Guidance for Crown Corporations on Treasury Board Instruments
Note: This information was prepared by the Treasury Board Secretariat.
On 16 July 2015 Crown corporations were directed by the Governor in Council to align their policies, guidelines and practices with Treasury Board policies, directives and related instruments on travel, hospitality, conference and event expenditures, in a manner that is consistent with their legal obligations.
These Treasury Board instruments include:
- Directive of Travel, Hospitality, Conference and Event Expenditures (DTHCEE) and related guidelines,
- Special Travel Authorities, and
- Treasury Board rules on proactive disclosure of expenditures
Important Notes:
- While Crown corporations are not expected to align to the National Joint Council Travel Directive, it is relevant as a reference document for rates of reimbursement. Crown corporations are expected to align their maximum reimbursement rates for meals, incidentals, and other rates with the applicable limits set out in the National Joint Council Travel Directive, unless otherwise covered by terms and conditions of employment or collective agreements.
- References to other Treasury Board instruments deal with processes that are not applicable to Crown corporations. This includes the Official Hospitality Outside Canada policy established by Foreign Affairs and International Trade Canada, which is strictly applicable to federal employees stationed outside Canada and not relevant for the purposes of alignment.
In examining Crown corporations’ policies and procedures for alignment to Government requirements, portfolio departments and Crown corporations should consider the following policy interpretation and guidance to ensure appropriate and timely implementation in a Crown corporation context.
All sections and requirements of these Treasury Board instruments should be adopted by Crown corporations to the extent that they are consistent with the corporation’s legal obligations.
“Consistency with legal obligations” comprises a very limited set of circumstances in which the corporation cannot comply with the requirement without violating an existing obligation (e.g., rates set by existing collective agreements that are not in line with Treasury Board instruments’ rates or an organization-specific restriction in a constituent act). Terms and conditions of existing employment contracts or appointment form such a legal obligation, and to the extent that they are inconsistent with Treasury Board instruments, the terms of the contract prevail. However, once the contract has expired, new terms and conditions consistent with Treasury Board instruments are to be included.
Crown corporations’ independence will be maintained in that there is no expectation for sign-off on expenditures by responsible ministers. However, the revised Crown corporation policies, guidelines and practices must take into account comparable approval authority levels set out in the Treasury Board instruments. Modifications should respect the following approval levels:
| Treasury Board instrument approval |
Crown corporation approval |
|
Minister |
Chair of the Board* |
|
Deputy Head |
President / Chief Executive Officer** |
|
Senior Departmental Managers |
Vice-Presidents |
|
Delegated Managers |
Below Vice-Presidents |
* unless the Chair is required to travel or to participate in the hospitality event, in which case approval would rest with the President/CEO or CFO.
**unless the President/CEO is required to travel or to participate in the hospitality event, in which case approval would rest with the CFO.
Note: If the Chair of the Board, the President/CEO and the CFO are all required to participate in a hospitality event, then approval would be expected to rest with the highest level of responsibility within the corporation, the Chair of the Board.
The directive is intended to apply to all “members” of a Crown corporation – employees and Governor in Council appointees, including the Chief Executive Officer and members of the Board of Directors, with full-or part-time status, as the current practice is for them to be covered by travel policy of their respective Crown corporation.
A definition section should be included in Crown corporations’ revised policies to clarify who is covered in which circumstances, as some distinctions based on employment status are made in the Treasury Board instruments. References in the instruments should be understood as including the following in a Crown corporation context:
| Directive definition |
Crown corporation policy equivalent |
|
public servant / federal employee |
“employee or office holder”—defined as persons employed by or who receive employment remuneration from a federal Crown corporation, including employees, officers, officer-directors, directors, and Governor General in Council appointees, whether full- or part-time status. |
|
non-public servant |
“non-Crown corporation employee”—any person who is not employed in the public service or employed by a federal Crown corporation. |
Alignment with Specific Treasury Board Instruments
Key considerations for Crown corporations in aligning to each of the relevant Treasury Board instruments are outlined below.
1. Directive on Travel, Hospitality, Conference and Event Expenditures
This directive (http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=27228) and its related guideline (http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=27518) are the primary instruments outlining the principles and rules governing travel, hospitality, conferences and event expenditures in the Government of Canada.
Crown corporations’ policies must align with the above for all the activities listed in the definition of each type of expenditure.
Items that would require following other government processes not applicable to Crown corporations should simply be omitted in revisions (i.e., mandatory use of Shared Services Canada services or government travel services, monitoring compliance by the Comptroller General, coding of items for the Receiver General, National Public Service Week and related awards exemptions).
The complete requirements of the DTHCEE and guideline can be found in the published instruments. The following provides highlights of key sections, while Annex A provides a detailed crosswalk on how to interpret the DTHCEE in a Crown corporation context:
Section 5: The focus is on expenditures incurred to achieve the Crown corporation’s core mandate, minimized to the extent possible, with justifications for why virtual or alternative meeting options are insufficient to meet operational requirements.
Section 6: References to the Departmental Performance Reports should be read as the Crown corporations’ Annual Reports.
Section 7: The Framework for Management of Compliance is not applicable. Consequences for non-compliance and related issues would be dealt with through the corporate plan approval process.
Section 8: Roles and Responsibilities of Government Organizations will be considered differently for Crown corporations. Once revised policies are implemented within Crown corporations, issues would be addressed as follows:
- Crown corporations’ internal financial management authority would respond to internal questions on the organization’s policies’ application and interpretation.
