ARCHIVED - Management Accountability Framework (MAF) - Round III Departmental Assessments

PUBLIC SERVICE VALUES: Through their actions, departmental leaders continually reinforce the importance of public service values and ethics in the delivery of results to Canadians (e.g. democratic, professional, ethical and people values).

TBS suggested the department continue to assess to what extent employees and managers, both new and existing, understand and feel impacted by the Code, assess how employees perceive leadership performance with respect to values and ethics and consistently track the usage of accessible recourse avenues used by employees and assess how comfortable employees feel in using them.

The Department is committed to ensuring that Values and Ethics are firmly entrenched in the organization. The department appointed a Senior Officer for values and ethics, and appointed a champion to promote ethical conduct, incorporate values and ethics in decision-making, and to respond to ethical issues. In addition, a commitment to promote and embody Public Service values and ethics has been incorporated into Senior Executives’ performance management agreements. A Code of Conduct has been developed and awareness activities undertaken to help ensure employees are informed and understand their obligations with respect to values and ethics, and are aware of the mechanisms in place that allow employees the opportunity to have their issues brought to the attention of senior management.

The Department implemented and is promoting a “respectful workplace” Intranet site, pulling together all resources available to staff with respect to harassment, informal conflict management, internal disclosure, labour relations, organizational development and values and ethics.

The department will continue its monitoring and assessment activities with its annual report on the Internal Disclosure of Information Concerning Wrongdoing in the Workplace, a report on the department’s Informal Conflict Management System, and ongoing reporting at senior management committees. The department is also reviewing the results of the recent Public Service Employment Survey to assess what follow-up actions are required with respect to values and ethics. The department incorporates ethical risk into its comprehensive risk assessment activities.

GOVERNANCE AND STRATEGIC DIRECTIONS:The essential conditions - internal coherence, corporate discipline and alignment to outcomes - are in place for providing effective strategic direction, support to the minister and Parliament, and the delivery of results

Governance: Senior management will need to demonstrate continued strong leadership and communication skills in managing the merger of the departments of Human Resources and Skills Development and Social Development. The nature of the department's business involves significant investments in horizontal and intergovernmental areas. This will continue to require robust, result-based frameworks for management and reporting, at a time of potential renewed negotiations with provinces, territories and other stakeholders on the policy directions of a new Government. The development of an integrated Program Activity Architecture will need to be a priority.

The Department continues to contend with an environment of transition and evolution both of its mandate and its service delivery functions as a result of the machinery changes announced in December 2003, the Service Canada Initiative announced in the February 2005 Budget, and the integration of Human Resources and Skills Development Canada and Social Development Canada in February 2006.

Following the February 6, 2006 announcement, the department implemented measures to ensure coordinated support for the Minister and effective functioning of the Department. A senior management integration team coordinated the development and implementation of detailed organizational design plans. The principles of integration were to move quickly to address areas of overlap by merging functions while minimizing, where possible, the disruption from extensive reorganization. Employees received regular updates on integration and related activities. Management priorities include:

• Strong leadership and communication in managing the integration of the department;
• Effective governance relationship among policy development, program design and service delivery through Service Canada;
• Effective governance of the department’s significant engagement in horizontal and intergovernmental activities;
• A robust internal communications program that supports a common culture, and which provides timely information and communications tools to employees; and
• Positioning the department to achieve organizational excellence across people, partnerships and knowledge.

The Department developed and received approval of an integrated Program Activity Architecture for the new department in June 2006, which was subsequently used in the 2006-2007 Report on Plans and Priorities.

RESULTS AND PERFORMANCE
Relevant information on results (internal, service and program) is gathered and used to make departmental decisions, and public reporting is balanced, transparent, and easy to understand.

Information and Decision Making: The review of this indicator revealed that the Information and Decision-making process is "ACCEPTABLE" within Human Resources and Skills Development Canada and Social Development Canada. However, it also revealed that there is an "OPPORTUNITY FOR IMPROVEMENT" for interrelated matters between Social Development Canada, Human Resources and Skills Development Canada, and Service Canada. This "OPPORTUNITY FOR IMPROVEMENT" is symptomatic of the transition period in which the three entities find themselves.

The Service Canada relationship is set out in a Memorandum of Understanding and a series of annexes and schedules that define the roles and responsibilities, the resources, the governance structure, the accountabilities and financial arrangements. There are formal ADM level committees and formal bilateral meetings that take place between policy and service delivery branches to manage the policy program service delivery continuum. The focus of discussions is on priorities and outcomes with an objective of early issue resolution facilitated by a rich flow of information.

