BILL NO. 68
4th Session, 61st General Assembly
61 Elizabeth II, 2012
Private Member's Bill
Value for Money Act
First Reading: April 27, 2012
An Act to Provide for
the Establishment of Strategic Planning
and Performance Measurement
in the Government of Nova Scotia
WHEREAS waste and inefficiency in Government programs undermine the confidence of Nova Scotians in the Government and reduces the Government's ability to address adequately vital public needs;
AND WHEREAS Government managers are seriously disadvantaged in their efforts to improve program efficiency and effectiveness, because of insufficient articulation of program goals and inadequate information on program performance;
AND WHEREAS legislative policy-making, spending decisions and program oversight are seriously handicapped by insufficient attention to program performance and results;
THEREFORE be it enacted by the Governor and Assembly as follows:1 This Act may be cited as the Value for Money Act.
(e) improve legislative decision-making by providing more objective information on achieving statutory objectives and on the relative effectiveness and efficiency of Government programs and spending; and
(f) "performance goal" means a target level of performance expressed as a tangible, measurable objective, against which actual achievement can be compared, including a goal expressed as a quantitative standard, value or rate;
4 (1) On or before March 31st, 2013, and on or before March 31st in every third year thereafter, each Government agency shall submit to the Treasury Board and the House of Assembly a strategic plan for the agency's program activities.
(c) a description of how the goals and objectives are to be achieved, including a description of the operational processes, skills and technology, and the human, capital, information and other resources required to meet those goals and objectives;
(4) The agency's performance plan must be consistent with the agency's strategic plan and a performance plan may not be submitted for a fiscal year not covered by a current strategic plan under this Section.
(5) When developing a strategic plan, the Government agency shall consult with the House of Assembly and shall solicit and consider the views and suggestions of those entities potentially affected by or interested in such a plan.
(6) The functions and activities of this Section must be considered to be inherently governmental functions and the drafting of strategic plans under this Section must be performed only by Government employees.
(3) Where a Government agency, in consultation with the Deputy Minister, determines that it is not feasible to express the performance goals for a particular program activity in an objective, quantifiable and measurable form, the Deputy Minister may authorize an alternative form.
(ii) such alternative as authorized by the Deputy Minister, with sufficient precision and in such terms that would allow for an accurate, independent determination of whether the program activity's performance meets the criteria of the description; or
(5) For the purpose of complying with this Section, a Government agency may aggregate, disaggregate or consolidate program activities, except that any aggregation or consolidation may not omit or minimize the significance of any program activity constituting a major function or operation for the agency.
(6) The functions and activities of this Section must be considered to be inherently Governmental functions and the drafting of strategic plans under this Section must be performed only by Government employees.
7 (1) On or before June 30th, 2014, and on or before June 30th in every year there-after, each Government agency shall submit to the Premier and the House of Assembly a report on program performance for the previous fiscal year.
(2) Each program performance report must set forth the performance indicators established in the performance plan under Section 6, along with the actual program performance achieved compared with the performance goals expressed in the plan for that fiscal year.
(3) Where performance goals are specified in an alternative form under subsection 6(3), the results of such program must be described in relation to such specifications, including whether the performance failed to meet the criteria of a minimally effective or successful program.
(4) The report for fiscal year 2014-15 must include actual results for the preceding fiscal year, the report for fiscal year 2015-16 must include actual results for the two preceding fiscal years and the report for fiscal year 2016-17 and all subsequent reports must include actual results for the three preceding fiscal years.
(c) explain and describe, where a performance goal has not been met including, when a program activity's performance is determined not to have met the criteria of a successful program activity under subclause 6(4)(a)(i) or a corresponding level of achievement if another alternative form is used,
(6) A Government agency may include all program performance information required annually under this Section in an annual financial statement if any such statement is submitted to the House of Assembly no later than June 30th of the applicable fiscal year.
(7) The functions and activities of this Section must be considered to be inherently Governmental functions and the drafting of strategic plans under this Section must be performed only by Government employees.
9 (1) Beginning with fiscal year 2018-19, the performance plans required under Section 6 may include proposals to waive administrative procedural requirements and controls, including specification of personnel staffing levels, limitations on compensation or remuneration, and prohibitions or restrictions on funding transfers among budget objects of each annual budget, in return for specific individual or organization accountability to achieve a performance goal.
(4) Any such proposal under subsection (1) must describe the anticipated effects on performance resulting from greater managerial or organizational flexibility, discretion, and authority, and shall quantify the expected improvements in performance resulting from any waiver.
(6) Any proposal waiving limitations on compensation or remuneration must precisely express the monetary change in compensation or remuneration amounts, such as bonuses or awards, that result from meeting, exceeding or failing to meet performance goals.
(7) Any proposed waiver of procedural requirements or controls imposed by a Government agency, other than the proposing agency or the Treasury Board, may not be included in a performance plan unless it is endorsed by the agency that established the requirement, and the endorsement included in the proposing agency's performance plan.
(10) After a waiver has been in effect for three consecutive years, the performance plan prepared under Section 6 may propose that a waiver, other than a waiver of limitations on compensation or remuneration, be made permanent.
10 (1) The Deputy Minister, after consultation with each agency, shall designate not fewer than ten agencies as pilot projects in performance measurement for fiscal years 2013-14, 2014-15 and 2015-16.
(3) Pilot projects in the designated agencies must undertake the preparation of performance plans under Section 6, and program performance reports under Section 7, other than subsection 7(4), for one or more of the major functions and operations of the agency.
(2) Such agencies must be selected from those designated as pilot projects under Section 7 and shall reflect a representative range of Government functions and capabilities in measuring and reporting program performance.
12 (1) The Deputy Minister, after consultation with the head of each agency, shall designate not less than five agencies as pilot projects in performance budgeting for fiscal years 2017-18 and 2018-19.
(2) At least three of the agencies must be selected from those designated as pilot projects under Section 10, and must also reflect a representative range of Government functions and capabilities in measuring and reporting program performance.
(4) Such budgets must present, for one or more of the major functions and operations of the agency, the varying levels of performance, including outcome-related performance, that would result from different budgeted amounts.
(3) On or before June 1, 2017, the Chair of Treasury Board shall report to House of Assembly on the implementation of this Act, including the prospects for compliance by Government agencies beyond those participating as pilot projects under Sections 10 and 11.
14 The Public Service Commission shall, in consultation with the Chair of Treasury Board and the Minister of Finance, develop a strategic planning and performance measurement training component for its management training program and otherwise provide managers with an orientation on the development and use of strategic planning and program performance measurement.
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