Transcript Building blocks for adopting Performance Budgeting in Canada Bruce Stacey – Executive Director Results Based Management Treasury Board Secretariat, Canada.

Building blocks for adopting
Performance Budgeting in
Canada
Bruce Stacey – Executive Director
Results Based Management
Treasury Board Secretariat, Canada
Canada’s Expenditure Management System (EMS) Renewal
was geared towards ensuring management excellence and
fiscal credibility
•
In 2003, the first roll out of performance budgeting requirements to
departments in the form of – Program Structures, financial and non-financial
information
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In 2005, the MRRS Policy was formalized by Cabinet and an implementation
plan was developed
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In 2007, the Expenditure Management System Renewal was formally
articulated to build on the work done so far. The goals:
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Aggregate fiscal discipline (i.e. control of overall growth in spending)
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Effective allocation of all government resources to areas of highest relevance,
performance and priority
•
Efficient and effective program implementation
A new program evaluation policy will shortly be approved and will focus on
evaluation from a value for money perspective
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EMS renewal is supported by three key pillars
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All spending must be managed to results/outcomes that are
transparent to Canadians
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For new spending proposal : Up-Front Discipline to manage overall
spending growth. New proposals must:
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Have clear measures of success
Be formally assessed and evaluated systematically and regularly
Demonstrate value for money
Include clear measures of success
Provide solid information about how the proposal fits with existing spending
and results – i.e how do they fit into the program structure
Provide reallocation options for funding
For existing spending: Strategic Reviews assess all existing programs
and spending over a four-year cycle to ensure alignment with overall
priorities, as well as relevance, effectiveness, efficiency and economy
–
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Spending/programs must demonstrate measurable results in support of
priorities
Decision-making must rely on objective evidence-based information
Management, Resources and Results Structure
(MRRS) Policy: The foundation of the renewed
EMS
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Represents a common approach to the collection, management,
and reporting of performance information
– Provides detailed information on all government programs
– Establishes the same structure for both internal decision-making
and external accountability
– Links resources to results for each program - planned and
actual
– Has made program implementation excellence a much greater
focus of Senior Management
The Program Activity Architecture
Policy requirements for
Strategic Outcomes incl:
Performance Measures
Policy requirements
for each program
activity element
include:
Strategic Outcome*
Program Activities*
Program title &
description
Expected results
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
Sub-Activity Level**
Performance
measures
Planned & actual
expenditures
Target & actual
results
Governance
Accountability levels
to Parliament
(Estimates & Public
Accounts)
*require TB approval,
incl. major & minor
changes
Sub-Sub Activity Level**
Lowest Level
programs
**require TBS
sign-offl
MRRS enhances decision-making not only for central
agencies, but also for departments and
parliamentarians
DEPARTMENTS
More logical and
consistent basis
for interaction
Management Tool
Reflects full mapping of programs
Better alignment of resources & priorities
More evidence based reporting
Improve program performance
TBS
Informed decisions on
investment choices based
on priorities and
value for money
PARLIAMENT
MRRS
Policy Objective:
Budget
Plan
Finance
PCO
Common basis
for planning
and reporting
inside and
outside
Development of a common,
government-wide approach to the
collection, management, and reporting
of financial and non-financial
performance information - to provide
an integrated and modern
expenditures management framework
Reporting Tool
Stronger accountability
for spending and results
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MRRS Implementation: An incremental approach based on
lessons learned since first attempt in 2003
Implementation of MRRS consists of five steps:
1. Departments develop fully articulated structures for their Program Activity
Architectures (PAA)
(2006 )
2. Departments identify/define Performance Measurement Frameworks &
Governance Structures for their entire PAAs
(2007)
2. Departments create, capture and use MRRS information systematically
(2008 and onwards)
4. TBS develops and rolls out a system to capture the standardized
departmental performance information
( 2009 and onwards)
5. Embed MRRS information in all expenditure management processes
( 2009 and onwards)
Some progress has been made on the
information systems issue
•
In 2003, an attempt was made to build a system but under the tight
timelines available, the system was not built in a sustainable manner
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We have since developed a new integrated financial component of the
Expenditure Management Information System (EMIS)
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We are in the process of adding a results component to this
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Lessons learned are:
– Systems to deal with the entire end to end performance budgeting process are
not available
– Systems to deal with hierarchical program structures are not available or simple
to design
– It is important to spend a considerable amount of time upfront articulating roles
and responsibilities, business processes and requirements
End State: Integrating performance information
into the decision-making process
Responsible and Effective Spending
EMS
Renewal
Outcomes
Aggregate
Fiscal Discipline
Effective governmentwide allocations
Operational Efficiency
and Effectiveness
Integrated Cabinet Budget Decision-Making
EMS Renewal
Outputs & Inputs
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
MRRS/PAA
Renewed Evaluation Function
Expenditure performance
management, oversight
and accountability
(Program Activity Architectures
and related performance
measurement information)
Renewed Audit Function
Financial management,
control and oversight
Strengthened Information Base to Support Departmental Management, DecisionMaking and Reporting for Results