ARCHIVED - Office of the Superintendent of Financial Institutions Canada

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SECTION IV: OTHER ITEMS OF INTEREST

 

IV.1 Organizational Information

OSFI comprises three sectors (see organization chart below), each headed by an Assistant Superintendent. Each sector works interdependently to achieve OSFI's strategic outcomes. There is also an independent Internal Audit and Consulting Services function that reports directly to the Superintendent. In addition, OSFI has an Audit Committee that is primarily composed of external members.

The Office of the Chief Actuary was created within the organization as a separate unit to provide effective actuarial and other services to the Government of Canada and provincial governments that are Canada Pension Plan (CPP) stakeholders.

 

 

Workforce

As at March 31, 2008, OSFI employed 467 people in offices located in Ottawa, Montreal, Toronto and Vancouver.

Sector	As at March 31, 2007	% of total	As at March 31, 2008	% of total
Supervision	177	38%	177	38%
Regulation	127	27%	134	28%
Office of the Chief Actuary	26	6%	26	6%
Corporate Services and other16	132	29%	130	28%
TOTAL	462	100%	467	100%

 

IV.2 Internal Services

Please refer to OSFI's PAA in Section I for a listing of Internal Services.

To facilitate government-wide roll-ups, the costs of OSFI's Internal Services and program support activities are allocated to each program activity to present the full program costs. The following table illustrates how OSFI's 2007-2008 actual Internal Services costs are allocated to its other program activities.

($ thousands)	Program Activity
	Regulation and Supervision of Federally Regulated Financial Institutions	Regulation and Supervision of Federally Regulated Private Pension Plans	International Assistance	Office of the Chief Actuary	Total -2007-2008 Actual
Information Technology Services	9,939	648	138	564	11,289
Human Resources Management Services	6,981	455	97	396	7,929
Facilities/Asset Management Services	3,389	221	47	192	3,849
Public Affairs/Communications Services	2,583	168	36	147	2,934
Information Management Services	1,728	113	24	98	1,963
Financial Management Services	1,372	89	19	78	1,558
Internal Audit Services	1,223	80	17	70	1,390
Management and Oversight Services	916	60	12	52	1,040
Other Support Delivery Services	690	45	9	39	783
Legal Services	513	33	7	29	582
Supply Chain Management Services	199	13	3	11	226
TOTAL Internal Services	29,533	1,925	409	1,676	33,543

 

IV.3 Program Support Priorities

OSFI has two Program Support Priorities that support the Program Activities. In addition, for 2007-2008, OSFI had a Management Priority in support of the Program Activities. These three Priorities and their performance information are discussed below.

 

