DEPARTMENTAL ACTION PLAN

ON

GRANT AND CONTRIBUTION PROGRAM Reforms

IN RESPONSE TO THE RECOMMENDATIONS CONTAINED IN

CHAPTER 2, “GRANT AND CONTRIBUTION PROGRAM REFORMS”, OF THE

FALL 2012 REPORT OF THE AUDITOR GENERAL OF CANADA

PRESENTED BY

THE TREASURY BOARD OF CANADA SECRETARIAT

APRIL 16, 2013


Office of the Auditor General Recommendation

The Secretariat’s Response

Actions and Timelines

Recommendation 2.26: 

The Treasury Board of Canada Secretariat should strengthen its process for gathering government-wide results-based information from federal organizations on the internal administrative impact of their activities in support of the Government of Canada Action Plan to Reform the Administration of Grant and Contribution Programs. It should also assess the impact to date on recipients’ administrative burden associated with implementing the Government Action Plan. Results of this assessment should be made available publicly and be used in support of preparing the five-year review of the Policy on Transfer Payments.

Implementing the Government Action Plan

Agreed. In collaboration with federal organizations, the Secretariat will implement, in 2012 and 2013, a new results-based reporting tool to collect information on the impact, on recipients and departments, of the efforts to reform the administration and delivery of grant and contribution programs. Results of the whole-of-government assessment will be publicly available to coincide with the conclusion of the Secretariat’s implementation of the Government Action Plan, and will be considered as part of the five-year review of the Policy on Transfer Payments.

Performance Reporting

 In collaboration with federal organizations, the Secretariat is developing a results-based reporting tool and guidance to collect information on the impact, on recipient and departments, of the efforts to reform the administration and delivery of grant and contribution programs. The approach to performance reporting by federal organizations is aligned with the expected results for recipients as outlined in the Government Action Plan.  For each area, measurement criteria are provided to measure the extent to which each of the expected results has been achieved.  Applicable linkages to the Treasury Board Policy on Transfer Payments have also been made.  It is planned that the results of this whole-of-government assessment be completed in late 2013, and made publicly available thereafter.  These results will also be considered as part of the five-year review of the Policy on Transfer Payments that will be undertaken in 2013.

Recommendation 2.46:

The Treasury Board of Canada Secretariat should provide guidance to federal organizations on the need for a review and challenge function for initial risk assessments, as well as the need to periodically reassess the risk ratings of multi-year contribution agreements.

Implementing Policy Reforms

Agreed. Deputy heads are responsible for, and have the flexibility to tailor, how they apply risk-based principles in the administration of their grant and contribution programs. As part of the Secretariat’s five-year review of the Policy on Transfer Payments in 2013, and its provision of ongoing support to federal organizations on risk management of grants and contributions, the Secretariat will examine opportunities to strengthen its guidance on the need for deputy heads to review and confirm risk assessments throughout the life cycle of grants and contributions.

Guideline on the Directive on Transfer Payments and Guidance on the Design and Application of Risk Management Tools for Grants and Contributions Projects

In collaboration with federal organizations, the Secretariat is amending policy guidance in direct response to the recommendation. The new policy guidance is scheduled for issuance in April 2013. Should further guidance opportunities present themselves during the five-year review of the Policy on Transfer Payments, the Secretariat will consult with departments and relevant policies and guidance will be further strengthened.