Changes

no edit summary
Line 175: Line 175:  
Finally, there is the navigation arrow to move to the next step or click the '''Activities tab.'''  
 
Finally, there is the navigation arrow to move to the next step or click the '''Activities tab.'''  
   −
==== Entering Activities ====
+
==== Step Three: Identify Requirement and Estimate Impact Parameters ====
This section discusses Step Three of the Calculator implementation process. This information can be entered directly into the spreadsheet in the '''Activities''' tab.
+
This information can be entered directly into the spreadsheet in the '''Activities''' tab.
    
Note: feel free to adjust the zoom level, font size, and/or column widths to match your personal preferences. It is possible to adjust these things to fit all fields on your screen at once. If all of your activities will include labour, you can hide the columns related to capital inputs (M, N, O). Conversely, if you are only entering capital activities, you can hide the columns related to labour (R, S, T). The Error Check and Assumptions/Notes columns can also be hidden, but just be sure to scan for any error messages before submitting your work to TBS.  
 
Note: feel free to adjust the zoom level, font size, and/or column widths to match your personal preferences. It is possible to adjust these things to fit all fields on your screen at once. If all of your activities will include labour, you can hide the columns related to capital inputs (M, N, O). Conversely, if you are only entering capital activities, you can hide the columns related to labour (R, S, T). The Error Check and Assumptions/Notes columns can also be hidden, but just be sure to scan for any error messages before submitting your work to TBS.  
Line 197: Line 197:  
[[/laws-lois.justice.gc.ca/eng/acts/R-4.5/page-1.html#h-425976|Red Tape Reduction Act]] defines administrative activity for business as "anything that is necessary to demonstrate compliance with a regulation, including the collecting, processing, reporting and retaining of information and the completing of forms."   
 
[[/laws-lois.justice.gc.ca/eng/acts/R-4.5/page-1.html#h-425976|Red Tape Reduction Act]] defines administrative activity for business as "anything that is necessary to demonstrate compliance with a regulation, including the collecting, processing, reporting and retaining of information and the completing of forms."   
   −
If the RCC is being used to calculate government costs, then Administrative activities would be anything necessary to record and confirm compliance, such as reviewing submitted reports and forms.  
+
If the RCC is being used to calculate government costs, then Administrative activities would be anything necessary to record and confirm compliance, such as reviewing submitted reports and forms. Ensure that government costs are attributed to non-businesses only. 
    
====== '''Cost or Benefit:''' ======
 
====== '''Cost or Benefit:''' ======
Most sections of the RCC use the terminology "Cost" and "Benefit". However, in the one-for-one rule section, the language is "IN" and "OUT". An "IN" is an Administrative Cost and an "OUT" is an Administrative Benefit. If you are analyzing a regulatory initiative that removes a baseline reporting requirement, enter that as an Administrative Benefit (not a negative cost).   
+
Most sections of the RCC use the terminology "Cost" and "Benefit". However, in the One-for-One Rule section, the language is "IN" and "OUT". An "IN" is an Administrative Cost and an "OUT" is an Administrative Benefit. If you are analyzing a regulatory initiative that removes a baseline reporting requirement, enter that as an Administrative Benefit (not a negative cost).   
    
If the Calculator is being used for a complete cost benefit analysis, then a compliance activity is simply a cost or a benefit.   
 
If the Calculator is being used for a complete cost benefit analysis, then a compliance activity is simply a cost or a benefit.   
Line 210: Line 210:  
Important point: although upfront costs only occur one time per affected stakeholder, that does not mean that they only appear in one year of the analysis. If there is a positive stakeholder growth rate, that means new businesses are entering the market over time, and they incur the upfront costs too. Example: if you have a 1% stakeholder growth rate then there will be new entrants every year, and there would be upfront cost appearing in every year throughout the analytical period.
 
Important point: although upfront costs only occur one time per affected stakeholder, that does not mean that they only appear in one year of the analysis. If there is a positive stakeholder growth rate, that means new businesses are entering the market over time, and they incur the upfront costs too. Example: if you have a 1% stakeholder growth rate then there will be new entrants every year, and there would be upfront cost appearing in every year throughout the analytical period.
   −
'''Ongoing:''' activities can happen multiple times per stakeholder, on a recurring basis at some specific frequency throughout the analytical period. These impacts are assumed to occur at the end of each period. An example of an ongoing activity is stakeholders submitting a report to the government 3 times per year (and 3 times per year over 10 years means this activity would happen 30 times).
+
'''Ongoing:''' activities can happen multiple times per stakeholder, on a recurring basis at some specific [[frequency]] throughout the analytical period. These impacts are assumed to occur at the end of each period. An example of an ongoing activity is stakeholders submitting a report to the government 3 times per year (and 3 times per year over 10 years means this activity would happen 30 times).
    
The assumption that ongoing activities occur at the end of each period may be different than your typical approach in a CBA. This assumption affects how many stakeholders incur the cost and how the cost is discounted. For example if you have an ongoing cost in Year 1, it is assumed that it is incurred at the end of the year (i.e., December 31). This means that the annual growth rate is applied to the stakeholder count from the beginning of the year, and the discount rate is applied.
 
The assumption that ongoing activities occur at the end of each period may be different than your typical approach in a CBA. This assumption affects how many stakeholders incur the cost and how the cost is discounted. For example if you have an ongoing cost in Year 1, it is assumed that it is incurred at the end of the year (i.e., December 31). This means that the annual growth rate is applied to the stakeholder count from the beginning of the year, and the discount rate is applied.