HARPER GOVERNMENT ENSURING RESPECT FOR TAXPAYER DOLLARS

OTTAWA, Nov. 24 /CNW/ - Today, the Government of Canada continued its action to ensure respect for taxpayers' dollars by strengthening the rules surrounding spending on travel, hospitality and conferences. The announcement was made in Ottawa by the Honourable Stockwell Day, President of the Treasury Board and Minister for the Asia-Pacific Gateway, and the Honourable Denis Lebel, Minister of State (Economic Development Agency of Canada for the Regions of Quebec).

"With the global economy still fragile, Canadian families are taking a hard look at their expenses, setting priorities and making tough choices. They expect their Government to do the same," said Minister Day. "This new action will ensure that money spent by Government employees on hospitality, travel and conferences is in the best interests of taxpayers."

Building on Canada's Economic Action Plan, in which the Government of Canada froze travel, hospitality and conference expenditures at 2008-2009 levels, this new action delivers increased accountability and tougher rules for spending of taxpayers' money including:

• ensuring that total departmental spending on travel, hospitality and conferences is reported to the public every year, in addition to the previous requirements for ministers, ministerial staff and senior Government officials to report on their travel and hospitality expenses;
  
  
• making sure that annual budgets for travel, hospitality and conferences are approved by deputy ministers, who will view spending through the lens of best value for taxpayers; and
  
  
• restricting all spending on alcohol to situations that are necessary for the rules for protocol, diplomacy or appropriate business with outside stakeholders. 

"Controlling spending is an essential part of balancing a budget, whether for a government or a Canadian household," said Minister Lebel. "This action is part of our plan to eliminate waste, ensure the Government is living within its means and keep taxes low for hardworking Canadian families."

The directive will ensure that spending decisions in these areas are necessary and demonstrate value for money. Government organizations will also be required to systematically consider cost-saving measures around these expenses, including options to use teleconferencing or videoconferencing.

The new Treasury Board directive is available through the Treasury Board Secretariat website at http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=19855. Please refer to the attached fact sheet for more information.

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This news release is available online at www.tbs-sct.gc.ca.

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Fact Sheet

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November 24, 2010

Directive on the Management of Expenditures on Travel,
Hospitality and Conferences

The directive is part of the Treasury Board policy renewal initiative under the Federal Accountability Action Plan. It also supports the Government of Canada's commitment made in the last two budgets to contain administrative costs by ensuring that the costs of travel, hospitality and conferences are reasonable and tied to Government priorities.

Current Hospitality Policy	New Directive
Official title: Hospitality Policy (1993)	Official title: Directive on the Management of Expenditures on Travel, Hospitality and Conferences (2011).
The scope was limited to hospitality.	The scope is expanded to include management of expenditures on travel and conferences.
The accountability requirements were not assigned to individuals or positions.	Specific accountabilities are assigned for deputy heads, chief financial officers, managers and staff.
The policy provided only general principles.	The directive sets out clear requirements to ensure costs are minimized and managed from planning and decision making to reporting. It requires that decisions are reasonable, appropriate and support departmental objectives and priorities as well as demonstrate value for money. The directive mandates managers to systematically consider cost-saving measures and to select the most economical alternatives, including: Use of Government facilities and teleconferencing and videoconferencing; Assessment of location, scale of events, number and type of attendees.
The policy did not have explicit requirements for departmental management oversight and control.	The directive's strengthened requirements are:  Approval by deputy heads of annual budgets for travel, hospitality and conferences; Periodic review of expenditures by senior management; Annual assessment of recurring events for relevance and value for money Chief financial officers are to provide objective advice in support  of deputy heads' financial responsibilities; and Managers are required to ensure that decisions are reasonable and appropriate, including consideration of more economical alternatives.
There was no requirement to disclose departmental aggregate expenditures for hospitality, travel and conferences.	New reporting requirements: Disclosure of departmental expenditures for each of travel, hospitality and conferences, including main variance analysis from the prior year; This includes expenditures incurred for federal and non-federal employees as well as ministers' international travel expenditures paid for by departmental budgets as they relate to program-related international travel.
The policy did not specify which elements were covered by hospitality as well as situations where hospitality was applicable.	The directive clarifies hospitality definition:  Essentially food, non-alcoholic beverages or refreshments; For the effective conduct of government business; For courtesy, diplomacy or protocol;  During events conducted outside normal working hours; Time bounded; No other more economical alternative acceptable or feasible; Alcoholic beverages are not to be provided except in situations involving non-federal persons, for diplomacy or protocol only; and Entertainment in exceptional circumstances only for non-government persons at official events for reasons of courtesy or protocol (may include public servants required to accompany).

For further information: