Mr. Speaker, before the beginning of a fiscal year, the Treasury Board approves departmental reference levels for the upcoming fiscal year and future fiscal years. The reference levels for a department are the total of the spending for all the programs and initiatives for which the department is responsible. The reference levels for the upcoming fiscal year are presented in the main estimates by department and vote. Through approval of the appropriation act supported by the main estimates, Parliament places limits on the amounts each department can spend on operating, capital and transfer payment expenditures.
Departmental spending is not approved by Parliament on a program activity basis. Estimates of program activity spending are provided to Parliament for information purposes only. As a result, Treasury Board does not approve reallocations of funds between programs or activities. Departments manage their inventory of programs and initiatives within the spending limits authorized by Parliament. Within these limits, departments may reallocate funds between programs and determine the most appropriate mix of resources needed to efficiently and effectively deliver those programs. In the guidance on the preparation of the departmental performance reports, http://publiservice.tbs-sct.gc.ca/estsd-bddc/dpr-rmr/template-modele/ed-de-2011-12-eng.rtf, departments are instructed to explain significant variances between planned spending, total authorities and actual spending by program activity.
If a department needs to change its overall authorities, to reprofile spending authority from one fiscal year to another or to move funds from one type of vote to another, Treasury Board approval must be obtained. Those changes are then reflected in an appropriation act, and subsequently submitted to Parliament for approval.
Supplementary estimates documents, http://www.tbs-sct.gc.ca/ems-sgd/esp-pbc/se-bs-eng.asp, now include information on reprofiled funds where applicable in explaining funds available in the vote.