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ARCHIVED - Audit of the Treasury Board of Canada Secretariat's Management Control Framework of the Public Service Pension Plan


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Appendix 1—Roles and Responsibilities

The following descriptions are extracted from the Report on the Public Service Pension Plan for the Fiscal Year Ended March 31, 2010:

Treasury Board of Canada Secretariat. The President of the Treasury Board is responsible for the overall management of the Public Service Pension Plan. The Treasury Board of Canada Secretariat (the Secretariat) is responsible for the strategic direction, program and policy advice, financial analysis, and the development of legislation related to the Public Service Pension Plan, as well as communications to pension plan members, including the preparation of the annual Report on the Public Service Pension Plan. The Secretariat, through the Office of the Comptroller General, also provides Public Works and Government Services Canada with general accounting guidance in the preparation of the public service pension plan's financial statements. In addition, the Office of the Comptroller General promotes sound government spending, provides leadership across the public service to the financial management and internal audit sectors, and ensures standards are set and observed. The Office of the Comptroller General chairs the Interdepartmental Committee on Pension Accounting, which meets once a year to evaluate and decide on actuarial assumptions to be utilized for the purposes of the Public Accounts.

Public Works and Government Services Canada. Public Works and Government Services Canada is responsible for the day-to-day administration of the Public Service Pension Plan. This includes the development and maintenance of the public service pension systems and the books of accounts, records, and internal controls, as well as the preparation of Account Transaction Statements for reporting in the Public Accounts.

In addition, Public Works and Government Services Canada processes payment and carries out all accounting and financial administrative functions. Public Works and Government Services Canada, along with the Secretariat, is also responsible for the preparation of the Public Service Pension Plan's financial statements and the annual Report on the Public Service Pension Plan.

Public Sector Pension Investment Board. The Public Sector Pension Investment Board is a Crown corporation established by the Public Sector Pension Investment Board Act of 1999. It commenced operation on April 1, 2000. The Public Sector Pension Investment Board is governed by an 11-member board of directors accountable to Parliament through the President of the Treasury Board, who is responsible for the Act and for the tabling in Parliament of the Public Sector Pension Investment Board's annual report. The relevant financial results of the Public Sector Pension Investment Board are included in the pension plan's financial statements. Amounts equal to contributions in excess of benefit payments and administrative expenses are regularly transferred from the Consolidated Revenue Fund to the Public Sector Pension Investment Board and invested in capital markets. The legislative mandate of the Public Sector Pension Investment Board is to maximize returns without undue risk of loss. The Public Sector Pension Investment Board also manages the invested assets of the Royal Canadian Mounted Police, the Canadian Forces and the Reserve Force pension plan accounts.

Office of the Chief Actuary. The Office of the Chief Actuary is a separate unit within the Office of the Superintendent of Financial Institutions Canada that provides a range of actuarial services and advice to the Government of Canada. The Office of the Chief Actuary is responsible for conducting an annual actuarial valuation for accounting purposes that serves as the basis for the determination of the government pension liability and expense with respect to the Public Service Pension Plan included in the Public Accounts. Economic assumptions used in this actuarial valuation represent government's best estimate.

As required by the Public Pensions Reporting Act, the President of the Treasury Board causes the Chief Actuary to conduct an actuarial valuation of the Public Service Pension Plan for funding purposes. The actuarial valuation for funding purposes is performed by the Office of the Chief Actuary at least every three years and is tabled in Parliament by the President of the Treasury Board.

Public Service Pension Advisory Committee. The Public Service Pension Advisory Committee, established under the Public Service Superannuation Act, is composed of 13 representatives, namely, 1 pensioner, 6 members representing employees and 6 members chosen from the executive ranks of the public service. This committee provides advice to the President of the Treasury Board on matters relating to the Public Service Pension Plan's administration, benefit design, and funding.

Appendix 2—Audit Criteria

The audit criteria were derived from the Office of the Comptroller General's Audit Criteria Related to the Management Accountability Framework: A Tool for Internal Auditors.

Line of Enquiry 1: Roles and Responsibilities

  • 1.1 Roles, responsibilities and accountabilities within the Secretariat are clearly defined and communicated.
  • 1.2 The Secretariat's accountabilities with external organizations that collaborate with it to support the Public Service Pension Plan are clearly defined and communicated.

Line of Enquiry 2: Oversight, Monitoring and Reporting

  • 2.1 Appropriate mechanisms are established to oversee and ensure compliance with legislative and policy requirements.
  • 2.2 External and internal environments are monitored to obtain information that management considers for changes to objectives, policies or controls.
  • 2.3 Processes exist for ongoing communication with the President and committees, and for informing them of significant issues.

Line of Enquiry 3: Risk Management and Strategic and Operational Planning

  • 3.1 The Pensions and Benefits Sector has in place operational plans and objectives aimed at achieving its strategic objectives.
  • 3.2 The Pensions and Benefits Sector identifies and assesses its risks, and develops mitigation strategies that address both sector and pension plan risks.
  • 3.3 Strategic and operational planning processes consider risk information.

Line of Enquiry 4: Knowledge Management

  • 4.1 The Pensions and Benefits Sector has a knowledge management process in place for information management, retention and sharing among employees.
  • 4.2 The Pensions and Benefits Sector provides employees with the necessary training, tools, resources and information to support the discharge of their responsibilities.
  • 4.3 The Pensions and Benefits Sector provides Public Service Pension Advisory Committee members with the necessary training, tools, resources and information to support the discharge of their responsibilities.