1. The Role of Departments in the Implementation of the Government Agenda Concepts and Realities Presentation to the Financial Management Institute Alain P. Séguin Chief Financial Officer June 11, 2015 UNCLASSIFIED

2. 2 Contents 1.Background & Context of ESDC 2.How Government Works – How it is supposed to work 3.How Government Works – How it really works 4.Observations

3. 3 ESDC Mission ESDC's mission is to build a stronger and more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives, and to improve Canadians' quality of life. To do this, we:  develop policies that make Canada a society in which all can use their talents, skills and resources to participate in learning, work and their community;  create programs and support initiatives that help Canadians move through life's transitions—from families with children to seniors, from school to work, from one job to another, from unemployment to employment, from the workforce to retirement;  create better outcomes for Canadians through service excellence with Service Canada and other partners; and  engage our employees, establish a healthy work environment, nurture a culture of teamwork, and build our leadership capacity. CFOB T RANSFORMATION S TRATEGY

4. 4 ESDC Points of Service across Canada

5. 5 ESDC Spending Profile: Fiscal Year 2015-2016 Total Budget $116.8 B

6. 6 ESDC Organizational Chart

7. 7 How Government is Supposed to Work The Idea  Stakeholders  Party Platform  Responding to events  Dealing with longstanding issues The Memoranda to Cabinet (MC)  Developing the MC  Working closely with Program – FMA  CFO Attestation  MC at Cabinet  Response is important  In queue for Budget – will need letter

8. 8 How Government is Supposed to Work Budget  Announces program and funding Treasury Board Submission  Draft TB Sub and defend program and costing assumptions  Obtain approval of TB Estimates  In-year funding included in Supplementary Estimates  Future-year funding included in ARLU

9. 9 How Government Really Works The Idea  Stakeholders  Party Platform  Responding to events  Dealing with longstanding issues The Memoranda to Cabinet (MC)  Developing the MC  Working closely with Program – FMA  CFO Attestation  MC at Cabinet  Response is important  In queue for Budget – will still need letter  Media, local / national events, can create a sense of urgency, other influences  Multiple versions and MCs for one overall decision  Credibility of Financials  Workload, logistics and coordination  Responses not always clear  Not in queue for Budget – will need marker in letter

10. 10 How Government Really Works Budget  Announces program and funding TB Submission  Draft TB Sub and defend program and costing assumptions  Obtain approval of TB * Announcement TB Submission – Continued  Only half of the total program change announced and funded  Begin drafting TB Sub – combining multiple MCs and multiple departments into one TB Sub  Major announcement on entire new program  Drafting over 6 months  Extensive challenge on costing and assumptions  Finally completed, signed and scheduled

11. 11 How Government Really Works * Full-stop Intervention TB Submission – Continued Estimates  In-year funding included in Supplementary Estimates  Future-year funding included in ARLU  Re-challenge numbers  Approved for in-year funding only  Return to Central Agencies to re- confirm program and funding  In-year funding included in Supplementary Estimates  No future year funding included in ARLU

12. 12 Observations – Critical Elements For Success  Existing, strong FMA network  Intel  Credibility  Due diligence  Clear Roles and Responsibilities  Relentless attention  Big Picture view

13. 13 Thank you! CFOB T RANSFORMATION S TRATEGY