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2006-2007
Departmental Performance Report

Public Service Commission of Canada

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The Honourable Josée Verner, M.P.
Minister of Canadian Heritage, Status of Women and Official Languages

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Table of Contents

• Section I – Overview
  • President's Message
  • Management Representation Statement
  • Summary Information
    • Mission, Vision and Values - Striving for excellence
    • Supporting the Government of Canada's Outcomes
    • PSC's Results Chain
    • Operating Environment
    • Key PSC Challenges and Risks
  • Summary of Performance in relation to PSC Strategic Outcome, Program Activities, Priorities and Commitments
• Section II - Detailed Performance by Program Activity
  • Strategic Outcome
    • Program Activity 1.1.0 - Appointment Integrity and Political Neutrality
    • Program Activity 1.2.0 - Recruitment and Assessment Services
    • Management Priorities
• Section III - PSC Financial Statements
• Section IV- PSC Supplementary Information
  • Organizational Information and Accountability
  • Key Relationships
  • Table 1: Comparison of Planned to Actual Spending and Full-Time Equivalents
  • Table 2: Resources by Program Activity
  • Table 3: Voted and Statutory Items
  • Table 4: Services Received Without Charge
  • Table 5: Source of Respendable and Non-Respendable Revenues
  • Table 6: Resources by Branch
  • Table 7: User Fees
  • Table 8: Response to Parliamentary Committees, Audits and Evaluations
  • Table 9: Details on Project Spending
  • Table 10: Client –Centred Service
  • Table 11: Travel Policies
• Section V – Other subjects of Interest
  • Contacts for Further Information
  • Common Acronyms

Section I – Overview

President's Message 

I am pleased to present the 2006-2007 Departmental Performance Report (DPR) for the Public Service Commission (PSC) of Canada.

This DPR provides an overview of the PSC's progress towards the objectives specified in our 2006-2007 Report on Plans and Priorities (RPP).

To support our strategic outcome – a highly competent, non-partisan and representative public service, able to provide service in both official languages, in which appointments are based on the values of fairness, access, representativeness and transparency – we identified four priorities in our RPP. They are:

• to fully implement the new Public Service Employment Act (PSEA) and solidify the PSC's independence;
• to provide recruitment and assessment services that respond to the needs of delegated managers and Canadians;
• to ensure proper oversight and accountability to Parliament; and
• to become a model organization in financial and human resources management.

We are pleased with the progress made over the past year in providing guidance, support and services to departments and agencies under the new PSEA, overseeing the integrity of the staffing system and improving our internal human resources and financial management. However, this was the first full year of operation under the new PSEA and ongoing effort will be needed to support the system modernization and strengthen our oversight.

Implementing the new Public Service Employment Act and solidifying the PSC's independence

To support initial implementation, the PSC has provided training, interpretation and advice to departments and agencies. We have streamlined regulations and policies, developed guides and tools and shared best practices. Guidance on the new political activity and political candidacy regime was provided to deputy heads and their employees.

As a transition measure, we have provided significant resources to our recruitment and assessment activities to support their key role in the implementation of the values-based regime envisioned in the legislation. We developed the Public Service Resourcing System (PSRS) to screen high volumes of applications and continued to modernize assessment instruments, including second language evaluation.

We have enhanced our capacity to conduct PSEA-mandated investigations and investigations into the political activities of public servants. The case load of investigations and appeals launched under the former PSEA is being completed.

We are still in the early stages of PSEA implementation. The frameworks and policies are in place, but continued effort and senior leadership is needed to ensure full implementation.

Ongoing implementation requires new ways of thinking and behaving in order to shift the emphasis from a rules to a values-based approach to appointments. Departmental human resources (HR) capacity and availability of effective supporting systems continue to be a concern with regard to full PSEA implementation.

Providing recruitment and assessment services that respond to the needs of delegated managers and Canadians

The PSC has made a significant investment in modernizing the services it offers to federal organizations and standardizing its service levels. Our Staffing and Assessment Services Branch has as its objectives the delivery of high quality services, programs and products that respect the PSEA, are tailored to the needs of departments, agencies, public servants and job-seekers and support the culture change needed for full implementation. In April 2007, we introduced a new area of selection policy that expands Canadians' access to public service jobs. Our PSRS, a Web-based screening tool, has helped manage the resulting increase in the volume of applications. To continue meeting the needs of departments and agencies, more investment is needed. We are facing funding issues and are currently exploring alternatives such as cost recovery. 

Ensuring proper oversight and accountability to Parliament

The PSC has responsibility for ensuring that the appointment authorities it delegates to deputy heads are exercised according to the spirit, values and principles of the PSEA. We have in place accountability and reporting mechanisms such as formal instruments of delegation, which provide us with information on how the system is functioning. This allows us to monitor and assess the performance of departments and agencies and to provide deputy heads with feedback to help them improve their staffing processes.

We have conducted more audits and studies of organizational and public service-wide issues, as well as investigations of possible staffing irregularities. Ongoing effort and investment is needed to continue building the PSC audit function.

We have developed a policy and regulatory regime governing the political activities of public servants that strives to balance the right of public servants to participate in political activities with the need to preserve the non-partisanship of the public service. Our experience with the addition of municipal elections shows that more effort will be required to communicate to deputy heads and public servants the requirements of the PSEA and the PSC.

Becoming a model organization in human and financial resources management

Over the reporting period, the PSC has taken steps toward establishing itself as a model organization through effective and rigorous management practices. We have continued to address our employees' concerns and needs during the governance and organizational transitions undertaken in order to meet our obligations under the PSEA. We have renewed our focus on HR planning. High level of turnover in the Personnel Administration Group (PE) continues to be a concern. Assuming the risks associated with managing a large technology project represents a significant challenge in the management of the Information Technology (IT) function. 

Improvement of our financial management practices was critical in establishing a culture of reallocation and maximizing the use of our resources. However, given our obligation to fund our oversight activities, we anticipate a funding shortfall next year for our recruitment and assessment services, which continue to be in strong demand due to the lack of HR capacity and supporting systems and tools in departments and agencies. We are exploring alternatives for new funding sources, including cost recovery.

Conclusion

In closing, I would like to recognize the contributions and accomplishments of PSC employees, who in their daily work are helping to maintain the PSC's 100-year tradition of protecting the integrity of Canada's public service.

Management Representation Statement

We submit for tabling in Parliament, the 2006–2007 Departmental Performance Report of the Public Service Commission (PSC).

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2006–2007 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

• It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat (TBS) guidance;
• It is based on the department's approved Strategic Outcome(s) and Program Activity Architecture that were approved by the TBS;
• It presents consistent, comprehensive, balanced and reliable information;
• It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
• It reports finances based on approved numbers from the Estimates and the Public Accounts of Canada.

In meeting its reporting responsibility, PSC management has established and followed procedures and controls designed to provide reasonable assurance of the fairness and reliability of the performance information. While the PSC continues to improve its performance information, the information in this report is the best currently available and our management considers it reasonable for the purpose of preparing this report. Some of the information is based on management's best estimates and judgments, and any limitations to the quality of the data provided are disclosed in the report.

The PSC's Executive Management Committee oversees the preparation of the report, and approves it after receiving the advice of the PSC's Internal Audit Committee.

Ottawa, Canada
September 6, 2007

Summary Information

Mission, Vision and Values - Striving for excellence

The Public Service Commission (PSC) is dedicated to building a public service that strives for excellence. We protect merit, non-partisanship, representativeness and the use of both official languages.

We safeguard the integrity of staffing in the public service and the political impartiality of public servants. We develop policies and provide guidance for public service managers and hold them accountable for their staffing decisions. We conduct audits and investigations to confirm the effectiveness of the staffing system and to make improvements. As an independent agency, we report our results to Parliament.

We recruit talented Canadians to the public service, drawn from across the country. We continually renew our recruitment services to meet the needs of a modern and innovative public service.

Values to Guide our Actions

In serving Parliament and Canadians, we are guided by and proudly adhere to the following values:

• Integrity in our actions;
• Fairness in our decisions;
• Respect in our relationships; and
• Transparency in our communication.

Supporting the Government of Canada's Outcomes

The PSC's strategic outcome of providing Canadians with a highly competent, non-partisan and representative public service fully supports the Government of Canada's outcomes, as outlined in Canada's Performance 2006-07 (http://www.tbs-sct.gc.ca/). The PSC is a key player in safeguarding and fostering the integrity of the staffing system and the political neutrality of the public service through monitoring, audits, studies, evaluations and investigations in support of the government's public policy values of equity, transparency and fairness. It reports annually to Parliament.

The PSC is also adapting its products and services to ensure that departments and agencies continue to have access to professional recruitment and assessment services. The PSC is actively working to provide improved on-line staffing tools so that all Canadians have access to employment opportunities in the public service.

Finally, through its programs and services, the PSC directly contributes to the Government of Canada's outcomes of fostering a diverse society that promotes linguistic duality and social inclusion. It does so by ensuring that the human resources management policies of the federal public service protect merit, non-partisanship, representativeness and the use of both official languages. We monitor and assess compliance with those policies.

PSC's Results Chain

The following PSC Results Chain links what we deliver to our long-term results or strategic outcome.

Note 1: Includes $7,412 thousands related to Public Service Staffing Modernization Project and temporary funding of $3,925 thousands related to work on the Staffing and Assessment Services transformation.

Operating Environment

On behalf of Parliament, the PSC safeguards the integrity of staffing and the political neutrality of the public service. In this respect, the PSC works closely with government, but is independent from ministerial direction and is accountable to Parliament. This means that Parliament can depend on the PSC's assurances about the staffing system.

The PSC has the mandate to appoint, or provide for the appointment of, persons to or from within the public service. As it deems necessary it carries out staffing and assessment activities to support the system. This requires the PSC to understand and respond to the needs of human resources (HR) professionals and hiring managers.

Working with Departments and Agencies

Fiscal year 2006-2007 was the first full year of operation under the Public Service Employment Act (PSEA), which came into force on December 31, 2005. Ongoing implementation of this legislation has required new ways of thinking and working, both for the PSC and for departments and agencies.

The PSEA encourages the PSC to delegate its appointment authorities to deputy heads, who then delegate them to their managers. The intention is to give managers authority and tools to hire, manage and lead their employees in order to meet the needs of Canadians.

To benefit fully from this legislation, the federal public service must continue to transform its staffing and recruitment culture. Human resources officers, managers and senior executives must understand their new roles and the new opportunities they have to staff their organizations.

The PSC works in collaboration with the Canada Public Service Agency (formerly known as the Public Service Human Resources Management Agency of Canada) and the Canada School of Public Service to provide support and guidance to HR professionals and managers across the public service.

The PSC provides information sessions called 'SmartShops' to HR professionals who are required to provide advice and guidance to hiring managers and PSC employees who provide advice to their clients. In addition, the PSC is modernizing its staffing and assessment services to offer high quality services to departments and agencies tailored to their needs and in line with their new responsibilities under the PSEA.

Overseeing the Integrity of the System

The PSC oversees the way deputy heads exercise their delegated staffing authorities. The PSC ensures that departments respect and adhere to the values and principles in the legislation: Merit, non-partisanship, fairness, access, representativeness and transparency. Accountability mechanisms and oversight tools include monitoring, audits, studies, investigations and assessment of departmental staffing accountability reports. The PSC can impose specific restrictions and conditions on how departments and agencies exercise their delegated authorities. In exceptional cases, the PSC can withdraw those authorities.

The PSC also monitors whether the appointment system operates effectively overall, and safeguards the non-partisanship of the public service. In addition to providing feedback directly to deputy heads and to the Committee of Senior Officials (COSO), it reports annually to Parliament on the integrity of the system and may make special reports to Parliament on urgent or important matters.

Safeguarding Non-Partisanship

A primary responsibility of the PSC is to safeguard the political impartiality of the public service. The PSC's Political Activities Regulations define the process for requesting permission and approving requests from public servants who wish to be candidates in federal, provincial, territorial and, under the new Act, municipal elections. The PSC may investigate allegations of improper political conduct by public servants. The PSC also provides a guide to employees' rights and obligations and a self-assessment tool.

Part 7 of the PSEA recognizes the need to balance the right of public servants to engage in political activities with the principle of an impartial public service. The new Act expanded the regime to include municipal elections. Experience over the past year indicates that sustained efforts are required to communicate the obligations of Part 7. The PSC also introduced new measures to monitor, assess and report on the performance of departments and agencies in helping to preserve the impartiality of the public service.

A Complex Environment

The PSEA's implementation requires new ways of thinking and behaving for both the PSC and for departments and agencies. Much work has been accomplished but we are still facing some challenges. Solid leadership and ongoing efforts to develop a culture of engaged hiring managers are needed for the public service to take full advantage of the Act.

The HR community continues to experience challenges under the new regime. In addition to the demographic trends facing the entire public service, it continues to lack sufficient capacity to provide services and support managers as they take on more responsibilities for staffing.

To address ongoing challenges in the areas of employment equity and planning for longer-term resourcing needs, departments and agencies must continue to take steps to integrate business and HR planning. Implementation of processes and systems to meet and comply with accountability requirements under the new Act is uneven. Management information systems need development. Many departments and agencies continue to require ongoing guidance and support to conduct their staffing activities.

The PSC also confronts its own challenges: meeting demands from clients for services; building capacities in key areas of its mandate; exploring funding alternatives for staffing and assessment services; introducing essential technology and strengthening management practices. The PSC is refocusing its day-to-day work from providing mandatory services and handling appeals under the former PSEA, to overseeing the integrity of the appointment system and providing optional services.

The PSC must fulfill its statutory obligations while fully supporting the government, particularly in a time of transition and public service renewal. In particular, the PSC is committed to contributing to the work of the Advisory Committee on the Public Service of Canada on matters related to the renewal of the public service, including recruitment and retention, HR policies and practices and branding the public service.

The next section explores in more detail our challenges and risks.

Key PSC Challenges and Risks

The PSC has identified the primary challenges and risks emerging from the complex environment in which it operates, and adopted strategies to address them. They are detailed in the 2007-2008 PSC Report on Plans and Priorities (http://publiservice.tbs-sct.gc.ca/est-pre/estime.asp) and briefly described below.

First, the HR community lacks skilled specialists who can provide managers with the support necessary to effectively take on the expanded staffing roles envisaged by the new PSEA. The PSC continues to offer guidance and support to departments and agencies and is working with these partners to increase HR capacity over time.

A related issue is the slow progress of many departments and agencies to conduct effective HR planning. This weakens both corporate planning and the quality of staffing actions. The PSC promotes the benefits of planning and identifies risk areas where required.

Given the increased managerial discretion under the new PSEA, there is a risk that hiring managers' decisions may not always demonstrate the proper use of staffing flexibilities and not sufficiently protect merit. Weak information systems for monitoring and reporting under the PSEA could make it difficult to identify such problems and could undermine effective accountability. The PSC continues to communicate its expectations, work with departments and agencies to monitor adherence to the staffing values and improve and harmonize HR information systems across the public service.

If the PSC fails to bolster its own capacity in such areas as audit, investigations and services, it will have difficulty in fulfilling its statutory responsibilities. To address capacity issues, the PSC has initiated the implementation of a multi-year audit plan, completed the Investigations Branch reorganization, and initiated a program to recruit and train staff in critical areas. In order to meet its statutory responsibilities in relation to oversight, the PSC will reallocate $14.5M from its Staffing and Assessment Services in the next three years ($6M in 2008-2009, $4.2M in 2009-2010 and $4.3M in 2010-2011).

The PSC may not have sufficient resources to provide quality and timely staffing and assessment services and respond to growing demands and changing requirements. A delay in improving the technology aimed at re-engineering staffing and recruitment processes would aggravate this situation and slow the implementation of the National Area of Selection. To address this possibility, the PSC is implementing its new service vision and is acting to maintain support for e-resourcing technology in government.

As a transition measure, the PSC dedicated significant resources to its recruitment and assessment activities to support their key role in the implementation of the Act. However, given our obligation to fund our oversight activities, we anticipate a funding shortfall next year for our recruitment and assessment services, which continue to be in strong demand. We are looking for new funding sources, including cost recovery.

Finally, the PSC needs to strengthen its succession planning and HR strategies to face the possibility of a shortage of qualified personnel. To address this, the PSC is developing more rigorous, corporate HR planning processes and building staff capacity and competencies.

Summary of Performance in relation to PSC Strategic Outcome, Program Activities, Priorities and Commitments

The PSC has one strategic outcome:

A highly competent, non-partisan and representative public service, able to provide services in both official languages, in which appointments are based on the values of fairness, access, representativeness and transparency.

