments and agencies have made progress in consolidating and minimizing the number of Internet connections, as well as in implementing security controls. In keeping with the consolidation and renewal agenda, the next step will focus on the migration of more departmental Internet connections to a single, more robust network.

In partnership with the ATIP community, the Secretariat also made strides to recruit and retain ATIP staff who have the required competencies. Progress was achieved by developing organizational models, work descriptions and similar products for departments and agencies. The Secretariat is planning to undertake collective staffing initiatives on behalf of the ATIP and IM communities of practice in the coming year.

Important progress was made to support management excellence in federal grants and contributions (Gs and Cs) programs. Departments and agencies are transforming the management of their Gs and Cs programs through the application of risk-based and recipient-focused approaches that maximize results for Canadians. The Secretariat took measures to ensure that the Government of Canada Action Plan to Reform the Administration of Grant and Contribution Programs is implemented. The Secretariat's Centre of Expertise on Grants and Contributions worked with 23 departments and agencies representing 85 per cent of Gs and Cs spending. Twenty-one of these organizations have developed departmental action plans to reform their management approach to these programs. In addition, six pilot projects were undertaken to test innovative, interdepartmental delivery of Gs and Cs programs.

The Secretariat also worked with departments and agencies to improve the quality and content of Regulatory Impact Analysis Statements. The Secretariat's regulatory enabling function engaged organizations in over 100 projects to build capacity in the regulatory community of practice (e.g., through training in the areas of cost-benefit analysis, performance measurement and evaluation). As a result, a high percentage of medium- and high-impact regulatory proposals in 2010–11 included information on consultations, costs and benefits, and regulatory cooperation and coordination. A high percentage of high-impact proposals also addressed requirements for performance measurement and evaluation. Many proposals included specific elements aimed at limiting or reducing regulatory burden.

Lessons Learned

In response to a 2004 Capital Asset Review, the Secretariat conducted a pilot project with four federal organizations on the management of the federal government's capital assets. Its objectives were to improve the effectiveness of capital spending, improve the use of accrual accounting and transition to a more strategic and longer-term investment approach consistent with the nature of each asset.

An internal, summative evaluation of the Pilot Project for Non-Lapsing Capital Appropriations for Capital Asset Management was completed. The evaluation concluded the pilot project was able to demonstrate that non-lapsing appropriations led to better decision making on capital assets, budgets and associated resources. This was attributed to the timing in identifying carry-forward, the predictability of the availability of funds and the flexibility in adjusting project schedules and activities. In parallel with the evaluation of the pilot project, a new Capital Budget Carry Forward regime was developed that adopted the increased predictability and flexibility in capital budgeting as core tenets, fully responding to the key recommendations of the evaluation. This new carry-forward regime similarly responded to the evaluation's recommendations for a better reporting framework by closely following the Operating Budget Carry Forward, a well-established mechanism with which organizations and parliamentarians are familiar.

Program Activity 2: People Management

Program Activity Descriptions

The People Management Program Activity (PA) supports efforts across the federal public service to achieve strong leadership and a well managed workforce and workplace. These elements provide the foundation that drives employee engagement and a culture of excellence, leading to high quality policies, programs and services and a sustained and productive public service. In certain instances this program activity includes efforts that extend beyond the core public administration to separate employers and Crown corporations. This program activity undertakes direction-setting activities that include: developing and implementing people management related frameworks and policies; setting and monitoring departmental people management performance expectations; conducting research and analysis regarding the state of people management; and supporting the effective management of the leadership cadre. The program activity also provides public service-wide leadership on managing compensation which it shares with the Expenditure Management program activity and includes: collective bargaining and associated labour relations, and establishing and maintaining the public service pension and benefits regime. The People Management program activity supports enabling infrastructure including the human resources functional community and the underlying business processes and systems, and is underpinned by legislation that includes: the Financial Administration Act; Public Service Employment Act; Public Service Labour Relations Act; Public Servants Disclosure Protection Act; Official Languages Act; and Employment Equity Act.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
57,056	63,453	64,923

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
454	504	50

For Program Activity 2, the increase of approximately $6 million between planned spending, total authorities and actual spending is related to the subsequent approval of funding to support the ongoing management of the classification program for the core public administration, litigation management, the employer's role in the management of pensions and benefits, and paylist requirements. Temporary internal reallocations also supported the workforce adjustment measures from the 2008 Strategic Review. These approved funding increases supported additional FTEs. Actual spending exceeded total authorities due to a settlement for a litigation action.

