Memorandum to Cabinet and Treasury Board Submission – Why they are Major Tools for Government June 2016

Overview Provide an understanding of the decision making process in the Federal Government, including: Role of Memorandum to Cabinet (MC) and TB Submissions Considerations to keep in mind when drafting, reviewing/challenging these documents A focused look at TB Submissions: content, process, and tips for success Who has drafted an MC or TB Submission? Who has had to review or challenge one of these documents?

Decision Making Process Funding Approval: Typically through the Budget process (unless there is an “off Budget decision”) Finance Canada leads the process - advisory role for TBS Policy Approval: Memorandum to Cabinet (MC’s approve an idea) Vehicle Minister seeks Cabinet approval of a policy or new initiative - explains the new initiative and proposes options PCO leads the process but both Finance and TBS involved Program Approval: Treasury Board Submission (TB Subs approve detailed program parameters ) Only once have policy authority AND a source of funds, can this be sought Vehicle through which Minister provides concrete details on program objectives, outcomes, detailed delivery model, outcomes, value for money, and all applicable TB policies Spending Approval (Parliament - Actual $$ Flows to Organization) With TB approval have authority to proceed, BUT the funding cannot flow yet Funding flows only after Parliament grants its approval of the Estimates by passing the related Appropriation Bill (i.e., Main and Supplementary Estimates)

Cabinet Approval Memorandum to Cabinet (MC) The MC’s main purpose is to seek approval of a new initiative. Often referred to as “policy approval”, Cabinet approval generally gives a government organization permission to continue to explore the possibility of implementing a “new idea”. MCs can be written for several different reasons, including when: A federal organization proposes a new program or policy that is consistent with the government’s priorities, such as initiatives that stem from the Speech from the Throne; An organization requires additional funds in order to meet legislative or regulatory requirements; New issues arise that demand action by an organization on behalf of the government; or; The Prime Minister or a Minister wishes to bring forward a new policy or to respond to a past Cabinet commitment outside of the Budget. As the MC occurs earlier in the overall process, the level of information included in an MC is sometimes of a more general nature with a focus on the policy rationale (`why do we need this’?) Detailed information about the delivery of a new initiative is provided later to Treasury Board through a TB Submission when the organization has a business case that outlines program design and an implementation plan (‘how are we going to do this?’).

Treasury Board Approval TB Submission The TB Submission’s main purpose is to seek program authority from Treasury Board ministers to carry out a new initiative which has already received Cabinet approval and a source of funds TB Submissions can also be written for different reasons, including when an organization requires: authority to carry out a project or initiative, the costs of which would exceed a minister's delegated authority; authority to make grants or contributions, or approval of amendments to terms and conditions of grant and contribution programs; recommendations of approval of orders in council with resource or management implications; authority to enter into a contract above or outside a federal organization's or minister's authority; or an exemption from a Treasury Board policy A Submission is an official document submitted by a sponsoring minister on behalf of a federal organization seeking approval or authority from the Treasury Board for an initiative that the organization would not otherwise be able to undertake or that is outside its delegated authorities.

MCs and TB Submissions inform Government decision-making by different means

Key Considerations for Drafting TB Submissions TB Submission template updated in 2014 and helps provide a clearer and more coherent story to explain the proposed initiative to Ministers New series of practical questions that each organization should take into consideration when drafting TB Submissions The questions are reflective of current TB Minister interests, and can change over time as priorities change Key Consideration Guidance is aligned per section of the template

TB Submission Approval Process: 90% lies below the surface

TB Submission Process 3.5 wks prior 2 wks prior 1.5 wks prior to TB Final Precis Final Signed Submission due to TBS 3.5 wks prior to TB 2 wks prior to TB 1.5 wks prior to TB Assistant Secretary Reviews Submission and Précis with Analyst Secretary Reviews Submissions and Précis with other Assistant Secretaries and the Secretary of TB President’s Briefing 9

What happens at the Meeting ? TBS officials brief TB Ministers Ministers have four options for decisions: Approve as proposed Approve with conditions Not approve Defer decision

