1. Resource Allocation in Canada Evaluation, Accountability and Control Brian Pagan Expenditure Operations and Estimates Treasury Board of Canada Secretariat

2. 2 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

3. 3 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

4. 4 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:

5. 5 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

6. 6 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

7. 7 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

8. 8 An Action Plan for Improved Responsiveness and Accountability The proposed government action plan will lead to changes… FromTo “One size fits all” reporting and oversight Risk based monitoring and accountability leading to reduction in reporting burden Multiple audits of same recipientAudits rationalized, risk based, deliberate and coordinated Duplicative information requirementsStreamlined and standardized reports, forms and applications Focus on process and paperworkFocus 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.

9. 9 Our Vision for Public Reporting CONTENT: 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.

10. 10 The Government of Canada Planning and Performance Gateway Online Demonstration