Expected Results	Performance Indicators	Targets	Performance Status
A core public administration characterized by a culture of excellence and highly engaged employees, based on strong leadership and a well-managed workforce and workplace.	Improvement in annual employee survey responses and administrative data in the areas of engagement and culture of excellence.	Year-over-year improvement in survey and administrative results.	Not available Annual survey was not conducted. Data will be available in 2011–12, using results of the 2011 Public Service Employee Survey.
Canada's Economic Action Plan—Increase opportunities for youth employment through federal public service student employee programs.	Number of student jobs created in the federal public service corresponding to the increased investment.	1,000 additional full-time students per year of the program (2009–10 and 2010–11) at a cost of $10 million per year.	Exceeded 1,111 student jobs created in 2010–11.

Performance Summary and Analysis of Program Activity

A key accomplishment in 2010–11 was the implementation of the Treasury Board People Management Policy Framework and accompanying review of the people management policy suite. This successfully clarified the roles and responsibilities of the Secretariat, deputy heads and other parties within the HR community in shaping people management. The Secretariat also launched a Public Service Management Dashboard that provides deputy heads with comprehensive data—including over 200 performance measures—to support their lead responsibility and accountability for monitoring people management performance. Results from the 2010–11 MAF indicate that of the 40 departments and agencies assessed, 20 per cent improved their people management performance this year and 72.5 per cent remained stable.

Through broad consultations with public service employees, Crown corporations, separate agencies and bargaining agents, the Secretariat also developed a new Values and Ethics Code for the Public Sector and the Policy on Conflict of Interest. The draft code was shared with departments and agencies this year to enable them to review their internal codes of conduct. Formal announcement and implementation of the new code is expected in 2011–12. The Secretariat also worked on developing the Leadership Development Framework to support talent management and succession planning for executives. The framework's implementation will continue into fiscal year 2011–12 and will be supported by a new electronic system for executive talent management.

Public service renewal also advanced this year through implementation of a new government-wide standard—the Common Human Resources Business Process. The process is designed to enable sharing of best practices in HR business and to increase efficiencies and consistency in HR across government. The Secretariat exceeded targets by securing 24 commitments to implement the process from departments and agencies representing 80 per cent of the core public administration. In a related effort, the Secretariat's work with four other departments to develop common HR tools through an online virtual space was recognized as an outstanding example of innovative horizontal collaboration and sharing of HR resources
(see the text box "HRaid Collaboration Initiative").

The Secretariat achieved a milestone this year in modernizing the administration of the Public Service Health Care Plan. A new administrative services contract for administering the plan was awarded in late summer. The Secretariat successfully completed full transition to this new plan in 2010–11 through a positive enrolment process to register plan members and their dependants. A new health benefit card was introduced that allows electronic claim processing at point-of-purchase, which has reduced up-front payments for plan members. Going forward, the plan's modern management foundation will allow better overall plan management through better provision of data, greater cost containment and the leveraging of industry best practices. Eighty-two per cent of public service employees have enrolled in the new electronic processing to date, and efforts will continue to ensure that all plan members enrol.

Major progress was also made in improving engagement with active and retired federal public service employees who are pension and benefit plan members. The Secretariat continued to address knowledge gaps by regularly adding information to the public service pension and benefits Web portal. In addition, the Annual Report on the Public Service Pension Plan was redesigned in 2010 and rewritten in plain language to better engage and inform plan members about their pension plan.