PRIORITY 7

Priority 7: High quality internal governance and related reporting. (Ongoing)
Description OSFI's Program Activities are supported by Corporate-wide Activities, whose costs are allocated to each Program Activity. These activities include, among others, Management and Oversight Services, Financial Management Services, Public Affairs/Communications Services, and Internal Audit Services.
Key Expected Results Operational units are operating within applicable policies, acts and guidelines. OSFI's financial results accurately reflect the financial position of OSFI.
Key Performance Measures / Achieved Results Internal Audits of reviewed units find that controls are in place and units are operating within applicable acts, policies and guidelines, and/or identifies areas for action. Audit reports, which include management's response to any identified issues, are posted on OSFI's Web site. These reports identify several opportunities for the improvement of certain policies and practices. Action plans to deal with these matters are underway and on track. Office of the Auditor General audit attests that OSFI's financial statements present fairly, in all material respects, the financial position of OSFI at the year-end and the results of its operations and its cash flows for the year in accordance with Generally Accepted Accounting Principles (GAAP). OSFI received an unqualified audit opinion in 2007-2008 attesting that the financial statements present fairly, in all material respects, OSFI's position at year-end and the results of its operations and its cash flows for the year ended in accordance with GAAP for the private sector. NEW Treasury Board's audits of OSFI, in the scope of its government-wide Horizontal Audits, confirm no material findings for OSFI. OSFI participated in a Treasury Board Horizontal Audit of Small Departments and Agencies (SDA) on Travel and Hospitality. Audit results for OSFI confirmed no significant or material findings.	Ratings 2007-08 – Successfully met 2006-07 – Successfully met 2005-06 – Successfully met 2007-08 – Successfully met 2006-07 – Successfully met 2005-06 – Successfully met   2007-08 – Successfully met 2006-07 – N/A 2005-06 – N/A
Performance Discussion Steps taken during the year in support of this objective include: In response to Treasury Board's minor recommendations specific to OSFI as part of the Horizontal Audit of Small Departments and Agencies on Travel and Hospitality, OSFI developed, implemented and completed an action plan. To further support the effectiveness and independence of its performance reporting, OSFI: enhanced its Performance Measurement Framework and performance measures for external reporting to Parliament, Treasury Board and other stakeholders. OSFI's framework, measures, indicators, targets and reporting cycles met the requirements of the Treasury Board's Management Resources and Results Structure Policy and were approved by the Treasury Board in December 2007. embedded its updated performance measures, indicators and targets into its 2008-2009 Report on Plans and Priorities and implemented its reporting in accordance with the framework effective its 2007-2008 Departmental Performance Report. OSFI implemented rolling quarterly reviews of its environmental scans and enterprise-wide risk management processes. OSFI initiated its Common Look and Feel project to enhance its Web site, as required in support of this government-wide initiative.  Responded to the finding in the "Audit of Active Offer of Communications with and Services to the Public in Both Official Languages" (see Table 5 of OSFI's DPR available at Treasury Board of Canada Secretariat website's Estimates / 2007-2008 Departmental Performance Reports:  http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp). Steps planned for the future to improve performance include: OSFI will refine its corporate planning process to more fully integrate IM/IT and HR planning, and performance management into the overall process. Treasury Board's final horizontal audit report (for the SDA community as a whole) had not yet been released at the time of writing of this DPR. Once the Treasury Board's horizontal audit report on travel and hospitality becomes available, OSFI will assess any audit findings and determine whatever measures are necessary. Once received, OSFI will consider and assess any findings of the Canadian Public Service Agency audit report examining whether employees have the opportunity to be supervised in the official language of their choice (see Table 5 of OSFI's DPR available at Treasury Board of Canada Secretariat website's Estimates / 2007-2008 Departmental Performance Reports: http://www.tbs-sct.gc.ca/dpr-rmr/st-ts-eng.asp).
Financial and Human Resources: Included in Priorities 1 to 6.

 

PRIORITY 8

Priority 8: Resources and infrastructure necessary to support supervisory and regulatory activities. (Ongoing)
Description OSFI's Program Activities are supported by Corporate-wide Activities, whose costs are allocated to each Program Activity. These activities include, among others, Human Resources Management Services, Management and Oversight Services, Supply Chain Management Services, Facilities/Asset Management Services, Information Management Services, Information Technology Services, and Other Support Delivery Services.
Key Expected Results Operational units within program support are efficient and effective, i.e., deliver services at reasonable cost and turn-around time relative to peers. High quality staff and a stable, motivated and skilled workforce. Staff recognize the improvements made at OSFI.
Key Performance Measures / Achieved Results External reviewers find OSFI's Program Support to be efficient. In 2007-2008, the Gartner Group performed a benchmarking study of OSFI's Information Technology (IT) function. The study concluded that OSFI: is well supported with IT infrastructure; demonstrates a mature application release strategy process; should review and update its Information Management and Information Technology (IM/IT) Strategies; and should review its governance processes supporting the conceptualization and prioritization of major IM/IT initiatives, and the rationalization of enhancements to existing systems. Knowledgeable observers are of the view that OSFI has high quality staff. NOTE: The consultations with industry stakeholders which were undertaken for the year in review did not address this topic. NEW  Voluntary turnover reports are satisfactory. Historically, the trend at OSFI has been for turnover to be in the 5-7% range, which is deemed as entirely acceptable. The 2007-08 quarterly reports show that turnover continues to be within the acceptable range. NEW Employee Survey17 finds that OSFI employees are motivated. 87% of employees agree strongly or somewhat with the statement: “I would recommend OSFI as a good place to work.”  This is an increase from 82% which was reported in an abbreviated employee survey conducted in March 2006. NEW Employee Survey shows improvements since the last survey. The overall mean score on the 2007 employee survey, indicating employee approval, increased to 3.1 compared to 2.9 in 2005.	Ratings 2007-08 –  Successfully met 2006-07 – N/A 2005-06 – Successfully met     2007-08 – N/A 2006-07 – Successfully met (for actuarial staff) 2005-06 – Successfully met (for pension staff) 2007-08 –  Successfully met 2006-07 – N/A 2005-06 – N/A 2007-08 –  Successfully met 2006-07 – N/A 2005-06 – Successfully met 2007-08 – Successfully met 2006-07 – N/A 2005-06 – N/A
Performance Discussion Steps taken during the year in support of this objective include: Provided quarterly voluntary turnover reports to the Executive Committee for review. Continued 360-degree feedback of executive leadership skills, which has contributed to increased employee satisfaction in relation to leadership behaviours. Steps planned for the future to improve performance include: In response to the findings of the Gartner Group's IT Benchmarking Study, OSFI plans to: review and update its IM and IT Strategies, and integrate them more closely into the Corporate Planning process; review its governance processes supporting the conceptualization and prioritization of major IM/IT initiatives, and the rationalization of enhancements to existing systems; and, review its applications portfolio for opportunities to streamline it and/or realize further benefits. Conduct employee focus groups to discuss feedback received on the Employee Survey on issues such as performance management and internal communications. Develop a management action plan in response to the results of the Employee Survey. Continue targeted recruitment of specific subject matter experts.
Financial and Human Resources: Included in Priorities 1 to 6.

