Resource Allocation in Canada

Evaluation, Accountability and Control

Brian PaganExpenditure Operations and Estimates Treasury Board of Canada Secretariat

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Budgetary Main Estimates by Type of Payment ($220.6 B)

Departmental Operating Costs

Transfers to Persons

Transfers to Other levels of Government

Public Debt

Grants & Contributions

$27b

$90.1b

$51.6b

$45.3b

$33.6b

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Funding Instruments for R&D

• In 2007, the Government of Canada provided approximately $5.4 B in direct funding in support of R&D

• Performance based federal programs and granting councils

• Cooperation with universities and the private sector

• Centers of Excellence

• Public Foundations (e.g. $4 B Canada Foundation for Innovation)

• Problem-oriented research programs (e.g. Canadian Institute of

Health Research)

• In addition, Canada’s Scientific Research and Economic Development tax incentive provided over $4B in tax assistance for business investment in R&D

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Annual Strategic Periodic Reviews

Results-focused MCs and TB Submissions (integrated information on new

and existing spending)

Strategic Advice to Cabinet to Support Decision-Making for Results

Operational Efficiency and Effectiveness

Effective government-wide allocations

Aggregate Fiscal Discipline

Responsible and Effective Spending

EMS Renewal Outputs &

Inputs

EMS Renewal Outcomes

Strengthened Information Base to Support Departmental Management, Decision-Making and Reporting for Results

Expenditure performance management, oversight

and accountability

Financial management, control and oversight

Renewed Evaluation Function

Renewed Audit Function

MRRS/PAA(Program Activity

Architectures and related performance measurement

information)

Integrated Cabinet Budget Decision-Making

Managing and Decision-Making for Results:

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Building the Foundation - MRRS

The Management, Resources and Results Structure (MRRS) is the common, government-wide approach to the comprehensive collection, analysis, management and reporting of financial and non-financial performance information.

It provides a detailed whole-of-government understanding of the ongoing program base that is implemented, i.e.,

• An up-to-date inventory of all federal government programs – about 3,000

• How programs align to each other within an organization

• Funding and performance measures for each program

• How departments allocate and manage the resources under their control

Current status:• Performance measures for each program are expected to be available by

spring-fall 2008, at which point, departments are to use this information for decision-making

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Building the Foundation - Evaluation

Evaluation is central to the government’s agenda to focus on accountability, results and value for money.

Successful implementation of the renewed EMS, particularly Strategic Reviews, requires comprehensive, credible, timely information on the relevance and performance of government programs … and evaluation is a key source of such information

However, a comprehensive diagnostic of the current evaluation function found serious weaknesses in coverage, credibility, quality, timeliness and the capacity of evaluators

Objectives of evaluation policy renewal:• Improve the information base for Strategic Reviews through expanded

evaluation coverage and an increased focus on value for money (relevance and program performance)

• Comprehensive coverage of programs through a regular and systematic cycle as a normal part of doing business

• 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 in place• Continuous learning and improvement through a strengthened TBS capacity to

lead, monitor and use evaluation information

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Businesses

Farmersand Fishers

Other Not-For-Profit Organizations

Remainder

Provinces, Territoriesand Municipalities

Veterans

First Nations Communities

Other Aboriginal Recipients

Universities andResearch

Institutions

Foreign Governments and International Organizations

Grants and Contributions: ~$27B

$2.9B

$4.9B

$2.2B

$3.0B

$4.8B$1.8B

$3.0B

$1.0B

$1.5B

$1.9B

Reforming the Administration of Grants and Contributions

• Largest component of discretionary federal spending

• Used to further objectives in all areas of government activity – not to acquire gods or services

• Key link between federal government and its citizens – provides results that Canadians can see and touch

Grants and Contributions play a critical role in the realization of the Government’s strategic objectives

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An Action Plan for Improved Responsiveness and Accountability

The proposed government action plan will lead to changes…

From To

“One size fits all” reporting and oversight

Risk based monitoring and accountability leading to reduction in reporting burden

Multiple audits of same recipient Audits rationalized, risk based, deliberate and coordinated

Duplicative information requirements Streamlined and standardized reports, forms and applications

Focus on process and paperwork Focus on achieving results

Difficulty for recipient groups to collaborate with government

Recipients better able to serve clients and trust in government is restored

The intended changes address what recipients expect and need in order to best serve the needs of Canadians.

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Our Vision for Public ReportingCONTENT:

• Improvements to the Evaluation Function along with the implementation of the MRRS Policy will help ensure that we have credible performance information

• Assessments of reporting through the MAF process will help ensure that generally accepted reporting principles are followed; it is also a way of getting Senior Managers engaged in these reports

FORM:

• Strategic Outcomes and Program Activities will provide the consistent architecture for all reports

• “Layered” reporting will be a way of helping users to navigate through the vast quantity of information:

Whole of Government-level

Departmental-level

Electronic-level

A major challenge in moving forward on improving public reporting is the tension between Parliamentarians’ requirement for more information and the drive to

produce more concise and readable reports.

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The Government of Canada Planning and Performance Gateway Online Demonstration