To assist departments and agencies in efficiently managing their operations within the financial parameters of Budget 2010, the Secretariat proactively worked with bargaining agents to renew collective agreements covering over 95,000 employees. This early engagement enabled greater financial certainty and cost predictability for departments and agencies this year. This process also resulted in discontinued retirement and resignation severance pay accumulation in line with the private sector.

To further support mitigating risks and help defend the Government of Canada's interests, the Secretariat established a litigation management unit for employment- and labour-related litigation. The unit is responsible for the coordination, oversight and management of the Secretariat's involvement in litigation.

A strategic plan for public service workforce classification was developed and is being implemented as part of the Occupational Group Structure review. This work includes examining options for how the classification function will support implementation of the Public Sector Equitable Compensation Act. An organizational readiness and review exercise was also completed with deputy heads to strengthen links between business mandates and occupational group structures and to determine how the Secretariat can support deputy heads in this process.

The Secretariat strengthened the governance of HR by establishing a new HR governance model that crystallizes deputy heads' direct authority for labour relations, classification grievances, human rights and staffing complaints. Departments and agencies now have clear authority to appear before the Public Service Labour Relations Board and the Public Service Staffing Tribunal without the Secretariat's representation. The Secretariat's role in recourse was clarified through a people management working group that identified criteria for the Secretariat's level of involvement in cases. Tool kits to help departments and agencies build capacity in this area were developed and shared on the internal GCForums website.

In the new HR governance structure, departmental and agency Labour Management Consultation Committees (LMCCs) are an important forum for ensuring that deputy heads and bargaining agents work collaboratively to resolve workplace issues. The Secretariat and bargaining agents co-developed a new self-assessment tool and resource kit that will assist organizations to increase the effectiveness of their LMCCs. The National Joint Council, comprised of both employer and bargaining agent representatives, successfully worked together to revise the Occupational Health and Safety Directive, the Work Force Adjustment Directive and the Commuting Assistance Directive, which have all been implemented across the public service.

A governance review of the three National Employment Equity Councils was also completed in 2010–11. As a result, a new governance model based on a Champions and Chairs Committee structure will be implemented in 2011–12 for each of the employment equity groups.

Another important milestone for the Secretariat was the creation and launch of Managing for Wellness—Disability Management Handbook for Managers in the Federal Public Service. This resource provides direction on the proactive management of disabilities across the public service for all employee groups at all levels. Through an ongoing Disability Management Initiative involving key departments and agencies and employee representatives, the Secretariat will continue to provide resources and advice to deputy heads for more effective disability management in the federal public service.

Canada's Economic Action Plan (EAP)

In addition to its leadership role in supporting EAP implementation, the Secretariat was responsible for a two-year EAP initiative designed to increase opportunities for youth employment through existing public service student programs. Approximately 45 departments and agencies participated in this initiative, hiring some 2,200 additional students over the two years, which represented a federal government investment of $20 million. In 2010­–11, the second year of the initiative, the Secretariat successfully coordinated and distributed $10 million of the EAP investment, which enhanced full-time student employment in the federal public service by over 1,000 additional jobs. The Secretariat participated in the program, as well, by allocating approximately $48,000 in 2010–11 to hire additional students within the department.

Lessons Learned

A central role of the Secretariat is to manage the public service pension and benefits regime, which includes the Public Service Disability Insurance Plan. This plan provides its members with benefits to replace a portion of earnings lost as a result of an extended period of disability. This year, an internal audit of the management of the Public Service Disability Insurance Plan was conducted. The audit recognized that the management of this plan is complex and that while there are key elements in place to support activities related to the plan, there are opportunities for improvement. The Secretariat is taking action to update roles, responsibilities and authorities, and ensure that risk management, monitoring and reporting activities are systematic and formalized. In addition, the Secretariat is developing HR strategies to recruit and retain individuals with the appropriate skills to administer the plan.