 

PRIORITY G

Priority G: Integration of Human Resources (HR) Planning into Business Planning (New)
Description Ensure OSFI has the human resources available to fulfill its mandate, through better long-range, integrated planning.
Key Expected Results Improved allocation of resources.
Key Performance Measures / Achieved Results NEW HR costs for ongoing operations do not change substantially, unless there are unplanned external factors. Created a new supervisory team based in Ottawa to assist the Toronto-based Financial Institutions Group in managing the workload created by the growing risk profiles across OSFI's regulated industries, and staffed with existing resources. Budgeted new positions for 2008-09 to increase capacity and complement targeted technical skills in anticipation of emerging risks.	Ratings 2007-08 - Successfully met 2006-07 - N/A 2005-06 - N/A
Performance Discussion Steps taken during the year in support of this objective include: Implemented a formal deployment program that encourages employees to further hone their professional skills by experiencing different working environments within the organization. Compiled an inventory of industry experience among employees in Supervision as a recruitment aid in staffing vacancies.  Completed a compensation survey that indicated OSFI's salary structure appropriately reflects salaries paid within the financial services industry. Steps planned for the future to improve performance include: Continue to review the compensation structure to ensure OSFI remains competitive. Implement targeted recruitment strategies to maintain an appropriate balance between OSFI and recent industry experience. Provide proactive and timely learning opportunities to be better prepared for the impact of emerging risks. Shift emphasis from headcount management to budget management in order to lower vacancy rates and allow for more strategic recruitment. Continue to review and improve the tools and processes used to integrate HR planning into business planning. Refresh the OSFI HR strategic plan, together with people brand and strategic HR goals (including revamping the 360 feedback process, revising the employee survey, and investigating best practices with respect to work-life balance.)
Financial and Human Resources: Included in Priorities 1 to 6.

 

IV.4 Government Priorities and Other Initiatives

This section summarizes OSFI's involvement in a number of initiatives.

Program Activity Architecture – Performance Measurement Framework
In December 2007, OSFI received from the Treasury Board Secretariat approval of its performance measurement framework (PMF) and governance structure for the Office of the Superintendent of Financial Institutions’ Strategic Outcomes and Program Activity Architecture. The PMF and governance structure were developed to meet the standards of Step 2 of the implementation of the Treasury Board's Management, Resources, and Results Structure Policy. The PMF will form the basis for systematic and ongoing collection of performance information.

Proactive Disclosure
In accordance with federal government policies introduced in 2004, OSFI published information on travel and hospitality expenses incurred within OSFI by the Superintendent, Assistant Superintendents and Chief Actuary, as well as information on contracts over $10,000 issued by or on behalf of OSFI. Effective spring 2006, the disclosure of Grants and Contributions was also required.

All proactive disclosure information is updated every three months on OSFI's Web site.

