Directive on the Stewardship of Financial Management Systems

• 1.1This directive takes effect on April 1st, 2023.

• 2.1This directive is issued pursuant to section 7 and section 11.1 of the Financial Administration Act (FAA). 

• 3.1The objectives indicated in section 3 of the Policy on Financial Management, section 3 of the Policy on the Planning and Management of Investments, and section 3 of the Policy on Service and Digital apply to this directive.
• 3.2The expected results indicated in section 3 of the Policy on Financial Management, section 3 of the Policy on the Planning and Management of Investments, and section 3 of the Policy on Service and Digital apply to this directive.

• 4.1The Chief Financial Officer is responsible for the following:

  Stewardship

  • 4.1.1selecting and implementing the departmental financial and materiel management system (DFMS) in accordance with direction from the Office of the Comptroller General
  • 4.1.2engaging the departmental Chief Information Officer to ensure DFMS investments, financial management information, and data and business processes are in alignment with direction from the Office of the Chief Information Officer
  • 4.1.3managing the change management process with respect to the DFMS and the associated business requirements
  • 4.1.4ensuring governance and resources are available to support the standardization and interoperability of the DFMS, common financial management business processes, information and data
  • 4.1.5ensuring the department is a member of the applicable DFMS cluster group
  • 4.1.6ensuring the integrity of the financial management system (FMS)
  • 4.1.7providing input into annual reporting and cost model exercises on the FMS, as requested by the Office of the Comptroller General
  • 4.1.8managing financial management information, data and business processes, in accordance with direction from the Office of the Comptroller General

  Financial management system investments

  • 4.1.9seeking endorsement from the Office of the Comptroller General prior to investing in an FMS (see Appendix B: mandatory procedures for seeking endorsement of financial management system investments and Appendix C: standard on investment alignment criteria)
  • 4.1.10establishing governance structures within their department to facilitate the review and endorsement of FMS investments

  Use of a financial management systems template and/or other approved solution for financial management systems

  • 4.1.11ensuring alignment of the FMS with the Financial Management Business Capability Model (FM-BCM)
  • 4.1.12ensuring the use of an FMS template and/or approved FMS solution, as defined by the Office of the Comptroller General, as the department’s standardized core baseline/re-baseline
  • 4.1.13ensuring that any variances, exemptions or deviations from the intended use of the FM-BCM, an FMS template or other approved financial management system solution are sought from the Office of the Comptroller General (see Appendix B: mandatory procedures for seeking endorsement of financial management system investments)
  • 4.1.14collaborating with the Office of the Comptroller General and other departments to continuously improve, evolve and modernize approved FMS templates

  Financial management data

  • 4.1.15ensuring that departmental financial management information and data are securely managed as assets by:
    • 4.1.15.1overseeing the design, implementation and management of financial data workflows, and managing the financial management data life cycle (including the collection, retention, storage, analysis, reporting, auditing and disposition of financial management data)
    • 4.1.15.2ensuring that all financial management information and data from an FMS is managed and used in alignment with applicable data standards
    • 4.1.15.3limiting customization of the FMS by ensuring that interfacing or satellite systems adjust, where necessary, to meet integration and interoperability requirements

  Monitoring and reporting

  • 4.1.16ensuring compliance with this directive through monitoring, reviews, and other assessments
  • 4.1.17ensuring that mandatory procedures for host cluster departments and financial management system investments, set out in appendices A and B, are applied
  • 4.1.18providing information on their Department’s FMS, as requested by the Office of the Comptroller General

  Supporting workforce capacity

  • 4.1.19providing functional leadership in the department on the development and sustainability of the FMS through talent management and community development strategies
• 4.2Senior designated officials for the management of financial management systems are responsible for the following:
  • 4.2.1ensuring that appropriate processes, procedures, tools and templates are used when integrating with or extracting information from an FMS. This includes:
    • 4.2.1.1specifying all added information or operational requirements that impact financial and materiel management systems
    • 4.2.1.2developing a change management process and implementation plan for all changes that impact financial and materiel management systems
    • 4.2.1.3collaborating with the Office of the Comptroller General to align with the FMS
    • 4.2.1.4seeking endorsement from the Office of the Comptroller General for any investments or operational requirements that may affect the interoperability of the FMS, including at a GC-wide level
    • 4.2.1.5consulting with the departmental chief financial officer on any data being extracted from their FMS and used by any interfacing or satellite system
    • 4.2.1.6ensuring that the central system or program system operates in alignment with the mandatory procedures set out in appendices A and B

• 5.1Not applicable.

• 6.1The directive applies to the organizations listed in section 6 of the Policy on Financial Management.

• 7.1

  Legislation

  • Access to Information Act
  • Canada Evidence Act
  • Financial Administration Act
  • Library and Archives of Canada Act
  • Official Languages Act
  • Personal Information Protection and Electronic Documents Act (Part 2)
  • Privacy Act
  • Public Service Employment Act
  • Security of Information Act
  • Service Fees Act
  • Shared Services Canada Act
  • Government Contracts Regulations
• 7.2

  Related policy instruments

  • Foundation Framework for Treasury Board Policies
  • Policy on Access to Information
  • Policy on Communications and Federal Identity
  • Policy on Financial Management
  • Policy on Green Procurement
  • Policy on Government Security
  • Policy on the Planning and Management of Investments
  • Policy on Official Languages
  • Policy on Privacy Protection
  • Policy on Results
  • Policy on the Duty to Accommodate Persons with Disabilities in the Federal Public Service
  • Policy on Transfer Payments
  • Values and Ethics Code for the Public Sector
  • Directive on the Management of Projects and Programmes
  • Directive on Charging and Special Financial Authorities
  • Directive on Management of Materiel
  • Directive on Service and Digital
  • Directive on the Management of Procurement
  • Directive on the Management of Real Property
  • Directive on Accounting Standards

For interpretation of any aspect of this directive, contact TBS Public Enquiries for assistance.

• 8.1Individuals from departments should contact their departmental headquarters for more information about this directive.
• 8.2

  Individuals from departmental headquarters should contact FMT – TGF for interpretations, or:

  Financial Management Transformation
  Office of the Comptroller General
  Treasury Board Secretariat
  Ottawa ON K1A 0R5