During the past year, the PSC used three program activities to accomplish this strategic outcome:

• 1.1.0 Appointment Integrity and Political Neutrality
• 1.2.0 Recruitment and Assessment Services
• 1.3.0 Corporate Services

They reflect the approved 2006-2007 PSC Program Activity Architecture (PAA). These three program activities have focused on and been organized around the four priorities identified in the PSC's 2006-2007 Report on Plans and Priorities.

Priority ($ thousands)	Program Activity	Performance Status
I. Fully implement the new PSEA and solidify the PSC's independence 2006-2007 Spending: Planned: $ 7,122 Total Budget Authorities: $ 7,506 Actual: $7,101	Appointment Integrity and Political Neutrality	In progress
II. Provide recruitment and assessment services that respond to the needs of delegated managers and Canadians 2006-2007 Spending: Planned: $ 63,275 Total Budget Authorities: $ 65,834 Actual: $ 58,521	Recruitment and Assessment Services	In progress
III. Ensure proper oversight and accountability to Parliament 2006-2007 Spending: Planned: $ 34,397 Total Budget Authorities: $ 34,480 Actual: $ 33,254	Appointment Integrity and Political Neutrality	In progress
IV. Become a model organization in human and financial resources management	All program activities	In progress

For the purposes of this report, Corporate Services activities are not reported on separately since they support all PSC priorities. Actual costs for Corporate Services have been allocated between Priorities I to IV. Highlights of Corporate Services' commitments and performance results for the past year are provided in Section II – Management Priorities.

• The financial information presented in Section II includes the allocation of corporate services' expenditures, in the amount of $33,563K for 2006-2007. These costs cover activities related to:
• the President and Commissioners' office ($975K);
• Corporate Secretariat ($996K);
• corporate initiatives ($328K);
• Finance, Administration, Corporate Planning and Evaluation ($8,139K);
• Human Resources Management ($5,052K);
• Information Technology ($12,715K);
• Communications and Parliamentary Affairs ($3,838K);
• Library Services ($755K);
• Legal services ($220K); and
• Internal Audit ($545K).

The basis of allocation of corporate services' costs is currently under review as we develop a new costing model for our cost-recovery activities.

PSC Financial Statements included under Section III have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General. The unaudited supplementary information presented in the financial tables under Section IV is prepared on a modified cash basis of accounting in order to be consistent with appropriations-based reporting. Note three to the financial statements reflects the reconciliation of these two accounting methods. Reconciliation items are mainly attributable to amortization, severance pay and vacation leave accruals.

Performance Summary

The following provides a summary of the PSC's 2006-2007 performance by priority. A detailed discussion of performance by program activity and commitment is provided in Section II.

Priority 1: Fully implement the new PSEA and solidify the PSC's independence

The coming into force of the new Public Service Employment Act (PSEA) marked the beginning of a major transformation in how positions are staffed in the public service. The transformation has required a major cultural change and necessitated public service managers who have been delegated staffing authority, as well as the human resources (HR) specialists supporting them, to be fully engaged in the process of transformation. The PSC provided a framework for the new staffing system and has continued to make adjustments facilitating flexible and values-based staffing.

Much work has been done to implement the PSEA but continued effort and senior leadership are needed to ensure full implementation. We are at the early stages of transformation and departments and agencies continue to rely on the PSC's guidance and training. During 2006-2007, the PSC has continued to offer support and guidance to departments and agencies to help them understand and take full advantage of the new staffing flexibilities. We have provided information sessions and developed guides and tools pertinent to the new Act. The Appointment Framework Knowledge Test (AFKT) has been used to test the knowledge of HR professionals and helped ensure they are familiar with the appointment framework and can assist managers in assuming their new responsibilities. In 2006, the PSC expanded access to the AFKT to external service providers. The PSC has also developed a five year policy agenda to address outstanding matters related to PSEA implementation.

While the PSC has always played an important role in protecting the impartiality of the public service, its responsibilities increased under the new PSEA. In 2006-2007, the PSC developed an approach to monitoring that will help guide the PSC on actions required to ensure a neutral public service. The new political activities regime also expanded the PSC's responsibilities to include municipal elections, considerably increasing the number of candidacy requests. The PSC provided guidance to identify and mitigate risks to political impartiality.

To better fulfill our obligations, the PSC must not only be seen to be independent, but must also function in the most independent manner possible. While we have been proactive in our actions to solidify our independence and clarify our standing as a unique, independent agency, more steps are possible. We have continued to strengthen our external and parliamentary communications to help parliamentarians understand the PSC's role and mandate and engage them in discussing staffing issues.

Priority 2: Provide recruitment and assessment services that respond to the needs of delegated managers and Canadians

The PSC has focused on modernizing its recruitment and assessment programs and standardizing its service levels to ensure the highest quality of service across Canada. The PSC has continued to take a lead role in ensuring Canadians, departments and agencies and public servants benefit from a full range of quality staffing services that respect key values and make the public service an employer of choice. The PSC's Staffing and Assessment Services Branch (SASB) tailors these services to attract talented recruits from across the country. SASB's services include recruitment, staffing, executive resourcing and assessment.

Most of the services provided by the PSC are now optional and complement those available within federal organizations. However, even with broad delegation of staffing authorities, departments and agencies continue to rely on a centralized source of staffing services. Not all departments and agencies have established sufficient internal capacity to provide the full range of staffing services.

During 2006-2007, the PSC continued work initiated in 2005-2006 on a comprehensive four-year business transformation project designed to assist us in adapting to the changes introduced by the new Public Service Employment Act (PSEA). This included examining ways to provide services through cost recovery mechanisms. The PSC will continue to offer quality services while implementing the changes required. It will also increase PSC's capacity in areas such as recruitment, research and analysis. Through transformation of its staffing and assessment services, the PSC's goal is to create a broad range of services that will support the four components of a well-functioning recruitment and staffing system:

• understanding hiring needs;
• branding and marketing;
• attracting talent; and
• enhancing processes.

The PSC aims to provide integrated, state-of-the-art recruitment and staffing services to federal organizations and job-seekers. The PSC has invested in systems and services to make the recruitment experience as efficient and effective as possible from both the job-seeker and departmental perspectives. For example, the PSC provides applicants with a single Web portal, at www.jobs.gc.ca, for all external recruitment. The common portal and enhancements made to our e-resourcing technology to manage increasing volumes of job applications has helped us make significant progress towards implementation of the National Area of Selection (NAoS) policy, thereby ensuring that all Canadians have access to public service job opportunities. By December 2007, the PSC expects that all jobs open to the public will use NAoS.

As well, the PSC is enhancing assessment tools through the development of e-testing programs across Canada, and modernization of its second language evaluation tools. As part of its Public Service Staffing Modernization Project, the PSC is improving the Public Service Resourcing System. This on-line application and screening tool facilitates external recruitment. In 2007-2008, the PSC will continue to focus on determining the requirements for a comprehensive, integrated and long term e-solution to support staffing and recruitment.

Priority 3: Ensure proper oversight and accountability to Parliament

Under the new Act, the PSC has the responsibility for overseeing and ensuring that staffing respects key public service values. Over the planning period, we have continued strengthening our oversight function in a variety of ways, including the introduction of stronger accountability requirements pursuant to the PSEA and more proactive use of monitoring, audit and investigation tools to detect problems early and take appropriate corrective measures.

More specifically, the PSC's Staffing Management Accountability Framework has proved an effective tool to assess the overall effectiveness of the staffing system and ensure deputy heads have exercised their delegated authorities in adherence to public service values. Our monitoring and assessment of departmental staffing performance provided valuable and timely feedback to deputy heads, enabling them to take timely corrective actions, as required, to improve their appointment processes. It also supported building their experience in managing staffing under the new Act.

In 2006-2007, the PSC continued to build its audit capacity through staffing, enhanced audit methodology, professional practices and risk-based audit planning. We produced five audit reports which focused on public service-wide issues such as executive acting appointments and the staffing activities of individual organizations. Work also progressed on development of an evaluation framework to assist in the identification of issues to be addressed during the five-year review of the new PSEA.

While still conducting appeals and investigations under the former PSEA, the PSC also implemented a new operational framework and process for investigations under the current PSEA. The PSC provided expert advice to help departments and agencies develop their own internal, values-based approaches to resolve staffing-related complaints early and informally. We have continued to make our investigation services available to deputy heads upon request.

Priority 4: Become a model organization in human and financial resources management

The PSC is committed to building a model organization through effective management practices and stewardship of its financial and human resources.

In 2006-2007, the PSC was proactive in implementing improvements to its budgeting and HR management and planning processes and practices, beginning with the preparation of audited financial statements and the introduction of independent outside members on the Internal Audit Committee. Our success at improving internal management practices has been noted in the PSC's 2006-2007 Management Accountability Framework (MAF) Self-Assessment, completed in March 2007. Results of our self-assessment report are in line with Treasury Board Secretariat's MAF assessment and will be used to formulate a management action plan to address areas requiring additional attention.

During 2006-2007, the PSC looked at ways to increase operational efficiencies. Redesign of our resource allocation process, particularly the use of zero based budgeting and risk management analysis has provided us the needed information and flexibility to internally reallocate resources effectively and efficiently to address priority needs.

With the renewed emphasis on HR planning, work has begun to implement measures to proactively manage corporate succession challenges, including talent management, knowledge retention and measures to build organizational audit capacity. The PSC has introduced many initiatives and tools to assist the organization to adapt to and take advantage of new flexibilities offered by the new PSEA. For example, mandatory training for managers and staff has been essential to ensure we possess the expertise required to support our client departments and agencies as well as ourselves in the transition from the old to the new PSEA. While there were some areas of overlap between the old and new PSEA during 2006-2007, particularly in the area of appeals, we have been successful in maintaining the required internal capacity.

In 2006-2007, the PSC has strived to establish itself as a model employer, and has adhered to best practices in HR management. We have continuously placed a high value on recognizing and responding to the needs and concerns of our employees as we transformed PSC governance and organizational structures to best meet our obligations under the new PSEA.

Section II - Detailed Performance by Program Activity

Strategic Outcome

A highly competent, non-partisan and representative public service, able to provide service in both official languages, in which appointments are based on the values of fairness, access, representativeness and transparency.

The PSC contributes to the achievement of this strategic outcome by:

• ensuring that the public service is non-partisan and that appointments across the public service are based on merit and are free from political or bureaucratic patronage;
• working with departments and agencies to implement recruitment strategies and staffing practices that respect the values of fairness, access, representativeness and transparency and are consistent with the new Public Service Employment Act (PSEA); and
• strengthening its accountability to Parliament regarding the health of public service staffing.

The PSC's performance measurement framework has been reviewed in 2006-2007 to adapt to our changing environment and our approved 2007-2008 Program Activity Architecture. The performance information presented in this DPR partially reflects the revised performance management framework.

Performance Indicator

Performance Information

Percentage of small, medium and large departments or agencies with fully satisfactory or better rating of staffing performance with respect to public service-wide staffing values and management principles.

The PSC's Annual Report presents the results of our oversight of departments' and agencies' staffing activities. It provides an overview of measures and progress towards each element of our strategic outcome: merit, official languages, non-partisanship, fairness, access, representativeness and transparency. Our revised performance measurement framework has been developed based on results outlined in our Annual Report. The information below identifies performance information on the achievement of our strategic outcome. Over time, we will measure primarily through longer-term trends identified from the PSC's analysis of annual data, from on-going audits and studies and from the five-year evaluation of the new PSEA. Overall The PSC continues to have confidence in the strength of staffing in the public service and the foundation of merit as the basis for hiring. Concerns persist in the area of permanent recruitment via temporary workforce, movement of public servants to and from exempt staff status, employment equity and visible minority drop off, use of non-advertised processes and departmental accountability to the PSC. Merit/Competency The PSC noted progress in implementing the new definition of merit. However, organizations' HR plans and strategies are not sufficiently developed to support full use of the flexibilities that the new definition of merit allows. Merit/Official Languages Progress has been made in addressing Official Languages concerns. Organizations have reduced the number of cases that do not respect the provisions of the Public Service Official Languages Exclusion Approval Order when initial exemption periods have expired. Non-partisanship The PSC continues to find little direct political influence in the staffing system.It is too early to assess the effectiveness of policies, procedures and decisions related to political activities of public servants. The measurement of this performance indicator is part of the overall PSEA evaluation framework being developed. Fairness The PSC continues to be concerned with perceptions of fairness in appointment processes. The increased likelihood of promotion following an acting appointment supports concerns expressed through employee surveys. Access The public service has doubled Canadians' access to public service jobs and the PSC is looking at how this can be further expanded.Broad and open access to all Canadians is an important value under the PSEA. The PSC is concerned that a reliance on temporary workers, as a significant source of recruitment into the permanent workforce, limits access. Representativeness Slow progress is being made towards a workforce that is representative of Canada's diversity. A significant gap remains in the representation of visible minorities. Despite an increase in recruitment to the public service in 2006-2007, departments and agencies have not used this opportunity to narrow the gap in the representation of visible minorities. In fact, the recruitment rate of visible minorities experienced a marked drop from 9.8% the previous year to 8.7% in 2006-2007. Transparency All advertised jobs are posted on readily accessible sites; andThe PSC does not have sufficient information to assess how organizations are using some provisions in the Act including the use of non-advertised appointments, and will continue to monitor this issue. More detailed information on staffing performance is presented in the PSC 2006-2007 Annual Report. The report is available on the PSC Web site at: http://www.psc-cfp.gc.ca/.

Resources

2006-2007 Financial Resources ($ thousands)

Program Activity	Planned Spending	Total Budget Authorities*	Actual Spending
Appointment Integrity and Political Neutrality	41,519	41,986	40,355
Recruitment and Assessment Services	63,275	65,834	58,521
Total	104,794	107,820	98,876

*Note: All Total Budget Authorities presented in this document exclude internal adjustments which were reflected in the Planned Spending figures.

2006-2007 Human Resources (Full-Time Equivalents) 

Program Activity	Planned	Total Budget Authorities	Actual
Appointment Integrity and Political Neutrality	392	386	351
Recruitment and Assessment Services	634	652	581
Total	1,026	1,038	932

Financial Performance Highlights

The PSC has spent $98,876K of the Total Budget Authorities of $107,820K, resulting in a lapse of $8,944K appearing in the 2006-2007 Public Accounts of Canada. 

The lapse and variance in Full-Time Equivalents are principally due to the transition period and related capacity building associated with the implementation of the new PSEA, staffing delays resulting from increased staff turnover and less than anticipated expenditures for an information technology project – the Public Service Staffing Modernization Project. The latter accounts for approximately $7,470K of the total lapse ($4,917K of which the PSC received permission to spend in 2007-2008).

Program Activity 1.1.0 - Appointment Integrity and Political Neutrality

Description:

The Appointment Integrity and Political Neutrality activity develops, maintains and monitors the implementation of a policy and regulatory framework for safeguarding the integrity of public service staffing and for ensuring political neutrality. This activity includes establishing policies and standards, delegation and oversight of appointment authorities to departments and agencies, and administering non-delegated authorities such as executive appointments and priority administration. This activity also includes conducting audits, studies, investigations and inquiries, as well as administering the appeal process under the former Public Service Employment Act (PSEA) and reporting to Parliament on the integrity of public service staffing.

Structure:

Related Resources:

Resources	Planned Spending	Total Budget Authority	Actual
Financial ($ thousands)	41,519	41,986	40,355
FTE	392	386	351

Results Achieved:

To ensure that Program Activity 1.1.0 is on track, the PSC established the following expected results and performance indicators. Our performance against these indicators at the program activity level is reported below.