Program Activity 3: Expentiture Management

Program Activity Descriptions

The Expenditure Management Program Activity (PA) helps ensure alignment of 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, this program activity undertakes the review, analysis, and challenge of plans and proposals involving departmental spending, expenditure forecasting and strategies, compensation management, and results-based management. This work, as well as the production of government Estimates documents and reporting to Parliament, is facilitated by the Expenditure Management Information System. This program activity forms part of the Expenditure Management System, the framework for the development and implementation of the Government's spending plans and priorities within the limits established by the Budget, which is implemented in coordination with the Department of Finance and the Privy Council Office. The primary piece of legislation underpinning the program's activities is the Financial Administration Act.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
30,426	33,392	30,167

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
241	261	20

For Program Activity 3, the increase of approximately $3 million between planned spending and total authorities is largely related to the subsequent approval of funding to administer the Government of Canada Public Service Readiness Plan and paylist requirements. This new approved funding supported increased FTE usage. Actual spending was less than total authorities due to delays in project funding and slippage in anticipated contract activity.

Note: Program sub-activity indicators and targets are presented in this table because the program activity indicators were undergoing review in 2010–11.
Expected Results	Performance Indicators	Targets	Performance Status
Sound analysis of financial and non-financial information to support decision making on allocating funds to achieve priorities and provide value for money (for program expenditures).	Percentage of direct program spending reviewed per year through the Strategic Review process. (Data source: Strategic Reviews)	100% (over a four-year cycle)	Mostly met[9] 98% of direct program spending reviewed.
	Main Estimates and Supplementary Estimates tabled in accordance with the times set out in the parliamentary calendar. (Data source: Hansard)	As required	Met all

Performance Summary and Analysis of Program Activity

This year concluded the four-year Strategic Review cycle of federal organizations including departments, agencies and Crown corporations that receive appropriations (i.e., public money) from Parliament and are required to undertake a Strategic Review of their direct program spending. Sixty-seven federal organizations accounting for 98 per cent of direct program spending were subject to a Strategic Review over the four-year cycle, which resulted in identifying approximately $2.8 billion in annual ongoing savings by 2013–14.

In 2010–11, the Secretariat successfully reviewed 13 organizations and $35 billion in direct program spending. It played an enabling role in supporting departments and agencies in preparing their Strategic Review assessments and in presenting their information to the Treasury Board. This work resulted in the reallocation of $1.6 billion to higher government priorities. The Main and Supplementary Estimates were tabled in accordance with the supply cycle; however, Supplementary Estimates C and the Interim Supply Bill for 2011–12 had not yet received royal assent when Parliament dissolved on March 26, 2011. The Secretariat, therefore, led an exercise to address year-end expenditure requirements and prepare for the use of Governor General Special Warrants effective April 1, 2011.

Significant advancement of this program activity was aided by key expenditure management activities throughout the year. The Secretariat strengthened results-based expenditure management across government by continuing to implement the Policy on Evaluation. Advice and guidance materials were provided to departments and agencies to advance the quality and use of evaluation information in decision making. For example, these include A Guide to Developing Performance Measurement Strategies, guidance on the Departmental Evaluation Committee and a workshop to share best practices for evaluating low-risk programs and departmental reporting on performance measurement. Efforts also included drafting the Guide to Developing a Departmental Evaluation Plan and the Competency Profile for Federal Public Service Evaluation Professionals. These products are expected to be released in 2011–12.

The Secretariat also assisted departments and agencies by monitoring the implementation of the 2010 Budget operating budget freeze. Guidelines on implementing budget measures were sent to departments, agencies and Crown corporations, and deputy heads were regularly invited to discuss issues related to the operating budget freeze and share best practices. Moreover, in compliance with the budget announcement, organizations' operating budgets were adjusted to account for funding that had already been provided to compensate for the salary increases taking effect during the freeze period, but approved before the budget announcement.

