Annual Performance Report 2013
Print- Strategic Theme 2: Data Governance
- Strategic Theme 3: Facilities Infrastructure
- Strategic Theme 4: Maximizing the Value of Human Capital
- Strategic Theme 5: Management Processes
- Strategic Theme 6: Cost Reduction and Budgetary Growth
Strategic Theme 6: Cost Reduction and Budgetary Growth
Establish a cost-reduction approach and a budgetary-growth target that maintains an effective and efficient use of financial resources.
Objective 6.1: Use financial resources efficiently and effectively.
In this Section:
Greater scrutiny of how financial resources are used will contribute to achieving budgetary-growth targets. Process changes that make the budget process more efficient will help ensure strategic investments remain within a sustainable budgetary range and provide the appropriate level of support for the Board to continue meeting its legislated mandates. The Board also needs the flexibility to provide an appropriate level of financial support to deliver new regulatory obligations and build capabilities to improve the way it delivers its mission for monetary policy, financial stability, and supervision.
Accomplishments
Review key administrative processes to, among other objectives, identify opportunities to reduce redundancy and enhance operational efficiency.
- Several cross-functional teams were started to review various administrative functions. Final reports and recommendations are pending.
Track spending against key budgetary accounts to enhance annual spending projections.
- DFM staff began work on an automated variance tool to provide information to division administrative staff regarding expenditures versus operating plan budget.
- DFM staff began work to develop and implement a monthly Boardwide budget review process.
Establish a procedure using PeopleSoft to monitor and report hiring against strategic positions.
- DFM staff established a procedure to monitor, report, and validate hiring both framework and nonframework positions.
Objective 6.2: Achieve budgetary savings and expense growth in line with Board approved targets.
In this Section:
Budgetary discipline is necessary to manage the unavoidable expense growth required by the strategic framework. Enhanced cost-management strategies that help offset the strategic initiatives will contribute toward maintaining expense growth in line with approved targets.
Accomplishments
Identify opportunities for containing administrative service costs.
- Potential opportunities identified as part of the budget process in various administrative functions.
Enhance budget forecasts by incorporating cost-management strategies.
- DFM implemented cost-cutting approaches across all Board divisions, including limits to promotions and reclassifications, applying stricter vacancy rates, and delaying hiring of framework positions.
- DFM limited budget growth for certain goods and services line items.
Draft a plan for communicating cost-management opportunities.
- Boardwide cost-management opportunities were identified and communicated to division leadership during the 2014 budget process.
Begin implementing cost-management initiatives.
- Several cost-management initiatives were implemented as part of the 2014 budget, such as reductions in contractor expenses, reductions in leased equipment, and favorable service contract negotiations.