The governance structure was simplified with the machinery change that resulted in one department and Minister. A formal structure is in place to support the relationship with Service Canada including regular bilateral meetings between the Deputy Minister and the Deputy Head of Service Canada, and ADM program delivery bilateral meetings to address cross cutting issues, such as enterprise-wide priorities, resource allocation, improving results based management and performance measurement. The department has taken steps to ensure better sharing and integration of its knowledge base into policy and program design.

Financial Reporting: Departmental Financial Statements & Special Purpose Accounts: Overall conformed well to Treasury Board Accounting Standards and professionally presented. Some items did not reconcile with Central Financial Management Reporting System.

The Department will continue to conduct periodic financial review exercises to ensure effective overall resource management and optimal use of existing resources and timely and accurate production of the Departmental Financial Report to outline the department’s financial position and operating results.

PEOPLE: The department has the people, work environment, and focus on building capacity and leadership to assure its success and a confident future for the Public Service of Canada.

Employment Equity: The Department ensure further progress on meeting the 1 in 5 benchmarks referenced in Public Service Human Resources Management Agency of Canada (PSHRMAC) Embracing Change policy, particularly for executive and feeder groups and the external recruitment of visible minorities.

The Department createda new Employment Equity Working Group, an employment equity information sharingand working group forum comprised of representatives from Program directorates and union representatives, Human Resources Management Advisors, as well as representatives from other HR disciplines. The working group is a forum for joint union-department consultation of Employment Equity stakeholders on issues concerning Employment Equity. This working group will also function as a departmental union - management consultation forum concerning employment equity issues. Members of this working group will be actively involved in reviewing statistical and situational employment equity information on which they will review, discuss, and make recommendations for departmental Human Resources Action Plans.

STEWARDSHIP: The departmental control regime (assets, money, people, services, etc.) is integrated and effective, and its underlying principles are clear to all staff.

The new department must work to ensure sound financial analysis and reporting, maintaining the integrity of three separate sources of funds (i.e., Consolidated Revenue Fund, Employment Insurance, and Canada Pension Plan). The increased responsibilities of departmental comptrollers and the alignment of the Government's priorities will require attention to the integrity of financial analysis, strong monitoring, and reporting, and effective use of such information to support managerial and parliamentary decision-making.

Financial Analysis: The inherent complexity of the environment in which Social Development, Human Resources Skills Development, and Service Canada operate requires sound financial analysis capacity. Combined, Human Resources Skills Development, Social Development, and Service Canada account for a significant amount of resources: 25,000 full-time employees, $2.6 billion in operating expenses and $70 billion in transfer payments. There is also an added degree of complexity due to its three sources of funds (i.e., Employment Insurance, Canada Pension Plan, and Consolidated Revenue Fund). Employment Insurance and the Canada Pension Plan are major statutory programs with clear legislation for their administration. The implementation of Service Canada will require careful attention to ensure continuity of services as well as integrity of systems.

The assessment of this indicator was a major concern in the 2004 Management Accountability Framework. Human Resources and Skills Development Canada and Social Development Canada had invested significant resources to strengthen their financial analysis functions. However, timeliness and capacity remain an issue. TBS recognizes that the organization has faced a lot of upheaval exacerbated by the number of transitions that have occurred. Therehave also been difficulties in recruiting and retaining qualified financial people. These have had an impact on the capacity of the department to meet deadlines for submissions, estimates and the Annual Reference Level Update. Further, there have been a number of reprofile requests and frequent requests for carry cases. Treasury Board Secretariat will also work toward more timely notification of Treasury Board allotments, conditions, and Estimate manuscripts to alleviate pressures in this area.

The Department acknowledges these concerns and recognizes that financial analysis and reporting remain important to overall accountability. In 2006-2007, the department continued efforts to improve its financial analysis capacity and effectively monitor its budgetary situation. Specific initiatives included:

• A comprehensive forecasting guidelines package, including templates and tools, to assist branches in the development of their forecasts, that forms the basis for reporting on the utilization of departmental operating and program resources.
• Regular financial review exercises to ensure effective overall resource management and optimal use of existing resources.
• Timely and accurate production of the Departmental Financial Report to outline the Department’s financial position and operating results.
• Development of funding strategies to address corporate financial pressures facing the Department.
• Support government-wide and internal initiatives designed to improve comptrollership, accountability, and results for Canadians, such as the Government’s new approach to managing overall spending to ensure that government programs focus on results and provide value for money.
• Continue to work with Treasury Board Secretariat to enable timely notification of budget allotments, conditions and Estimate manuscripts. A close working relationship between financial advisors and TB analysts will contribute to alleviating pressures in terms of timeliness and a decreased number of reprofile requests and carry cases.
• Continue to promote stewardship principles and mechanisms with staff and managers across the organization.