A number of outreach activities were offered this year to enable departments and agencies to continue implementing the Policy on Management, Resources and Results Structures (MRRS) and improving the quality and use of their performance information. As a result of more than 100 meetings and presentations as well as instruction through the Canada School of Public Service, the percentage of PAAs rated "acceptable" or higher rose from 85 per cent to 92.5 per cent. It is clear from the Secretariat's internal assessments of Performance Measurement Frameworks that federal organizations are continuously improving their measurement regimes. This suggests that there is increased ability government-wide to identify and monitor performance indicators and report on how resources are achieving results.

Important progress was also made on improving departmental planning and performance reports to Parliament, including reporting on the EAP. The Secretariat provided a suite of guidance tools for developing Departmental Performance Reports (DPRs) and Reports on Plans and Priorities (RPPs), including a good practices handbook on performance reporting. These efforts contributed to this year's MAF rating of 97 per cent of departments and agencies as "acceptable" or higher in the quality of their performance reporting. In fact, average scores for performance reporting have been steadily increasing from 74 per cent in 2008–09 to 81.5 per cent in 2009–10 and 83 per cent in 2010–11. In addition, the Secretariat completed 12 rounds of EAP monthly financial reporting throughout the 2010–11 fiscal year for over 40 departments, agencies and Crown corporations to support the preparation of the government's reports to Canadians on the EAP.

The Secretariat also provided research and analysis on executive-level total compensation to the federal government's Advisory Committee on Senior Level Retention and Compensation. Compensation was aligned with the principles of the Policy Framework for the Management of Compensation while complying with the Expenditure Restraint Act. In addition, several analyses of recruitment, retention and job groups were completed to assist the drafting of regulations for the Public Sector Equitable Compensation Act.

Lessons Learned

Since 2007, the Secretariat has reviewed organizations' spending on a cyclical basis to identify the lowest priority and the lowest performing programs to free up at least 5 per cent of direct program funding for higher government priorities. Over the four-year cycle, the Secretariat implemented numerous improvements to the process, such as improved guidance for review organizations, a more tailored approach to the reviews for organizations of different sizes and complexity, a streamlined reporting structure and clarifications on sunset funding. This research and analysis, coupled with the Secretariat's experience in supporting the Strategic Reviews, position the department well to coordinate the development of the government-wide Strategic and Operating Review for 2011–12.^[10]

In response to the recommendations of the House of Commons Standing Committee on Public Accounts, the Secretariat in consultation with departments and agencies provided a standardized template and table of contents for the 2010–11 DPR. These modifications are expected to enhance the comparability and usability of reporting documents for parliamentarians and other readers. The Canada's Performance report will also be enhanced following government-wide consultations and feedback.

Based on the positive impact of the Good Practices Handbook on Performance Reporting this year, the Secretariat is now working with departments and agencies to share good practices using MRRS performance measurement information through a Web 2.0 interactive environment. Internally, the Secretariat is strengthening the use of performance and evaluation information in expenditure decisions by implementing the use of a new template to ensure that new spending in Memoranda to Cabinet is linked to the results of existing spending. These efforts ensure that Treasury Board submissions clearly outline the impact of proposals on existing departmental program activities.

Program Activity 4: Financial Management

Program Activity Descriptions

The Financial Management Program Activity (PA) promotes good financial management practices across government to ensure financial activities are carried out effectively and efficiently. Working with all federal organizations, the Secretariat delivers on this role by:

• Developing financial management, accounting, transfer payment and internal audit policies, directives and standards;
• Assisting departments by providing leadership, policy advice and guidance; setting performance expectations and monitoring performance;
• Capacity building and community development within the functional communities;
• Planning horizontal audits and conducting audits of small departments and agencies;
• Providing financial oversight and reporting; and
• Advising central agencies and departments on financial authority issues associated with the Financial Administration Act and Appropriation Acts, the primary pieces of legislation underpinning the Financial Management program activity.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
28,247	33,789	29,201

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
222	168	-54

For Program Activity 4, the increase of approximately $5 million between planned spending and total authorities is related to the subsequent approval of funding to improve financial systems and to support financial decision making in the Government of Canada and funding for paylist requirements. Actual spending was below total authorities due to slippage in anticipated contract activity, project delays and internal reallocations to address emerging priorities within the Secretariat. These last two events contributed to the underutilization of FTEs.

