PWGSC > PWGSC Reports > CC DPR 2003-2004 > Section 1 - Departmental Performance Summary > 2003-2004 Communication Canada PWGSC

Section I - Departmental Performance Summary

• Overview
• Communication Canada's Results Framework
• Organization
• Highlights
  • Understanding Canadians
  • Coordination and Advice
  • Communicating Our Message
• Primary Improvement Initiatives
  • Sponsorship
  • Advertising
  • Public Opinion Research
• Responses to Parliament, Audits and Reviews
• Financial Performance Results

1.1 Overview

The raison d’être of Communication Canada was to improve two-way communication between the Government of Canada (GoC) and Canadians. Communication Canada offered single-window access to Canadian government services. It was responsible for communicating with Canadians about the Government as a whole - responding to citizens’ needs for information on the Government’s overall direction, priorities, policies, programs, services and initiatives, and for facilitating two-way communications with Canadians. Communication Canada also helped government institutions and the Government to monitor the public environment.

On December 13, 2003, the Government of Canada disbanded Communication Canada effective March 31, 2004, in order to achieve better value for Canadians’ tax dollars. The Government’s commitment to improve communications between the Government of Canada and Canadians remained. In addition, the Government terminated the Sponsorship Program effective December 13, 2003. Following these decisions, most of Communication Canada’s activities were transferred as follows:

1. Public Works and Government Services Canada (PWGSC) - PWGSC took responsibility for a number of major operational functions, as outlined in Order in Council P.C. 2004-0100, including:
   • Providing access to information on the Government of Canada’s programs and services.
   • Delivering coordinated communication services across government.
2. Privy Council Office (PCO) - PCO took responsibility for regional and analytical functions as outlined in Order in Council P.C. 2004-0098, including the following:
   • Regional operations.
   • Analysis and information management.
3. Canadian Heritage - Canadian Heritage took responsibility for the powers, duties and functions relating to grant agreements with the Canadian Unity Council under Order in Council P.C. 2004-0099.

To facilitate reporting to Parliament for the 2003-04 fiscal year, the Departmental Performance Report for Communication Canada is presented here as a consolidated document. In subsequent years, the ministers of the above-noted departments will present the reports on the transferred responsibilities in their respective annual Departmental Performance Reports.

1.2 Communication Canada’s Results Framework

The overall strategic outcome pursued by Communication Canada for the reporting period of 2003-04 was to improve communications between Canadians and the Government of Canada. In order to achieve this outcome, Communication Canada had three business lines or principal areas of activity:

1. Understanding Canadians: Collecting feedback and information on the public environment and making this information available to federal institutions.
2. Coordination and Advice: Leading and coordinating key communication activities on behalf of the Government of Canada and providing advisory services to other federal institutions in Communication Canada’s areas of expertise.
3. Communicating Our Message: Undertaking branding, advertising and information activities, and providing “single-window” access to government information.

Figure 1 summarizes Communication Canada’s Results Framework structured around these three business lines. In addition, during 2003-04, Communication Canada continued to use tracking, feedback surveys, evaluations and other measurement tools to gauge its performance relative to the results framework.

Figure 1

Communication Canada’s Results Framework

1.3 Organization

The organization structure of the former Communication Canada is set out in Figure 2 below.

Figure 2

Communication Canada’s Organization Chart

1.4 Highlights

For the 2003-04 performance year, Communication Canada achieved significant and important results, particularly in areas of citizen-centred programs and the soundness of its management practices. It should be highlighted that the predominant focus on the Sponsorship and Advertising Programs (1996-2001) predated Communication Canada’s formation. These concerns will be the focus of the Commission of Inquiry into the Sponsorship Program and Advertising Activities.

The following tables highlight the three core business lines and their efforts to improve operations and management practice.

1.4.1 Business Line: Understanding Canadians

	Highlights
	Implemented a major reform of public opinion research to focus on improving value for taxpayers’ money, transparency and accountability. For the third consecutive year, 1 800 O-Canada attained the world-class number one rating for government services of this kind. The Canada Site (Canada.gc.ca) featured 55 government service announcements and reported over 61,000 hits on outage-related links in the days following the electrical outage in 2003. For the fourth consecutive year, Canada ranked first in Accenture’s annual e-government study.

1.4.2 Business Line: Coordination and Advice

	Highlights
	Implemented a major reform of the advertising program focusing on four guiding principles: value for money, stewardship, flexibility and transparency. Implemented a new management regime for the sponsorship program focusing on value for money, stewardship, flexibility and transparency. Established an interdepartmental a user group forum on electronic media monitoring and analysis aiming to share and promote common issues and best practices.

