1. Presentation to the Financial Management Institute May 22, 2014
How Government Works
Presentation to the Financial Management Institute May 22, 2014
Thank the hosts (Pierre and Kristina).
Over the course of the day, the audience will learn about how the GC works AND better appreciate the importance of strong FM.
Objective of keynote speech: set the stage by talking about the overall context within which financial management takes place.
NOTE: Your presentation runs for 40 minutes, from 8:50 to 9:30.
Doug Nevison Assistant Secretary, Privy Council Office

2. View from 30,000 Feet GC policy priorities
Economic: jobs, trade, balanced budget
Social: safe and secure families and communities
Other: Military, veterans, the North, international role
GC administrative priorities
Control the size and the cost of government operations
Reform the way spending is managed
Make government more efficient and responsive
All these priorities are from the 2013 SFT and PM web site
Efforts to advance policy priorities relies on sound administration

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
Clerk has three main roles:
1) DM TO THE PM – Non-partisan information, analysis, advice from a broad, government-wide view
2) SECRETARY TO THE CABINET – Manage Cabinet’s decision-making process (e.g. MCs, Committees)
3) HEAD OF THE PUBLIC SERVICE – Ensure that the PS provides the best possible support to the Government
BTRS: Enterprise approach to improve the effectiveness and efficiency of government operations
: Supports Government priorities for deficit reduction and improving services to Canadians 3

4. Blueprint 2020 Background Engagement process What we heard
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
Helen Leslie (BTRS) to add content in mid-late April based on the CGA/CMA speech she is drafting

5. Expenditure Management System (EMS) Reform
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 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?
Potential changes in vote structures – one G&C vote for each Program Activity
- Currently there are 31 G&C votes
- If reformed, there would be over 300 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
CFO Attestation
- Departments are the first line of defence for good costing
- CFOs are required to conduct a due diligence review of information included in Cabinet documents and attest to the quality of the information
Costing tools, guidance and standards
- OCG is developing guidance to support the existing Guide to Costing
- Costing of major procurements
- Baseline costing of departmental operations
- Grants and Contribution programs
Stronger performance, contextual and costing information and an enhanced challenge function will better inform new spending decisions 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
The Public Service is doing quite a lot to change the way it does business, to better support the GC and serve Canadians
Many of these reforms involve adopting an enterprise approach to administration: rationalizing, standardizing, consolidating processes and tools
FMT is a good example
EFFECTIVENESS: Decision-making should be based on data that are detailed, timely, and common across departments
EFFICIENCY: Having common processes and IT applications would allow for sharing of best practices and economies of scale
ENTERPRISE APPROACH: One/same FM processes, and one/same IT solution, for ALL departments
ADOPT LESSONS LEARNED: What processes can be streamlined and simplified? How can routine, mechanical transactions be automated?
TAILOR FOR USE IN GC: reflects federal laws, policies, priorities
INTEGRATE: e.g. one transaction to hire a person creates entries in both FM and HRM systems
PHASED IMPLEMENTATION: not a “big bang”
TBS and OGDs are developing business case

9. Conclusion 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
SERVING – we would be advancing many of these reforms even without specific Government direction
MAKE THE CONNECTIONS – as you listen to the other speakers on specific financial management processes
HOW YOU CAN CONTRIBUTE – through B2020, FMT, renewal of the FI community, in your day-to-day work in departments