Expenditure Management System

Transcription

1 Expenditure Management System Financial Management Institute of Canada Ottawa, Ontario November 26, 2014 Brian Pagan Assistant Secretary Expenditure Management Sector Treasury Board of Canada

2 Table of Contents What is the Expenditure Management System? Recent Reforms Reviews of Policies Internal Services Performance Measurement Annex - Definition of Internal Services 2

3 Parliamentary Reporting and the Supply Cycle Beginning of fiscal year April 1 January to March 26 Tabling of Supplementary Estimates C (SEC) Budget presentation Tabling of Main Estimates April 1 to June 23 Tabling of Supplementary Estimates A (SEA) Approval of Main Estimates and SEA Appropriation bills Tabling of Departmental Reports on Plans and Priorities Approval of Interim Supply for Main Estimates and SEC Appropriation bills September to December 10 Tabling of Public Accounts Tabling of Supplementary Estimates B (SEB) Tabling of Departmental Performance Reports Economic and Fiscal Update Approval of SEB Appropriation bill Other key documents: -Quarterly Financial Reports -Monthly Fiscal Monitor -Annual Debt Management Strategy* and Debt Management Report* -Annual Tax Expenditure Report * Tabled in Parliament 3

4 The Renewed EMS: Recent Reforms Efforts targeted to address current challenges and Ministerial expectations: Inadequate information on costs, assumptions, alternatives when spending decisions are made System capacity to analyze and challenge costs is limited Opportunities for containing costs are not fully exploited Capacity building at TBS Costing deepdives and TB as a safety valve Enhanced challenge function Better information for decision making Leveraged opportunities to contain costs CFO attestation Costing tools, guidance and standards TBS input on Budget proposals Ongoing targeted reviews 4

5 Reviews of Policies Assessment of the two policies: evaluation of the Policy on Evaluation and a review of the Policy on MRRS Based on requirements of the Policy Suite Renewal Initiative and of the policies themselves. Global Findings: Both policies are, to varying degrees, achieving their stated objectives and well understood by stakeholders. A central driver is required to promote and support these functions across government (the policies are still required). One size does not fit all there are key differences between organizations / functions, reflecting their mandates, sizes and functions (e.g. operational or policy), and we should construct or implement policies in such a way that acknowledges and builds on differences. We need to better identify the purpose and use of information requested, and clearly differentiate between audiences. GCDOCS #

6 Internal Services Internal services incur costs in support of departmental programs and activities. The costs are normally incurred outside of program branches for the benefit of the department as a whole (Annex). Recent initiatives focus on developing historical and comparable information: draft standard internal service performance measures for 7 of the 10 IS categories; streamlined the presentation of internal services; Guide on Internal Services Expenditures: Recording, Reporting and Attributing; and Guide to Costing to ensure fundamental costing principles and concepts are consistently applied in decision making, performance comparison and resource management. 6

7 In Moving Forward: Key Messages on Performance Measurement Are we doing the right thing? Are we doing the thing right? Must clearly understand reason for measuring, how it links to other priorities, potential use and audience Why do you need the indicator? How will the data be collected? Are there targets? Comparators? How good is the measure (cost of introducing and maintain the indicator? Who is the audience public reports? Deputy Head? Departmental performance measurement framework? Program manager 7

8 Contacts Expenditure Management Sector (EMS) Office of the Comptroller General (OCG) 8

9 Annex Definition of Internal Services Revised structure effective April 1, 2015 Sub-programs Management and Oversight Communications Legal Human Resources Management Financial Management Information Management Information Technology Real Property Materiel Acquisition *Source: Treasury Board of Canada s Guide on Internal Services Expenditures: Recording, Reporting and Attributing 9

10 Program - Internal Services Link Program Outputs Program Direct Cost Program Direct Support Cost Program outputs costs = direct costs + all supporting costs (both in the program or in internal services) Cost should be linked to results Measurement regime Program effectiveness. Program efficiency. Internal Services effectiveness. Internal Services efficiency. Internal Services 10