Purpose
To provide an update on the PSMA investment strategy and to seek DMHRMAC consensus on the approach to communicate the next steps.
Background
Memorandum to Cabinet on the Framework to Modernize Human Resources Management in the Public Service identified the need for funding to support implementation of the Public Service Modernization Act (PSMA). PSMA implementation will be supported using a blended funding strategy made up of some new money with the balance found through departmental reallocation.
$238 million of new money has been earmarked in the fiscal framework of which approximately $38 million has already been allocated for early work and project management functions related to PSMA implementation.
Current Status:
On April 21, 2004, TB Ministers approved a Strategic Investment Framework (SIF) to guide PSMA funding allocation decision-making
In light of the enhanced focus on effective financial management and accountability, TB Ministers directed that this SIF be implemented in a way that:
- Ensures sound and defensible investment decisions;
- Enables transparency of decision making;
- Strengthens accountability for results in PSMA implementation; and
- Ensures targeted use of resources.
SIF Funding Principles:
- Sound project plans that address PSMA-specific requirements will drive funding decisions;
- Preference may be given to approaches that enable shared, cumulative benefits across multiple proponents;
- Investments will be balanced over the entire implementation period; and
- Where practicable, funding will be gated in sequenced blocks, each associated with a discrete phase of project activities that culminate in a set of measurable results.
The remaining $200 million has been divided into several notional envelopes to address a range of transitional funding requirements (e.g. creation of new institutions, learning, project management etc.). The project planning will drive implementation timing/needs, and therefore investments, over the entire envisaged implementation period.
Next Steps
Project planning must be completed to guide implementation investment needs. TB directed that this be done by September 2004. Sound
business case approaches, to justify funding requests consistent with the SIF parameters, will be required once business cases have been submitted and reviewed, the DMHRMAC will be consulted on the recommend funding allocations, conditions, options and risks. Final funding allocation decisions will be made by TB Ministers.
Communication:
Understandably, there is a considerable appetite across the system to access PSMA funding, and thus associated risks that must be managed. The PSMRMA will play a key role on assessing proposals against requirements established by the PSMA and consistent with project planning timing. TBS will play a key role to ensure sound, and affordable, proposals move forward for TB consideration. TB Ministers underscored their support to PSMA financial stewardships through a SIF approach and directed that analysis of needs against the notional envelopes be completed by September 2004..
It is recommended that as a first step, a targeted approach be endorsed by DM HRMAC, and applied by PSHRMAC, where an early and justifiable PSMA need has already been identified. Beyond those early needs (e.g. PSST, transition funding for institutional change), a second stage will involve assessing the remainder of investment requirements across the PSMA implementation period.
05/07/2004