TREASURY BOARD OF CANADA SECRETARIAT

Chapter 1 - Financial Management and Control and Risk Management: Action Plan

Recommendation

Response

Financial Controls

1.26 The Treasury Board of Canada Secretariat should continue to review the departments’ implementation of the Treasury Board Policy on Internal Controls to support the effectiveness of internal controls for financial reporting across government. This should include monitoring the departments’ established timelines for completing their risk-based assessments of these controls. The Secretariat should also monitor the departments’ actions to address significant issues identified as a result of their assessments, including monitoring that the actions are appropriate and timely. (1.15–1.24)

TBS response: Agreed. The Secretariat continues to acknowledge the importance of monitoring and strengthening internal financial controls across government. The foundational Policy on Internal Control, in place since 1 April 2009, is a risk-based policy that advocates effective internal control over financial reporting in departments. A three-year, phased-in approach has been taken to the implementation of the policy and includes a requirement for departments to publish the results and action plans arising from assessments of the effectiveness of internal controls over financial reporting.

In implementing the Treasury Board’s Policy on Internal Control, the Office of the Comptroller General (OCG) supports departments and the government’s financial management community, by reaffirming the policy expectations and requirements and by providing tools and guidance. The OCG also monitors departmental progress in implementing the policy in a variety of ways, including, but not limited to, reviews of the annual departmental disclosure on internal controls over financial reporting, required under the Policy on Internal Control; assessments under the Management Accountability Framework; results of audits and evaluations; and special audits or horizontal audits that may be commissioned by the Comptroller General of Canada.

Update: This is an ongoing activity and part of TBS/OCG’s regular business.

Recommendation

Response

Human resource capacity in financial management

1.44 Selected departments, in collaboration with the Office of the Comptroller General, should ensure that succession strategies are in place to address upcoming vacancies in key senior financial positions. (1.43)

TBS response: Agreed. The Office of the Comptroller General (OCG) has recently initiated a competitive process for the establishment of a pool of candidates at the EX-02 and EX-03 levels. The departments will participate in this process and will continue to collaborate with the OCG to support efforts to develop a succession planning strategy to address upcoming and ongoing vacancies in key senior financial positions.

Update: The competitive process is now complete and the pool of candidates is available to departments.  As well, TBS/OCG is continuing to work collaboratively with departments to support efforts to develop a succession planning strategy to address upcoming and ongoing vacancies in key senior financial positions.