Archived [2012-04-01] - Policy on Management, Resources and Results Structures
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1. Effective date
1.1 This policy takes effect on February 23, 2010.
1.2 It updates the Treasury Board Management, Resources and Results Structure Policy dated April 1st, 2005.
2. Application
2.1 This policy applies to all departments and organizations defined as departments within the meaning of section 2 of the Financial Administration Act, unless excluded by specific acts, regulations or Orders in Council.
2.2 This policy also applies to any Crown corporation seeking an appropriation from Parliament. Crown corporations are only required to develop those elements of a Management, Resources and Results Structure that are required for reporting in Estimates documents.
3. Context
3.1 The Policy on Management, Resources and Results Structures (MRRS) supports the development of a common government-wide approach to the identification of programs and to the collection, management, and reporting of financial and non-financial information relative to those programs.
3.2 The policy provides departments with the flexibility and discretion they need to design and manage their programs in a manner that best achieves results for Canadians.
3.3 The policy reinforces the government's commitment to strengthen public sector management and accountability, consistent with the Management Accountability Framework, by providing a standard basis for reporting to citizens and Parliament on the alignment of resources, program activities and results.
3.4 The establishment of a MRRS in each department is a key element of the Expenditure Management System because it provides a common framework within which financial and non-financial information is linked across government.
3.5 The policy is issued pursuant to section 7 of the Financial Administration Act.
3.6 The deputy head is accountable to his or her Minister and to the Treasury Board for the establishment of an appropriate MRRS, for the management of the department and for public performance reporting using the MRRS.
4. Definitions
The definitions are in the Appendix.
5. Policy statement
5.1 The objective of this policy is to ensure that the government and Parliament receive integrated financial and non-financial program performance information for use to support improved allocation and reallocation decisions in individual departments and across the government.
5.2 The expected results of the Policy on Management, Resources and Results Structures are:
5.2.1 Managing for results: Departments collect sound financial and non-financial information, results and other key data on program activities to support informed decisions on program management, and new program proposals.
5.2.2 Decision-making for results: Sound financial results and other key program activity data are generated to support improved allocation and reallocation decisions in individual departments and across the government.
5.2.3 Accountability for results: Public performance reporting to Parliament and Canadians is based on sound financial and non-financial performance information.
6. Policy requirements
6.1 Deputy heads are responsible for the effective, ongoing implementation of the Policy on Management, Resources and Results Structures. Deputy heads are responsible for:
6.1.1 Ensuring that their MRRS has the following three elements:
6.1.1.1 Clearly defined and measurable Strategic Outcomes that:
- Reflect the department's mandate and vision as well as being linked to the government's priorities and intended results; and
- Provide the basis for establishing horizontal linkages between departments with similar or natural groupings of strategic outcomes.
6.1.1.2 A program activity architecture (PAA) that is explained in sufficient detail to reflect how a department allocates and manages its resources to achieve their intended results. The PAA will:
- Identify and group related program activities and link them logically to the Strategic Outcomes they support;
- Provide the framework to link planned resource allocations to each program activity at all levels and against which financial results are reported;
- Provide the framework to link expected results and performance measures to each program at all levels of the program activity architecture and for which actual results are reported;
- Provide the framework for those responsible for program activities at each level of the PAA so they can commit to the results they intend to achieve with the resources they have been allocated and for which they report inside and outside the department;
- Establish the structure for Estimates display and parliamentary reporting;
- Serve as the basis for resource allocation by Parliament, the Treasury Board and departmental management; and
- Form the foundation for constructing any horizontal program activity architectures involving more than one department.
6.1.1.3 A description of the current governance structure, which outlines the decision-making mechanisms, responsibilities and accountabilities of the department.
6.1.2 Approving the departmental MRRS and ensuring regular and timely updates of its appropriateness.
6.1.3 Ensuring that changes contemplated to the Strategic Outcome and PAA levels are made only with further Treasury Board approval, according to Subsections 6.2 and 8.1 of this policy, as follows:
- Levels previously approved by the Treasury Board for allocation and control purposes; and
- Levels previously approved by the Treasury Board to determine parliamentary displays in Estimates documents.
6.1.4 Developing and updating strategic outcomes as necessary, with direction from the responsible minister, and ensuring departmental focus on the achievement of Strategic Outcomes. Deputy heads will also provide overall leadership in developing, in consultation with key stakeholders in the department, the changes required to the Strategic Outcomes and to the PAA.
6.1.5 Ensuring that the department's information systems, performance measurement strategies, reporting and governance structures are consistent with and support the department's MRRS . The information systems are to also reflect the manner in which resources are actually managed and allocated in the department.
