Strategic Context
As the Ministry of Finance pursues its mandate over the next three years, the state of the province’s economy is a critical factor in the ministry’s ability to achieve its goals and objectives.
The B.C. economy grew 3.8 per cent in 2005, stronger than the 3.3 per cent expected at the start of last year, according to B.C.’s independent economic forecast council. The Council now expects the strong economic performance to continue in B.C., with growth of 3.6 per cent expected for 2006. Futher information on the B.C. outlook may be found in the Budget and Three Year Fiscal Plan released with the budget.
Within the broader context, the ministry has implemented an Enterprise-wide Risk Management program to identify and manage internal and external risks and to realize new opportunities. Other strategies being undertaken in response to specific risks include:
Cross Government Context
(This table identifies potential cross government risks and ministry mitigation strategies/capacity to address these risks.)
| Potential Risk | Mitigation Strategies |
|---|---|
| Globalization of economic and financial markets will increase competition for investment. | Develop taxation and financial and corporate regulatory policy which reinforces British Columbia’s position as an attractive
place to invest and create jobs. Maintain competitive tendering of treasury business functions to obtain optimal pricing and certainty of service delivery. |
| Economic and commodity market fluctuations and unexpected shocks (e.g., terrorism, avian flu, firestorms) could affect revenues, personal and corporation income taxes and other revenues as well as increase government expenditures. | Use prudent assumptions in the preparation of the fiscal plan. |
| Inflationary demands may cause pressure on capital spending. | Use prudent assumptions in the preparation of the fiscal plan. Use a risk management to plan, develop and implement mitigation strategies. |
Ministry Context
(This table identifies challenges which exist within the ministry and strategies/capacity to address these challenges.)
| Challenges | Strategies |
|---|---|
| International demand for financial professionals (e.g., CGA’s, CMA’s, CA’s) means the ministry must be competitive in recruiting and retaining staff. | Develop and implement recruitment and retention plans. |
| The legislated implementation of Generally Accepted Accounting Principles (GAAP) will ensure that the province’s reporting is consistent with the most recent accounting standards. This may result in the need to continue to evaluate business processes within both core government and affected broader public sector organizations. | British Columbia is a leader in timely and transparent financial reporting, becoming the first province in Canada to introduce a balanced budget and fiscal plans prepared in accordance with GAAP, fully consolidating the SUCH sector in its government reporting entity. Furthermore, British Columbia is the only province with legislation that requires the use of GAAP for estimates, budgets, quarterly reports and public accounts. The ministry will continue to work closely with the Auditor General and the Accounting Policy Advisory Committee to ensure British Columbia continues to lead the provinces in the timeliness of its financial reports and in providing the most comprehensive set of public disclosure documents in Canada. |
The below table identifies opportunities available to enhance ministry capacity and initiatives to maximize the opportunities.
| Opportunity | Initiative |
|---|---|
| Technological innovations provide opportunities for greater efficiencies and productivity. | Systematic reviews of existing and future information management systems to realize economies of scale, reduced duplication and cost savings. |
| The Government of British Columbia has adopted Enterprise-wide Risk Management as the framework for strategic and operational decision-making to effectively manage potential opportunities and adverse effects. | Continue to integrate Enterprise-wide Risk Management practices into ministry’s operational and decision-making activities including the development of the service plan and internal audit plan. |
| The ministry’s Integrated Planning Framework consolidates and streamlines the various planning activities, enhancing the ministry’s resource capacity. | Implement the Integrated Planning Framework into the ministry’s planning activities.
Continuously seek opportunities to improve efficiencies in planning and reporting activities. |
| Partnership and recruitment initiatives with education institutions provide opportunities to build capacity in areas where specific skills are needed but not available in the organization. | Forge partnerships with education institutions to recruit graduates that possess relevant skills (such as financial and accounting) to address succession challenges. |
