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2018 Ernst and Young Line By Line (Ontario) (Findings (Modernization - A…
2018 Ernst and Young
Line By Line (Ontario)
Content of Report
Platform for Modernizing Ontario's Management
Provincial Expenditures
Review Mandate & Approach
Facts on 15 years of Historical Expenditures
(ending 2017/2018)
Framework for Better Public Finance
Management in Ontario
Ideas to Set the Ball Rolling
Building a Modernization Action Plan
Review
Mandate
Analyze
expenditures
Conduct selected jurisdictional
benchmarking
Identify programs and operations for
which efficiencies could be generated
(efficiency and effectiveness improvements)
Why the review?
achieving fiscal sustainability by
the Government over the medium term
The Government has indicated an objective
of efficiency gains in order of 4 cents
on the dollar
Findings
$2018 total operating expenditures have
increased by $46.4B or 55%.
Per capita spending increased $2226/person in today's
dollars
Adjusting for inflation:
Total operating expenditures 3.0% over 15 years
outpaced Ontario's population growth (CAGR)
Provincial debt almost doubled over 15 years.
increasing 87% or $158B ($2018) to$338B
Annual interest on debt grew $2.4B for a total of $12.6B per annum.Higher than operating expenditures for the OPS
Operating expenditure through
Transfer Payments (TP)
and BPS have grown
$46.3B / 99.8% total real growth in operating
expenditures (35K TP Arrangements)
Opportunity to transform Transfer Payment
Expenditure Management
Modernization - A better framework for public expenditure management that commits to:
A
Modern Relationship with Labour
Digital-First Mindset
(Citizen Centered)
Modern Risk-Based Regulatory Management
Renewed Funding Models
(Increase productivity and performance)
Stronger Intergovernmental Coordination
Evidence Based Decisions
Tie funding to outcomes
B
Improve efficiency
Improve Productivity
C
Efficiencies + Improvements for Transfer Partners -
Modernization
Efficiencies + Improvements for Transfer Partners -
Cost Efficiency
Efficiencies + Improvements for Transfer Partners -
Individual and Business Support
Efficiencies + Improvements for Transfer Partners -
One Time Savings
D
A Modernization Action Plan to -
Establish Strong Governance
A Modernization Action Plan to -
Prioritize Short Team & Long Term Efficiency and Performance
A Modernization Action Plan to -
Initiate Immediate Steps to Execute Plan
A Modernization Action Plan to -
Drive realization of benefits for all Ontarians
Efficiencies + Improvements for Transfer Partners -
Service Delivery
Digital First
Enable greater uptake of digital services through reduced barriers such as
information sharing, building capacity, and sharing staff across ministries
Improving digital services and experience through enablement of technologies such as a
single digital D and Blockchain
Back Office Efficiencies
Expand existing Ontario Shared Services
functions (Finance, Human Resources, Supply Chain) to clients in the BPS, and move I&IT support services across the BPS to I&T clusters in place within the OPS
Drive further cost reductions by considering
Alternative Service Delivery (ASD) of certain functions
to reduce the cost of providing service on a life-cycle basis
Process Optimization
Implement Robotic Process Automation (RPA) to
reduce resource effort in transactional, repetitive processes
Reduce the internal administrative burden
, including activities around reporting, compliance, delegation,
etc.
Optimize processes
through techniques such as Lean Six Sigma
Poor data visibility
No integrated centralized database for comparative analysis
Where does Ontario spend
its money?
(Health, Education, Children, Community and Social Services)
Transfer Payments
Operating Expenditures
82%
Interest on Debt
$12.6B/annum
9%
Government and Ministry Operations
(OPS)
9%