Expected Results and Performance Indicators	Performance Information
Enhanced protection of the integrity of public service staffing. Performance Indicator: Percentage of small, medium and large departments or agencies with fully satisfactory or better rating of staffing performance with respect to staffing management and expectations for a well-managed staffing system.	The information presented below provides results of departmental reporting through the Staffing Management Accountability Framework (SMAF). Fiscal year 2006-2007 was the first reporting cycle that examined all mandatory measures of the SMAF and all the risks that the PSC has been monitoring. It was also the first reporting cycle that was covered in its entirety by the new Act. Overall, departments and agencies made notable progress in implementing the PSEA. Concerns remain in human resources planning, information systems and controls and communication. Governance: With few exceptions, organizations have put in place clear sub-delegation structures and managers have access to training and a human resources specialist. Planning: Most organizations provided the PSC with human resources plans. Further work will be needed to develop staffing strategies and include information that will help drive staffing decisions. Policy: Mandatory staffing policies are in place in most organizations. Communication: Most employees have easy and timely access to information on employment opportunities and recourse and organizations have mechanisms in place for communication. Some momentum has been lost in communicating changing approaches to staffing and staffing strategies. Control: Most organizations are making progress in implementing control and monitoring systems necessary for determining whether staffing results address organizational priorities and respect policy requirements, including the staffing values. However, these new monitoring systems are not yet able to support staffing decisions in many organizations. More information on staffing performance is presented in the PSC 2006-2007 Annual Report. The report is available on the PSC Web site at http://www.psc-cfp.gc.ca/
Strengthened accountability from the PSC to Parliament regarding the integrity of public service staffing. Performance Indicator: The number of potential PSC appearances before parliamentary committees measured against the number of actual appearances. Performance Indicator: Number of committee hearings on PSC issues.	The number of Standing Committee appearances increased from three in 2005-2006 to eight in 2006-007. A benchmark of five appearances has been established for 2007-2008. There were 183 Standing Committee hearings that dealt with matters of interest to the PSC, including official languages, representativeness, accountability and governance. This is an increase of 128 over the previous year.
Departments have implemented PSC audit recommendations. Performance Indicator: Percentage of audit recommendations implemented.	The PSC completed two follow-up audits in 2006-07: Follow-up Audit of the Office of the Privacy Commissioner and Follow-up Audit of the Military Police Complaints Commission. These follow-up audits were undertaken to determine whether these organizations had adequately responded to the recommendations in our previous audit reports and to determine whether they met the essential elements identified by the PSC to support the implementation of the new PSEA. We concluded that these organizations had adequately responded to the recommendations made in our previous audits and had made improvements in their staffing systems and practices. Consequently, the PSC removed the remedial measures it had previously imposed on these organizations and restored full delegation authority.
Protection of the impartiality of the public service with respect to political activities of employees while respecting the political rights of employees. Performance Indicator: Study findings of the effectiveness of policies, procedures and decisions related to the political activities of public service employees.	It is too early to assess the effectiveness of policies, procedures and decisions related to political activities of public servants. The measurement of this performance indicator is part of the overall PSEA evaluation framework being developed.

1.1.1 Policy, Regulation, Guidelines and Exclusion Approval Orders

Description: The Policy, Regulation and Exclusion Approval Orders (EAO) sub-activity develops and interprets policies and regulations and provides advice and guidance on them.

2006-2007 Financial Resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
7,122	7,506	7,101

Results Achieved:

Expected Result and Performance Indicator	Performance Information
Policy instruments achieve their objectives with respect to political neutrality and fair, effective and timely staffing in a delegated environment. Performance Indicator: Study findings of the effectiveness of selected policy areas, procedures and decisions including political activities.	The Policy and Audit, Evaluation and Studies Branches coordinated efforts to develop and implement an evaluation plan. Data is unavailable at this time as the evaluation process has just started.

RPP Commitment: Provide continuous support to departments and agencies through advice, interpretation, guidance, and sharing of best practices.

Status towards fulfilling commitment:

The PSC is dedicated to providing continuous support to departments and agencies regarding staffing under the PSEA. In 2006-2007 the PSC responded to 12,960 calls and e-mails requesting information and advice: down one percent from the previous year. SmartShop sessions were delivered to 2,396 participants across Canada.

Information Sessions Provided to Federal Departments and Agencies in 2006-2007
94 SmartShop Sessions acting appointments and official languages (26 sessions) informal discussion and notification (24 sessions) establishment and application of merit criteria (22 sessions) area of selection and mobility (22 sessions)
13 Get Ready Sessions
27 other information sessions
Support to committees, councils, and regional networks 45 council meetings

Feedback received from information sessions was positive. Of the 2,396 participants who attended SmartShop sessions, 88% indicated they had an above average overall perception of the session they attended.

RPP Commitment: Refine PSC policy instruments, regulations, guidelines and Exclusion Approval Orders (EAOs) related to appointments and political activities and review or develop new instruments, guidance and tools as required.

Status towards fulfilling commitment: 

Following the coming into force of the current PSEA in 2005, considerable work had been required to develop policy instruments, regulations, guidelines, and Exclusion Approval Orders (EAOs) and accountability frameworks. As departments and agencies have become more familiar with the new Act, opportunities to refine existing instruments and develop new tools have now emerged. During 2006-2007, the PSC also began a revision and review process.

A preliminary assessment of policy instruments was completed and progress was made on implementing recommended refinements. The PSC has developed a five-year policy agenda to address outstanding matters related to PSEA implementation and to ensure proactive responses to emerging issues. The policy agenda will address issues in key areas including the appointment framework, assessment, representativeness and political activity.

RPP Commitment: Support implementation of National Area of Selection (NAoS) and assess/report on the impact.

Status towards fulfilling commitment:

The PSC is committed to providing Canadians greater access to public service employment opportunities. The PSC implemented the Policy on Area of Selection, requiring that NAoS be used in advertised appointment processes open to the public.

In October 2005, the PSC announced a phased-in approach to expand the use of a national area of selection by federal departments and agencies. Effective April 2006, Phase 1 required departments and agencies offering jobs in the National Capital Region to use NAoS for all officer-level jobs open to the public. Phase 2, which came into effect in April 2007, expanded use of NAoS in all officer-level job processes across the country. Phase 3 will expand the use of NAoS in all jobs open to the public across the country.

In 2006-2007, the PSC completed an impact assessment report which found no significant barriers to the expansion of NAoS for officer-level positions.

RPP Commitment: Review Public Service Staffing Tribunal (PSST or Tribunal) complaints and intervene where appropriate, as well as disseminate lessons learned.

Status towards fulfilling commitment:

The Public Service Employment Act (PSEA) now divides responsibility for addressing staffing concerns among the PSC, departments and agencies, and the PSST. The PSC has the responsibility to investigate and take corrective action in circumstances regarding:

• the hiring of candidates from outside of the public service;
• the hiring of candidates within the public service where responsibility for hiring has not been delegated; or
• hiring processes where political influence or fraud has occurred.

Departments and agencies are responsible for investigating and taking corrective action regarding delegated internal appointments where errors, omissions or improper conduct have occurred, as well as responding to grievances resulting from deployments. The PSC investigates allegations of fraud or political influence with respect to internal appointments. The PSST's mandate is to consider and dispose of complaints stemming from an internal appointment, the implementation of a corrective measure ordered by the PSST, or the revocation of an appointment or lay-off.

In 2006-2007, the PSC actively used its right to be a party to complaints presented to the PSST to assess how the PSEA and the appointment framework are interpreted. The PSC has, for example, closely monitored complaints concerning abuse of authority since this represents a new ground for complaint. We anticipate that as the body of decisions increases, the need for PSC intervention will likely decrease.

RPP Commitment: Review Governor in Council Designation Order for organizations participating in internal nomination processes; develop and implement an approach for deployments from separate agencies.

Status towards fulfilling commitment:

Work on an omnibus designation order is ongoing. A need for further consultations and research was identified. A consultation action plan will be developed in the summer of 2007 and implemented thereafter. 

RPP Commitment: Provide advice on the right of public servants to engage in political activities while maintaining the impartiality of the public service; and assess candidacy requests of public servants.

Status towards fulfilling commitment:

Under the PSEA, the PSC is responsible for preserving the political impartiality of the public service. The PSC carries out four sets of activities to achieve this:

• provides guidance on political activities;
• considers and grants requests from public servants for permission to be a candidate in a election;
• monitors the political impartiality of the public service; and
• investigates allegations of improper political activities.

In 2006-2007, the PSC developed a monitoring approach to better manage risks to political impartiality and support the decision making process regarding corrective actions to mitigate risk. Departments and agencies were required to report to the PSC on actions undertaken to mitigate risks. Based on the analysis of this information, the PSC provided feedback and recommendations to deputy heads.

Since the current PSEA expanded the political activities regime to cover municipal elections, the number of candidacy requests has increased considerably. In 2006-2007, the PSC received 95 candidacy requests from employees for federal, provincial, territorial and municipal elections. This compared to 20 requests reviewed in 2005-2006. The increase in candidacy requests resulted from the inclusion of municipal elections under Part 7 of the PSEA (Seventy of 95 candidacy requests).

Twenty-nine employees were declared elected in 2006-2007. The status of political candidacy requests received by the PSC during the fiscal year is shown below.

Status of Political Candidacy Requests Reviewed by the PSC - April 1, 2006 to March 31, 2007

Level of Election	Permission Granted	Permission Not Granted	Requests Withdrawn Prior to PSC Review	Requests Pending PSC Review	TOTAL Candidacy Requests
Federal	9	0	2	3	14
Provincial	7	0	3	0	10
Territorial	1	0	0	0	1
Municipal	63	1	5	1	70
TOTAL	80	1	10	4	95

Source: PSC Internal Tracking System

The PSC adjusted the process for submitting candidacy requests and developed three forms to standardize the information provided. This is expected to help the PSC in its case by case review of candidacy requests and render more timely decisions to employees.

Two information sessions were delivered to a total of 89 political activities designates from federal organizations.

In 2006-2007, the PSC informed deputy heads of upcoming elections and provided them with communication messages to remind employees of the requirements under Part 7 of the PSEA related to political candidacy and activities.

RPP Commitment: Develop future-oriented vision for the PSC as an independent agency reporting to Parliament.

Status towards fulfilling commitment:

The PSC's work is based on a century-old tradition of a merit-based, non-partisan public service. The PSC works closely with government but is independent from ministerial direction with respect to its mandate. This independence from ministerial direction means that Parliament can rely on the PSC's reports regarding the government's hiring system. However, the PSC does not have a ready forum to advocate for its resource requirements. 

RPP Commitment: Contribute to the parliamentary review of the Employment Equity Act (EEA).

Status towards fulfilling commitment:

The PSC is contributing to this review by examining the application and effect of the EEA to ensure that it is consistent with the direction of the Public Service Modernization Act, and more particularly the PSEA. We have released a Consultation Document (available from PSC website: http://www.psc-cfp.gc.ca/ee/consultation/index_e.htm) which outlined our objectives and a number of issues which require additional clarification, consultation and discussion with departments and agencies, bargaining agents and employment equity groups. These include: merit and representativeness; self-identification and self-declaration; employment equity plans and programs; access and drop-off rates of designated groups and the duty to accommodate. A research report on the Drop-off Rates for Employment Equity Groups was also released on our website (http://www.psc-cfp.gc.ca/ee/drp-dcln/index_e.htm) to invite feedback from stakeholders. Timing for the EEA Review has yet to be established by Parliamentary Committee.

RPP Commitment: Contribute to PSC position for five- year parliamentary review of the PSEA.

Status towards fulfilling commitment:

The PSC continues its work towards the five-year parliamentary review of the PSEA. To prepare for the review, the PSC is developing an evaluation framework focussed on its responsibilities under the Act, on how well the legislation is responding to the challenges raised during its drafting and on how well it is likely to respond to changing views and objectives in staffing over time. The PSC will continue to examine and develop policy and legislative options for innovative staffing policies to meet new demands in the ever-changing public service environment.

1.1.2 Appointment Delegation and Accountability

Description: The Appointment Delegation and Accountability sub-activity administers the delegation of appointment authorities to departments and agencies through staffing advice and assistance, as well as learning products and services. This sub-activity also develops performance expectations for the use of delegated authorities and monitors the results achieved. It also contributes to the PSC's annual report to Parliament and ensures departments' and agencies' compliance with legislative requirements of the Public Service Employment Act (PSEA).

2006-2007 Financial Resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
8,594	9,609	8,602

Results Achieved:

Expected Results and Performance Indicators	Performance Information
Increasingly well managed delegated authorities.   Performance Indicator: Number of delegations restricted or removed by the PSC.	In 2006 – 2007, no additional delegated authorities were restricted or removed by the PSC. Three organizations continued to have modified Appointment Delegation and Accountability Instruments (ADAI) due to audit/oversight results as of March 31, 2007.
More effective accountability between the PSC and deputies with respect to staffing. Performance Indicator: Number of departments fully meeting staffing reporting requirements.	All organizations provided performance reports in response to the PSC's request. The staffing performance assessment for 2006-2007 included 72 of the 80 organizations that had delegated authority for staffing as of March 31, 2007. The reporting requirement was waived for four organizations where the PSC was conducting an audit. An assessment would have been premature for four newly created organizations. Overall, there is an improvement in the quality of the reports. Assessment of organizations is reflected in the PSC's Annual Report.

RPP Commitment: Perform regular reviews of all ADAIs signed with departments and agencies (approximately 80) to ensure deputy heads are properly exercising their delegated legal authorities; revise, modify or restrict ADAIs as appropriate.

Status towards fulfilling commitment:

The PSC continues to use its ADAIs to articulate the authorities it delegates to deputy heads and heads of agencies accepting delegated staffing authority under the PSEA. As of March 31, 2007, the deputy heads of 80 organizations had signed an ADAI and were in a position to exercise the delegated authorities of the PSEA according to the conditions and limitations prescribed by the ADAI.

In 2006-2007, the PSC amended the ADAI to include the guiding value of representativeness in addition to the core values of merit and non-partisanship and the guiding values of fairness, transparency and access. By ensuring that appointment processes are conducted without bias and do not create systemic barriers, deputy heads will help to achieve a public service that reflects the diversity of the Canadian population.

As a result of the amendments to the PSEA contained in the Federal Accountability Act, the ADAI was also amended to reflect the removal of entitlement to priority appointment for ministers' exempt staff under the PSEA.

The PSC met with 11 new (permanent, acting or interim) deputy heads to discuss the key messages of the Appointment Framework and the ADAI, including the application of the core and guiding values in the appointment process. This initiative provided deputy heads with an introduction to the flexibility of the PSEA as well as the conditions, limitations and accountabilities associated with their delegated authorities.

During 2006-2007, no new remedial measures or limitations needed to be imposed on any federal organizations to ensure compliance with the terms and conditions of their delegated staffing authorities. Of the five organizations with limitations imposed on their ADAIs during 2005-2006, standard delegated authorities were re-established for two: the Office of the Privacy Commissioner and the Military Police Complaints Commission. Details on the limitations and conditions applied to the remaining three organizations by the Commission can be found at http://www.psc-cfp.gc.ca/index_e.htm.

RPP Commitment: Refine and modify tools and products (guides, policies, interpretation support) required to support delegated organizations to ensure departments and agencies have the necessary information to legally manage their staffing authorities.

Status towards fulfilling commitment:

The PSC continues to provide advice and share best practices with departments and agencies across Canada on monitoring and reporting issues relating to staffing by participating in or sponsoring a variety of learning opportunities. Over 150 participants attended a PSC Staffing Management Accountability Framework (SMAF) learning event held in October 2006, and presentations were given to approximately 12 departments and agencies at various fora, including human resources conferences, and Association of Professional Executive consultations. In 2006-2007, the PSC delivered a total of 94 SmartShops across Canada on a variety of delegated appointment authority matters.

A second version of the Appointment Framework Knowledge Test (AFKT), which is designed to assess human resources specialists' knowledge of the new PSEA, was completed and implemented. Work on Version 3, as well as on electronic Versions 1 and 2, is under way and is expected to be completed in the next fiscal year. In 2006, access to the AFKT was expanded to include External Service Providers that are part of the National Master Standing Order and the Professional Services Online System of Public Works and Government Services Canada.

RPP Commitment: Monitor the delegation of PSC authorities to approximately 80 organizations through the implementation of an integrated risk management strategy which includes active monitoring, information gathering and reporting; put in place remedial measures when non-compliance occurs.

Status towards fulfilling commitment:

The PSC monitors the ongoing performance of public sector organizations with respect to how well they manage and use their delegated authorities. The Staffing Management Accountability Framework continues to be a key component in assessing staffing performance and providing direct feedback to department and agency heads. Analysis of staffing data collected from all PSEA departments and agencies is used to provide individualized assessments to deputy heads, feedback to the Committee of Senior Officials (COSO) and input for the Annual Report.

The PSC's monitoring involves the review and assessment of data from central systems, observations arising from specific cases and information provided by public service organizations. The PSC continuously gathers data from central systems such as pay information, survey responses and information from advertisements for public service opportunities. This data is reviewed to identify government-wide issues and practices that could pose a risk to the integrity of the staffing system. These issues are raised with the organizations involved, and addressed through the annual reporting cycle.

In 2006-2007, staffing performance assessments were followed by feedback letters to each organization. Five departments that were audited are being closely monitored to ensure the required corrective action is taken.

1.1.3 Non-Delegated Authorities

Description: The Non-Delegated Authorities sub-activity administers authorities that are not delegated to departments and agencies such as priority administration and Public Service Official Languages Exclusion Approval Orders (PSOLEAO).