Tips for Success Engage early and regularly with TBS: Regular meetings forge a strong working relationship Engagement helps identify issues early on so we can work towards solutions Ongoing communications during the process is essential for effective management of departmental business A long submission is not necessarily a good submission – always ask, what is the storyline? Remember the audience (TB Ministers) Don’t focus on technical details (or use language that is overly technical), be strategic about what information to include Anticipate what questions TB Ministers may have Expect the process to take approximately 3 months (if not more) & plan accordingly Your TBS analyst will both challenge and defend your case; help us, help you – by providing information in a timely way

Questions

ANNEX

Crosswalk Between Cabinet Documents The MC and TB Submission templates include the following information:

Treasury Board Template - Modernizing to Meet Government Priorities - Information is presented in a way that tells a more coherent, easy to follow story about proposals contained in a submission Title and Synopsis Authority Sought from TB Background Rationale Design, Delivery and Implementation* Expected Outcomes * Risk(s) and Risk Responses * Cost, Funding Requirements and Source of Funds * Costing Due Diligence and Validation* Contact Appendices: Financial (CFO Attestation and other as applicable) Existing Policy Authorities Program Alignment and Performance Measurement Audit and Evaluation Government-wide Policy Considerations * New headers or sections

Key Considerations for Drafting TB Submissions The new TB Submission template helps provide a clearer and more coherent story to explain the proposed initiative to Ministers New series of practical questions that each organization should take into consideration when drafting TB Submissions The questions are reflective of current TB Minister interests, and can change over time as priorities change Key Consideration Guidance is aligned per section of new template: Authorities Sought From the Treasury Board Background Rationale Expected Outcomes Risks and Risk Responses Cost and Source of Funds Costing Due Diligence and Validation

Key Considerations Excerpt : Background What is the context for your proposal? How is the proposal linked to your organization’s mandate? What is the history of the proposal or program? How long has it existed? What has its budget been historically? Have there been any previous Cabinet or Treasury Board decisions related to the proposal? Have there been any relevant public announcements related to the proposal?

Key Considerations Excerpt : Rationale Why is the proposed course of action needed? What problem is being solved by the authorities that are being sought? How does the proposal support or link to government priorities? Is this a legitimate and necessary role for the federal government? What is the relevant policy and expenditure context? Is this a new initiative, or the renewal of an existing program? What were the previous results achieved? Was the proposed course of action developed as a result of a gap analysis? What comparative benchmarks have been used to gauge the reasonableness of this proposal? How does the proposal align with your organization’s existing programs and program activity architecture (PAA)? Has your organization demonstrated a clear gap in its suite of programs and policies or in the relevant PAA s of other government organizations, for horizontal activities?

Key Considerations Excerpt : Expected Outcomes What are the expected outcomes? How will you measure success? Do your outcomes align with your organizational mandate? Are your delivery strategies aligned with your policy objectives? What are your plans for audit and evaluation?

Key Considerations Excerpt : Risks and Risk Responses How complex is your proposal? Does your organization have the capacity to deliver the initiative? Does the history of the issue indicate any risks? What are the financial risks? How will your organization respond to and monitor risks? Risk and Risk Responses Appendix Template:

Key Considerations Excerpt : Cost and Source of Funds Has your organization considered every aspect of each proposal’s cost and source of funds? Have you examined cheaper delivery alternatives? Have you explored cost-recovery options? Is there a risk of costs exceeding estimates that could lead to unfunded costs and program integrity concerns in the future?

Key Considerations Excerpt : Costing Due Diligence and Validation How do costs align with the government’s priority to reduce spending? What efforts were made to keep costs down? Is it affordable in the current fiscal context? How are costs contained? Are the requested financial resources adequate to deliver the program? Is there sufficient rationale for ongoing resources? What efforts has your organization made to minimize operating costs? Has your organization demonstrated due diligence? Is the methodology that was used to prepare the cost estimates in line with the TB Guide to Costing? Are there comparable national or international initiatives?