Capital Assets: TBS emphasizes that the lack of a capital plan is a serious deficiency, noted as a major concern in the last two MAF assessments. The importance of a Long-Term Capital Plan is essential to impose some structure and planning around what assets, the Department has, when things will need to be replaced, and in turn when expenditures in these areas may arise.

The Department last year justified the absence of a capital plan on what it termed a limited range of capital assets. The fact remains that the former HRDC was named in the Annex to the TB policy as being required to produce a capital plan and, presumably, this obligation has passed on to the successor departments. The Department’s program delivery and management of resources is dependent on a very significant IM/IT network whose current condition raises serious concerns. A capital plan would be useful in the management of these assets. The organization has indicated that such a plan will be developed in 2005-2006.

Further, the Department has delegated authority for accommodations; and pays directly rather than having to reimburse PWGSC for accommodation costs. As such, the Department should take a more active management role in preparation of the capital plan given its delegation in this area.

A capital plan is under development. The Department took significant steps to build a foundation for its Long Term Capital Plan, including the development of business requirements for major asset classes in IM/IT, real property related investments for the National Accommodation Plan and rationalization of National Capital Region sites and ground transportation. Training is also being provided to develop knowledge of investment processes related to capital planning.

An Innovation, Information Technology Transformation Plan is under development. Work will continue to strengthen IT asset management capacity over the next three years, particularly as Service Canada strengthens its enterprise resource planning systems. The 2005-2006 Systems IM/IT Strategic Management Plan was provided to Treasury Board Secretariat as a condition for the renewal of Systems funding.

Information and IT Management: TBS noted a concern that there are numerous time and resource intensive risk management activities for many systems and programs for both former departments.

The Department is working to develop a corporate approach to integrate and coordinate the management of its Information Management/Information Technology. The Department is developing common mechanisms that oversee and guide important areas like knowledge management, Information Management/Information Technology and risk management and governance structures such as; the establishment of the Information Technology Steering Committee that is working towards taking stock of departmental IT needs and prioritizing allocation of resources. An Information Management Action Plan to support the new Government of Canada Information Management Policy will be implemented in 2007-2008.

Project Management: Service Canada to strengthen governance by implementing a Project Management Framework that will provide assurance that projects are planned and implemented and reflect organizational priorities.

The Department has created processes and governance arrangements to ensure projects are planned, implemented and are aligned with organizational priorities.

Key transformational projects are supported by project charters, which are reviewed and approved by the senior executive and monitored to ensure continuous alignment with organizational priorities. The Department developed and implemented an enterprise-wide IT Asset Management strategy as one of the core projects within the IT Service Support Improvement Initiative. The Department developed a Transformation Plan for Service Canada in June 2006.

The Department continues to develop the business model for investment planning, its associated projects and procurement. The business model is aligned to serve three key outcomes: value for money, sound stewardship and service excellence. An Investment Planning Process is being implemented that will be integrated with the Departmental management control framework and aligned with internal controls.

Quality of TB Submissions: The quality of Treasury Board submissions varies widely between areas of the Department. The Department could benefit from more consistent Departmental quality assurance to strengthen the quality of the Treasury Board submission documents being presented to the Treasury Board Secretariat.

A quality control unit within the Comptroller’s branch, dedicated to TB submissions, will strengthen the quality of submission documents. Financial analysts continue to work closely with their Treasury Board analysts to facilitate and expedite internal sign-off processes. The Department issues on a regular basis, a TB Business List that provides detailed information on Treasury Board submissions and their status. The report provides advance notice of submissions in development and indicates key departmental leads.

A new departmental Centre of Excellence for Grants and Contributions will address any programming inconsistencies. Director General and Assistant Deputy Minister-level committees have been established to review and implement analysis by the Centre of Excellence to improve consistency, where appropriate. This Centre will enhance the integrity of Treasury Board submissions with Grants and Contributions implications, as well as ensuring a consistent approach in their development.

CITIZEN-FOCUSED SERVICE: Services are citizen-centred, policies and programs are developed from the "outside in", and partnerships are encouraged and effectively managed.

External Service Delivery Strategy:
Rethinking Public-facing Services:

• All nine Government On-line services are complete. Take-up strategy for converting users to on-line services has not been sufficiently addressed.

Pursuing Program Partnerships:

• The 2005 target for new partnerships was met.

Measuring Cost-effectiveness / Channel Migration:

• There was an improvement over 2004. Four services provided numbers for cost “savings” (ranging from $50M because of not having to pay EI benefits in 2004 due to clients finding a job, to $30K in savings on postage and paper).

Client-satisfaction:

• The Department has registered for use of the Common Measurements Tool. The Department is very engaged in service improvement activity incorporating client satisfaction surveying approaches, as well as other initiatives. TB policy, however, requires more comprehensive reporting of client satisfaction survey results.