2006-2007 Financial Resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
4,241	3,478	4,578

Results Achieved:

Expected Results and Performance Indicators	Performance Information
Proper consideration for appointments with priority rights. Performance Indicator: Percentage of individuals with priority rights appointed.	During 2006-2007, 29% of persons (672) with priority entitlements were appointed (675 in 2005-2006). There were 1,074 priorities carried over from the previous fiscal year and 1,247 new priorities registered. Two hundred and sixteen (216) entitlements expired.

RPP Commitment: Oversee the priority entitlements process to ensure the integrity of non-delegated ministers' staff and Governor General's Office appointments:

• determine whether exempt staff in ministers' offices and the Office of the Secretary to the Governor General meet the criteria to receive priority entitlement, as set out in legislation.

Status towards fulfilling commitment:

The PSC oversees the use of ministers' staff priority appointments. Controls have been established on the use of this entitlement. Of the nine requests received seeking confirmation of 

ministerial staff priority entitlements in 2006-2007, eight met the legal criteria. During 2006-2007, organizations appointed 37 former members of ministers' staffs having priority entitlement, including one appointment to the Executive (EX) Group. This compares to 25 priority appointments of former members of minister's staff in 2005-2006, including one appointment to the EX Group. In December 2006, the Federal Accountability Act amended the Public Service Employment Act (PSEA) to remove the right of ministerial staff to priority appointment in the public service. With respect to the excluded staff in the Office of the Secretary to the Governor General, there was no activity during 2006-2007.

RPP Commitment: Oversee the priority entitlements process to ensure departments and agencies respect legislation, policies and delegated authorities; monitor 30,000 to 40,000 staffing processes where priorities must be considered and verify entitlements for 1,000 or more priority persons and ensure they are informed of their rights and obligations.

Status towards fulfilling commitment:

The PSEA and the Public Service Employment Regulations entitle certain persons in career and workforce transition situations with the opportunity to be appointed, ahead of all others, to a public service position for which they are qualified. The PSC retains responsibility for ensuring that priority entitlement rights are respected and hiring organizations conduct their assessment of entitled individuals in a fair and transparent manner. Overall, 1,247 new persons who met the conditions for consideration for priority appointments (1,109 persons in 2005-2006) were registered and informed of their rights and obligations.

The PSC administers the Priority Information Management System (PIMS) to ensure that priority entitlements are valid and that departments and agencies observe them. In 2006-2007, the PSC took steps to address technical problems in the PIMS by releasing an improved reporting function module which is accessible to departments and agencies.

In 2006-2007, the PSC delivered 20 training sessions on priority administration to more than 700 human resources specialists across the country. Overall, the feedback received from the participants is quite positive and indicates a need for future sessions.

During 2006-2007, the PSC monitored 35,413 staffing processes where priority entitlements had to be considered (There were 22,287 in 2005-2006).

RPP Commitment: Monitor the application of the PSOLEAO:

• monitor data and cases of 70 or more departments on their use of the PSOLEAO's provisions for extensions; and
• grant exclusions under the PSOLEAO according to accepted criteria.

Status towards fulfilling commitment:

As part of its oversight function, the PSC actively monitors the application of the PSOLEAO. Monitoring is achieved through the collection and analysis of data on the use of the PSOLEAO provisions, visits and follow-ups with all delegated organizations. The PSC requires departments and agencies to report on their compliance with the PSOLEAO and provide action plans to ensure employees are meeting the linguistic requirements of their positions. The PSC also sends follow-up letters to all deputy heads to reinforce the importance of implementing internal monitoring mechanisms and resolving non-compliant situations.

During the year in review, departments and agencies have been successful in regularizing the majority of cases where employees' linguistic requirements had not been met previously. The number of non-compliant situations decreased significantly from 892 as of March 31, 2005 to 218 as of March 31, 2007. In 2006-2007, there were 31 extensions for members of the EX Group. In addition, there were four medical exclusions granted for all groups. There were 608 requests for information, advice and interpretation received.

1.1.4 Audits, Studies and Evaluations

Description: The Audits, Studies and Evaluations sub-activity conducts independent audits, studies and evaluations and reports to Parliament on the integrity of the appointment process, including the protection of merit and political neutrality.

2006-2007 Financial resources ($ thousands) 

Planned Spending	Total Budget Authority	Actual
11,798	11,493	10,653

Results achieved:

Expected Results and Performance Indicators

Performance Information

Departments understand reports and follow up on issues we report. Performance Indicator: Percentage of audit recommendations accepted.

We completed two follow-up audits in 2006-07: Follow-up Audit of the Office of the Privacy Commissioner and Follow-up Audit of the Military Police Complaints Commission. We concluded that these organizations had adequately responded to the recommendations made in our previous audits and had made improvements in their staffing systems and practices. Consequently, the PSC removed the remedial measures it had previously imposed on these organizations. We also completed the audits of Acting Executive Appointments, Readiness for the new Public Service Employment Act (PSEA) and the Canadian Space Agency. The audit recommendations in these three reports were accepted by the deputy heads of the departments and agencies audited.

RPP Commitment: Perform independent audits and studies that are relevant and meet quality assurance standards (approximately six audits and two studies per year).

Status towards fulfilling commitment:

The PSC performs audits, studies, evaluations and statistical studies as part of its mandate to safeguard the integrity of staffing in the public service and the political impartiality of public servants. The PSC selects audits of staffing activities either within a single department/agency or across multiple departments/agencies, based on criteria such as the relevance of proposed topics to our vision, mandate and strategic outcome, the assessment of risk using its monitoring activities and availability of resources. The PSC's audit mandate covers all departments and agencies to which it has delegated staffing authority. It also includes the PSC itself, for its non-delegated staffing responsibilities and for its overall direction to departments and agencies on policies and procedures for safeguarding the integrity of the appointment process.

As shown in the table above, five audits were completed during the year. Progress was made on other audits including the Audit of EX Appointments which is expected to be finalized in early 2008. In addition, work continued on our statistical studies series. In 2007-2008, we plan to finalize a number of audits and statistical studies, including: Acting Appointments and Subsequent Promotions in the Federal Public Service; To What Extent Do Casuals Become Employed under the Public Service Employment Act?;and New Indeterminate Hires: Who Are They?. While we had originally planned to release two of these studies in 2006-07, we delayed their release to 2007-2008 due to lack of available resources.

RPP Commitment: Build the capacity of the audit function by continuing to establish audit processes and methodology, by strengthening a risk-based planning system for the selection of audits and studies, and by establishing a human resources plan including recruitment and learning strategies.

Status towards fulfilling commitment:

The PSC continues to build the audit function capacity through a variety of mechanisms. In 2006-2007, the PSC staffed four new executive level positions within the Audit, Evaluation and Studies Branch and continued to build the capacity of its professional staff through coaching, mentoring and training opportunities. The audit methodology was strengthened through the development and implementation of new audit guides and tools. Also, a preliminary risk-based framework for planning oversight, including audits, studies and evaluation was developed.

Capacity building of the audit function remains a priority of the PSC and is expected to take place over a three year period.

RPP Commitment: Support the longer-term planning of audits and studies by developing an evaluation framework for the five-year review of the new PSEA.

Status towards fulfilling commitment:

Significant progress was made on the development of the evaluation framework for the five-year review of the new PSEA. A draft plan has been developed and final consultations are planned for the summer of 2007.

RPP Commitment: Establish an Independent Audit Advisory Committee, comprised of senior external experts, to review audit plans and findings.

Status towards fulfilling commitment:

The Independent Audit Advisory Committee was established and met for the first time in June 2006. The objective of the committee is to seek input and advice on the audits, studies and evaluations of the PSC. This contributes to the quality and independence of these reports. Committee members provide strategic advice on plans for audits, studies and evaluations; advice on the objectives of this work, general approach and matters of significance to be reported; provide input on new developments in the domains of human resource (HR) management and the auditing profession and provide strategic advice on their impact on audits. The committee is expected to meet about twice a year.

RPP Commitment: Provide appointment data and analysis and maintain related information systems to support the PSC's oversight role and the information needs of departments and agencies.

Status towards fulfilling commitment:

The PSC's appointment data and related analysis provide key input into a variety of products that support our oversight function. For example, this data and analysis is used in the preparation of the PSC's Annual Report, in audits and in statistical studies. The PSC Survey of Appointments, which collects appointment information on appointments across the public service, was adapted to the new legislation and work was initiated to expand the coverage of the survey and to increase the reliability of the survey results as they apply to departmental populations. The Job-Based Analytical Information System, developed to generate and store appointment information, is used to support not only the PSC, but also the analytical needs of departments and agencies, particularly in the area of HR planning.

1.1.5 Investigations

Description: The Investigations sub-activity conducts investigations related to appointment process complaints under the new Public Service Employment Act (PSEA) and allegations of improper political activity. When applicable, it provides early intervention services. This sub-activity also administers appeals and investigations under the former PSEA.

2006-2007 Financial Resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
9,764	9,900	9,421

Results Achieved:

Expected Results and Performance Indicators	Performance Information
Fair, effective, informal and expeditious investigation activities, using the principles of natural justice. Performance Indicator: Study findings of the fairness, effectiveness, expediency and informal nature of investigation activities.	In May 2006, the PSC Investigations Branch completed a comparative analysis on the fairness, effectiveness and timeliness in resolving staffing complaints. This analysis was done using four years of internal data and benchmarking information from seven similar organizations. The results of the study were reported in the 2005-2006 DPR. A similar study was not completed for 2006-2007. A new performance measurement framework, in line with our responsibilities and priorities under the new PSEA, has been developed and will be implemented in 2007-2008.
Performance Indicator: Percentage of investigation activities resolved through Alternative Dispute Resolution (ADR) processes, where appropriate.	ADR processes were conducted in 22% of accepted cases in 2006-2007 compared to 34% in 2005-2006. This is directly attributed to the high turnover rate of investigators, since new investigators are first trained in investigations content before they are ready to conduct early intervention processes.
Fair and timely resolution of appeals and investigations under the old PSEA.Performance Indicator: Average completion time.	Average disposal time for appeals: 2005–2006: 84 days to complete. 2006–2007: 137 days to complete. Average disposal time to complete investigations: 2005–2006: 139 days to complete. 2006–2007: 180 days to complete. The increase in average disposal time can be explained by the addition of quality assurance mechanisms and high turnover rates amongst investigators. However, these additional mechanisms have further minimized the risk of having decisions judicially reviewed and overturned by the Federal Court.

RPP Commitment: Finalize the implementation of a new operational framework and process for investigations to enhance oversight capacity, including policies, guidelines and procedures for the PSC mandated investigations, deputy head requested investigations and improper political activities investigations; and continue building Investigations Branch capacity through developmental programs, recruitment and knowledge transfer initiatives and learning strategies.

Status towards fulfilling commitments:

In 2006-2007, the PSC finalized and approved a new operational framework which supports mandated, deputy head and improper political activity investigations. Operational manuals are also being developed.

The PSC has undertaken a benchmarking study of four similar external organizations, to be completed in 2007-2008, to identify best practices. A Junior Investigator training and development plan was also established as part of the Branch's recruitment and retention strategies.

RPP Commitment: Conduct ADR processes for mandated investigations, where appropriate, under the new PSEA, as well as early interventions (EI) and mediation for appeals and investigations under the old PSEA.

Status towards fulfilling commitment:

Early Intervention (EI) processes were offered in 72 of 90 cases accepted for investigation under the new PSEA, the remaining 18 cases proceeded directly to investigation or had yet to proceed to EI as of March 31, 2007.

Former PSEA	# EI Offer	# EI Declined	# EI Accepted	Results of Meeting - All Appellants Withdrew	Results of Meeting - An Appeal Hearing Needed to Take Place (Note 1)
2005-2006	508	147	359	101	258
2006-2007	129	28	101	22	79

New PSEA	# EI Offer	# EI Awaiting Response or Offer	# EI Not Accepted (includes declined or no response)	# EI Accepted	Results of Meeting (out of 31) (remainder not yet processed)
2006-2007	72	20	21	31	Resolved: 4	Unresolved or Discontinued: 3

Source: Investigations Branch Electronic Data Tracking System
Note 1: Includes processes where some appellants withdrew and appeals needed to take place.

RPP Commitment: Conduct investigations under the new PSEA. (There are approximately 700 requests for investigations annually).

Status towards fulfilling commitment:

The new PSEA provides the PSC with the authority to investigate staffing activities and improper political activities in the following cases:

• external appointments;
• internal appointments, if not delegated;
• delegated internal appointments, at the request of deputy heads;
• appointments involving possible political influence;
• appointments involving possible fraud; and
• allegations of improper political activities.

Statistics on PSC investigations are provided below.

 Source: Investigations Branch Electronic Data Tracking System

In addition, seven investigations were completed during 2006-2007: two were deemed unfounded, three were discontinued and two were resolved through EI. Additional information on the types of issues under investigation is available in the 2006-2007 PSC Annual Report.

We anticipate demand for our investigation services under the new PSEA to increase as the new PSEA is fully implemented and recourse under the old PSEA is exhausted. To assess deputy head interest in our investigations services, letters were sent to departments listed in Schedule 1of the Financial Administration Act. These responses, coupled with the results of the benchmarking study to be completed in 2007-2008, will guide us in formulating strategic plans concerning our investigation function.

RPP Commitment: Continue to hear appeals and conduct investigations to complete the load of cases being received under the former PSEA. (There were approximately 3,000 requests for appeals annually under the old PSEA.)

Status towards fulfilling commitment:

Most appeals and investigations completed by the PSC in 2006-2007 related to the former PSEA. During 2006-2007, 704 employees (appellants) appealed 267 selection processes under the former Act, compared to 1,098 processes in 2005-2006. Lower appeal numbers were expected this fiscal year due to the decreasing number of selection processes eligible to be appealed under the former Act. In total in 2006-2007, the PSC dealt with 572 appeals, of which 95 (17%) were allowed. These included appeals from the previous year that were processed during the current year. Appeals were allowed for a variety of merit-related reasons including: notice of competition, improper assessment, conduct of selection board, failure to assess qualifications and composition of the selection board.

Source: Investigations Branch Electronic Data Tracking System

Some outstanding appeals and investigations under the former PSEA will be carried over into 2007-2008. As of March 31, 2007, 45 appeals of selection processes were being finalized. Appeals are expected to be completed by the first quarter, and investigations by the third quarter of 2007-2008.

The overlap with investigations being undertaken under the old and new PSEA, combined with legal issues and judicial reviews, has resulted in some delays in closing files that remained outstanding under the former PSEA as of March 31, 2007. During last fiscal year, 197 requests for investigations under the former PSEA were received and 83 new investigations were opened, compared to 500 and 232 respectively, in 2005-2006.

Source: Investigations Branch Electronic Data Tracking System

During 2006-2007, 121 investigations (159 in 2005-2006) relating to the former Act were closed, of which 29 (24.8%) were founded; 25 (20.7%) were resolved through mediation or other early resolution mechanisms; 41 (33.9%) were unfounded; 24 (19.8%) were withdrawn or discontinued and one was closed because it was not within the PSC's jurisdiction. As of March 31, 2007, 117 investigations under the former Act were being finalized.

Program Activity 1.2.0 - Recruitment and Assessment Services

Description:

The Recruitment and Assessment Services activity develops and maintains the resourcing systems that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies. It provides assessment-related products and services in the form of research and development, consultation, assessment operations and counselling for use in recruitment, selection and development throughout the federal public service. This activity also includes delivering resourcing services, programs and products to departments and agencies, to Canadians and public servants, through client service units located across Canada.

Structure:

Related Resources:

Resources	Planned Spending	Total Budget Authority	Actual
Financial ($ thousands)	63,275	65,834	58,521
FTE	634	652	581

Results Achieved:

To ensure that Program Activity 1.2.0 (Recruitment and Assessment Services) is on track, the PSC established the following expected results and performance indicators. Our performance against these indicators at the program activity level is reported below.