6.1.6 Ensuring that senior executives are held accountable for the agreed outputs and outcomes set out in the MRRS.
6.2 Monitoring and reporting requirements:
6.2.1 Deputy Heads are responsible for monitoring compliance with this policy and for notifying Treasury Board Secretariat of any significant changes that they intend to make to their MRRS as previously noted by Treasury Board for information purposes and as outlined in Subsection 8.1 of this policy.
6.2.2 The MRRS will be the basis to report to Parliament through the Estimates documents and any other parliamentary reporting documents in the manner and form defined by Treasury Board or its Secretariat.
6.2.3 Treasury Board Secretariat will conduct an evaluation of the policy within five years of its coming into force.
7. Consequences
7.1 The Treasury Board Secretariat will work closely with departments to ensure that the spirit and intent of this policy is understood and fully implemented. However, if compliance issues arise the Secretary of the Treasury Board may raise the matter with the Deputy Head, the President of the Treasury Board or with the Treasury Board itself.
7.2 Recommendations could be made for corrective action to be implemented and if not implemented satisfactorily or in a timely manner, the President of the Treasury Board may report the weaknesses and associated risks to the Minister responsible for the Department in question, and/or the Treasury Board could freeze allotments or impose other conditions as necessary.
8. Treasury Board Consideration
8.1 Proposed MRRS will be submitted to the Treasury Board. In considering the submission, the Treasury Board:
8.1.1 Approves the PAA level at which it will allocate and control resources, and the level for parliamentary displays in Estimates documents. The level for Treasury Board allocation and control will remain at the departmental level, unless otherwise decided by the Treasury Board;
8.1.2 Acknowledges the remaining program activity architecture levels for which the department has agreed to provide information to Treasury Board Secretariat to populate the government's Expenditure Management Information System; and
8.1.3 May approve an accountability arrangement with a department with respect to the expenditure of resources, including results achieved against results expected, for one or more activities within the program activity architecture.
8.2 The Treasury Board Secretariat is responsible for providing leadership, advice and guidance in the use and advancement of information relating to the use of integrated financial and non-financial program performance information across the federal government in support of the implementation of the Policy on Management, Resources and Results Structures.
9. References
Related Treasury Board Secretariat publication
Related Privy Council Office publications
Related Acts/Policies
Financial Administration Act
10. Enquiries
Please direct enquiries about this policy to your department's headquarters. For interpretation of this policy, departmental headquarters should contact:
Treasury Board Secretariat
222 Nepean Street
Ottawa ON K1A 0R5
Appendix – Definitions
- Activity (Activité)
- Is an operation or work process internal to a department, which uses inputs to produce outputs, e.g., training, research, construction, negotiation, investigation, etc.
- Accountability arrangement (Entente de responsabilisation)
- Is an arrangement between the Treasury Board and a department outlining results to be achieved for the resources allocated for any part of a program activity architecture. An accountability arrangement would only be entered into when requested by the Treasury Board.
- Changes (Changements)
- Amendments to previously approved Strategic Outcomes and Program Activity Architecture levels for parliamentary display in the Estimates documents. Changes can be distinguished between:
- Major Changes: amendments resulting in a change in the nature and/or scope of a Strategic Outcome and/or program at the Program Activity Architecture levels for parliamentary display in the Estimates documents (e.g. the inclusion of a new Strategic Outcome or program; the deletion or merging of an existing Strategic Outcome or program); and
- Minor Changes: amendments resulting in a refinement of wording that do not result in a change in the nature or scope of the Strategic Outcome or program at the Program Activity Architecture levels for parliamentary display in the Estimates documents.
- Department (Ministère)
- Is all "departments" as defined in section 2 of the Financial Administration Act.
- Governance (Gouvernance)
- Is the processes and structures through which decision-making authority is exercised. For example, an effective governance structure ensures individuals or groups of individuals are responsible for setting policy directions, priorities, making investment decisions, reallocating resources and designing programs.
- Program (Programme)
- Is a group of related resource inputs and activities that are managed to meet specific needs and to achieve intended results, and that are treated as a budgetary unit.
- Program activity architecture (Architecture des activités de programmes)
- Is an inventory of all the program activities undertaken by a department. The program activities are depicted in their logical relationship to each other and to the strategic outcome(s) to which they contribute. The program activity architecture is the initial document for the establishment of a Management, Resources and Results Structure.
- Strategic Outcome (Résultat stratégique)
- Is a long-term and enduring benefit to Canadians that stems from a department's mandate and vision. It represents the difference a department intends to make for Canadians and should be measurable and within the department's sphere of influence.