Acts, Legislation and Regulations
Information on the Acts, Legislation and Regulations administered by or impacting OSFI can be found on the OSFI Web site, www.osfi-bsif.gc.ca , under About OSFI / Legislation . The acts can be found on the Justice Canada Web site under “Laws” at http://laws.justice.gc.ca .

 

IV.5 Other References

Headquarters
Office of the Superintendent of Financial Institutions Canada
255 Albert Street
16th Floor
Ottawa, Ontario
K1A 0H2

Telephone: (613) 990-7788
Fax: (613) 952-8219
Web site: www.osfi-bsif.gc.ca

Publications
Please see OSFI Web site www.osfi-bsif.gc.ca for details.

 

 

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¹ In its Departmental Performance Report for the fiscal year ending March 31, 2007, OSFI reported 456 average full-time equivalents. This number was restated to 446 to conform to the presentation adopted during fiscal year 2007-2008.

² A detailed discussion of results begins in Section II.4

³ This measure is a proxy for whether OSFI intervened early enough to prevent undue loss to depositors and/or policyholders. Estimated recovery is the amount on the dollar per claim each policyholder or depositor would receive upon the completion of the liquidation. Expectation > $0.90.

⁴ OSFI provided The Strategic Counsel, an independent research firm, with a list of CEOs of federally regulated financial institutions. The research firm invited the CEOs to participate in either an online or a telephone survey, and 166 (61%) participated. OSFI does not know which CEOs participated. The complete report is available on OSFI's Web site under Organization / Reports/ Consultations and Surveys.

⁵ OSFI provided The Strategic Counsel, an independent research firm, with a list of CEOs of federally regulated financial institutions. The research firm invited the CEOs to participate in either an online or a telephone survey, and 166 (61%) participated. OSFI does not know which CEOs participated. The complete report is available on OSFI’s Web site under Organization / Reports/ Consultations and Surveys.

⁶ In 2006-2007, 87% of life insurance company executives and professionals rated this as very good, good and fair. When “fair” is included in the 2007-2008 results, the total rating is 92%.

⁷ OSFI provided The Strategic Counsel, an independent research firm, with a list of CEOs of federally regulated financial institutions. The research firm invited the CEOs to participate in either an online or a telephone survey, and 166 (61%) participated. OSFI does not know which CEOs participated. The complete report is available on OSFI's Web site under Organization / Reports/ Consultations and Surveys.

⁸ 90% of deemed approvals must be processed in less than 30 calendar days of receipt. For a detailed listing of all other performance standards, please refer to OSFI's website under For Regulated Entities / Banks / Applications and Approvals / User fees-Service Charges.

⁹ This measure is a proxy for whether OSFI intervened early enough to prevent undue loss to plan beneficiaries. Estimated recovery is the percentage of the benefit promised that each plan beneficiary would receive upon the completion of the liquidation.

¹⁰ In 2005-2006, OSFI provided The Strategic Counsel, an independent research firm, with a list of pension plan sponsors and professionals. The research firm invited 399 of these stakeholders to participate in a web survey, and 158 (40%) responded. The research firm also conducted 69 one-on-one confidential interviews. The research firm selected the samples independently from the list and OSFI does not know who was interviewed. The complete report is available on OSFI's Web site under Organization / Reports/ Consultations and Surveys.

¹¹ Surveys are provided to workshop participants when IAG staff are the primary presenters. IAG delivered 27 such workshops in 2007-2008, with 1009 participants. A total of 808 surveys were completed, for a response rate of 80.1%. A revised questionnaire was implemented part way during the year, which introduced the second performance measure. This question was completed by 458 participants.

¹² The CPP Peer Review is conducted every three years. The most recent review was completed March 2008.

¹³ The OCA is required by law to produce an actuarial report on the CPP every three years. The next report will be published in 2010.

¹⁴ A consultant is engaged by the OAG to review various OCA public pension actuarial reports and documents relevant to the information disclosed in the Public Accounts of Canada.

¹⁵ The CSLP actuarial reports are completed on an annual basis.

¹⁶ "Other" includes employees in the Superintendent's Office, Internal Audit and Consulting Services and the Secretariat of the Audit Committee.

¹⁷ In the fall of 2007, Talentmap, an independent research firm, conducted a confidential on-line survey of OSFI employees. A total of 375 employees participated, for a response rate of 83%.

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