- Portfolio department financial management authority (Financial policy group) would respond to questions on the DTHCEE and its Guideline from all portfolio Crown corporations on interpretation of policies in wider portfolio or government context.
- Designated Departmental Travel Coordinators in portfolio departments would respond to questions on the Special Travel Authorities and rates established in the National Joint Council Travel Directive from all portfolio Crown corporations on interpretation of policies in wider portfolio or government context.
- Of note, portfolio departments will also be expected to assess whether Crown corporations revised policies, guidelines and practices on travel, hospitality, conference, and event expenditures align with Treasury Board instruments as part of the portfolio oversight and recommendation of the annual Crown corporation corporate plan. Treasury Board Secretariat policy centres would respond to questions from portfolio departments with respect to interpretation of the DTHCEE and the Special Travel Authorities in order to assist Boards of Directors in determining appropriate application in a Crown corporation context.
- Treasury Board Secretariat Crown corporation governance centre of expertise would continue to assist in implementation of alignment to Treasury Board policy instruments, such as identifying common issues and coordinating with policy centre, portfolio organizations, central agencies, and Crown corporations.
Section 9: Some references to “Other relevant documents” deal with processes that are not applicable to Crown corporations. Only the three TB instruments as defined on page 1 are relevant for the purposes of alignment.
Appendix 1 (Specific Requirements for Travel): Section 1.2: Blanket Travel Authorities (BTAs) may be available for travel that meets that required criteria, including regularly scheduled meetings (e.g. board meetings), by permitting the appropriate authority to approve multiple items for the same purpose in advance as a travel plan. In a Crown corporation context, a BTA for travel with same purpose (e.g. board meetings) for a group of individuals is possible. Multiple BTAs with distinct purposes for one individual are also possible. A checklist of authorization elements (1.2.6; Table 1) must be completed.
There is provision within the directive for urgent or unforeseeable travel (section 1.2.4 b.).
Please note that meal and incidentals allowances to be used to determine the estimated costs of travel for the purpose of pre-approving travel expenditures are addressed in Table 1: Checklist of Trip Authorization Elements of Section 1.2 and refer to maximum rates and per diems set out in the National Joint Council Travel Directive. Meals being paid for as part of hospitality while on travel status cannot be claimed by the traveller.
Appendix 2 (Specific Requirements for Hospitality): Hospitality requirements make distinctions based on status of attendees (Crown corporation employees or non-employees). Alcoholic beverages and other items may be permitted in special circumstances where it is a matter of courtesy, diplomacy or protocol involving non-employees.
Note that there are monetary limits per person for the provision of food and beverages in the context of hospitality. These limits are based on the National Joint Council Travel Directive as the authority on negotiating meal rate allowances. Table 2: Maximum Food and Beverage Cost Per Person of Section 2.1 provides the formula to apply to these allowances based on the meal type being served. Planned costs exceeding the maximum cost per person allowed under Table 2 would require approval by the Chair of the Board of Directors.
Appendix 3 (Specific Requirements for Conferences): Objectives support the core mandate, and take into account requirements regarding travel authorizations as set out in the DTHCEE.
Appendix 4 (Specific Requirements for Events): Section 4.1.3: Training activities are considered “events” and must be approved as such, with specified exceptions for types of training that do not require approval as events.
Section 4.1.4: Crown corporations would be responsible for the individual planning of their own costs/contributions.
2. Special Travel Authorities
Revised Crown corporation policies, guidelines and practices should take into account the following sections of the Special Travel Authorities (http://www.tbs-sct.gc.ca/pubs_pol/hrpubs/tbm_113/statb-eng.asp:
Section 1.b: Crown corporation employees should refrain from using first class air travel, other than in special circumstances.Footnote 1
Section 4: substituting the President and Chief Executive Officer for the heads of departments and agencies.
Section 5: with respect to business class travel, GIC appointees in Crown corporations may use business class travel at their discretion, but as noted above, Crown corporations are not required to book through the government travel services.
Section 6: substituting executives in Crown corporations for the Executive Group EXs; and President and Chief Executive Officer for Deputy Heads. Executives could be interpreted as positions no more than three hierarchical levels below the President/CEO or Vice-President and that have significant executive managerial or executive policy roles and responsibilities or other significant influence on the direction of the Crown corporation. Executives are responsible and accountable for exercising executive managerial authority or providing recommendations and advice on the exercise of that authority.
3. Proactive Disclosure of Expenditures
Section 9.2 of the Guideline on Travel, Hospitality, Conference and Event Expenditures (http://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=27518) indicates that, on a quarterly basis through their website, organizations proactively disclose certain information on travel and hospitality expenses of selected government officials.
Institutions themselves determine the designated officials for whom to proactively disclose, however, the general guidance in the document suggests Assistant Deputy Minister equivalent and higher. Revised Crown corporation policies should therefore consider proactively disclosing information on travel and hospitality expenses for President/Chief Executive Officer, Vice-Presidents, and the Chair and members of the Board of Directors.
Footnote:
For overseas flights, there are limited circumstances in which first-class air travel is justified: when the traveller is obliged to conduct business on behalf of Canada within two hours of deplaning; where there is no business class on given flights; for air travel in excess of nine hours; or for certified medical reasons.