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Government of Canada

– Performance

Reporting

10th Annual OECD Public Sector Accruals Symposium

March 2010

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Presentation outline

• Canadian context

• Reporting Cycle

• History

• Building blocks:

– Management, Resources and Reporting Structure

– Evaluation

– Management Accountability Framework

– Departmental accrual budgeting

• Performance Reporting

– Departmental performance reporting

– Canada’s Performance

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The Canadian context

• Canada is a big country with relatively few people, a decentralized government with services delivered across its territory and internationally – Highly decentralized federation: 10 provinces, 3 territories

– Hundreds of federal-provincial agreements and federal programming, weighted towards transfer payments

• The federal government comprises over 90 departments & agencies, 46 Crown corporations: – Over 300,000 core public servants at over 1,600 points of service

– Over 2500 programs and 350 million transactions per year

• Finances: – 2008-09 expenses of $238.8B

– 2009-10 planned expenditures of $236.1B • 14% Public debt

• 44% Major transfer payments

• 42% Direct program spending (operating, grants, contributions, other)

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The Parliamentary reporting cycle

APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC JAN FEB MAR

Fiscal Year Two

Fiscal Year Three

Fiscal Year One

Economic and Fiscal Update

Budget

Main Estimates

RPPs

Interim Supply

(3/12) - covers April to June - tabled in March Full Supply (9/12)

- July to March

Supplementary Estimates A

Supplementary Estimates B

Public Accounts

DPRs

Canada’s Performance

Planning Year

Implementing Year

Reporting Year

RPP Overview

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Improving reporting to Parliament:

Initial steps

1996 - 2000 – Improved Reporting to Parliament Project, Phase I and II • Main Estimates Part IIIs split into RPPs and DPRs

• Parliamentarians request more horizontal and government-wide reporting

2001 – Canada’s Performance first tabled in Parliament • Aligns government programs to broader societal outcomes

2003 – Renewed Interest: • Government Operations and Estimates Committee Report:

“Meaningful Scrutiny: Practical Improvements to the Estimates Process”

• Government commitments to improve reporting to Parliament

2005 – Parliamentary Reporting and Accountability Division (PRAD) created in Treasury Board Secretariat. Mandate to:

• Provide guidance to departments on reporting

• Share good reporting practices

• Monitor quality of reporting

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Building blocks to better reporting

• Policy on Management, Resources and

Results Structures

• Revised Policy on Evaluation

• Management Accountability Framework

• Departmental Accrual Budgeting Project

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Policy on Management, Resources and Reporting

Structures (MRRS)

• Provides a common, government-wide approach to the comprehensive collection, analysis, management and reporting of financial and non-financial performance information

• Provides a detailed whole-of-government understanding of the ongoing program base

– Provides detailed information on all government programs, including full program cost and program performance information

• Main Elements:

– Strategic Outcomes (SO): Measurable long term enduring benefits to Canadians

– Program Activity Architecture (PAA): Inventory of programs linked to Strategic Outcomes

• Including a supporting performance measurement framework (PMF) setting out the expected results to be achieved and the specific outputs to be produced by a program

– Governance Structure: The decision-making mechanisms, responsibilities and accountabilities within a department

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Policy requirements for

Strategic Outcomes incl:

Performance Measures

Policy requirements

for each program

activity element

include:

Program title &

description

Expected results

Performance

measures

Planned & actual

spending

Target & actual

results

Governance

Strategic Outcome*

Program Activities*

Sub-Activity Level**

Sub-Sub Activity Level**

Lowest Level

programs

Accountability levels

to Parliament

(Estimates & Public

Accounts)

*require TB approval,

incl. major & minor

changes

Departmental

PAA: reflect the

inventory of all

the programs of

a department

depicted in their

logical

relationship to

each other and

to the SO(s) to

which they

contribute

**require TBS

sign-off

Program Activity Architecture (PAA)

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Department of Heritage: 2009-10 PAA