Expected Results and Performance Indicators	Performance Information
Recruitment and assessment services and products meet the business needs of clients and are consistent with PSC staffing policies. Performance Indicator: Study findings.	During March 2007, focus group sessions with key stakeholders were held across Canada. The consultations sought feedback from both hiring managers and members of the human resources (HR)/staffing community on their needs as well as other issues emerging from the transformation of the Staffing and Assessment Services Branch's (SASB) services. Preliminary feedback of clients based on our consultation sessions provided the following recommendations: improve current services, with continued traditional services and products (student/graduate recruitment, Personnel Psychology Center (PPC) services/tests) being offered; provide support for high volume activities (collective staffing, National Area of Selection support, test administration and facilities); share our service standards; and offer flexible integrated services to accommodate organizations with differing sizes, capacities and service level requirements. In addition, regional updates are provided regarding SASB transformation. In early 2007, the Central and Southern Ontario Region met with the regional offices of such departments and agencies as Environment Canada, Health Canada, Public Health, Canadian Heritage and Courts Administrative Service to discuss the SASB transformation. Meetings also took place with the Human Resources Leadership Council of Ontario and the Ontario Staffing Council to discuss transformation and to receive feedback from clients.
Clients are satisfied with recruitment and assessment services and products. Performance Indicator: Percentage of departmental clients satisfied or very satisfied overall with recruitment and assessment services.	PSC consultations The focus group sessions held across Canada with key stakeholders provided valuable input regarding business needs. Public Service Resourcing System (PSRS) surveys PSRS provided a survey link to employment equity (EE) applicants to collect information to support the PSC EE drop-off study. Jobs.gc.ca Public opinion research was conducted on the satisfaction with the jobs.gc.ca site. Overall, 86% of the people surveyed are satisfied with the jobs.gc.ca site, including elements such as structure and content. The site is seen as being user friendly and easily navigable (speed, clarity, and buttons). PPC surveys Client satisfaction data suggest clients are pleased with test services (shipping, scoring, results management and communication, etc.) in the PPC. Ninety-three percent of respondents indicated they “agreed” or “strongly agreed” that PPC responded quickly to their requests and were “completely satisfied” with the service provided. Ninety-two percent of respondents indicated that PPC staff were “friendly and courteous” in responding to their needs. Review of Service Standards The review of Service Standards has been delayed to 2007-2008. The review will be completed as part of a full review of SASB's service standards.

1.2.1 Recruitment and Staffing Services

Description:

The Recruitment and Staffing Services activity develops and maintains the resourcing systems that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies. This activity also includes delivering resourcing services, programs and products to departments and agencies, to Canadians and public servants, through client service units located across Canada.

2006-2007 Financial resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
30,052	32,173	30,892

Results Achieved:

Expected Results and Performance Indicators	Performance Information
Recruitment services delivered within service standards. Performance Indicator: Percentage of recruitment services delivered meeting service standards.	The review of existing service standards for new products and services has been delayed to 2007-2008. The review will be completed as part of a full review of Staffing and Assessment Services Branch's (SASB) service standards.
Fair, effective and responsive staffing of executives across the public service. Performance Indicator: Service improvements resulting from client consultations.	Executive Resourcing sought client input to advise on current perceptions and needs. The consultations indicated a continuing need to be proactive in the human resources (HR) community, to focus our resources and to strive to improve speed of staffing processes for executive resourcing. A client satisfaction survey has been developed to further assist in tracking service delivery performance.

RPP Commitment: Deliver high-quality general and central (corporate) recruitment services, programs and products customized to the new Public Service Employment Act (PSEA), to departments and agencies, Canadians and public servants, through client service units located across Canada. Central (corporate) programs include the Federal Student Work Experience Program (FSWEP), Post-Secondary Recruitment (PSR) Program, Research Affiliate Program (RAP) and Recruitment of Policy Leaders (RPL) Program. (For 2006-2007, the forecasted volume: is 3,700 requests for central (corporate) recruitment and 7,500 requests for general recruitment.)

Status towards fulfilling commitment:

In 2006-2007, the PSC supported departments and agencies by providing general and central (corporate) recruitment services, programs and products aimed at attracting talented recruits from across the country. Through the SASB, the PSC offered Canadians a wide range of employment opportunities in the federal public service.

General Recruitment
Even with broad delegation of appointment authorities, departments and agencies still need access to a source of staffing services complementing those available within their organization. The PSC's long-standing recruitment and staffing expertise positions us well to be the provider of choice. The PSC's approach to services supports four components of a well-functioning recruitment and staffing system: understanding hiring needs, branding and marketing, attracting talent and continually enhancing processes. Through the provision of high quality services, the PSC is committed to creating and maintaining a representative public service that promotes linguistic duality and pursues excellence.

In 2006-2007, PSEA and non-PSEA departments and agencies posted a total of 6,439 external staffing advertisements, which generated 1,140,149 applications. In 2006-2007, the PSC administered 95.7% of external recruitment processes. The high number of requests serviced by the PSC demonstrates a continuing demand exists for the PSC's recruitment and staffing services.

General Recruitment Statistics	2003-2004	2004-2005	2005-2006	2006-2007
Applications	440,363	556,383	675,368	1,140,149
Recruitment requests from departments	3,208	7,786	8,496	9,511
Advertisements	n/a	n/a	n/a	6,439
Jobs.gc.ca Website visits	14,785,000	14,534,000	17,754,000	22,976,000
Infotel inquiries	174,255	116,167	100,297	70,588

Source: Automated Screening Reports, Public Service Resourcing System (PSRS). Priority Information Management System and Service Canada

The PSC offers Canadians common points of access to a complete range of employment opportunities across the public service of Canada. The PSC's appointment policy requires departments and agencies advertising external job opportunities (outside the public service) to post opportunities on the jobs.gc.ca Website and on Infotel or on that of an alternative service provider. Infotel allows Canadians to listen to information regarding job advertisements posted on jobs.gc.ca via the telephone. In 2006-2007, a total of 22,976,000 visits were made to the jobs.gc.ca Website and 70,588 calls were made to the Infotel service. The table demonstrates that the number of visits to the jobs.gc.ca Website continues to increase as inquiries to Infotel decrease.

The PSC conducted a survey to determine whether the revised Website is meeting the needs of Canadians, public service employees, HR specialists and hiring managers. Results show a high overall satisfaction (86%) with the jobs.gc.ca site. Jobs Web site visitors indicated that the site is easy to navigate, has a good layout and is user-friendly. However, 12% of respondents noted that it is not easy to find information on the site.

Central (Corporate) Recruitment Programs
The PSC offers efficient, targeted recruitment strategies that match candidates with career opportunities in the federal public service. The PSC administers five central (corporate) recruitment programs that target students and post-secondary graduates – the Federal Student Work Experience Program (FSWEP), the Cooperative Education and Internship Program (CO-OP), the Research Affiliate Program (RAP), the Post-Secondary Recruitment (PSR) Program and the Recruitment of Policy Leaders (RPL) Program. In 2006-2007, use of specialized recruitment programs continued to increase as organizations and functional communities strove to attract and hire a diverse, representative and competent workforce to the federal public service.

Central (Corporate) Recruitment Programs – 2006-2007

	FSWEP		RAP		PSR		RPL
	2005-2006	2006-2007	2005-2006	2006-2007	2005-2006	2006-2007	2005-2006	2006-2007
Number of applications received:	76,000	71,402	168	175	35,227	31,686	2,300	1005
Number of requests	8,494	10,187	67	93		n/a
Number of referrals	37,819	56,162		76	8,777	9,599
Number of appointments	8,581	9,574	53	36	550	429	33	70
Number of re-employments		1,833		95		n/a

CO-OP
In 2006-2007, departmental and agency demand for Co-op students remained stable. There were 3,465 Co-op students hired compared to 3,454 students in 2005-2006.

Post-Secondary Recruitment
The PSC's ongoing efforts and success at encouraging the use of the PSR program by federal organizations is reflected in the number of career choices advertised in 2006-2007. Combined, the two PSR campaigns held over the fall and winter of 2007 advertised a total of 22 career choices at 15 organizations. In 2007-2008, the PSC will continue examining various options to enhance the participation of federal departments and agencies.

RPP Commitment: Provide delegated staffing and recruitment services to departments and agencies under new service agreements.

Status towards fulfilling commitment:

The National Capital and Eastern Ontario Region supports staffing for, among others, the Copyright Board of Canada, the Patented Medicine Prices Review Board, the Registry of the Competition Tribunal and the Canadian Intergovernmental Conference Secretariat. The PSC will continue to offer this valuable service, as required.

RPP Commitment: Maximize opportunities under the new PSEA and conduct consultations with clients to facilitate the implementation of National Area of Selection (NAoS) and the development of new products and services. 

Status towards fulfilling commitment:

The expansion of the NAoS increased the number of applications for some processes. The use of electronic tools such as the PSRS is an effective and efficient way to manage the receipt and screening of applications in high volume situations. Prior to the PSRS, all applications were screened manually. Data obtained through the initial pilots indicated that this generally took three weeks and resulted in the elimination of 15% of applications that did not meet the screening criteria. The PSRS includes a functionality to obtain and screen on information from the individual applicant's profile as well as text boxes, screening questions and experience questionnaires. In 2006-2007, 1,071,365 applications were received for the 5,671 advertisements for organizations under the PSEA. Of these, 338,486 applications were screened out, representing an overall screen-out rate of 32%. Out of the same population, 2,423 advertisements utilized at least one screening tool, which resulted in a screen-out rate of 45% (303,201 applications out of the 670,322). 

Continuing use of e-screening is critical for high volume management of applications that may results from NAoS. The PSC is committed to maximizing the use of technology in staffing through our services and training.

RPP Commitment: Provide executive staffing services to departments and agencies (Forecasted volume for 2006-2007 is: 500 executive staffing actions initiated and 450 executive staffing appointments).

Status towards fulfilling commitment:

The PSC works in close partnership with federal departments and agencies to provide full staffing services for the Executive (EX) Group. Provision of these services by the PSC ensures adherence to the key staffing values of fairness, accessibility, transparency and representativeness. It also supports ongoing, government-wide EX Group renewal efforts.

In 2006-2007, the PSC provided recruitment, assessment and selection services for 603 executive staffing processes at the EX-1 to EX-3 levels. (There were 696 staffing requests in 2005-2006.) This surpassed the expected forecast of 500 staffing requests. 

RPP Commitment: Conduct client consultations to assess needs and identify service improvements.

Status towards fulfilling commitment:

The PSC undertook extensive nation-wide consultations with external clients on their need for staffing and assessment products and services, as well as other components of the service delivery model. During March 2007, focus group sessions were held across Canada with key stakeholders such as the Association of Professional Executives of the Public Service of Canada, the National Managers' Community, the Human Resources Council, the National Staffing Council and the Personnel Advisory Group. The consultations sought feedback from both hiring managers and members of the HR/staffing community on their needs as well as on other components emerging from the transformation of PSC's services.

An IT Web-based Client Satisfaction Survey was established in 2006-2007. This survey tool allows for one hundred percent sampling. Survey results will provide feedback to the PSC for ongoing service improvements. The results will be available in 2007-2008.

1.2.2 Assessment Services

Description:

Assessment Services provides assessment-related products and services in the form of research and development, consultation, assessment operations and counselling for use in recruitment, selection and development throughout the federal public service.

2006-2007 Financial resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
13,394	13,112	13,841

Results Achieved:

Expected Result and Performance Indicator

Performance Information

Assessment services delivered within service standards. Performance Indicator: Percentage of assessment services delivered meeting service standards.

There is ongoing monitoring of Second Language Evaluation (SLE) Oral Interaction (OI) testing against the Personnel Psychology Centre's (PPC) two week service standard for OI testing. Significant progress was achieved in French OI Testing (the average French OI wait time for the month of March 2007 was four weeks in the National Capital and Eastern Ontario Region (NCEOR) and four weeks in Montreal, while the average for the full fiscal year was seven weeks in the NCEOR and eight weeks in Montreal). Some delays were experienced in providing English OI testing within established service standards (the average English OI wait time for the month of March 2007 was 16 weeks in the National Capital and Eastern Ontario Region (NCEOR) and 12 weeks in Montreal, while the average for the full fiscal year was seven weeks in the NCEOR and nine weeks in Montreal). This issue will be addressed in 2007-2008. Client satisfaction data collected in Test Services indicated clients are pleased with test services (shipping, scoring, results management & communication etc.) in the PPC. Ninety-three percent of respondents indicated they “agreed” or “strongly agreed” that the PPC responded quickly to their requests and indicated that they were “completely satisfied” with the service provided, while 92% of respondents indicated that PPC staff were “friendly and courteous” in responding to their needs. Assessment service standards will be reviewed as part of the Staffing and Assessment Services Branch (SASB)-wide initiative to review service standards in 2007-2008.

RPP Commitment: Provide assessment-related development, operational, research and consultation services and products for use in recruitment, selection and development throughout the federal public service through appropriation and cost recovery. (For 2006-2007, the forecasted volume is: testing: 115,000 tests administered, including 64,000 SLEs; number of new products modified or developed: 30).

Status towards fulfilling commitment:

In the federal public service, assessment products and services play an integral part in the health of the staffing system. The PSC develops and administers professional assessment instruments with a three-fold objective:

• ensure merit is observed;
• act as essential tools in recruitment; and
• provide public servants with invaluable feedback regarding strengths and developmental needs.

To meet these objectives, the PPC offers a broad range of assessment products and services to federal departments and agencies. The PPC, in addition to conducting research and developing assessment tools, offers consultation, counselling and assessment services. It helps determine the assessment needs of federal departments and agencies and develops products and services that identify talent and measure competencies for a variety of positions.

In 2006-2007, the PSC experienced a significant increase in the demand for standardized tests and related services. A total of 180,591 assessments were completed by the PPC, representing an increase of 11% over the 162,200 assessments reported in 2005-2006. SLEs reached 81,458, an increase of 4.1% over the 78,232 in the previous year. Increases are likely due to a range of factors, including expansion of the National Area of Selection, increased recruitment activity and increased use of collective staffing.

A range of new and modified assessment instruments was introduced during the fiscal year. Development of new SLE instruments to assess writing proficiency was completed, including multiple versions of evaluation products in English and French and alternative versions for persons with disabilities. The PPC also formally introduced Identification of Paths to Executive Development, a new assessment instrument designed specifically for executive development. Along with these standardized PSC instruments, a variety of tools were developed and tailored to meet specific departmental requirements.

RPP Commitment: Develop and update instruments and procedures, including SLE.

Status towards fulfilling commitment:

The PSC is responsible for all SLEs for appointment processes in the federal public service. It fulfills this responsibility through the development, maintenance, administration and scoring of a range of SLE instruments. In 2006-2007, the PSC continued modernizing its suite of instruments, including improving its second language evaluations.

Development of a new SLE writing test was initiated in 2005 to allow incorporation of today's language lexicon and assessment practices. Piloted in the fall of 2006, the PSC now has two new SLE writing tests (English and French) which support public service renewal. These will be implemented in 2007-2008. Plans are also under way to develop two new second language OI tests (English and French).

During 2006-2007, the PPC focused on the review and management of service standards in the delivery of OI testing. To this end, the PPC implemented a five-point improvement strategy aimed at decreasing SLE OI wait times. By the end of March 2007, SLE OI wait times were four weeks in the NCEOR and four weeks in the Quebec Region.

RPP Commitment: Establish an e-testing implementation strategy and priorities in 2006-2007 and stabilize e-testing operations in 2007-2008.

Status towards fulfilling commitment:

The PPC offers a selection of tests in electronic format (e-testing). The PSC progressed significantly in implementing e-testing, thereby increasing staffing process efficiencies. Operational e-testing centres are now in place in numerous regions across the country, including Montreal, Vancouver, Ottawa and Toronto. Further expansion of e-testing facilities is planned for 2007-2008.

RPP Commitment: Prepare a Treasury Board (TB) submission seeking continued authority to re-spend revenue beyond 2006-2007.

Status towards fulfilling commitment:

A TB submission was not required due to the approval, through the Main Estimates in June 2006, of the net voting authority for the two-year period ending March 2008. A TB submission covering a broader range of SASB services, including the PPC, will be completed in fall 2007. A new fee structure for the PPC was developed and implemented in April 2007

1.2.3 Client Services

Description:

Client Services develops products and tools that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies.

2006-2007 Financial resources ($ thousands)

Planned Spending	Total Budget Authority	Actual
19,829	20,549	13,788

Results Achieved:

Expected Results and Performance Indicators	Performance Information
Timely supply of suitable candidates. Performance Indicator: Average time to supply candidates.	A study was undertaken to determine the reporting requirements of the Public Service Resourcing system (PSRS). This work is being moved forward to advance data availability on issues, including the average time required to supply candidates.
Increased efficiencies through faster screening and referrals and more manageable numbers of referrals. Performance indicators: Statistical evidence of faster screening and referrals; and Statistical evidence of fewer referrals.	The PSRS is an electronic screening tool that reduces the time required to screen job applications for federal public service jobs and increases screening effectiveness by reducing the number of applications referred to departments. Prior to PSRS, all applications were screened manually. This took up to three weeks, depending on the number of applications. With PSRS, this time is reduced to 48 hours from the closing date of the job advertisement. The level of screening effectiveness has also increased with electronic screening. Manual screening of job applications resulted in approximately 73% of applications received being referred to departments, compared to 45% using electronic screening. The importance of continuing with e-screening is critical given the increased volume of job applications with National Area of Selection. The PSC is committed to continuing its efforts to maximize the use of technology in staffing.

