Sound Financial Management
Canadians entrust government with billions of their hard-earned tax dollars every year. What they expect in return is the following:
- clear rules about how that money is spent;
- that only qualified officers are allowed to spend that money; and,
- that the government regularly and consistently monitors both the qualifications of those officers, and compliance with the rules of the Financial Administration Act.
Implicit in those expectations is that there is a senior official in the department responsible for exercising vigilance and upholding the public trust in every instance. PWGSC has responded to these expectations with robust financial management measures.
Chief Financial Officer
PWGSC has appointed a new Chief Financial Officer (CFO), whose role will be to ensure that departmental finances are managed with prudence and probity. The CFO, reporting directly and independently to the Deputy Minister, provides financial management advice and guidance, and oversees improvements to business processes, tools and controls.
Financial Management Strategy
PWGSC adopted a new Financial Management Strategy in 2004 to improve financial management practices, and to ensure consistency in those practices across the department. The Strategy clarifies the roles and responsibilities for financial management accountability and enables the Finance Sector to respond quickly to internal and external environment changes.
In support of these efforts we have also adopted a Financial Management Framework. The Framework is made up of standards, expectations and controls set out by the Deputy Minister and the CFO, to which branches and Special Operating Agencies (SOAs) must demonstrate compliance.
Quality Assurance
The Quality Assurance Program (QAP) is vital to the integrity of the financial management system. In 2002, we established a financial QAP. In 2004, we expanded its scope and integrated it fully into our ongoing operations. The QAP focuses on three areas:
- Compliance Monitoring: We monitor compliance with section 34 of the Financial Administration Act (FAA), and report results to senior management on a quarterly basis. Errors and corrective actions are communicated to concerned parties.
- Review of Financial Delegations: On a quarterly basis, we review all delegated authorities (those who are authorized to sign off on government expenditures), validate them and ensure they are up-to-date.
- Training: PWGSC has developed a learning strategy for managers with delegated authorities and is delivering training on the application of the FAA. It is expected that all managers will be trained by March 2006.