Departmental Performance Report makes reference to extensive service standard development but (contrary to TB policy) provides no web links to the location where they may be accessed.

In March 2006, the Government of Canada announced that the Government On-line initiative (October 1999 - March 2006) met its objectives. For the Department, the on-line initiatives included Canada Education Savings Grants, Canada Student Loans Program, Employment Insurance Services for Individuals, Employment Services, Federal Mediation and Conciliation Services, Labour Transaction Services, National Homelessness Initiative, Record of Employment on the Web and Social Insurance Number. Some noteworthy 2006 accomplishments include

• Service Canada provided one-stop access to benefits and services online at www.service
  canada.gc.ca.
• Canadians were able to apply for Employment Insurance benefits on-line on the basis of their Best 14 Weeks for insurable earnings (regional pilot).
• Passport application forms were accessible for completion on the Service Canada website.
• Canadians were able to update their address, direct deposit and other information online related to their Canadian Pension Plan, Old Age Security and Employment Insurance files.
• Canadians were able to print Canadian Pension Plan Statement of Contributions and Old Age Security Information Slips using a Personal Access Code.
• The departmental website was updated to focus on policy, program and knowledge issues.

Service Canada put in place service standards, and assesssed and published performance against these standards:

• A Service Charter was released explaining what Canadians can expect and how they can provide feedback on the quality of service and web links included.
• The Service Standards and Corporate Scorecard were publicly released as part of the 2005-2006 Service Canada Annual Report.

In the spring of 2006, the Office for Client Satisfaction conducted a Client Satisfaction Survey to establish baseline satisfaction levels with the service received.

Government-wide Services: Secure Channel - The Department has experienced difficulties in implementing some program applications resulting, in some circumstances, in lower than anticipated take-up by users.

Service Canada developed and integrated employment programs’ service offerings through Web-based delivery and contributed to the development of a Secure Channel for online transactions:

• Implemented a one-stop, integrated employment service for employers by merging www.JobBank.gc
  .ca, www.JobsEtc.ca and www.hrmanagement
  .ca Web sites in to one site.
• Delivered services to employers including: Record of Employment on the Web integrated with Secure Channel’s new e-pass platform; enquiry services and support; job posting and job matching services; Foreign Worker Program; information on the labour market; and labour laws and regulations.

Official Languages for External Service Delivery: TBS indicated improvements must be made to the use of official languages on websites and the Department should continue its efforts to find a solution to the continuing problem of machine translation of job offers posted on the “Job Bank”.

All automatically translated job offers posted on Job Bank are now edited before they are posted simultaneously in both official languages on the site.

Service Delivery and User Fees
Performance information presented in Departmental Performance Report indicates opportunity for improvement: Performance standards and results are included for all 3 fees listed and the information is described in terms that would appear meaningful to paying stakeholders. Policy on Service Standards for External Fees requires compliance by 2005-2006 Departmental Performance Report. Recognition of the policy is evident, however, the Department has not indicated status or intent of compliance.

There are three user fees listed in the 2004-2005 Departmental Performance Report, the Federal Worker’s Compensation Administrative Fees, the Labour Fire Protection Engineering Services Fees, and Access to Information and Privacy. Human Resources and Skills Development Canada has undertaken a review of its existing User Fee structure. The review exercise will include revising the fee setting authority, the forecast revenue as well as the performance standards and results.

ACCOUNTABILITYAccountabilities for results are clearly assigned and consistent with resources, and delegations are appropriate to capabilities.

Authorities and Delegations: The Office of the Comptroller General (OCG) reviewed Office of the Auditor General and OCG Internal Audit databases, and departmental/agency internal audit sites for significant information related to events and/or activities related to financial management policies. Nothing has come to the attention of the OCG that would suggest there is a performance issue in this regard.

However, the current situation where the Service Canada Initiative exists as an entity within Human Resources and Skills Development Canada and Social Development Canada is highly complex to administer from a financial and operational perspective. This highly complex administrative environment increases the risk of errors, omissions, and sub-optimal controls.

Future design requirements for Service Canada should reflect the current and future needs of the client departments that Service Canada serves, while properly reflecting the underlying principles of Ministerial accountability, transparency to Parliament and clarity of the mandate.

The machinery of Government change of February 2006 simplified the departmental structure creating one Department and appointing one Minister. A series of MOU’s with Service Canada formalize and define roles and responsibilities, and provide clear direction on the respective organizations’ accountabilities and governance.

In order to decrease the risk of errors in the area of financial administration, work has been underway to identify key business processes, systems, and entity-level controls to certify internal controls over financial reporting.