1.1 This policy takes effect on December 10, 2009.
1.2 Together with the standards listed in Section 3, it replaces the following:
1.3 Transition
2.1 This policy applies to all departments as defined in section 2 of the Financial Administration Act, unless specific acts or regulations override it.
2.2 This policy applies to all Government of Canada projects as defined in section 4 of this policy.
2.3 This policy does not apply to projects funded by the federal government through transfer payments. The Treasury Board Policy on Transfer Payments and its supporting directives provide direction on the management and approval of projects funded through transfer payments.
2.4 The provisions in sections 6.2.2 and 7.1 relating to the role of the Treasury Board Secretariat in monitoring compliance and directing measures to be taken in response to non-compliance do not apply with respect to the Office of the Auditor General, the Office of the Privacy Commissioner, the Office of the Information Commissioner, the Office of the Chief Electoral Officer, the Office of the Commissioner of Lobbying, the Office of the Commissioner of Official Languages and the Office of the Public Sector Integrity Commissioner. The deputy heads of these organizations are solely responsible for monitoring and ensuring compliance with this policy within their organizations, as well as for responding to cases of non-compliance in accordance with any Treasury Board instruments providing principles and guidance on the management of compliance. When seeking Treasury Board approval of projects as required under section 6.1.7, the deputy heads of these organizations shall provide the Treasury Board Secretariat with any information required for this purpose. For greater certainty, the definition of "project" contained in section 4.3 does not include the performance of audits, investigations, or other statutory mandate activities of these organizations.
3.1 The management of projects is key to providing value for money and demonstrating sound stewardship in program delivery. A comprehensive approach to managing projects, which is integrated across the department and is appropriate for the level of project risk and complexity, will enhance the likelihood of realizing project outcomes. This approach should ensure that accountability for outcomes is clear, appropriate controls are in place to minimize risk and limit project duplication and overlap, key project stakeholders are consulted, and outputs and outcomes are monitored and reported.
3.2 The management processes and controls for individual projects will vary across organizations and horizontal initiatives, reflecting differences in mandate, operational requirements, risks, complexity and capacity.
3.3 An appropriate capacity for managing projects, which reflects the level of project complexity and risk, and integrates decision-making across projects, will support the achievement and demonstration of value for money and sound stewardship. This appropriate capacity will also ensure an optimal contribution to program, organizational, horizontal and government outcomes.
3.4 This policy is issued pursuant to section 7 of the Financial Administration Act.
3.5 Ministers have responsibility for the administrationof projects in support of the mandated programs of their departments. Deputy heads are responsible for the effective management of projects according to legislation, regulations and Treasury Board policy instruments that promote due diligence, ethical behaviour and sound management practices, thereby ensuring long-term sustainability and value for Canadian taxpayers. They are also responsible for ensuring projects are managed in a manner that fulfills any legal obligations with respect to Aboriginal groups and that the honour of the Crown is upheld.
3.6 This policy is framed by the principles set out in the Policy Framework for the Management of Assets and Acquired Services. It is essential that this policy be implemented in conjunction with related Treasury Board policies governing assets and acquired services. These include the Policy on Investment Planning, the Policy on Managing Procurement, the Policy on Management of Materiel and the Policy on the Management of Real Property.
3.7 Treasury Board has delegated to the Secretary of the Treasury Board the authority to issue such operational directives, standards and guidelines as necessary to support this policy except with respect to the powers or functions of the President of the Treasury Board or the Secretary of the Treasury Board.
3.8 Additional mandatory requirements for the management of projects are set out in the following policy instruments:
The objective of this policy is to ensure that the appropriate systems, processes and controls for managing projects are in place, at a departmental, horizontal or government-wide level, and support the achievement of project and program outcomes while limiting the risk to stakeholders and taxpayers.
The expected results of this policy, associated standards and directive are that:
Deputy heads are responsible for ensuring that:
6.1.1 A department-wide governance and oversight mechanism is in place, documented and maintained. The mechanism is used to manage the initiation, planning, execution, control and closing of projects. In addition, the mechanism ensures that opportunities are considered for integrating projects across the department and the Government of Canada.