Expected Results	Performance Indicators	Targets	Performance Status
Effective financial management function in the Government of Canada.	Improving content and timeliness of public financial reporting. (Data source: Public Accounts)	Clean audit opinion (annually).	Met all

Performance Summary and Analysis of Program Activity

In 2010–11, the Secretariat brought into effect the new Policy on Financial Resource Management, Information and Reporting and the Policy Framework for Financial Management. The Secretariat also continued its progress in enabling departmental implementation of the new financial management policies, with particular focus on the Policy on Internal Control and its phased implementation. Under this policy, which came into effect in April 2009, well-managed internal controls over financial reporting are seen to be foundational for effective and strengthened financial management across government. In 2010, the first public reports were produced demonstrating progress in assessing the effectiveness of these controls in the first group of departments and agencies to implement this policy. Over the following two years, the remaining departments and agencies will produce their own public reports on the results of their assessments and related action plans. The focus on internal controls has meant that additional capacity was needed across departments and agencies to implement the policy. To address this, the Secretariat continues to support the exchange of best practices and the development of tools, guidelines and communications products for the financial management community.

Following from the 2009 and 2010 budget caps, the Secretariat also developed and implemented a new Directive on the Management of Expenditures on Travel, Hospitality and Conferences, which came into effect on January 1, 2011. This directive emphasizes the importance of managing these activities in a way that demonstrates value for money and uses the most economical options to minimize costs, wherever possible. It also strengthens accountabilities by introducing a new reporting regime to annually disclose departmental expenditures in these areas. As part of the implementation of the directive, the Secretariat provided policy interpretation assistance to departments and agencies, and developed a reporting template and guidance to assist organizations with the first wave of departmental reports in the fall of 2011.

The implementation of the Policy on Internal Audit has shown that a phased-in approach to achieve compliance with policy requirements was effective. MAF assessments have demonstrated consistent improvements in departments and agencies' internal audit governance structures and the health of the internal audit function. These functions, including departmental audit committees, have reached a stage of maturity across government whereby they are contributing to improvements in departmental governance, risk management and control processes. In addition, there is greater consistency and quality in internal audit practices government-wide. The Office of the Auditor General of Canada has publicly stated that it can increasingly rely on the internal audit work undertaken by departments, agencies and the Secretariat. Further, the roles and responsibilities of the Small Departments and Agencies Audit Committee have been streamlined, and following on a successful pilot, core control audits are now being implemented across all small departments and agencies. The Secretariat is also now able to use information (i.e., objectives, findings and recommendations) from completed reports on internal audit engagement to better ascertain government-wide risks and trends.

An evaluation of the Policy on Internal Audit, completed in 2011, concluded that implementation has largely been positive to date. Real progress has been made in developing and strengthening the function across government. Senior managers see that internal audit provides advice which is integral to good management and that audits increasingly contribute to decision-making processes in departments and agencies. Notable examples include improved departmental risk management frameworks, strengthened accountability frameworks to support financial management and reporting, and improved governance, risk management practices and controls over contracting, procurement and the stewardship of assets.

Lessons Learned

The 2009 Chief Financial Officer (CFO) Environmental Scan identified a number of priority areas specifically related to financial management. In particular, CFOs voiced a desire to see better use of existing enterprise financial management systems for resource planning, as well as improvements to supporting processes and data. Inefficiencies in these areas, they indicated, are leading to augmented operational costs and challenges in resource capacity. In response to these concerns, the Secretariat has implemented three cornerstone initiatives designed to help departments and agencies standardize financial management processes, data and system configuration. The intent is to establish enterprise-wide common practices in all key areas. The results will provide better enterprise financial management through enhanced financial system practices, improved knowledge management and reduced complexity.

