FIS and Modern Comptrollership
In the spirit of Modern Comptrollership, FIS is premised on the rationale that
several groups have a role to play in good financial management.
The
Financial Information Strategy (FIS) is a government-wide initiative to enhance
the ability of managers to make effective use of financial information.
FIS impacts on everyone who is involved in any aspect of funding or in
the management of resources: Finance, Materiel and Real Property communities,
Human Resources, Administrative and most other functional support groups are all
affected by FIS.
Since
its inception on April 1, 2001, the FIS infrastructure has been implemented in
95 departments and agencies. The major change for departments is the adoption of
full accrual accounting. Accrual accounting is the method of accounting most
commonly used in the private sector and is gaining acceptance internationally in
the public sector.
Accrual
accounting provides managers with a wider range of information on which to base
decisions. In the past, the government was required to take an inventory of its
capital assets (for example property, plant and equipment and software) but did
not have to record their cost on its financial statement. Full accrual
accounting takes into account all the assets and liabilities of an organization
rather than just its cash and, for each accounting period, records changes in
that organization's resources and obligations (including capital assets
amortization). The change to full accrual accounting will result in improved
asset management and better identification and comparison of program costs.
The
FIS goal of better decision-making and improved performance is shared by the
Modern Comptrollership Initiative.
Accrual-based
accounting policies and the implementation of modern management systems will
provide managers with a wider range of information to measure program and
operational results. This will not
only improve results-based management by providing financial and operational
information on the results of past decisions but also provide indicators on
strategic priorities achievement and key success factors.
In
short, FIS will enhance the capability of government managers to make more
informed decisions and to improve organizational performance through the
strategic use of financial information. (For more information on FIS and accrual
accounting, see the Treasury Board website: http://www.tbs-sct.gc.ca/fin/sigs/FIS-SIF/FIS-SIF_e.asp)
FIS
will succeed when program managers and other non-financial specialists become
adept at using and applying good financial and non-financial performance
information in their daily decision-making to improve accountability and
organizational performance.
As
modern integrated financial and materiel systems are being adopted and new
policies and procedures are being developed, several training and learning
programs are also being made available to offer everyone the opportunity to
shift to a new way of thinking, managing and focusing on responsible
decision-making. It is estimated that more than 35,000 government officials
(managers, financial officers, administration clerks, material managers, real
property managers, human resources managers, etc) will require some training.
The
links below provide information on the courses and training options available.
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