ARCHIVED - Modern Comptrollership Within the Treasury Board of Canada Secretariat

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Note: the information that follows relates to the Treasury Board of Canada Secretariat (TBS) as a department. For modern comptrollership information relating to TBS as a central agency, visit the Comptrollership Crossroads site

Mel Cappe
Clerk of the Privy Council
and Head of the Public Service of Canada,
in his Eighth Annual Report to the Prime Minister on the Public Service of Canada 
(30 March 2001)

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Introducing Modern Comptrollership

As described in Results for Canadians modern comptrollership is one of the key priorities set out by the Government of Canada to modernize management practices for the 21^st century.

Traditionally, comptrollership has focused on recording and reporting financial transactions and on making sure that only authorized transactions were entered into. The modernization of comptrollership emphasizes integrated financial and non-financial performance information, vigorous stewardship of resources, sound risk management and open reporting of results. Modernization efforts are aimed at enabling decision-makers to make and communicate more appropriate choices, thereby leading to better service and better public policy - working smarter for better results. Detailed information on the reform initiative is available on the Comptrollership Crossroads web site.

Approach to modernize comptrollership capacity

Treasury Board ministers decided in December 1997 to implement the recommendations made by the Independent Review Panel on Modernization of Comptrollership in the Government of Canada. In the Report, the Panel sets out guiding principles for more effective stewardship of human and financial resources.

A pilot approach was adopted. An initial group of five pilot departments undertook to participate in the reform. During the first three years, the number of pilots that were implementing or preparing to implement modern comptrollership grew to 15. Pilot departments and agencies adopted a common approach to modernization: a self-assessment of modern comptrollership capacity was conducted, followed by the development of a modernization plan, or action plan (information on the pilot departments and agencies is available at http://www.tbs-sct.gc.ca/cmo_mfc/pilot-eng.asp).

Treasury Board of Canada Secretariat as a pilot department

Capacity Assessment

The first stage in the implementation of modern comptrollership involved a detailed assessment of the department's current status and capacity. The Secretariat completed this assessment in May 2000: the Modern Management Practices Assessment Findings Report (commonly referred to as the capacity assessment) provides detailed findings for each of the 34 elements assessed as well as summary observations. On balance, the assessment results show good modern comptrollership capabilities: 18 elements demonstrate good to advanced practices, while 16 elements were identified as challenge areas.

Gap Analysis

When the modern comptrollership capacity self-assessment was completed, a study was undertaken to identify internal and government-wide projects and initiatives that were advancing modernization. The gap analysis table draws the link between specific initiatives and related capacity elements and shows where the gaps are situated. The structure mirrors the methodology framework used for the capacity assessment.

Internal and government-wide initiatives are associated with each of the 34 capacity elements to identify the areas where modern comptrollership is advanced, or in the process of advancing, and where challenges remain. There are currently 11 key initiatives internal to the department that build on government-wide initiatives influencing and sustaining the advancement of modern comptrollership. The key initiatives and projects internal to TBS are:

• New executive management structure
• Strategic priorities and strategic planning framework
• Strengthening of the internal audit and evaluation functions
• Workload reduction exercise in program sectors
• TBS portfolio teams
• Development of human resources plan
• Values and ethics champion
• New business planning process
• Financial information strategy (FIS)
• TB submission process review
• Business intelligence tools

Most of these projects and initiatives address several capacity areas at a time. For instance, the Strategic Priorities Exercise and Strategic Planning Framework is addressing five of the seven capacity areas, and the New Executive Management Committee Structure is addressing three of the seven capacity areas.

Priorities for 2001-2002

In year 2001-2002, the department will focus on strengthening four major functions (resource management/budget allocation, internal audit, evaluation and risk management), while continuing to sustain the other modernization projects already underway. In addition, an action plan will be produced that identifies the necessary steps to strengthen all capacity indicators.

Desired End Outcomes

In the end, modernization of comptrollership will have achieved the following:

• strengthened management capacity
• advanced Results for Canadiansagenda (results, responsible spending, values and citizen focus)

In relation to each of the capacity areas, the expected end outcomes are noted below.

Desired End Outcomes in Relation to the Seven Capacity Areas

Capacity Area	Desired End Outcomes
Strategic leadership	The existence of a sustainable climate for change that fosters the integration of modern comptrollership concepts is evident: senior management demonstrates strategic commitment to exercising their comptrollership responsibilities, developing a corporate culture aligned with modern comptrollership principles and implementing required management improvements.
Motivated people	A learning, challenging and rewarding working environment where employees exercise key competencies and skills to achieve expected results is recognized and valued.
Shared values and ethics	The working environment is open, accessible, values-driven and results-oriented, supporting a regime of democratic, professional, organizational and personal values that result in ethical behaviour, attitudes and decisions.
Integrated performance information	The most critical financial and non-financial data is integrated and used to provide appropriate advice in support of decision-making, results management and reporting.
Integrated risk management	A comprehensive framework to identify, assess, respond and monitor risk is integrated into planning, decision-making and monitoring.
Rigorous stewardship	Key control systems, management processes, infrastructure, standards and measures of success are developed, operated and supported to ensure prudence, probity and diligence in the safeguard of public assets and the stewardship of public resources.
Clear accountability	Community links are strengthened and transparency and public confidence in accountability has increased.

