Good afternoon. I thank you for your invitation to appear before your committee to discuss the Auditor General's findings on the government's expenditure management system.
As you pointed out, joining me today is Mr. David Moloney, Senior Assistant Secretary, Expenditure Management Sector, Treasury Board Secretariat.
While I understand that Mr. Moloney and staff from the Auditor General's office have had an opportunity to provide you with a background briefing regarding the expenditure management system, I would like to present to you today our response to chapter 1 and chapter 2 of the Auditor General's November 2006 report. I will not be making a presentation when I appear before you on Wednesday, but I will be happy to answer any questions you may have at that time.
We agree with the Auditor General's overall assessment of the existing expenditure management system, as well as most of the detailed findings. In fact, prior to her report we had already begun extensive efforts to address the issues she has raised. Treasury Board Secretariat is working closely with the Privy Council Office and the Department of Finance in support of these efforts.
Budget 2006 pointed to the need for a new ongoing approach to better manage overall spending. We want to ensure that all government programs are effective and efficient, focused on results, provide value for taxpayers' money, and are aligned with the government's priorities and responsibilities. To that end, the budget launched a review of the expenditure management system led by the President of the Treasury Board.
As a result of the considerable work undertaken during this review, the president was able to announce directions of a new expenditure management system in his response to the AG's November report. The Minister of Finance also provided some details in his Advantage Canada report. Simply put, our new approach to expenditure management will support managing for results, decision-making for results, and reporting for results.
Allow me to provide you with some details about each of these components.
Under the new approach, departments and agencies will be required to manage their programs with clearly defined objectives. Right across government, we will take a common approach to the integrated collection, management, and reporting of financial and non-financial information, including human resources and performance information.
To assess program performance against clearly defined objectives, departments will devote greater time to reviewing and evaluating direct program spending, building on the requirement of the Federal Accountability Act for the evaluation of all grants and contribution programs. This requirement will ensure that departments are focused on managing for results.
These reviews and evaluations will support decision-making for results by providing better information for cabinet to be able to review federal programs in order to ensure that they remain relevant, produce results, and provide value for money. It will permit a more rigorous and systematic examination of new spending, as well as existing spending, to ensure that all government programs deliver concrete results that align with the federal government's roles and Canadian priorities.
Our new approach will also support reporting for results. It will improve the way departments report on the results of their programs. It will also enhance reporting on the outcomes of government spending on a government-wide basis. This higher quality of departmental and government-wide information will also result in improved reporting to Parliament.
We believe these directions are very consistent with the Auditor General's recommendations. In fact, the Auditor General's assessment of the shortcomings of the existing expenditure management system echoed our own findings.
The changes we are proposing will not take place overnight. We need both new evaluation tools and more evaluators. We will need to work hard at defining and then measuring proper performance, capturing the necessary data and integrating it into management practices. Our goal is to make sure that every dollar spent is well spent, and then to make sure that Parliament has a transparent means of executing its oversight role to that end.
In conclusion, the approach I have described for you today will change the way government does business. However, the kind of significant change we are undertaking takes time. But it needs to happen. Putting this approach in place will further entrench a culture of sound management, of spending to deliver programs that achieve results for Canadians and maximize value for money.
Mr. Chair, that concludes my remarks. I would be pleased to answer any questions that committee members may have at this time.