RPP Commitments:

• Develop and implement new central (corporate) recruitment programs to respond to client needs.
• Perform external labour market analyses.
• Develop marketing strategies material, assess departmental and agency need and translate them into technological solutions.

Status towards fulfilling commitments:

New recruitment activities and labour market analysis
The PSC works with central agencies and departments to identify shortage areas and potential labour supply markets for targeted recruitment. In 2006-2007, shortage areas were identified for the Government of Canada's, human resources community and the Science and Technology communities.

The PSC managed two collective recruitment strategies for the Human Resource community at the PE-03/PE-04 and PE-01/PE-02 levels. Through the PE-03/PE-04 initiative, 606 of 1,970 applications received were screened in. To date, the PSC has received 150 requests from 35 organizations to staff 268 positions. Seven appointments have been made as a result of this campaign. The PE-01/PE-02 collective process, held via the PSR fall campaign, generated a total of 1,886 applications. We expect collective recruitment initiatives will be an effective mechanism to address the government-wide shortage of PE-group professionals.

The Science and Technology (S&T) community also used PSR to attract recent graduates in scientific fields of study and create an inventory for use by all science-based organizations within government. Held in the fall of 2006, the campaign generated a total of 2,192 applications. Health Canada and Environment Canada have expressed an interest in using the S&T inventory to staff approximately 200 positions.

Marketing strategies
Consultations are ongoing with government organizations to discuss their recruitment and staffing needs and possible partnerships through new services and approaches. Communication of central (corporate) recruitment programs was enhanced through the PSC's support of the government's PS Renewal initiative. This has resulted in a greater awareness of specialized recruitment programs and increased interest from hiring organizations.

The PSC has developed a national marketing strategy and action plan for increasing the Aboriginal workforce.

RPP Commitment: Support implementation of e-resourcing to departments and agencies, aligned with the Government's agenda on Corporate Administrative Shared Services and human resources (HR) modernization. In 2006-2007: 12 federal departments implemented PSRS).

Status towards fulfilling commitment:

The PSC's introduction of the PSRS provides an electronic application and screening process for external recruitment. The PSRS is an interim solution that modernizes the way Canadians apply to job opportunities in the federal public service and provides a process for referring their applications to organizations for consideration. Direct access to PSRS, which allows organizations to post advertisements on jobs.gc.ca and screen applicants independently, will allow even greater efficiencies. The system has been deployed to 11 federal departments. It is currently used by all PSC Regional Offices and additional departments and agencies are scheduled for Direct Access during 2007-2008. The PSRS supports the policy on NAoS for federal government jobs by providing electronic screening of the high volume of applications received. There were 1.15 million job applications received through the PSRS in 2006-2007.

The PSC has provided client support services to departments as well as PSRS Direct Access training to over 400 PSRS users in the federal government. These departments and agencies are now becoming familiar with the electronic screening process and have expressed satisfaction with the systems and supports provided. Work will continue in 2007-2008 to ensure that all organizations wishing to have Direct Access are accommodated and receive the accompanying training and user support.

The PSC also implemented an innovative “text to speech” system to replace the current Infotel system. Previously, each advertisement was voice-recorded (in both official languages) by regional staff. Now the new “text to speech” technology allows instantaneous loading of employment information to both the Internet and the phone for Canadians seeking federal government jobs.

The Public Service Staffing Modernization Project (PSSMP) is a multi-year, government-wide initiative to transform staffing in the federal public service.

The objective of the PSSMP is to develop an integrated, government-wide staffing system that:

• supports public service staffing values;
• improves the quality of hiring across government;
• significantly reduces the time and cost to staff; and
• improves user satisfaction.

It is divided into two streams:

• Stream I: PSRS interim solution for external staffing (recruitment); and
• Stream II: The longer term, comprehensive solution for both internal and external staffing.

As Treasury Board (TB) hearings were delayed in March 2006, funding for Stream I (PSRS) was delayed and not approved until June 2006. As a result, the PSSMP was unable to fully engage its development and deployment teams.

Therefore, full implementation of certain project deliverables such as user support, sustainability analysis, long-term training solution with the Canada School of Public Service, Alternative access solutions and retirement of legacy systems such as the Federal Student Work Experience Program and the Integrated Staffing System, were deferred to 2007-2008. In October, TBS approved the PSC's request to reprofile Stream I (PSRS) funds totaling $5,055,618 (including EBP and accommodations expenses) to 2007-2008 for these purposes.

A more integrated approach was proposed for the project. Thereafter, it was realized that PSSMP Stream 1 project funds could be a potential source of funds for the Project Definition work for Stream II. In March 2007, TB approval was sought for an amended Effective Project Approval for PSSMP Stream 1.

The Project Definition work for Stream II is planned for 2007-2008 to identify the requirements for long-term solutions, examine the options available and to determine the most cost efficient and effective approach to developing and implementing the right solution for federal government staffing.

RPP Commitment: Initiate the long-term government-wide e-resourcing project if buy-in, support and funding is available.

Status towards fulfilling commitment:

The PSC submitted a plan to the government for a longer term staffing solution to support both internal and external staffing. Delays in the government approval system resulted in a further PSC submission being developed and put forward to TB ministers in March 2007. Upon approval of this submission, the PSC will move ahead with an analysis of the options for the longer-term staffing solution.

Management Priorities

The PSC is committed to building a model organization through effective management practices and stewardship of its financial, human and information resources. Demonstration of our capacity for accountability and strong comptrollership of our resources is viewed as an essential step to increasing our recognition as an independent organization. In 2006-2007, the PSC made significant progress in transforming the way it manages these resources. The PSC's commitment to becoming a model organization has been demonstrated through our proactive and integrated management of strategic and operational risks, the provision of audited financial statements and our commitment to building an organizational environment which nurtures excellence.

Our success at improving internal management practices has been noted in both the 2006-2007 Management Accountability Framework (MAF) assessment completed by Treasury Board Secretariat (TBS) and the PSC's Management Accountability Framework Self-Assessment completed in March 2007. In both studies, the PSC received consistent ratings, ranging from “acceptable” to “strong” for 19 of the 20 indicators assessed. The PSC assessment has provided a more detailed analysis of our management practices, tailored to meet our specific management needs and priorities. A management action plan will be developed to address the results of our self-assessment report and will focus on the following areas:

• implementing our revised performance framework in line with Management, Resources and Results Structure (MRRS) policy;
• improving the PSC's human resources (HR) systems to facilitate planning and reporting capacity;
• improving the management of information through the implementation of a three year plan; and
• continuing refinement of our financial management practices.

Identification of appropriate funding mechanisms to help the PSC effectively address our changing roles and priorities under the Public Service Modernization Act and the Public Service Employment Act (PSEA) over the long term continues to be a challenge. Opportunities to reallocate funds internally have already been maximized. Additional long-term funding is still needed to meet demand for our recruitment and assessment services.

Key Commitment 1: The PSC's management of resources is integrated and effective.

Expected Result: The PSC's resource management is integrated, effective, consistently improved and aligned with departmental priorities.

RPP Commitments:	Performance Information
Establish rigorous procedures to review and challenge financial forecasts and plans through an integrated operational planning process; Implement zero-based budgeting process linked to Program ActivityArchitecture; and Prepare audited financial statements.	Through its integrated operational planning process, in 2006-2007, the PSC established rigorous procedures to review and challenge financial forecasts and plans. Use of business practices such as zero-based budgeting has allowed us to re-align funding allocations to new and changing priorities, as well as integrate performance and output results more proactively into review processes for existing allocations and priorities. This, along with the implementation of the MRRS policy, preparation of audited financial statements and development and implementation of high quality and timely management reports, have significantly improved our financial management capacity.
Integrate the various levels of risk analysis conducted within the PSC.	During 2006-2007, the PSC also progressed in its work on integrating the various levels of risk analysis internally into all levels of corporate planning, as well as into planning activities related to our externally focused oversight function. Senior management has been proactive in identifying risks, monitoring, analyzing and developing mitigating strategies, and communicating these to all management levels. Linkages between the PSC's corporate risk profile and strategic priorities, as documented in the Report on Plans and Priorities, have strengthened our priority setting and decision making processes at both the strategic and the operational levels. The PSC's Internal Audit Committee also considered risk issues on a regular basis as part of its mandate.
Continue benchmarking our corporate services.	Benchmarking corporate services continued during the year. The PSC will begin implementation of the Corporate Services Benchmarking report recommendations during 2007-2008.
Begin a three-year information management strategy including Records and Document Information Management System (RDIMS) implementation.	The PSC recognizes the importance of managing information as well as human and financial resources. In 2006-2007, the PSC finalized its three-year strategy to achieve full compliance with Management of Government Information Policy. Our commitment to following sound information practices includes plans for gradual implementation of a RDIMS. Treasury Board approval to proceed with the project is currently being sought.
Implement TBS policy for internal audit within the PSC.	The PSC's progress towards and commitment to implementing TBS policy for internal audit has been significant. Internal audit planning is risk-based and follows a well grounded consultation process with senior management, the Office of the Auditor General OAG and the Internal Audit Committee. Reports are timely, comprehensive and accessible to both the public and Parliament. The PSC has been proactive in establishing an Internal Audit Committee composed of external members.

The PSC has developed an HR plan that reflects our evolving business needs, encompasses strong people management practices and integrates our operational planning process. Finding and retaining talented staff and ensuring the sustainability of our workforce continued to be a challenge. In 2006-2007, the PSC undertook a variety of activities to achieve its HR commitment.

Key Commitment 2: The PSC's HR plan reflects business needs and strong people management practices.

Expected Result: The PSC has the necessary people, capacity and leadership to deliver results.

RPP Commitments:	Performance Information
Develop an action plan to address results of the 2005 Public Service Employee Survey (PSES).	Responding to the results of the 2005 PSES, the PSC has developed and implemented action plans to address issues and concerns. The annual PSC Employee Forum, Conversations With the President and meetings with new Executive appointees, have provided opportunities for employees and senior management to discuss issues and propose strategies.
Enhance our integrated HR and business planning.	Enhanced integration and alignment between HR and operational planning processes has allowed early identification of HR gaps and driven strategy development processes. Linkages between zero based budgeting processes and HR planning has allowed for the timely development of strategies to minimize the impact on personnel.
Implement recruitment mechanisms, programs and strategies to increase our resourcing capacity (e.g. pools).	To help increase our HR capacity, resourcing needs identified in the PSC Operational Plan were integrated into our resourcing strategies. The PSC initiated generic and collective staffing activities with management participation and has become a Public Service Recruitment System (PSRS) Direct Access user for external processes.
Develop and implement the PSC learning and policy strategy.	The PSC has the lead in developing and implementing the new Policy and Guidelines on Learning, Training and Development in line with government-wide training policy requirements. The annual PSC Corporate Leaning Strategy supports implementation of PSC operational goals, helps strengthen organizational leadership and encourages continuous improvements in performance. Almost all managers and executives have met the government-wide training requirements. In 2006-2007, PSC employees participated in 3,633 training activities, representing 8,031 training days.
Implement measures and developmental programs to support and enhance leadership capacity.	Review of current leadership development activities included a benchmarking exercise with other government organizations and consultations with senior management and managers. The Talent Management and Succession Readiness Strategy, supporting a corporate approach to talent management, was approved and builds on existing public service development programs. It also enhances linkages between HR planning, succession planning, employee career objectives and learning plans.
Continue implementing the Office of Conflict Management, including initiatives related to the Values and Ethics Code for the Public Service.	The PSC has placed considerable emphasis on implementing Conflict Management and Values and Ethics. During the year, a new PSC ombudsperson was appointed, and an Informal Conflict Management System (ICMS) and Disclosure Offices were established. To support this, ICMS training was made mandatory for all PSC managers and was offered to all employees.
Finalize the implementation of PSEA and related policies, delegations and procedures.	Following recommendations from the Departmental Staffing Accountability Report (2004-2005, PSEA Readiness), changes were made to four organizational staffing policies. The revisions focus on streamlining the sub-delegation mechanism, providing greater flexibility to meet the needs of an organization, better accountability and increased comprehensiveness and integration.

Section III - PSC Financial Statements

PUBLIC SERVICE COMMISSION
Statement of Management Responsibility

Responsibility for the integrity and objectivity of the accompanying financial statements of the Public Service Commission (PSC) for the year ended March 31, 2007 and all information contained in these statements rests with PSC's management. These financial statements have been prepared by management in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.

Some of the information in the financial statements is based on management's best estimates and judgment and gives due consideration to materiality. To fulfil its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of PSC's financial transactions. Financial information submitted to the Public Accounts of Canada and included in the PSC's Departmental Performance Report is consistent with these financial statements.

Management maintains a system of financial management and internal control designed to provide reasonable assurance that financial information is reliable, that assets are safeguarded and that transactions are in accordance with the Financial Administration Act and with prescribed regulations and the Public Service Employment Act, are within Parliamentary authorities, and are properly recorded to maintain accountability of Government funds. Management also seeks to ensure the objectivity and integrity of data in its financial statements by careful selection, training and development of qualified staff, by organizational arrangements that provide appropriate divisions of responsibility, and by communication programs aimed at ensuring that regulations, policies, standards and managerial authorities are understood throughout the PSC.

Management is also supported and assisted by a program of internal audit services. The PSC has an Internal Audit Committee. The responsibilities of the Committee are to provide the President with independent, objective advice, guidance and deliberation on the adequacy of the PSC's control and accountability processes.

The PSC's financial statements have been audited by the Auditor General of Canada, the independent auditor for the Government of Canada.

Ottawa, Canada 
July 6, 2007

AUDITOR'S REPORT

To the Speaker of the House of Commons and the Speaker of the Senate

I have audited the statement of financial position of the Public Service Commission as at March 31, 2007 and the statements of operations, equity of Canada and cash flow for the year then ended. These financial statements are the responsibility of the Commission's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with Canadian generally accepted auditing standards. Those standards require that I plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.

In my opinion, these financial statements present fairly, in all material respects, the financial position of the Commission as at March 31, 2007 and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.

Further, in my opinion, the transactions of the Commission that have come to my notice during my audit of the financial statements have, in all significant respects, been in accordance with the Financial Administration Act and regulations and the Public Service Employment Act.

Sheila Fraser, FCA
Auditor General of Canada

Ottawa, Canada
July 6, 2007

PUBLIC SERVICE COMMISSION  
Statement of Financial Position
At March 31
(in thousands of dollars)

	2007		2006
Assets
Financial assets
Due from the Consolidated Revenue Fund	6,562		10,529
Accounts receivable and advances (Note 4)	5,497		2,135
	12,059		12,664
Non-financial assets
Prepaid expenses	439		635
Tangible capital assets (Note 5)	18,740		14,557
	19,179		15,192
Total assets	31,238		27,856
Liabilities
Accounts payable and accrued liabilities (Note 6)	7,124		8,755
Accrued salary	3,263		3,090
Accrued vacation leave	3,715		3,749
Employee severance benefits (Note 7)	14,988		14,872
	29,090		30,466
Equity of Canada	2,148		(2,610)
Total liabilities and Equity of Canada	31,238		27,856

Contingent liabilities (Note 8)
Contractual obligations (Note 9)

The accompanying notes form an integral part of these financial statements.

Approved by:

PUBLIC SERVICE COMMISSION  
Statement of Operations
For the year ended March 31
(in thousands of dollars)

	2007		2006
Expenses (Note 10)
Recruitment and assessment services
Recruitment and staffing services	35,920		38,477
Assessment services	22,361		19,380
Client services	13,449		13,324
	71,730		71,181
Appointment integrity and political neutrality
Audits and studies	12,270		11,357
Investigations, appeals and inquiries	10,810		10,138
Appointment delegation and accountability	9,734		10,194
Policy, regulation and exclusion approval orders	7,835		9,650
Non-delegated authorities	5,018		4,535
	45,667		45,874
Total expenses	117,397		117,055
Revenues
Assessment and counselling services and products	6,511		4,812
Activities on behalf of:
Canada School of Public Service	333		1,081
Treasury Board Secretariat of Canada	341		327
	674		1,408
Less: Costs recovered	(674)		(1,408)
Net cost of operations	110,886		112,243

The accompanying notes form an integral part of these financial statements.

PUBLIC SERVICE COMMISSION 
Statement of Equity of Canada
For the year ended March 31
(in thousands of dollars)

		2007		2006
Equity of Canada, beginning of year		(2,610)		1,077
Net cost of operations		(110,886)		(112,243)
Net cash provided by Government of Canada		103,347		88,183
Change in Due from the Consolidated Revenue Fund		(3,967)		3,464
Services received without charge from other government departments and agencies (Note 12)		16,264		16,909
Equity of Canada, end of year		2,148		(2,610)

The accompanying notes form an integral part of these financial statements.

