Introduction
Since the time of the 10th Report of the Standing Committee on Public Accounts of the 38th Parliament (the “10th Report”),
the government has introduced the Federal Accountability Act (the “Act”) and Action Plan. The Bill was passed by the
House of Commons in June 2006, and is currently before the Senate Standing Committee on Legal and Constitutional Affairs.
The government recognizes the concerns raised in the 10th Report and believes that this response addresses those concerns
regarding the management responsibilities of deputy ministers and their accountability before committees of Parliament
by designating heads of departments and other federal government organizations as accounting officers. The government
is committed to working with the Committee on matters of accountability and recognizes the dedication of all members
of the Committee to improve those issues.
DETAILED RESPONSES TO THE RECOMMENDATIONS
Recommendation 1
That deputy ministers be designated accounting officers with responsibilities similar to those held by accounting officers
in the United Kingdom.
The proposed Act designates deputy ministers and deputy heads of all government departments and agencies as accounting
officers for their respective organizations, and as such accountable before the appropriate committee of Parliament to
answer questions related to their managerial responsibilities. These responsibilities are set out in the Act and consist
of the following:
- ensuring that resources are organized to deliver departmental objectives in compliance with government policy and
procedures;
- ensuring that there are effective systems of internal control;
- signing the departmental accounts; and
- performing other specific duties assigned by law or regulation in relation to the administration of their department.
The scope of an accounting officer’s responsibilities under the proposed Act are substantially the same as those proposed
in the 10th Report, and likewise resemble those of accounting officers in the United Kingdom. At the same time, they are
consistent with the existing statutory responsibilities of deputy ministers and deputy heads of agencies in the Government
of Canada. Deputy ministers continue to be responsible for regularity and propriety; economy, efficiency and
effectiveness; financial and management systems for departmental programs and public property. This is also consistent
with the existing ministerial accountability for the overall management of departments, as discussed in the response to
Recommendation 2 below.
With regard to the specific recommendation that the personal responsibility of accounting officers for negligence and
wrongdoing not diminish over time, under the Act the accounting officer for a government body is the current deputy head
of that body, who alone has the departmental support required to answer questions before a parliamentary committee and to
correct problems. In matters of unlawful or improper conduct, responsibility is by its nature personal and not dependent
on the accounting officer remaining in his or her position. Thus, to this extent, a former accounting officer will
remain responsible for his or her personal conduct.
This setting out of deputy ministerial management responsibilities in one statute, together with the creation of a
statutory obligation to appear before parliamentary committees to answer questions regarding those responsibilities,
will support high standards of departmental management within the Government of Canada in a number of ways. For example,
it sends a strong message concerning the importance of sound departmental management and clarifies the role of deputy
ministers in achieving it. Additionally, it ensures that Parliament will have the information it requires to assess the
way in which all government departments and agencies are managed.
Recommendation 2
That as accounting officers, deputy ministers be held to account for the performance of their duties and for their
exercise of statutory authorities before the House of Commons Standing Committee on Public Accounts.
Deputy ministers and other senior officials have long supported the accountability of their ministers by appearing before
parliamentary committees to provide background information and answer technical or other factual questions, including
those pertaining to the management of their departments.
The proposed Act makes this responsibility of deputy ministers and deputy heads of all government agencies to answer
questions relating to their management responsibilities a matter of law. As the legislation also makes clear, this legal
obligation is undertaken within the framework of ministerial responsibility and accountability to Parliament. As set out
in the Federal Accountability Act, accounting officers are obligated to appear before the appropriate Senate or House of
Commons committee and answer questions put to them by committee members in respect of the carrying out of the responsibilities
and the performance of duties referred to in the proposed Act, as set out under Recommendation 1. But accounting officers
are not accountable to Parliament in the manner of ministers, in the sense of being politically accountable and subject to
its censure or its demands that specific courses of action be taken. Neither would it be appropriate for accounting officers
to engage in broad policy discussions that could involve the defence or criticism of either Government or Opposition policy.
Ministers alone have this relationship of political accountability to Parliament, which is a central tenet of Canada’s
system of responsible government. Accordingly, the fundamental accountability between a minister and Parliament and between
a minister and his or her deputy minister have not been altered but have been reinforced and clarified in legislation.
Recommendation 3
That specified procedures be adhered to when deputy ministers (as accounting officers) are in disagreement with their
ministers regarding administration and operation of their departments.
With respect to potential disagreements between ministers and deputy ministers in matters of departmental administration,
the Federal Accountability Act establishes, as part of the accounting officer mechanism, a more systematic and effective
means of addressing such disagreements.
Specifically, the proposed Act requires that, in the event that a minister and deputy minister are unable to agree on
the interpretation or application of a Treasury Board policy, directive or standard:
- the deputy minister seek guidance in writing from the Secretary of the Treasury Board;
- if the matter remains unresolved, the minister refer the matter to the Treasury Board for a decision; and
- a copy of the Treasury Board decision be shared with the Auditor General as a confidence of the Queen’s Privy Council
for Canada.
As is currently the approach, all other matters of disagreement would be raised with the Clerk of the Privy Council.
The government believes that this approach will achieve the objectives of the Committee’s Report. At the same time,
recognizing the importance of the minister-deputy minister relationship, it will not merely document the disagreement for
the purposes of assigning blame after the fact. Rather, it will facilitate the prevention and authoritative resolution
of disagreements, and will contribute to the consistent application of government management policies, within the framework
of ministerial responsibility. Providing the decision to the Auditor General will also assist the Auditor General in the
conduct of his or her work, for example by helping him or her to assess the nature and appropriateness of transactions
within government departments.
Recommendation 4
That the government endeavour to retain deputy ministers in their positions for periods of at least three years; however
their responsibilities are in no way diminished should their tenure be less than the recommended three years.
The appointment of deputy ministers is based on the operational and policy needs of the government. Stability and
continuity are very important, but flexibility is also necessary to ensure these needs can be met.
The government is confident that the measures proposed in the Federal Accountability Act and Action Plan, once implemented
will strengthen accountability and ensure that all government officials, from ministers and deputy ministers to employees
are aware of their responsibilities.