1.4.3 Business Line: Communicating Our Message

	Highlights
	An independent client satisfaction survey revealed that 86% of callers were “very satisfied,” up from 81% the previous year. The Canada Gazette remained a critical communication vehicle for federal legislative and statutory changes. Over 2 million pages were downloaded via the Publications Program. Almost 94,000 orders for government publications were processed, and more than 130,000 free and priced publications were provided. Exhibitions Program: The Canada Pavilion received the Sizzle Award for most effective promotion from Exhibitor magazine, winning the award over 70 other North American entries. The Citizen Information Initiative emphasized target groups of Canadians such as seniors, children, First Nations and persons with disabilities. 12 million Canadian households received the 2003 edition of Services for You, a publication about key government priorities, programs and services.

1.5 Primary Improvement Initiatives

Throughout the reporting year 2003-04, Communication Canada undertook a number of major improvement initiatives. The challenges associated with their implementation were, in addition to other significant challenges, faced by Communication Canada, as increasing scrutiny was placed on the sponsorship and advertising programs. Communication Canada cooperated fully with the Auditor General’s Office in the preparation of the November 2003 AG Report and in the implementation of the AG’s recommendations. As well, parliamentary standing committees, and other inquiries and reviews were provided with information as requested.

Within this environment, it should be noted that Communication Canada continued to make consistent progress in implementing the Government’s agenda to improve its programs and management for the following:

• Sponsorship.
• Advertising.
• Public Opinion Research.

1.5.1 Sponsorship

During the reporting year, Communication Canada launched a redesigned Sponsorship Program, moving to contributions as opposed to contracts. This program change was approved through a Treasury Board (TB) submission. Communication Canada continued to improve the management of sponsorships, with the following practices being reinforced and/or introduced:

• No contracting with third parties, i.e., communications agencies, was allowed.
• Payments were made under contribution agreements instead of contracts.
• Written guidelines and training were provided to program staff to ensure compliance with program and financial policies and procedures.
• Transparency was enhanced through nationwide communication of the program objectives, the selection criteria, the events approved and the funds each event were to receive.
• Audits were conducted, event sites were visited, and compliance reviews were carried out to ensure that all aspects of contribution agreement terms and conditions were demonstrated before final payments were made.
• Criteria for selecting and approving individual projects were tightened.
• Better analysis of the level of sponsorship for each event was undertaken.
• Compliance with relevant authorities, in particular, the Financial Administration Act, was ensured.

The government terminated the Sponsorship Program on December 13, 2003. Commitments already made to organizations and communities were honoured but no new activities were undertaken. Further details on the sponsorship list of events and agreements can be found at: http://www.communication.gc.ca/sponsorship_commandites/
events2003-2004.html

1.5.2 Advertising

The process of reforming government advertising practices began in May 2002. This included a review by the Treasury Board Secretariat focusing on four guiding principles: value for money, stewardship, flexibility and transparency. This led to a series of steps to strengthen management of this activity:

• December 17, 2002: The Government of Canada announced changes to advertising management.
• February 26, 2003: PWGSC’s Minister released a discussion paper proposing a series of improvements to the management of Government of Canada advertising activities and invited interested parties to provide comments directly. Consultation meetings were also held in March 2003.
• April 2003: The Audit and Review Committee of PWGSC initiated a Follow-up Review of Advertising covering the period from April 2000 to March 2003. The Review focussed on the old system for government-wide advertising activities, which has since been replaced. The Follow-up Review, made public on PWGSC’s website (www.pwgsc.gc.ca/sponsorship), concluded that in some areas management, advertising activities were still in need of improvement.
• Advertising Industry: The Government of Canada announced that a series of reforms to strengthen government advertising management were to be put into place over a 12 to 18 month period. Key changes included the following:
  • Eliminating commissions on all subcontracted work.
  • Requiring that all work be paid at an hourly rate as opposed to being commission-based.
  • Increasing the number of suppliers and competition opportunities was to be announced using new standing offers, supply arrangements and requests for proposals.
  • Strengthening the internal capacity in advertising management and increased transparency by means of an annual report on advertising activities.

Following the announcement of the above reforms and to ensure transparency, PWGSC launched a competitive contracting process to select a new Agency of Record (AOR). As well, a new competitive process was initiated to award standing offers and supply arrangements for advertising production services.

• February 2004: The November 2003 Report of the Auditor General of Canada was released. The report raised concerns about the way in which advertising activities were conducted under the advertising management model in place prior to the December 2002 policy changes and April 2003 reforms. To further address the Auditor General’s concerns, PWGSC determined that it was imperative to undertake a more comprehensive implementation of advertising reform in addition to the measures already implemented.
• March 15, 2004: A moratorium on all advertising activity until June 1, 2004, went into effect to facilitate implementation of the new measures for improving the management of government-wide advertising. Key measures implemented during this period included the following:
  • Redesigning the role of the AOR to assist in managing advertising campaigns. This new role was carefully defined in the contract with the new AOR.
  • Introducing the requirement for advertising production agencies to be selected from the pre﷓approved list of companies, which was established through an open competition.
  • Setting guidelines for advertising record keeping and project file management with the creation of an Advertising Documentation Standard and through enhanced training of staff.
  • Launching an electronic Advertising Management Information System for tracking and managing Government of Canada advertising projects.
  • Posting on the Contracts Canada website all contracts for advertising and public opinion research, as well as media placement, to ensure complete transparency for the public.