PUBLIC SERVICE COMMISSION 
Statement of Cash Flow
For the year ended March 31
(in thousands of dollars)

	2007		2006
Operating activities
Cash received from:
Assessment and counselling services and products	5,278		4,743
Cash paid for:
Salaries and employee benefits	79,603		67,719
Professional and special services	10,835		9,268
Transportation and telecommunications	3,973		3,352
Informatics, office equipment, furniture and fixtures	2,218		2,111
Repair and maintenance	1,738		1,540
Rentals	1,335		581
Utilities, materials and supplies, and other payments	721		1,070
Printing and publications services	562		561
	100,985		86,202
Cash used by operating activities	95,707		81,459
Capital investment activities
Acquisitions of tangible capital assets	7,642		6,729
Proceeds from disposal of tangible capital assets	(2)		(5)
Cash used by capital investment activities	7,640		6,724
Net cash provided by Government of Canada	103,347		88,183

The accompanying notes form an integral part of these financial statements.

PUBLIC SERVICE COMMISSION
Notes to the Financial Statements
For the year ended March 31, 2007

1. Authority and objectives

The Public Service Commission (PSC) of Canada is an independent agency established under the Public Service Employment Act (PSEA) and listed in schedules 1.1 and IV of the Financial Administration Act (FAA). The PSC is dedicated to building a public service that strives for excellence by protecting merit, non-partisanship, representativeness of Canadian society and the use of both official languages. This responsibility is performed in the best interests of the public service as part of Canada's governance system, by administering and applying the provisions of the PSEA and by carrying out responsibilities as provided for in the Employment Equity Act and the Official Languages Act. The new PSEA came into force in December 2005. This legislation emphasizes the PSC's accountability to Parliament and delegates staffing authority to deputy heads who in turn are accountable to the PSC for exercising this power. The Commission also carries out audits and investigations and administers measures under the new PSEA regarding political activities of public servants.

The PSC, from its offices in Ottawa and its seven regional offices, offers recruitment services that allow talented Canadians, drawn from across the country, to join the public service and continually renews staffing services to meet the needs of a modern and innovative public service. The PSC has two program activities that contribute to the achievement of its objectives:

The Appointment Integrity and Political Neutrality activity develops, maintains and monitors the implementation of a policy and regulatory framework for safeguarding the integrity of public service staffing and ensuring political neutrality. This activity includes establishing policies and standards, delegation and oversight of appointment authorities to departments and agencies, and administering non-delegated authorities such as executive appointments and priority administration. This activity also includes conducting audits, studies, investigations and inquiries as well as administering the appeal process and reporting to Parliament on the integrity of public service staffing.

The Recruitment and Assessment Services activity develops and maintains the resourcing systems that link Canadians and public servants seeking employment opportunities in the federal public service with hiring departments and agencies. It provides assessment-related products and services in the form of research and development, consultation, assessment operations and counselling for use in recruitment, selection and development throughout the federal public service. This activity also includes delivering resourcing services, programs and products to departments and agencies, to Canadians and public servants, through client service units located across Canada.

2. Summary of significant accounting policies

• (a) Basis of presentation
  The financial statements have been prepared in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector, and year-end instructions issued by the Office of the Comptroller General.
  
• (b) Parliamentary appropriations
  The PSC is financed by the Government of Canada through Parliamentary appropriations. Appropriations provided to the PSC do not parallel financial reporting according to Canadian generally accepted accounting principles for the public sector since appropriations are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and the Statement of Financial Position are not necessarily the same as those provided through appropriations from Parliament. Note 3 provides a high-level reconciliation between the bases of reporting.
  
• (c) Due from the Consolidated Revenue Fund
  The PSC operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the PSC is deposited to the CRF and all cash disbursements made by the PSC are paid from the CRF. Due from the CRF represents amounts of cash that the PSC is entitled to draw from the CRF, without further appropriations, in order to discharge its liabilities. The net cash provided by Government is the difference between all cash receipts and all cash disbursements including transactions between departments of the federal government.
  
• (d) Accounts receivable
  Accounts receivable are stated at amounts expected to be ultimately realized; a provision is made for receivables where recovery is considered uncertain.
  
• (e) Tangible capital assets
  All tangible capital assets and leasehold improvements having an initial cost of $5,000 or more are recorded as capital assets at their acquisition cost. Similar items under $5,000 are expensed in the statement of operations. The PSC does not capitalize intangibles. The cost of assets under development by the PSC includes material, direct labour and related overhead. Amounts included in assets under development are transferred to the appropriate class of asset upon completion, and are then amortized. Amortization of tangible capital assets is done on a straight-line basis over the estimated useful life of the asset as follows:

Asset class	Amortization period
Office equipment	3 and 10 years
Informatics hardware and infrastructure	4 and 5 years
Computer software	3 years
In-house developed software	3 to 10 years
Furniture and fixtures	15 years
Vehicles	6 years
Leasehold improvements	Lesser of 10 years or term of lease

• (f) Salaries and benefits, and vacation leave
• Salaries and benefits, and vacation leave are expensed as the salary benefits accrue to employees under their respective terms of employment. The employee salaries and benefits liability is calculated based on the respective terms of employment using the employees' salary levels at year end, and the number of days remaining unpaid at the end of the year. The liability for vacation leave is calculated at the salary levels in effect at March 31st for all unused vacation leave benefits accruing to employees. Employee vacation pay liabilities payable on cessation of employment represent obligations of the PSC that are normally funded through future years' appropriations.
   
• (g) Employee future benefits
  • 
    i. Pension benefits
    The PSC's eligible employees participate in the Public Service Pension Plan administered by the Government of Canada. The PSC's contributions to the Plan are charged to expenses in the year incurred and represent the total pension obligation of the PSC. The PSC is not required under current legislation to make contributions with respect to any actuarial deficiencies of the Plan.
    
  • ii. Severance benefits
  • Employees are entitled to severance benefits under labour contracts or conditions of employment. These benefits are accrued as employees render the services necessary to earn them. The obligation relating to the benefits earned by employees is calculated using information derived from the results of the actuarially determined liability for employee severance benefits for the Government as a whole.
    
• (h) Revenues
  Revenues are accounted for in the period in which the underlying transaction or event occurred that gave rise to the revenues. Revenues that have been received but not yet earned are presented as deferred revenues.
  
  (i) Services received without charge
  Services received without charge from other federal government departments and agencies are recorded as operating expenses at their estimated cost. A corresponding amount is reported directly in the Statement of Equity of Canada.
  
• (j) Measurement uncertainty
  The preparation of these financial statements in accordance with Treasury Board accounting policies which are consistent with Canadian generally accepted accounting principles for the public sector requires management to make estimates and assumptions that affect amounts of assets, liabilities, revenues and expenses reported in the financial statements. At the time of preparation of these statements, management believes the estimates and assumptions to be reasonable. The most significant items where estimates are used are contingent liabilities, the liability for employee severance benefits and the estimated useful life of tangible capital assets. Actual results could significantly differ from those estimated. Management's estimates are reviewed periodically and, as adjustments become necessary, they are recorded in the financial statements in the year they become known.

3. Parliamentary appropriations

The PSC receives most of its funding through annual Parliamentary appropriations. Items recognized in the statement of operations and the statement of financial position in one year may be funded through Parliamentary appropriations in prior, current or future years. 

Accordingly, the PSC has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables:

(a) Reconciliation of net cost of operations to current year appropriations used (in thousands of dollars):

	2007		2006
Net cost of operations	110,886		112,243
Adjustments for items affecting net cost of operations but not affecting appropriations:
Services received without charge	(16,264)		(16,909)
Amortization of tangible capital assets	(3,416)		(2,558)
Revenue not available for spending 1	34		4,812
Employee severance benefits	(116)		(468)
Vacation leave	34		(104)
Other	272		(276)
	91,430		96,740
Adjustments for items not affecting net cost of operations but affecting appropriations:
Acquisitions of tangible capital assets	7,642		6,729
Prepaid expenses	(196)		518
	7,446		7,247
Current year appropriations used	98,876		103,987

¹For 2006-2007, Treasury Board approved a vote netting authority allowing PSC to respend revenues from Assessment and counselling services and products provided to other federal government departments and agencies under the PSC's jurisdiction and extended jurisdiction.

(b) Appropriations provided and used (in thousands of dollars):

	2007		2006
Parliamentary appropriations provided:
Voted - Operating expenditures	96,448		96,427
Statutory contributions to employee benefit plans	11,370		11,937
Spending of proceeds from disposal of surplus assets	2		8
	107,820		108,372
Less: Lapsed appropriations - operating expenditures1	(8,944)		(4,385)
Current year appropriations used	98,876		103,987

¹The lapse in 2006-2007 is principally due to the transition period and related capacity building associated with the implementation of the new Public Service Employment Act, staffing delays resulting from staff turnover and less than anticipated expenditures for an information technology project (Public Service Staffing Modernization Project). The latter accounts for approximately $7,470,000 of the total lapse, $4,917,000 of which was re-profiled (carried forward) to 2007-2008.

(c) Reconciliation of net cash provided by Government to current year appropriations used (in thousands of dollars):

	2007		2006
Net cash provided by Government	103,347		88,183
Revenue not available for spending	34		4,812
Variation in accounts payable, accrued liabilities and accrued salary	(958)		3,370
Variation in accounts receivable and advances	(3,362)		7,895
Other adjustments	(185)		(273)
Current year appropriations used	98,876		103,987

4. Accounts receivable and advances (in thousands of dollars)

	2007		2006
Receivables- Federal Government departments, agencies and Crown corporations	5,479		2,030
Receivables - External parties	12		98
Advances to PSC's Employees	6		7
Total	5,497		2,135

5. Tangible capital assets (in thousands of dollars)

	Cost: March 31, 2006	Cost: Acquisitions	Cost: Disposals, write-offs & transfers	Cost:March 31, 2007		Net book value - 2007	Net book value - 2006
Office equipment	842	28	127	743		350	407
Informatics hardware and infrastructure	6,372	1,676	(364)	8,412		2,891	1,401
In-house developed software	10,061	656	(4,638)	15,355		10,263	7,204
Furniture and fixtures	243	527	-	770		579	76
Vehicles	25	-	-	25		12	16
Leasehold improvements	302	38	-	340		203	197
Assets under development	5,256	4,717	5,531	4,442		4,442	5,256
Total	23,101	7,642	656	30,087		18,740	14,557

2007 Accumulated amortization (in thousands of dollars)

	March 31, 2006		Amortization		Disposals, write-offs	March 31, 2007
Office equipment	435		61		103	393
Informatics hardware and infrastructure	4,971		1,021		471	5,521
In-house developed software	2,857		2,274		39	5,092
Furniture and fixtures	167		24		-	191
Vehicles	9		4		-	13
Leasehold improvements	105		32		-	137
Total	8,544		3,416		613	11,347

Amortization expense for the year ended March 31, 2007 is $3,416,000 ($2,558,000 in 2005-2006).

6. Accounts payable and accrued liabilities (in thousands of dollars)

	2007		2006
Payables - Federal Government departments, agencies and Crown corporations	1,957		1,666
Payables - External parties	5,167		7,089
Total	7,124		8,755

7. Employee benefits

	2007		2006
Accrued benefit obligation, beginning of year	14,872		14,404
Expense for the year	2,067		2,253
Benefits paid during the year	(1,951)		(1,785)
Accrued benefit obligation, end of year	14,988		14,872

8. Contingent liabilities

Claims have been made against the PSC in the normal course of operations. Legal proceedings for claims totalling approximately $395,000 were still pending at March 31, 2007 ($6,255,000 at March 31, 2006). Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimated liability is accrued and an expense recorded in the financial statements. In the opinion of management, the outcome of these suits is not determinable at this time.

9. Contractual obligations

The nature of the PSC's activities can result in some large multi-year obligations whereby the PSC will be obligated to make future payments when the services are received. Significant contractual obligations that can be reasonably estimated are summarized as follows (in thousands of dollars):

	2008	2009	2010	2011	2012 and thereafter	Total
Service contracts	1,608	446	-	-	-	2,054
Operating leases	189	106	60	40	3	398
Total	1,797	552	60	40	3	2,452

10. Expenses by major classification (in thousands of dollars)

	2007		2006
Salaries and employee benefits	83,278		82,432
Professional and special services	10,828		12,036
Accommodation	10,032		10,532
Transportation and telecommunications	3,799		3,523
Amortization of tangible capital assets	3,416		2,558
Informatics, office equipment, furniture and fixtures	2,549		2,760
Repair and maintenance	1,660		1,721
Rentals	1,312		629
Printing and publications services	650		617
Utilities, materials and supplies, and other	373		247
Adjustment to the provision for contingent liabilities	(500)		-
Total	117,397		117,055

11. Related party transactions

The PSC is related in terms of common ownership to all Government of Canada departments, agencies and Crown corporations. The PSC enters into transactions with these entities in the normal course of business and on normal trade terms.

During 2006-2007, the PSC incurred expenses of $34,208,000 ($28,867,000 in 2005-2006) and earned revenues of $6,496,000 ($4,687,000 in 2005-2006) from transactions in the normal course of business with other federal government departments, agencies and Crown Corporations.  These expenses include services received without charge as described in Note 12.

12. Services received without charge

During the year, the PSC received services that were obtained without charge from other government departments and agencies. These services without charge have been recognized in the PSC's Statement of Operations as follows (in thousands of dollars):

	2007		2006
Public Works and Government Services Canada - accommodation	10,032		10,532
Treasury Board Secretariat - employer's share of insurance premiums	5,522		5,270
Justice Canada - legal services	440		802
Human Resources and Social Development Canada - employer's portion of Worker's compensation payments	136		135
Office of the Auditor General of Canada - audit services	134		170
Total	16,264		16,909

13. Comparative information

Comparative figures have been reclassified to conform to the current year's presentation.

Section IV- PSC Supplementary Information

Organizational Information and Accountability

The Public Service Commission (PSC) is an independent agency reporting to Parliament on matters under its jurisdiction. The Commission consists of a president and two (or more) part-time commissioners appointed for a maximum period of seven years. The president and the commissioners are appointed by the Governor in Council. The appointment of the president is made under the Great Seal after approval by the Senate and the House of Commons. The president's position is currently held by Maria Barrados and the two commissioner positions are held by Manon Vennat and David Zussman. The President is the Chief Executive Officer and is accountable to the Commission under the Public Service Employment Act (PSEA). She is also accountable to the Minister of Canadian Heritage for specific duties and responsibilities under the Financial Administration Act.

Five branches, headed by vice-presidents, support the President in her role as Chief Executive Officer and contribute to the achievement of the PSC's strategic outcome. An organization chart outlining the PSC's internal structure and accountability is presented below.

The Senior Vice-President, Policy carries out key policy development and oversight functions in support of the PSEA. The Senior Vice-President is accountable for: the interpretation, application and development of policies under the PSEA, including aspects related to equity and diversity and the political activities of public servants; negotiating, monitoring and evaluating deputy heads' exercise of their delegated staffing authorities and recommending corrective action as needed; managing the administration of priority entitlements; contributing to the future-oriented vision of the PSC as an independent agency and developing strategic policy frameworks; managing the development of the PSC's Annual Report and coordinating with central departments and agencies to achieve the full implementation of the PSEA.

The Vice-President, Audit, Evaluation and Studies conducts public service-wide independent audits, studies and evaluations to provide objective information, advice and assurance to Parliament, and ultimately Canadians, on the integrity of the appointment process, including the protection of merit and non-partisanship. In addition, the Vice-President, Audit, provides appointment data and analysis in support of the PSC's oversight role and to support the information needs of departments and agencies.

The Vice-President, Investigations conducts investigations and promotes the use of alternative dispute resolution methods and early intervention methods. The Vice-President is mandated to conduct several types of investigations related to external appointment processes; non-delegated internal appointment processes; allegations of politically influenced appointments and fraud; improper political activities and, at the request of deputy heads, investigations of delegated internal appointment processes. In addition, the Vice President, Investigations, conducts appeal hearings and investigations related to selection and staffing processes that were initiated under the old PSEA.

The Vice-President, Staffing and Assessment Services develops, implements and delivers recruitment, staffing and assessment systems, programs, services and products for use across the public service; provides recruitment services to all clients and staffing services to organizations (under both delegated and non-delegated authorities) requiring our services, or who have lost all or part of their delegation as a result of a PSC oversight activity and develops and implements service strategies, policies and structures.

The Vice-President, Corporate Management develops and monitors corporate management planning frameworks and policies related to the Management Accountability Framework, finance, human resources management, information technology, communications and other administrative and support services; provides central services and systems in support of all PSC programs, including the offices of the president and commissioners; and formulates and implements policies, plans, guidelines, standards, processes and procedures to support the decision-making process of the Commission.

