Rescinded [2017-04-01] - Directive on Internal Support Services

1.1 This directive takes effect on April 1, 2012.

1.2 Where interdepartmental arrangements for the provision of internal support services predate the effective date of this directive, deputy heads should ensure that interdepartmental agreements comply with this directive.

2.1 This directive applies to departments as defined in section 2 of the Financial Administration Act, unless excluded by specific acts, regulations or Orders in Council.

2.2 This directive deals only with interdepartmental provision of internal support services under section 29.2 of the Financial Administration Act. (See Appendix A)

2.3 Section 5.3.3 of this directive, which assigns responsibility to the Secretary of the Treasury Board to monitor departments' compliance with this directive, does not apply to the Office of the Auditor General, the Office of the Privacy Commissioner of Canada, the Office of the Information Commissioner of Canada, the Office of the Chief Electoral Officer, the Office of the Commissioner of Lobbying, the Office of the Commissioner of Official Languages, and the Office of the Public Sector Integrity Commissioner. The deputy heads of these organizations are solely responsible for monitoring and ensuring compliance with this directive within their respective organizations, as well as for responding to cases of non-compliance in accordance with any Treasury Board instruments that address the management of compliance.

3.1 Section 29.2 of the Financial Administration Act authorizes departments to provide internal support services to, and receive such services from, one or more other departments. The provision of these services may be through collaboration among departments. Throughout this directive, any reference to provision of internal support services should be read to include provision by way of collaboration, unless a more limited meaning is indicated or is self-evident.

3.2 Internal support services are administrative services that support a department or a program; they do not include services delivered to the public or other direct program delivery services. Internal support services are defined in subsection 29.2(4) of the Financial Administration Act. This subsection also provides a mechanism whereby other activities may be added to the definition by way of an Order in Council.

3.3 There are internal support services that departments may not provide under the authority of section 29.2 of the Financial Administration Act. Subsection 29.2(3) states that a department is not authorized to provide services if, under the authority of an Act of Parliament, an Order in Council or Treasury Board direction:

• (a) those services may only be provided by another department or body;
• (b) departments are required to obtain those services from another department or body; or
• (c) the department is precluded from providing those services.

Paragraph (a) reflects situations where a department or body has been recognized as the sole federal provider of a service; other departments must obtain the service from the recognized provider or from a source outside the federal government.

Paragraph (b) respects the role of common service organizations as providers of mandatory services. Departments must obtain mandatory services, as described in the Common Services Policy and in several Treasury Board decisions, from common service organizations; departments that are not common service organizations may not provide these services.

Paragraph (c) allows Cabinet, through Orders in Council, and the Treasury Board to preclude any department from providing particular internal support services.

3.4 The authority of section 29.2 for a department to provide internal support services carries with it an implicit authority for the department to make charges for the services.

3.5 Departments require legal authority to expend revenues from internal support services to offset expenditures incurred in providing the services.

3.6 Subsection 29.2(2) requires written agreements among departments for the provision or receipt of internal support services. This directive sets out minimum elements that are to be addressed in these agreements.

3.7 It should be noted that the authority to provide internal support services to other departments and the authority to receive such services implicitly give authority to provide and receive the personal information that is necessary for the provision of the services. Particular attention should be given to ensure that the requirements of the Privacy Act and associated privacy polices and directives are respected where personal information is exchanged or shared among departments for this purpose.

3.8 This directive supports the objectives of the Policy Framework for Financial Management by setting out the responsibilities of departmental managers and chief financial officers concerning interdepartmental arrangements for the provision of internal support services.

3.9 This directive is to be read in conjunction with the Policy on Special Revenue Spending Authorities.

3.10 This directive is issued under section 7 and subsection 29.1(4) of the Financial Administration Act.

5.1 Where departments are part of an interdepartmental arrangement for internal support services authorized by section 29.2 of the Financial Administration Act, departmental managers who have been assigned responsibilities for the arrangement are responsible for ensuring that the written agreement required by subsection 29.2(2) of the Act includes the following elements:

• (a) a description of the internal support services to be provided;
• (b) a clear delineation of the respective roles and responsibilities of the parties;
• (c) mechanisms for decision making and dispute resolution in relation to the agreement;
• (d) the period of the agreement and the notice required for withdrawal or termination;
• (e) agreed service levels and performance expectations;
• (f) the basis for charging for the services provided, invoicing and account settlement arrangements, and the information that will be provided to support charges made; and
• (g) the types of personal information to be collected and disclosed under the agreement, and the purposes for which such information will be used.

5.2 Where departments are parties to an arrangement for the provision of internal support services, chief financial officers are responsible for ensuring that:

5.3 Monitoring and reporting requirements

6.1 In instances of non-compliance, deputy heads are responsible for taking corrective measures within their organization with those responsible for implementing the requirements of this directive.

6.2 In support of the responsibility of deputy heads, departmental managers and chief financial officers are to ensure corrective actions are taken to address instances of non-compliance with the requirements of this directive.

6.3 For a range of consequences of non-compliance, please refer to the Framework for the Management of Compliance, Appendix C: Consequences for Institutions and Appendix D: Consequences for Individuals.

Please direct enquiries about this directive to your departmental headquarters. For enquiries on the interpretation of this directive, departmental headquarters should contact:

Financial Management Policy Division
Financial Management Sector
Office of the Comptroller General
Treasury Board of Canada Secretariat
300 Laurier Avenue West
Ottawa ON K1A 0R5

Telephone: 613-957-7233
Facsimile: 613-952-9613