In order to complement the changes in procurement in advertising services, the government-wide management of advertising adopted the following controls:

• All advertising funding would now be frozen at the departmental level.
• The Privy Council Office would oversee a centralized process to review the justification and expected added value for each advertising campaign and approve any campaigns to be launched, to ensure that they support government priorities.
• Departments would not have the delegated authority to place advertising contracts directly.
• Departments and agencies wishing to conduct an advertising campaign would need to fully justify the purpose and value, follow strict rules in selecting an advertising agency, and fully document their activities to support expenditures.
• Departments receiving approval to proceed with their advertising campaigns would receive an “advertising number,” which would trigger the procurement process by PWGSC.
• In addition to the preceding points, it should be noted that in October 2003, clear guidelines were made available on-line; furthermore contract officers in every department were given direction and training on the standards required for contracting as well as for conducting advertising campaigns.

1.5.3 Public Opinion Research

Pursuant to a review and subsequent recommendations by the Treasury Board Secretariat, the Minister responsible for Communication Canada announced improvements to the Department’s Public Opinion Research program on June 12, 2003. While the TBS review concluded that the POR function was generally well designed and managed, it was important to build on the existing structures by emphasizing the following enhancements to the contracting process to improve overall effectiveness, including:

• Using competitively established supply arrangements for more complex work (up to a value of $400,000), wherein projects would be awarded through mini-competitions among pre﷓qualified suppliers.
• Using competitively established standing offers of no more than two years for typical work valued up to $200,000.
• Ensuring open competition for large projects (over $400,000) using the Government Electronic Tendering Service (MERX).
• Increasing transparency for research projects through clear supplier selection criteria and procedures, registration of all POR surveys with the Canada Survey Research Council and the availability of a toll-free telephone number for respondents to verify the authenticity of a survey or the lodging of a complaint.
• Enhancing supplier participation through standing offers for specialized audiences and needs.

1.6 Responses to Parliament, Audits and Reviews

During the year, Communication Canada provided support to Public Works and Government Services Canada, the Treasury Board Secretariat, and the Privy Council Office in preparing responses to the Standing Committee on Public Accounts (SCOPA) hearings. In addition, Communication Canada responded directly to SCOPA for inquiries directed specifically toward Communication Canada. The Department also responded to various audits, reviews and inquiries, most notably those of the Auditor General of Canada. Those audits and reviews of particular interest are the following:

• Auditor General’s Government-Wide Audit of Sponsorships, Advertising, and Public Opinion Research.
  (http://www.oag-bvg.gc.ca)
• Consulting and Audit Canada’s review of regional operations.
  (http://www.communication.gc.ca/publications/regions/
  rcicr_frf_toc.html)
• Treasury Board review of advertising coordination and the designation of an Agency of Record.

1.7 Financial Performance Results

Communication Canada’s planned spending, total authorities, actual spending and full﷓time equivalents for 2003-04 are presented in the following table

	Net Expenditures 2003-04 (in thousands of dollars)

			Planned Spending		Total Authorities		Actual
	Total Gross Expenditures		160,464		162,510		118,730
	Less: Respendable revenues		21,350		21,350		12,118
	Total Net Expenditures		139,114		141,160		106,612
	Plus: Cost of services provided by other departments		7,057		7,211		7,211
	Net Cost of Program		146,171		148,371		113,823
	FULL-TIME EQUIVALENTS		605		605		525

Totals may not add up due to rounding.

The announcement of the disbanding of Communication Canada contributed significantly to a reduction of $43 million in gross expenditures. Resulting in an overall lapse of $34.5 million for the Department. The key factors for the lapse were as follows:

• Sponsorship: Termination of the Sponsorship Program on December 13, 2003, resulted immediately in a frozen allotment of $11 million this fiscal year. The original budget was $40 million, which will now be realized as an annual savings to government.
• Citizen Information Initiative (CII): CII expenditures were approximately $9 million less than forecast, in part as a result of the moratorium on advertising during the period of review and reforms that were undertaken to improve the management of advertising.
• Corporate and Other Services: Following the announcement that Communication Canada would be dissolved effective March 31, 2004, there was reduced activity in all of Communication Canada’s programs. In addition, there was a general reduction in government communication activities as a result of other changes in government in the third quarter. Management also terminated or significantly scaled back several corporate projects and ongoing activities.