Key Relationships

The Public Service Commission (PSC) works collaboratively with the following major organizations and stakeholders:

• Parliament, to which we are accountable for the overall integrity of the appointment system and the political neutrality of the public service, through regular and special reports, including those related to audit findings. The PSC also makes appearances before committees (for example, Commons committees on Government Operations and Estimates, Official Languages, Access to Information, Privacy, and Ethic and Senate committees on National Finance and Human Rights) and has direct communication with Members of Parliament, when required. Additionally, we maintain our capacity to independently interpret and exercise our powers in the best interests of Canadians.
• The Clerk of the Privy Council, who is the head of the public service and with whom we provide support in strengthening and renewing the public service.
• Canada Public Service Agency, whose mandate is to coordinate the overall implementation of the new Public Service Modernization Act and the people component of the Management Accountability Framework.
• Canada School of Public Service, which is the common learning service provider for the public service of Canada and with whom we consult in providing departments and agencies support and learning tools.
• Other organizations supporting Parliament, who also assist Parliament through independent audits and oversight and with which the PSC exchanges information on roles, responsibilities and issues concerning the support of Parliament.
• Human Resources Management Advisory Committee, with which we discuss emerging issues and major initiatives, and review policy coherence and inter-organizational alignment of priorities and resources.
• Public Service Commission Advisory Council, where we participate in regular meetings with departments/agencies and bargaining agents to discuss issues and receive advice related to the PSC's responsibilities under the new Public Service Employment Act
• Advisory Committee on the Public Service, who will advise the Prime Minister and the Clerk of the Privy Council on matters related to the future development and renewal of the public service.
• Hiring managers and human resources specialists, who, together with the PSC, are responsible for creating a modernized human resources management system for the benefit of Canadians.
• Human Resources Council, which works in partnership with departmental human resources (HR) organizations, central agencies and the PSC in identifying and addressing HR management concerns and interests.
• Academics and external experts, to develop effective and innovative practices under the Appointment Framework, to strengthen the PSC's approach to oversight, and to develop a new regime for the political activities of public servants.
• International organizations and merit protection agencies across Canada and in other countries, to exchange information on key developments and best practices.
• Public service employees, who receive support managing their careers and applying for positions, and Canadians, to whom the PSC provides access to a wide range of challenging public service employment opportunities.

Table 1: Comparison of Planned to Actual Spending and Full-Time Equivalents ($ thousands)

	Actual 2004-05	Actual 2005-06	2006-2007: Main Estimates	2006-2007: Planned Spending	2006-2007: Total Budget Authorities	2006-2007: Total Actual (Note 1)
Program Activity 1: Appointment Integrity and Political Neutrality	39,349	45,212	47,821	41,519	41,986	40,355
Program Activity 2: Recruitment and Assessment Services	52,518	58,775	58,196	63,275	65,834	58,521
Total	91,867	103,987	106,017	104,794	107,820	98,876
Less: Non-respendable revenues (Note 1)	4,786	4,795	-	-	-	34
Plus: Cost of services received without charge	17,587	16,909	n/a	14,712	n/a	16,264
Total PSC spending	104,668	116,101	106,017	119,506	107,820	115,106
Full-time equivalents	942	932	n/a	1,026	1,038	932

Note 1: In 2004-2005 and 2005-2006, actual revenues were attributable to the Assessment and Counselling Services and Products. In 2006-2007, the PSC had authority to respend the revenues from this sub-activity. Consequently, these are reflected in the Program Activity 2 figure of $58,521K. The actual non-respendable revenues in 2006-2007 are primarily attributable to miscellaneous revenues.

Table 2: Resources by Program Activity (2006-2007) ($ thousands)

	Budgetary - Operating	Budgetary - Total: gross budgetary expenditures	Budgetary - Less: re-spendable revenue	Budgetary - Total: net budgetary expenditures
Appointment Integrity and Political Neutrality
Main estimates	47,821	47,821		47,821
Planned spending	41,519	41,519		41,519
Total budget authorities	41,986	41,986		41,986
Actual spending	40,355	40,355		40,355
Recruitment and Assessment Services
Main estimates	64,196	64,196	6,000	58,196
Planned spending	69,275	69,275	6,000	63,275
Total budget authorities	71,834	71,834	6,000	65,834
Actual spending	64,998	64,998	6,477	58,521
Total
Main estimates	112,017	112,017	6,000	106,017
Planned spending	110,794	110,794	6,000	104,794
Total budget authorities	113,820	113,820	6,000	107,820
Actual spending	105,353	105,353	6,477	98,876
Other Revenues and Expenditures
Less : Non-respendable revenues (Note 1)
Actual spending				34
Plus: Cost of services provided by other departments
Main estimates				n/a
Planned spending				14,712
Total budget authorities				n/a
Actual spending				16,264
Net cost of the program
Main estimates				106,017
Planned spending				119,506
Total budget authorities				107,820
Actual spending				115,106

Note 1: Consists of miscellaneous revenues.

Table 3: Voted and Statutory Items - 2006-2007 ($ thousands)

Vote or Statutory Item	Truncated Vote or Statutory Wording	Main Estimates	Planned Spending	Total Budget Authorities	Actual
95	Program expenditures	92,949	91,499	96,448	87,504
(S)	Contributions to employee benefit plans	13,068	13,295	11,370	11,370
(S)	Spending of proceeds from the disposal of surplus Crown assets	-	-	2	2
	Total	106,017	104,794	107,820 (Note 1)	98,876

Note 1: Includes a frozen allotment of $5,131K, of which $4,917K represents resources for the Public Service Resourcing System which will be reprofiled to 2007-2008.

Table 4: Services Received Without Charge - 2006-2007

Service	($ thousands)
Accommodation provided by Public Works and Government Services Canada	10,032
Contributions covering employer's share of employees' insurance premiums and expenditures paid by Treasury Board Secretariat	5,522
Workers' compensation coverage provided by Social Development Canada	136
Salary and associated expenditures of legal services provided by Justice Canada	440
Audit services by the Office of the Auditor General	134
Total 2006-2007 services received without charge	16,264

Table 5: Source of Respendable and Non-Respendable Revenues - 2006-2007

Respendable Revenues ($ thousands)

Program Activity	Actual 2004-05	Actual 2005-06	2006-2007 Main Estimates	2006-2007 Planned Revenue	2006-2007 Total Budget Authorities	2006-2007 Actual
Recruitment and Assessment Services
Assessment and Counselling Services and Products (Note 1)	-	-	6,000	6,000	6,000	6,477
Total respendable revenues	-	-	6,000	6,000	6,000	6,477

Non-Respendable Revenues ($ thousands)

Program Activity	Actual 2004-05	Actual 2005-06	2006-2007 Main Estimates	2006-2007 Planned Revenue	2006-2007 Total Budget Authorities	2006-2007 Actual
Recruitment and Assessment Services:
Assessment and Counselling Services and Products (Note 1)	4,786	4,795	-	-	-	-
Miscellaneous Revenues	-	-	-	-	-	29
Appointment Integrity and Political Neutrality:
Miscellaneous Revenues	-	-	-	-	-	5
Total Non-respendable Revenues	4,786	4,795	-	-	-	34
Total Revenues	4,786	4,795	6,000	6,000	6,000	6,511

Note 1: In 2004-2005, the revenues were credited to the Consolidated Revenue Fund (CRF). In 2005-2006, the PSC obtained approval to re-spend revenues. This authority, however, was not brought into legal effect due to the federal election call and the dissolution of Parliament. The collected revenues were therefore returned to the CRF. In 2006-2007, the PSC had the authority to re-spend revenues and the figures are reflected in the first table above.

Table 6: Resources by Branch - 2006-2007 ($ thousands)

BRANCH	Appointment Integrity and Political Neutrality	Recruitment and Assessment Services	Total
Policy
Planned Spending	13,802		13,802
Actual Spending	13,232		13,232
Audit, Evaluation and Studies
Planned Spending	8,134		8,134
Actual Spending	6,458		6,458
Investigations
Planned Spending	6,686		6,686
Actual Spending	5,897		5,897
Staffing and Assessment Services
Planned Spending		46,860	46,860
Actual Spending		39,726	39,726
Corporate Management
Planned Spending	12,450	15,845	28,295
Actual Spending	14,339	18,249	32,588
Commissioners' Office
Planned Spending	447	570	1,017
Actual Spending	429	546	975
Total Planned Spending	41,519	63,275	104,794
Total Actual Spending	40,355	58,521	98,876

Table 7: User Fees

A- User Fees Act

A- User Fee Description	2006-2007	Planning Years: Fiscal Year	Planning Years: Forecast Revenue $	Planning Years: Estimated Full Cost $
Fees charged for the processing of access requests under the Access to Information Act (ATIA) Fee Type: Other products and services Fee-setting authority: Access to Information Act Date last modified: 1992	Forecast revenue: $700.00 Actual revenue: $450.00 Full cost: $80,102 (salary and O&M) Performance standard: Response provided within 30 days following receipt of request; the response time may be extended pursuant to section 9 of the ATIA. Notice of extension to be sent within 30 days after receipt of request. The ATIA provides more details: http://laws.justice.qc.ca/en/A-1/218072.html Performance results: Statutory deadlines have been met for 95% of requests. Extension notices were sent within 30 days following the receipt of the request in 14% of cases.	2007-2008	400	205,000
		2008-2009	400	170,000
		2009-2010	400	170,000
B. Date last modified:
C. Other information: It is the practice of the PSC's Access to Information and Privacy Office to waive fees where (a) the total reproduction costs that could be assessed amount to less than $25; (b) the information being requested is publicly available; or (c) when no response or notice of extension is forwarded within 30 days following receipt of the request. Fees amounting to more than $25 were waived for 42 requests in 2005-2006, for a total of $183.40.

B- Policy on standard for external fees

Supplementary information on Service Standards for External Fees can be found at http://www.tbs-sct.gc.ca/dpr-rmr/2006-2007/info/info-eng.asp.

Table 8: Response to Parliamentary Committees, Audits and Evaluations

Response to Parliamentary Committees

The Public Service Commission (PSC) did not provide input into government responses to Parliamentary Committees during 2006-2007.

Response to the Auditor General

Post-Secondary Recruitment (PSR) (Chapter 5 of the 2003 Status Report of the Auditor General of Canada (OAG)) - Program effectiveness

The PSC provides information on the outcomes of the Post-Secondary Recruitment (PSR) program in the PSC Departmental Performance Report and the PSC Annual Report. Furthermore, the PSC is currently working with the Deputy Minister Committee on Public Service Renewal, departments, agencies and the Canada Public Service Agency to increase the efficiency of the PSR program. The objective is to develop and implement an approach to identify departments' and agencies' post-secondary recruitment needs, so that the PSR program can be better coordinated and focused on these needs.

Modernization of Human Resources Management - Managing the Reforms (Chapter 3 of the February 2005 Report of the Auditor General of Canada)

The PSC continues to use the Staffing Management Accountability Framework (SMAF) that describes the expectations and indicators for departments and agencies in hiring and promoting staff. The PSC reported further on readiness and Public Service Employment Act implementation in its 2006-2007 Annual Report to Parliament as well as through reports to Deputy Minister (DM) committees and letters to Heads of Human Resources and DMs, as appropriate. The SMAF is being reviewed to focus more on results in the coming years.

The PSC is developing an evaluation framework to prepare for the five-year review of the new legislation. The evaluation framework will help the PSC to further establish meaningful performance measures, gather critical benchmarking data and contribute to the continuous improvement of our ongoing oversight activities. The PSC Survey of Appointments is being revised to better align it with the new staffing regime and the five-year evaluation framework.

Like all departments, the PSC also uses the Report on Plans and Priorities and the Departmental Performance Report (RPP/DPR) to inform Parliament of its progress, although the Annual Report is the main vehicle for reporting on implementation of reforms under the new Act.

Response to the Public Service Commission on External Audits

In the fall of 2006, the PSC published three audits which noted areas where the PSC itself needed improvement (see http://www.psc-cfp.gc.ca/audit-verif/reports/index_e.htm). These are the audits on: Acting Appointments to and Within the EX Group; Readiness for the New Public Service Employment Act and Follow-up Audit of the Military Police Complaints Commission. Where improvements are needed, the PSC included specific commitments to address these in the report.

The PSC has taken steps to ensure these commitments are respected. Progress on action plans to remedy weaknesses is being monitored by Internal Audit Directorate and the Internal Audit Committee. The Audit, Evaluation and Studies Branch is responsible for conducting follow-up audits, which will be reported in accordance with its Branch standards.

Internal Audits 2006-2007

The PSC has made considerable progress in implementing the government's new Policy on Internal Audit. This year marked the first year that the PSC's Internal Audit Committee was composed primarily of independent external members operating under a broad mandate. As well, late in the fiscal year, the PSC entered into an agreement with the Office of the Comptroller General for funding relating to Committee operations and additional assurance work.

During 2006-2007, the PSC completed the three audits summarized below. The PSC posts all its completed internal audit reports on its Web site:

http://www.psc-cfp.gc.ca/centres/internal_audits/index_e.htm.

Human Resources Readiness

This audit assessed the extent to which the PSC had implemented the new Public Service Modernization Act (PSMA) in its own internal operations. It found that overall the PSC put into place the requisite elements for implementing the new Act. These had included establishing new staffing policies and an Appointment Delegation and Accountability Instrument. Some planned processes were still under way or being finalized, e.g. criteria for the Staffing Management Accountability Framework. Management developed its action plan to respond to the audit with the intention of completing its implementation of the PSMA.

Readiness Assessment of Controls for External Audit of PSC's Financial Statements

With the aim of producing audited financial statements, PSC management requested an assessment of the auditability of the PSC's financial statements, particularly with future controls-based auditing in mind. Internal Audit reviewed the control environment and statement presentation and verified the opening balances for 2005-06. The auditors concluded that the financial control framework overall was strong, although some improvements were needed, for example, evidencing of review of some transactions and segregation of duties. Management promptly remedied some weaknesses and addressed others through its action plans.

Expenditure Management Control

In April 2004, the PSC put into place various spending and equipment loan restrictions in the interests of economies and prudent asset management. Management expressed a need for a review of the compliance to this directive. The auditors found overall a good level of compliance to the new restrictions. However, control weaknesses were identified, such as in records management, compliance monitoring and business case documentation. Management provided suitable action plans to deal with these weaknesses.

Internal Evaluation 2006-2007

The Internal Evaluation Function was established within the PSC in 2005-2006 as part of the Internal Audit and Evaluation Directorate. In 2006-2007, the function was re-located to the Corporate Planning and Reporting Directorate. The function responds to the decision making needs of the PSC's Executive with objective and evidence-based information on the performance of the PSC's policies, programs and initiatives as a Department (under the Financial Administration Act). The function is intended to advance sound performance measurement, reporting and accountability in the design of departmental policies, programs and initiatives and to formally assess the efficiency, effectiveness, results and continuing relevance of these initiatives.

Performance Measurement

In 2006-2007, the Internal Evaluation Function completed a departmental review and produced an updated PSC performance measurement framework. The new framework has been reflected in the PSC's 2007-2008 Report on Plans and Priorities and will be the performance framework underlying the 2007-2008 DPR.

Public Service Staffing Modernization Project Stream 1

In 2006-2007, the PSC finalized an evaluation framework for the Public Service Staffing Modernization Project (PSSMP) Stream 1. This evaluation framework supports the PSC's commitment to Treasury Board Secretariat for performance measurement, evaluation and reporting on the implementation and longer-term results of PSSMP Stream 1. Terms of Reference for a 2007-2008 implementation evaluation of PSSMP Stream 1 also were completed.

Recruitment of Policy Leaders Program

As well, the PSC completed Terms of Reference for an evaluation of the Recruitment of Policy Leaders Program and initiated a formative evaluation of the program. The evaluation will be completed in 2007-2008.

Table 9: Details on Project Spending

Supplementary information on Project Spending can be found at http://www.tbs-sct.gc.ca/dpr-rmr/2006-2007/info/info-eng.asp

Table 10: Client –Centred Service

Supplementary information on Client-Centred Service can be found at http://www.tbs-sct.gc.ca/dpr-rmr/2006-2007/info/info-eng.asp.

Table 11: Travel Policies

Comparison to the Treasury Board Secretariat (TBS) Special Travel Authorities

The PSC follows the TBS Special Travel Authorities.

Comparison to the Treasury Board Secretariat (TBS) Travel Directive, Rates and Allowances

The PSC follows the TBS Travel Directive, Rates and Allowances.

Section V – Other subjects of Interest

Contacts for Further Information