SO1

Canadian cultural content and artistic

expressions are created and accessible at

home and abroad

PA

PSA

SO2

Canadians have a sense of their

Canadian Identity

SO3

Canadians participate and

excel in sport SO

1. Arts

1.4 National Arts Training

Contribution Program

1.1 Arts Presentation

Canada

1.5 Canadian Arts and

Heritage Sustainability

Program

2. Cultural

Industries

2.3 Canadian Feature Film

Policy

2.1 Broadcasting Policy

2.7 Book Publishing Industry

Development Program

2.6 Canada Music Fund

2.10 Canadian Culture Online

2.12 Copyright Policy

2.13 Cultural Sector Investment

Review

2.14 Trade Routes Program

2.15 TV5

3. Heritage

3.1 Museums Assistance

Program

3.4 Canadian

Conservation Institute

3.2 Canada Traveling

Exhibition

Indemnification

Program

3.5 Movable Cultural

Property Program

3.3 Canadian Heritage

Information Network

4. Promotion of

and Attachment

to Canada

4.1 Celebration and

Commemoration

Program

4.4 Canadian Studies

Program

5.6 Historical Recognition

Program

5. Engagement

and Inclusion

5.1 Multiculturalism Program

5.5 Aboriginal Peoples’

Program

5.4 Building Communities

through Arts & Heritage

6.1 Development of

Official-Languages

Communities

Program

6.3 Official Languages

Coordination

program

6. Official

Languages 7. Sport

7.2 Sport Support

Program

7.1 (Sport) Hosting

Program

7.3 Athlete Assistance

Program

7.4 2010 Federal

Secretariat

8. Internal

Services (details being developed

by central agencies) 2.16 UNESCO Convention on the

Protection and Promotion of the

Diversity of Cultural Expressions

1.3 Fathers of

Confederation

Buildings Trust

1.2 Cultural Spaces

Canada

2.11 Canada New Media Fund

2.9 Publication Assistance Program

2.8 Canada Magazine Fund

2.5 Film or Video Production

Tax Credits

2.4 National Training Program

in Film & Video Sector

2.2 Canadian Television Fund

6.2 Enhancement of

Official Languages

Program

5.2 Action Plan Against

Racism

5.3 Human Rights Program

4.2 State Ceremonial and

Protocol

4.3 International

Expositions

4.5 Exchanges Canada

Program

4.6 Katimavik Program

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Performance Measurement Framework (PMF)

• An objective basis for collecting information related to the intended results of a department and its programs.

• Sets out the Strategic Outcomes of an organization and the expected results to be achieved and the specific outputs to be produced by its programs

• It identifies the following:

– performance indicators to be used to assess an organization’s progress towards its Strategic Outcomes, expected results and outputs;

– data sources from which this information is to be collected;

– frequency at which this information will be collected;

– target or level of success the program plans to achieve within a specified time period; and

– actual data collected for each indicator.

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Performance Measurement Framework (PMF)

cont’d

• Expected results:

– The outcome(s) that a program is designed to achieve

– May vary by timeframe, scope and reach of program

• Outputs:

– The direct products or services stemming from the activities of a program

– Usually within the control of the organization

– Provide evidence that an activity has occurred

Performance Indicators:

– Qualitative or quantitative measures that tell whether an outcome is being achieved or an output is being produced

– For each organizational Strategic Outcome and for each expected result and output identified for a program in an organization's PAA, a related performance indicator must also be identified

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Revised Policy on Evaluation

• Increased focus on value for money (i.e.

relevance and program performance)

• Comprehensive coverage of program spending through a regular and systematic cycle

• Improved credibility through agreed upon standards, flexible tools for evaluation and neutrality of the evaluation function

• Improved quality by having the right capacities, people and systems

• Continuous learning and improvement - stronger Treasury Board Secretariat capacity to lead the function, monitor capacity and use evaluation information

Policy Objective:

To create a comprehensive and reliable base of

evaluation evidence that is used to support policy and

program improvement, expenditure management, Cabinet decision making,

and public reporting

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Management Accountability Framework

• A vision for good management. – It defines the conditions that need to be in place to ensure

government is well-managed and to promote management excellence.

• A process. – This process includes annual MAF assessments of most

departments and agencies, engagement between deputy heads and Treasury Board Secretariat where warranted, joint agreement on specific management improvement action plans and ultimately public reporting on the state of management.

• An analytical tool. – The government uses MAF assessments to identify

management strengths and weaknesses in individual departments and agencies and ultimately on a government-wide basis.