Program Activity 5: Government-Wide Funds and Public Service Employer Payments

Program Activity Descriptions

The Government-Wide Funds and Public Service Employer Payments Program Activity (PA) accounts for funds that are held centrally to supplement other appropriations, from which payments and receipts are made on behalf of other federal organizations. These funds supplement the standard appropriations process and meet certain responsibilities of the Secretariat as the employer of the federal public service. The administration of these funds falls under the Expenditure Management and People Management program activities, but their financial resources are shown separately in the Program Activity Architecture (PAA) for visibility and reporting purposes.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
2,223,814	2,770,122	1,968,478

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
–	–	–

Program Activity 5 involves the Secretariat’s administration of centrally managed government-wide funds on behalf of other departments and agencies. Of these funds, $2 billion relates to public service employer payments. Variances between planned, total and actual spending are not a reflection of the Secretariat’s performance, and performance analysis is not required.

Note: The human resources associated with this program activity are included in others; however, the financial resources are shown separately in the PAA for visibility and reporting purposes.
Expected Results	Performance Indicators	Targets	Performance Status
Payments and receipts, held centrally by the Secretariat, are made on behalf of other federal government departments and agencies in an administratively sound and efficient manner.	Payments are made as appropriate and on time.	Payments made as required (end of fiscal year 2010–11).	Met all

Lessons Learned

The Secretariat has assessed financial processes and internal controls relating to employer payments and receipts, and has identified opportunities for improvement. As part of its response to these opportunities, the Secretariat began working with its stakeholders early in 2011 to refine its internal processes for preparing projections of employer payments related to group insurance and benefit programs. It will continue this process throughout the year.

Program Activity 6: Internal Services

Program Activity Descriptions

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 to those provided specifically to a program.

2010-11 Financial Resources ($ thousands)

Planned Spending	Total Authorities	Actual Spending
90,120	96,760	95,829

2010-11 Human Resources (FTEs)

Planned	Actual	Difference
716	740	24

For Program Activity 6, the increase of approximately $7 million between planned spending and total authorities can be attributed to the subsequent approval of funding for litigation support, data centre repairs, cyber threat remediation and paylist requirements. Actual spending was below total authorities due to delays in litigation activities. These funds also supported more actual FTEs due to increased staffing requirements in the areas of human resources, information management and information technology, accommodation and contract management.

Although expected results are not required for internal services under the Policy on Management, Resources and Results Structures, the Secretariat identified and monitored key initiatives that support the Internal Services program activity to ensure that resource management, governance and management support, and asset management services are effectively aligned to priorities and program activities.

Performance Indicators	Performance Status
Enhance integrated business planning by improving linkages between operational activities, financial and human resource requirements, and supporting functions such as IM and IT activities.	Met all
To support enhanced financial controls, the Secretariat is one of the first departments to implement the new Policy on Internal Control. Furthermore, the Secretariat is introducing annual controls assessments and action plans, and will continue to work to sustain a controls-based audit.[11]	Met all
Continue to improve HR operations by: implementing common HR business processes; expanding the use of shared services and systems; providing training and support to employees in adapting to their role as "enablers;" and fully implementing changes to the Office of the Chief Human Resources Officer.	Met all
Finalize the IM/IT plan for the next three years, which will incorporate changes related to Treasury Board policies and directives, data centre consolidation, and updates to key applications.	Met all
Periodically test the readiness of the newly developed Business Continuity Plan (BCP) to ensure that the Secretariat is able to support government-critical services despite business disruptions. The new BCP will enable the Secretariat to withstand hazards to its business activities, such as pandemics, utility failures, or infrastructure outages.	Mostly Met

Performance Summary and Analysis of Program Activity

In 2010–11, the Secretariat enhanced its integrated business planning process by introducing a new three-year planning horizon that is more comprehensive and facilitates better forecasting of operational activities. This transition was supported by an integrated guide and information sessions on how to improve links between financial and HR requirements, IM and IT, and other internal services to achieve results. Also, regular planning meetings and feedback exercises were held to support the new three-year approach. As a result, internal services are better positioned to plan for the Secretariat's resource requirements, and greater departmental awareness exists about the importance of planning for areas such as integrated risk management and performance measurement. Significant efforts were made to maximize the Secretariat's planned and actual spending through in-year reallocation. A robust quarterly expenditure reporting process, coupled with earlier forecasting and analysis, led to more effective spending of allotted funding in the Secretariat's Vote 1 appropriation.

