Presentation to FMI

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Presentation to FMI November 28, 2006
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Budget 2006 The Expenditure Management System
The Government needs a new ongoing approach
to managing overall spending to ensure that all
government programs are effective and efficient,
are focused on results, provide value for
taxpayers money and are aligned with the
Governments priorities and responsibilities.
Budget 2006
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Economic and Fiscal Update (Nov. 23, 2006)
Reaffirmed Budget Commitment

• New Expenditure Management System to focus on
  good management and value for money.
• Departments will manage their programs to clearly
  defined results, and assess their performance
  against those results.
• TBS will oversee the quality of these assessments
  and ensure that departments address risk as well
  as cost-effectiveness.
• Cabinet will systematically review the funding
  and relevance of all program spending.
• Cabinet will undertake a rigorous examination of
  all new spending proposals, taking explicit
  account of the funding, performance and resource
  requirements of existing programs in related
  areas.

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Context for EMS Renewal Accountability for Tax
Dollars
Cabinet is responsible for effective management
of all 224 billion of spending
Accountable for delivering results and value for
money
Expenditure Management System allocates scarce
resources to the governments priorities
Canadians expect answers to basic questions about
our spending
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The Expenditure Management System
Spending Decisions
Supplementary Estimates
Main Estimates
Canadas Performance
Reports on Plans and Priorities
Policy/Program Consideration
Departmental Performance Reports
Public Accounts
Appropriation Bill
Reporting on Financial Non-financial Performance
Implementation
Priority Setting
Monitoring Review Evaluation Audit
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Managing for Results in Departments and Agencies

• Full Implementation of the Management Resources
  and Results Structure (MRRS) Policy
• Departments will be required to clearly define
  program costs and objectives

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Further Details on Results-Based Management in
Departments

• Program Activity Architectures (PAAs) for 118
  appropriated organizations were developed for the
  first time in 2004 for the 2005-06 fiscal year
• Small departments are not expected to drill down
  below the Sub Activity level
• There is too much variation in the level of
  effort and we need to accelerate the pace of
  implementation

51
Includes FIN DIAND JUST PSEPC
Includes FIN DIAND JUST PSEPC
46
Includes IND AGR DND CH NRCAN
CIC PWGSC EC TBS HC VAC HRSDC
18
23

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18
Incl DFO TC STC
2
Inc DFO TC STC
2
Note Percentages reflect the fraction of
organizations that are at this level.
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Implementing the Management Resources and Results
Structure (MRRS) Policy Five Steps

• Departments develop fully articulated structures
  for their PAAs
• Departments identify/define the Performance
  Measurement Framework for their entire PAA
• Departments create, capture and use MRRS
  information systematically
• TBS develops and rolls out a system to capture
  the standardized departmental data
• Embed MRRS information in all expenditure
  management processes
• TBS must be able to assess and rank program
  performance and make horizontal linkages among
  programs

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Managing for Results in Departments and Agencies

• Evaluation of Programs
• Broader suite of evaluation tools
• Departmental evaluation plans
• Introduce a Government of Canada Evaluation Plan
  that links departmental plans and horizontal
  reviews
• Build competencies, develop standards and supply
  of evaluators

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Decision Making for Results in Cabinet

• Cabinet needs more and better information on
  which to base its decisions

• All Programs need to be systematically reviewed
  on a periodic basis