1. The Role of Central Agencies
Government of Canada Gouvernement du Canada
Privy Council Office Bureau du Conseil privé
The Role of Central Agencies
Presentation to the Financial Management Institute
June 11, 2015
National Arts Centre, Panorama Room
Heather Sheehy, Director of Operations, Machinery of Government, Privy Council Office

2. Presentation Roadmap The Westminster System of Government
Role of Central Agencies
Privy Council Office
Department of Finance and Treasury Board Secretariat
Parting thoughts
Discussion

3. The Westminster System: Key Elements
The Prime Minister is the first Minister and the architect of government, including defining Ministers’ roles and the Cabinet decision-making system
Ministers are collectively and individually responsible to Parliament
Deputy Ministers are the Minister’s principal source of support in fulfilling his or her responsibilities and in respecting his or her accountability to Parliament
Public servants provide non-partisan policy advice to Ministers and conduct departmental operations through the exercise of the Minister’s legal authorities
Exempt staff provide the Minister with advice that is politically engaged, but play no role in departmental operations and do not exercise any of the Minister’s powers, duties and functions

4. Central Agencies
In the exercise of their authority, the Prime Minister and the Cabinet are supported by both line departments and central agencies
Central agencies play a key role in the successful formulation and implementation of governmental policies and programs by overseeing interdepartmental mechanisms of information-sharing, consultation and coordination
Typically, people refer to three central agencies: the Privy Council Office (PCO), the Department of Finance and the Treasury Board Secretariat (TBS)

5. Why is coordination necessary?

6. Government is complicated

7. Government is complicated It’s crowded with ideas
There are a lot of decision makers to manage
The speed of decision making is accelerating
24/7 communications
Savvy stakeholders and citizens with high expectations
A complex and immediate digital environment
Speed
Ascendance of issues management
Centralization of Decision-Making
Perpetual campaign mode
Pressures
Impact

8. Roles at a glance Finance TBS PCO
Supports PM, Ministers in PM’s portfolio, and Cabinet
Coordinates government priorities and policy agenda
Supports cabinet-decision-making system:
ensures that departmental submissions meet information needs of Cabinet and are coordinated with other departments and overall policy agenda
Responsible for overall intergovernmental relations
Advises the PM on the machinery of government
Supports Governor in Council Appointments
Finance
Supports the Minister of Finance
Develops government’s macro- economic policy and fiscal framework
Analyzes the economic and fiscal impacts of policy initiatives
Allocation of funds from fiscal framework for new initiatives
Prepares annual Budget
Government-wide financial reporting
TBS
Supports Treasury Board and its President
Responsible for the estimates and expenditure management system
Reviews submissions from Ministers for funding
Reviews existing programs
Provides financial and performance information to Parliament
Manages government-wide financial, administrative and HR policies
Employer for core public service
Supports the consideration of regulations

9. Clerk of the Privy Council and Secretary to the Cabinet
Prime Minister
Clerk of the Privy Council and Secretary to the Cabinet
Maintains unity in Cabinet and provides direction to Ministers
Has unique powers:
appointment and mandate of Ministers
appointment of senior officials
management of Cabinet
leadership on the direction of policy / finance
Supported by the Prime Minister’s Office:
Comprised of exempt staff
Political strategy and tactics
Political dimensions of policy initiatives, problems, etc.
PM’s agenda and travel
Communications / national political liaison
As Deputy to the Prime Minister provides advice and staff support
As Secretary to the Cabinet supports all Ministers collectively and individually
Head of the Public Service
Comprised of public servants (est. 835 FTEs in 15/16)
Coordinates, not duplicates, work of departments
Small, flat organization to facilitate information sharing and fast decisions
Moves people in and out
Supported by the Privy Council:
“The Prime Minister’s Office is partisan, politically oriented, yet operationally sensitive. The Privy Council Office is non-partisan, operationally-oriented, yet politically sensitive.” Gordon Robertson, Clerk of the Privy Council and Secretary to the Cabinet, 1971.