The Secretariat completed implementation of the internal control improvements that had been recommended by an external review of its departmental business processes related to departmental operating expenditures (Vote 1). As a result, the Secretariat is now ready to sustain a controls-based audit related to these processes. As the manager of government-wide funds and public sector employer payments, the Secretariat made significant progress on further documenting the detailed processes and internal controls around several large employee benefit plans. Reviews were initiated on the business processes around the Public Service Health Care Plan, the Public Service Disability Insurance Plan and the Public Service Dental Care Plan. The documentation and assessment of these plans will be completed in fiscal year 2012–13. The Secretariat also made significant progress in developing a risk-based internal control framework and enhanced ongoing monitoring activity of internal controls.

In addition, the Secretariat expanded its internal evaluation unit that supports the Secretariat in meeting the requirements of the Policy on Evaluation, which took effect in April 2009. By conducting internal evaluations, senior management is provided with information on the relevance and performance of the Secretariat's programs, which assists in decision making.

Important work was done this year to improve internal HR operations. The Secretariat took action on capacity issues by implementing a three-year HR recruitment and staffing strategy, as well as an integrated HR plan. These plans will help the Secretariat hire and develop people with the right mix of skills, knowledge and competencies to deliver its unique mandate. The Secretariat's implementation of the Common Human Resources Business Process has also been elevating the effectiveness and efficiency of its internal HR processes.

The Secretariat also improved HR operations by implementing a standardized orientation kit for all new employees and introduced resources for courses in areas such as conflict resolution and in developing soft skills to help Secretariat employees become better enablers. The Secretariat also strengthened its competency-based career development programs for several job classifications. The Secretariat's MAF assessment noted that it is demonstrating excellence in people management in the areas of official languages and employment equity.

During 2010–11, the Secretariat finalized a three-year strategy that identifies the key integration points for IM and IT in the Secretariat's work, which will ensure priority planning of business objectives enabled by IM and IT. This year, business needs were identified and validated through the Secretariat's governance structure. Future IM and IT projects were prioritized, and the implementation of the strategy, including governance and reporting, will continue in 2011–12.

In response to the risk identified in the Corporate Risk Profile relating to emergency preparedness, the Secretariat made significant progress in its emergency management programs. A departmental Business Continuity Plan was approved and posted for employees on the Secretariat's information site; testing of the plan will begin in 2011–12. In addition, sectors concentrated on finalizing specific sector business continuity plans. Processes were initiated to improve communication among all Secretariat satellite offices, and work began on the development of a Strategic Emergency Management Plan. Each of these elements will improve the Secretariat's ability to meet critical business requirements when responding to emergency situations in the future.

Lessons Learned

One of the major challenges faced by internal services during the fiscal year was a significant cyber attack on the departmental network. The unauthorized access to the Secretariat's IT system highlighted the need for an ongoing, robust and integrated security strategy for the department. The increase in cyber attack activities in general, and more persistent attacks on governments in particular, is expected to continue in the future. The Secretariat will significantly reduce the impact of such attacks by implementing a layered defence of technology-based systems along with strong internal policies and procedures.

Summary of Canada's Economic Action Plan Initiative

The Secretariat was directly responsible for one EAP initiative—coordinating the distribution of $20 million over the two fiscal years of the EAP, which was designed to enhance student employment across the public service. For more details, see Canada's Economic Action Plan (EAP) in Section II under Program Activity II: People Management.

• Previous Page
• Table of Contents
• Next Page