“Cut to the Bone” Budget Cutting and Reallocation
-
Upload
signe-harding -
Category
Documents
-
view
13 -
download
0
description
Transcript of “Cut to the Bone” Budget Cutting and Reallocation
![Page 1: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/1.jpg)
![Page 2: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/2.jpg)
![Page 3: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/3.jpg)
![Page 4: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/4.jpg)
What are the current challenges you face as a public sector manager?
Survey in UK of public sector managers by the Institute on Leadership and Management, 2010
![Page 5: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/5.jpg)
![Page 6: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/6.jpg)
![Page 7: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/7.jpg)
![Page 8: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/8.jpg)
![Page 9: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/9.jpg)
• All direct program spending reviewed - 25% each year
• Treasury Board and its Secretariat set terms of reference:
Comprehensiveness – assessment of mandate, departmental objectives, program effectiveness, efficiency and alignment to government priorities
Reallocation proposals – options for program reductions or eliminations to reallocate to government priorities and support overall spending control
Reinvestment proposals – options to better support government priorities
• Departments review the relevance and performance of their spending, identify lowest performing/priority 5% of programs, seek outside expert advice and report to the Treasury Board
• Privy Council Office identifies review departments every year and assesses, with Treasury Board and the Department of Finance, the departmental proposals
Strategic Review Process – Centrally Driven
9
![Page 10: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/10.jpg)
Strategic Reviews – Scope and Key Elements
Departmental Strategic Reviews to answer specific questions in key areas:
Government Priority, Federal Role, Relevance (i.e. continued program need)
Performance (effectiveness, efficiency, value for money)
Management Performance
Departmental Strategic Reviews to be conducted using the following key elements
Analytical Framework: The department’s Program Activity Architecture
Information Sources: Evaluations, Audits, Management Accountability Framework assessments, Auditor General Reports, and other reports
Reporting Requirements: Outlined in the Terms of Reference
Steering Committee: A departmental steering committee to be established with ex officio membership from TBS
External Advice: Expert outside advice to be involved on each Review to ensure neutrality and credibility
![Page 11: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/11.jpg)
Strategic Reviews –Conditions for Success
Sufficient time for deliberative process
Ministerial engagement throughout the Review process
Clear and strategic alignment of programs and results (value of a strong Program Activity Architecture)
Comprehensive assessment of all programs (100%)-not focussing only on 5%
Early involvement of senior management team – policy, communications, and corporate services
Multiple lines of evidence – evaluations, audits, benchmarking, international comparisons
Overview portion of the Strategic Review should tell a compelling departmental story
Arm’s length expert advice as effective challenge to proposals and alternatives
![Page 12: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/12.jpg)
• In 2009, the third year of the Strategic Review Process, 20 federal organizations (including departments, agencies and Crown corporations) undertook strategic reviews of 100 percent of their direct program spending.
• In total, almost $26 billion, or approximately 23 percent, of all government program spending was examined.
• Savings of $287 million were redirected to Budget 2010 priorities
• Savings were redirected to fund new initiatives, both within departments and to broader spending priorities in Budget 2009
• Moving from ¼ of all departments to whole of government • Now, savings will be directed to deficit reduction• Targetting total of $11 billion by 2016
The first reviews generated savings but also demonstrated a need to improve the quality of results information …
12
![Page 13: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/13.jpg)
13
![Page 14: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/14.jpg)
14
![Page 15: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/15.jpg)
15
![Page 16: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/16.jpg)
16
![Page 17: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/17.jpg)
Managers must approach budget cutting with care, so as not to
harm the organization's capacity to achieve its purposes. The
toughest question they face is how to reduce the budget without compromising the organization's
mission.
![Page 18: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/18.jpg)
![Page 19: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/19.jpg)
![Page 20: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/20.jpg)
![Page 21: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/21.jpg)
![Page 22: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/22.jpg)
![Page 23: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/23.jpg)
![Page 24: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/24.jpg)
![Page 25: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/25.jpg)
![Page 26: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/26.jpg)
![Page 27: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/27.jpg)
![Page 28: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/28.jpg)
In an organization with low trust levels, complex
programming and relatively poor information, the best
approach may be across-the-board cuts.
![Page 29: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/29.jpg)
![Page 30: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/30.jpg)
![Page 31: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/31.jpg)
![Page 32: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/32.jpg)
![Page 33: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/33.jpg)
![Page 34: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/34.jpg)
![Page 35: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/35.jpg)
![Page 36: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/36.jpg)
![Page 37: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/37.jpg)
![Page 38: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/38.jpg)
From Treasury Board of Canada Guide on Costing http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?section=text&id=12251
![Page 39: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/39.jpg)
![Page 40: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/40.jpg)
![Page 41: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/41.jpg)
![Page 42: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/42.jpg)
![Page 43: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/43.jpg)
![Page 44: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/44.jpg)
![Page 45: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/45.jpg)
![Page 46: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/46.jpg)
![Page 47: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/47.jpg)
![Page 48: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/48.jpg)
![Page 49: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/49.jpg)
![Page 50: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/50.jpg)
![Page 51: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/51.jpg)
![Page 52: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/52.jpg)
![Page 53: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/53.jpg)
![Page 54: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/54.jpg)
![Page 55: “Cut to the Bone” Budget Cutting and Reallocation](https://reader036.fdocuments.in/reader036/viewer/2022062517/568131d9550346895d9840c6/html5/thumbnails/55.jpg)