1.1 This policy takes effect on June 1, 2010, except for section 6.7, pertaining to the production of a quarterly financial report, which will come into effect on April 1, 2011.
1.2 The Policy on Financial Resource Management, Information and Reporting supersedes the Treasury Board Accounting Standard 1.1, Policy and Principles; dated April 1, 2001.
2.1 This policy applies to all departments and organizations defined as departments in section 2 of the Financial Administration Act. Throughout this policy, the terms "government-wide" and "across government" refer to these organizations.
2.2 Section 7.2, and those portions of sections 8.2 and 8.3 that provide for the Comptroller General of Canada to monitor compliance with this policy within departments and/or request departments take corrective action, do not apply with respect to the Office of the Auditor General, the Office of the Privacy Commissioner, the Office of the Information Commissioner, the Office of the Chief Electoral Officer, the Office of the Commissioner of Lobbying, the Office of the Commissioner of Official Languages and the Office of the Public Sector Integrity Commissioner. The deputy heads of these organizations are solely responsible for monitoring and ensuring compliance with this policy within their organizations, as well as for responding to cases of non-compliance in accordance with Treasury Board instruments that address the management of compliance.
3.1 Canadians expect the federal government to manage public funds well by effectively planning, budgeting and making decisions on the allocation, reallocation and use of financial resources based on reliable information and sound analysis of that information. They also expect timely and reliable reporting that provides transparency and accountability for how government spends public funds to achieve results for Canadians.
3.2 In addition to their assigned duties, deputy heads as departmental accounting officers are expected to organize resources to deliver departmental programs, to ensure that they have taken measures to maintain effective systems of internal control, to sign the accounts required for the preparation of the Public Accounts. Effective financial resource management, which includes the continuum comprising planning, budgeting, monitoring and reporting, essentially supports these responsibilities and achieves departmental and governmental priorities.
3.3 In support of accounting officers, Chief Financial Officers ensure that departmental planning, budgeting, monitoring and reporting processes are effective and consistent with direction from central agencies and the Receiver General for Canada. Chief Financial Officers provide independent advice on the reliability of supporting financial information.
3.4 Senior departmental managers1 also support accounting officers in the effective planning, budgeting, monitoring and reporting on the use of financial resources within their areas of responsibility.
3.5 The Comptroller General of Canada provides government-wide leadership and functional direction for effective financial management, including planning, budgeting, monitoring and reporting of financial information in collaboration with the Receiver General for Canada and other central agencies.
3.6 This policy is to be read in conjunction with the Policy on Management, Resources and Results Structures (MRRS) which sets out the common government-wide approach to the identification of programs and to the collection, management, and reporting of financial and non-financial information relative to those programs. It is also to be read in conjunction with the Policy on Financial Management Governance, the Policy on Internal Control, and the Policy on Internal Audit which set out core requirements relating to effective risk management, controls and governance with respect to financial management and reporting.
3.7 This policy is issued pursuant to section 7 of the Financial Administration Act.
Definitions of key terms to be used in the interpretation of this policy are provided in the Appendix.
Management of public funds is supported by effective planning, budgeting, monitoring and reporting which are based on reliable information and the sound analysis of that information.
Expected results are as follows:
The deputy head is responsible for:
6.1 Approving the departmental financial plan and budget.
6.2 Ensuring the timely allocation of approved budgets throughout the fiscal-year to all managers with financial authorities.
6.3 Ensuring effective oversight of the department's financial plan, budget and related allocations of its resources and making decisions based on sound analysis of reliable information. This includes:
6.4 Ensuring the engagement, review and signing by the Chief Financial Officer in meeting requirements under section 6.3, as appropriate. This may involve the review or signing off of Memoranda to Cabinet and Treasury Board submissions and Estimates requirements, including Annual Reference Level Updates.
6.5 Ensuring that all managers with financial authorities have reliable and timely financial information that supports accountability and effective decision making and relative to budget monitoring.
6.6 Signing a complete set of annual financial statements, consistent with Treasury Board Accounting Standard 1.2, Departmental and Agency Financial Statements.
6.7 Signing a quarterly financial report for each of the first three quarters of each fiscal year, consistent with Treasury Board Accounting Standard 1.3, Departmental and Agency Quarterly Financial Report that is made public within 60 days after the end of its reporting period.
6.8 Ensuring that measures are taken so that the department can sustain a control-based audit of its annual financial statements in whole or in part.
7.1 Deputy heads are responsible for:
7.2 The Comptroller General of Canadais responsible for:
8.1 The deputy head is responsible for investigating and taking corrective actions when significant issues arise regarding policy compliance.
8.2 If the Comptroller General of Canada determines that a department may not have complied with any of the requirements of this policy or supporting directives and standards, the Comptroller General of Canada may request that the deputy head:
8.3 Consequences of non-compliance with this policy and supporting directives and standards, or of failure to take corrective actions requested by the Comptroller General of Canada, may include the following recommendations to Treasury Board:
Please direct enquiries about this policy to your department's headquarters. For interpretation of this policy, departmental headquarters should contact:
Assistant Comptroller General
Financial Management and Analysis Sector
Office of the Comptroller General
Treasury Board Secretariat
Ottawa ON K1A 0R5
Email: fin-www@tbs-sct.gc.ca
Telephone: 613-957-7233
Facsimile: (613) 952-9613