10. PCO: Prime Minister’s Department
Supports the Prime Minister as Head of Government
Priority setting (e.g., assists with the writing of the Speech from the Throne; developing the federal Budget)
Policy development (e.g., foreign affairs, defence, national security and intergovernmental affairs, as well as other priorities)
Coordination of ministerial mandates
Government organization
National security
Senior appointments
Supports other ministers within the PM’s portfolio (e.g., the Leader of the Government in the House and the Minister of Intergovernmental Affairs)

11. PCO: Cabinet Secretariat
Manages the flow of business to ensure that the decision-making process functions according to the standards set by the Prime Minister
Keeps track of departmental initiatives
Ensures proper consultation
Plays a challenge function to ensure that MCs are consistent with the government’s overall policy direction
Specifically, with respect to Cabinet and Cabinet committee meetings, PCO provides for:
Agendas
Briefings to Chairs
Committee minutes
Cabinet decisions
Priorities and Planning
Government Administration
Treasury Board (statutory)
Operations
Foreign Affairs and Security
Economic Prosperity
Social Affairs
Machinery of Government

12. PCO: Machinery of Government
Protects the Prime Minister’s prerogative for the machinery of government
Provides advice and support to the Prime Minister, Clerk, PCO Secretariats and departments on:
How government decisions are made. For example:
the design of collective Cabinet decision-making process
What organizational support is needed for Ministers to discharge their mandates. For example, decisions about:
the design of organizations, including their structure, mandate, powers, duties and functions, and place within ministerial portfolios; and
whether existing organizations can be used to implement a policy decision or whether changes are required to that organization or a new organization is necessary
Who is responsible for implementing decisions. For example:
determining which minister should do what; and
the types of mandates, powers, duties and functions they need to implement government decisions

13. PCO: Supporting the Clerk’s role as head of the Public Service
Provides strategic policy advice and analysis to the Clerk on whole-of- government initiatives for improving government efficiency and effectiveness, and for maintaining a strong, dynamic and relevant Public Service.
Provides advice and support to the Deputy Minister Board of Management and Public Service Renewal and supports the Prime Minister’s Advisory Committee on the Public Service.
Examples:
Clerk’s Annual Report to the Prime Minister
The public service management agenda (e.g., Blueprint 2020)

14. Department of Finance
One of the original departments of the Government of Canada. Established by statute under the Financial Administration Act and has authorities under numerous other Acts
Supports the Minister in the management of the Consolidated Revenue Fund
Supports the Minister of Finance in development the government’s macro- economic policy, including tax policy and tax expenditures, as well as the overall fiscal framework, and for analyzing the economic and fiscal impact of proposals by any Minister.
Develops the annual budget. The budget is the government’s fiscal plan. It outlines projected revenues, changes in taxation and new spending plans.
Manages federal borrowing on financial markets
Administers major transfers of federal funds to the provinces and territories
Develops regulatory policy for the country’s financial sector

15. Treasury Board
A committee of Cabinet established by Financial Administration Act and composed of the President of the Treasury Board, the Minister of Finance and four other ministers appointed by the Prime Minister
In contrast to the Department of Finance which is responsible for establishing general policy on government revenues and expenditures, the Treasury Board oversees the management of the government’s expenditures and has responsibilities for government administration, as outlined in the Financial Administration Act and other Acts

16. Treasury Board Secretariat
Assists the Treasury Board in fulfilling its duties
Is headed by the Secretary of the Treasury Board, who is the equivalent of a deputy minister
Sets administrative policies and monitors management performance
Oversees expenditure management and performance information (e.g., Reports on Plans and Priorities and Departmental Performance Reports)
Acts as the principal employer of the public service
Superannuation – pension
Labour relations
Collective bargaining
The Secretariat also includes the Office of the Comptroller General of Canada, which is responsible for providing government-wide direction and assistance on financial management and internal audit

17. Some Parting Thoughts…
The central agencies play a key role in decision-making processes and administration
They work to ensure policy coordination, good administrative practices, and prudent fiscal management
Their influence and authority is often due to their proximity to the Prime Minister and Cabinet or control over the purse strings rather than the statutory authority
Must balance a centralization of control and authority with sufficient flexibility and autonomy to allow line departments to effectively manage issues