6.1.2 A department's capacity to manage projects is accurately assessed to comply with the Standard for Organizational Project Management Capacity and the assessment meets the requirements of the standard.
6.1.3 The department conducts an accurate assessment of each project according to the Standard for Project Complexity and Risk. Each assessment must meet the requirements of the standard.
6.1.4 Accountability for project outcomes is documented and the contribution to program outcomes and broader government objectives is demonstrated.
6.1.5 Projects are managed in a manner that is consistent with the assessed level of complexity and risk. This includes demonstrating that both knowledgeable, integrated, multi-disciplinary project teams and effective project management systems and processes support the project management function.
6.1.6 Project-based procurements and real property transactions, including those in public-private partnership agreements, are fully integrated into the governance, management and oversight of projects. In addition, controls must be implemented to ensure that procurement contracts and real property transactions support key project objectives and program outcomes.
6.1.7 The deputy head is responsible for ensuring that Treasury Board approval be sought for projects when the assessed risk and complexity of the project exceeds the assessed class of capacity that the sponsoring minister can approve (see Appendix A). Only those specific phases of the project that have been appropriately defined and assessed can be approved. Treasury Board may require any project to be brought forward for their consideration and approval.
6.1.8 When Treasury Board approval is required a Project Brief (Appendix B) must accompany the Treasury Board submission.
6.2.1 Deputy heads are responsible for monitoring adherence to this policy within their organization and taking action when any significant compliance issue arises. More specifically, they are responsible for:
6.2.2 The Treasury Board Secretariat is responsible for:
7.1 Based on the review of departmental project management performance, the Secretary of the Treasury Board may make appropriate recommendations to the deputy head of a department or to Treasury Board. Recommendations may include such measures as an increase in the department's project approval authority resulting from improved performance and increased capacity. In the event of performance falling short of the requirements of this policy and associated policy instruments, recommendations may include a decrease in the department's project approval authority.
Note: This section is meant to inform departments of other significant players in the management of projects. In and of itself, it does not confer an authority.
8.1 Common service organizations in support of projects are:
9.1 Policies and related instruments:
Treasury Board Secretariat will maintain up-to-date information on best practices on its website. Additional background information supporting the implementation of the policy will also be available on the Treasury Board Secretariat's website.
Please direct enquiries about this policy instrument to the organizational unit in your department responsible for this subject matter. For interpretation of this policy instrument, the responsible organizational unit should contact: TBS Public Enquiries.
In exercising oversight, Treasury Board Ministers limit the expenditure authority exercised by ministers in the approval of projects.
The project approval limits set out in this Appendix provide the threshold above which ministers must seek approval (expenditure authority) from Treasury Board Ministers. Projects exceeding these thresholds require the express approval (expenditure authority) of Treasury Board. Project expenditures, which are not contracts, may be made by departments when projects are within the limits established based on the class of assessed project management capacity and the assessed project complexity and risk. The basis for determining the capacity to manage projects is provided in the Standard for Organizational Project Management Capacity and the basis for determining the level of risk and complexity of a project is provided in the Standard for Project Complexity and Risk.
Note that the authority to proceed with projects differs from the authority to enter into contracts. Treasury Board approval is required for contracts above the limits set out in Treasury Board policy. PWGSC is normally the contracting authority for large, complex goods and services contracts for departments, which is often the major cost of a project. This role is set out in the Department of Public Works and Government Services Act and the Defence Production Act.
The project approval limits are to be regularly reviewed and revised, at least once every three years, normally as part of the consideration of the department's investment plan as set out in the Policy on Investment Planning – Assets and Acquired Services. Treasury Board Secretariat may also make recommendations affecting the limits.
Assessed Project Management Capacity | Assessed Project Complexity and Risk |
---|---|
Class 4 | Level 4 – Transformational Level 3 – Evolutionary Level 2 – Tactical Level 1 – Sustaining |
Class 3 | Level 3 – Evolutionary Level 2 – Tactical Level 1 – Sustaining |
Class 2 | Level 2 – Tactical Level 1 – Sustaining |
Class 1 | Level 1 – Sustaining |
Limited or no assessed capacity | $1 M |