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MAF

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Departmental accrual budgeting

• Staged approach owing to costs, internal capacity, and complexity

• Evaluation in 2012-13

Departmental Accrual Budgeting

• Condensed statements to be reported in RPP

• Comparison of forecast to actual in Financial statements in DPR

Accrual Appropriations

• No changes to Appropriation Acts and Estimates at this time

• Evaluation in four years to determine cost-benefit of conversion from cash to accrual

Government

Plan Budget

Government

Actuals

Public

Accounts

Volume 1

Departmental

Actuals

Financial

Statements

(DPR)

Co

mp

are

Departmental

Plan Future-oriented

Financial

Statements

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The Government of Canada Planning and Performance Gateway

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Layered approach to reporting

Safe and Secure

Canada

Expected and actual results

Expected and actual resources

Indicators and targets

Whole-of-

Government Layer

Aggregate information on

Spending and on Plans and

Performance in:

• Whole-of-Government

Overview for RPPs

• Canada’s Performance

Comprehensive, Layered,

Continuous:

User is able to continuously

drill down from the Whole of

Government level to detailed

financial and non-financial

information at the lowest

level of the PAA

Economic Affairs

Departmental Layer

High-level departmental

information on:

• Spending, Planning and

Performance Indicators

• in concise RPPs and DPRs

(30 pages or less)

Electronic Layer

Detailed information on

specific programs and policies

Links to databases and useful

policy documents

Social Affairs International Affairs Government Affairs Spending Areas (4)

Government of Canada

Outcome areas (13) Vibrant Canadian

Culture and

Heritage

Healthy

Canadians

Diverse Society

Citizenship and Immigration RPP

Maximum

Contribution to

the Economy…

Successful

Integration of

Newcomers…

Reflection of

Canadian

Values…

Integration

Program

Citizenship

Program

Strategic Outcomes

Program Activities

SA

SSA

• Supplementary information (i.e.

sustainable development

strategies, audits and evaluations)

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Departmental Performance Reports

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Report contents

• Section I: Departmental Overview – Raison d'être

Responsibilities Strategic outcome and program activity architecture Performance summary Progress on departmental priorities Contribution of priorities to strategic outcome Operating environment and risk analysis Expenditure profile

• Section II: Performance Analysis by Program Activity – Program Activity 1: Management Policy Development and Oversight

Program Activity 2: Expenditure Management and Financial Oversight Program Activity 3: Government-wide Funds and Public Service Employer Payments Program Activity 4: Internal Services

• Section III: Supplementary Information – Financial highlights

Trend analysis Other items of interest List of supplementary information tables

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Whole of Government Reporting

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Canada’s Performance

• Companion to DPRs

• Within each spending area:

– Planned and actual spending by outcome area

– For each outcome:

• Narrative on expected outcome

• List of departments with linked Strategic Outcomes

• Narrative on major events, achievements of departments (pulled

from DPRs)

• Performance context

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Performance Context

• Indicator

• Overview

• Trend

– Improving or declining performance, or stable/unmeasureable

Example:

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Outcome areas and indicators

• I. Economic Affairs – Income security and employment for Canadians

• Unemployment and low-income incidence

– Strong economic growth • Real GDP, Cost-competitiveness, Sustainability fish stock, Green economic practices

– An innovative and knowledge-based economy • Innovation, Educational attainment, Adult literacy

– A clean and healthy environment • Air quality, Freshwater quality, Biodiversity, GHG emissions

– A fair and secure marketplace • Barriers to entrepreneurship

• II. Social Affairs – Healthy Canadians

• Life expectency, Perceived health, Physical activity, Wait times, Patient satisfaction

– A safe and secure Canada • Safety, Housing

– A diverse society that promotes linguistic duality and social inclusion • Attitudes towards diversity, towards linguistic duality, Volunteerism, Political participation

– A vibrant Canadian culture and heritage • Participation in cultural and heritage activities

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Outcome areas and indicators,

cont.

• III. International Affairs – A safe and secure world through international cooperation

• Armed conflicts

– Global poverty reduction through sustainable development

• Official development assistance as %age of Gross National Income

– A strong and mutually beneficial North American partnership

• Merchandise trade

– A prosperous Canada through global commerce

• Canada’s investment position

• IV. Government Affairs

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Annex: Links to Key Documents

• Guide to the Preparation of Part III of the Estimates (RPPs and DPRs):

– http://publiservice.tbs-sct.gc.ca/estsd-bddc/rpp/guide/guide00-eng.asp

• Reports on Plans and Priorities (RPPs): – http://www.tbs-sct.gc.ca/rpp/2009-2010/index-eng.asp

• Departmental Performance Reports (DPRs): – http://www.tbs-sct.gc.ca/dpr-rmr/2008-2009/index-eng.asp

• Planning and Performance Gateway: – www.tbs-sct.gc.ca/ppg-cpr

• Canada’s Performance – Annual Report to Parliament: – http://www.tbs-sct.gc.ca/reports-rapports/cp-rc/2008-2009/cp-rctb-eng.asp