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How Government Works

How Government Works. Presentation to the Financial Management Institute May 22, 2014. Doug Nevison Assistant Secretary, Privy Council Office. View from 30,000 Feet. GC administrative priorities Control the size and the cost of government operations Reform the way spending is managed

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How Government Works

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  1. How Government Works Presentation to the Financial Management InstituteMay 22, 2014 Doug NevisonAssistant Secretary, Privy Council Office

  2. View from 30,000 Feet • GC administrative priorities • Control the size and the cost of government operations • Reform the way spending is managed • Make government more efficient and responsive GC policy priorities • Economic: jobs, trade, balanced budget • Social: safe and secure families and communities • Other: Military, veterans, the North, international role

  3. Privy Council Office (PCO) • The Clerk of the Privy Council • Deputy Minister to the Prime Minister • Secretary to the Cabinet • Head of the Public Service of Canada • Business Transformation and Renewal Secretariat • Advise PM and Clerk on management policy • Support Prime Minister’s Advisory Committee • Support DM Board of Management and Renewal • Draft Annual Report to the PM on the Public Service • Liaison Secretariat for Macroeconomic Policy • Advise PM and Clerk on Budget issues • Provide advice on financial sector and tax policy proposals • Strategic advice and analysis on economic and financial issues 3

  4. Background How did this get started? What is the objective? Engagement process Who we engaged, how we engaged What we heard Priority areas, specific ideas Destination 2020 Key signature horizontal initiatives Next Steps Implementation, continued engagement Blueprint 2020

  5. Goal of EMS reform is to increase oversight Ongoing need to increase the rigour of financial decisions in a constrained fiscal environment Improved external and internal oversight to address current challenges and Ministerial expectations External Oversight: Estimates reform to be achieved through strengthening Parliamentary scrutiny of Estimates and supply Internal Oversight: Upfront discipline on new and existing spending to be strengthened through more rigorous costing and better information to inform decision-making Expenditure Management System (EMS) Reform 5

  6. Expenditure Management System (EMS) Reform • External Oversight • June 2012 Report of the Standing Committee on Government Operations and Estimates (OGGO) – “Strengthening Parliamentary Scrutiny of Estimates and Supply” – made many recommendations to: • Ensure that Parliamentarians have clear and understandable Estimates information; and • Provide sufficient support and capacity for members to interpret the information available • TBS launched searchable online expenditure database containing information on departmental spending authorities (April 2013) • Increasing information available at a program level – three years back, three years forward, and at lower levels – how far do we go with measures/indicators? • Potential changes in the vote structure? 6

  7. Expenditure Management System (EMS) Reform • Internal Oversight • New spending • Integrating more rigorous costing and stronger contextual information into new spending decisions will help ensure that decisions are based on the best available information • TBS will require more stringent Chief Financial Officer attestations, better costing tools and standards • TBS will increase its capacity to challenge and inform costing, improve the consistency and quality of costing information to allow for better comparisons, and in certain cases, do in-depth costing • To achieve this, a new Costing Centre of Excellence in the Office of the Comptroller General has been established • Existing spending • The ongoing review of existing spending is also required to ensure that resources are directed only to those programs and activities that remain priorities of the government and achieve value for money 7

  8. Financial Management Transformation (FMT) Diagnostique Common framework of legislation and TB policy Variation in specific processes and IT applications Opportunities to enhance effectiveness and efficiency • Principles • “Enterprise” approach: the GC as a single organization • Adopt lessons learned from other large organizations • Tailor for use in the Public Service of Canada • Integrate FM with other back-office functions • Business-led, not technology-led • Phased implementation • TBS and OGDs are developing business case

  9. Interesting times in the Public Service of Canada Serving the Government, Parliament, Canadians Contributing to eliminating the deficit by 2015 Changes from B2020, EMS reform, FMT FI Community plays a vital role Key part of policy development and program delivery Fulfils special trust over taxpayers’ dollars Increasingly adding strategic value Make the connections today Part of the bigger picture Your role in the process How you can contribute Conclusion

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