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Major Milestones

Completed Actions	September 1999	Established pilot project office
	May 2000	Completed capacity assessment
	March 2001	Completed gap analysis and identified priorities
Planned Actions	2001-2002	Continue to sustain modernization efforts initiated in previous years
		Develop action plan addressing all capacity indicators
		Strengthen resource management and budget allocation
		Strengthen internal audit and evaluation functions
		Strengthen risk management function
	2002-2003	Review progress, identify and implement new action, if required
	2003-2004	Review overall progress

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Questions and Answers - modern comptrollership assessment of the Treasury Board of Canada Secretariat (TBS)

For your interest, and to help to provide an understanding of the modern comptrollership assessment of TBS, we have answered the most frequently asked questions.

Why was the capacity check method selected and what are the benefits of this self-assessment tool?

If the results are not meant to be compared, why is there a rating placed on each element?

From the TBS capacity assessment, what areas are being strengthened?

When modern comptrollership has taken hold, what sort of change will be evident to employees in the day-to-day operation of TBS?

How will the progress be monitored?

In its role as a central agency and a management board for the government, how can TBS guide and provide advice to other departments if its capabilities are not highly developed in all areas?

Responses to frequently asked questions related to the modern comptrollership pilot approach and government-wide implementation are available on the Comptrollership Modernization Officeweb site

Q. Why was the capacity check method selected and what are the benefits of this self-assessment tool?

The capacity check method is a proven baseline assessment of managerial capabilities. It is not expensive to implement, and is easy to learn. In this way the assessment can be performed relatively quickly and benchmarks can be established and used to measure progress. The capacity check accommodates a variety of departmental business objectives and so can help any department achieve their goals.

Q. If the results are not meant to be compared, why is there a rating placed on each element?

The capacity check method includes benchmarks and rating points so that progress can be measured over time. The ratings give some indication of the level of the organization's modern comptrollership management capabilities so that improvements can be made in those areas based on the organization's role and mandate.

Q. From the TBS capacity assessment, what areas are being strengthened?

There are seven broad themes, they are: strategic leadership, motivated people, shared values and ethics, integrated performance information, mature risk management, rigorous stewardship, and, clear accountability. Modernizing efforts are strengthening all seven areas. The gap analysis identifies 11 key initiatives and projects internal to the department that build on government-wide initiatives advancing modern comptrollership. Most are strengthening several capacity areas at the same time.

Q. When modern comptrollership has taken hold, what sort of change will be evident to employees in the day-to-day operation of TBS?

Modernizing Comptrollership will change how we manage resources (all resources; human, financial, capital and technological); it brings with it a shift in emphasis from controls and compliance to results and values. To a greater degree than ever before, financial and non-financial information will be pulled together for consideration in decision making.

Q. How will the progress be monitored?

Pilot departments are responsible for monitor their own progress and advising TBS of any significant concerns. Reporting on planning and implementation is done regularly through the governance structure, in partnership with the Comptrollership Modernization Office. After completing the capacity check, departments produce action plans and provide the necessary resources to sustain implementation, with the assistance of resources from the Innovation Fund and guidance from the Comptrollership Modernization Office.

Q. In its role as a central agency and a management board for the government, how can TBS guide and provide advice to other departments if its capabilities are not highly developed in all areas?

It is not necessary, nor expected, that any department, including TBS, be highly developed in all areas. The capabilities for leading policy development on government-wide issues are different from those required to implement changes within a department. Each department has different requirements depending on the environment and the service provided. Each has strengths and weaknesses in different areas and, of course, TBS is the same as any other department in this regard. The Secretariat has a responsibility to assist all departments in the implementation of modern management practices. TBS also has the lead role in instituting Results for Canadians which sets out modern comptrollership as a key initiative.

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GAP ANALYSIS TABLE
Modern comptrollership

Capacity Assessment Findings			Initiatives and Projects Ongoing or Initiated in 2000-2001
Capacity area and definition	Capacity element	Rating  (1 to 5)	Specific to TBS	Government-wide
Strategic leadership Refers to the commitment of creating and sustaining a climate for change that fosters the integration of modern comptrollership concepts. Minister and public servants share this responsibility for the integration of values, people and results.	1. Leadership commitment	3.5	New executive management committee structure Strategic priorities and strategic planning framework	Results for Canadians
	2. Senior financial officer's role	3	New executive management committee structure Strategic priorities and strategic planning framework Strengthened internal audit and evaluation function	Revised internal audit and evaluation policies
	3. Managerial commitment	3	New executive management committee structure Strategic priorities and strategic planning framework	Results for Canadians
	4.  Linkage to strategic planning	2	New executive management committee structure Strategic priorities and strategic planning framework Strengthened internal audit and evaluation function	Results for Canadians Integrated risk management framework Revised internal audit and evaluation policies Strengthened results-based management Improved reporting to Parliament
Motivated people Focuses on establishing a learning, challenging and rewarding environment where employees exercise key competencies and skills to achieve expected results.	5. Modern management practices competencies	3
	6. Employee satisfaction measurement and monitoring system	4
	7. Valuing people's contributions	3.5	Workload reduction exercise in program sectors TBS portfolio teams Development of human resource plan
	8. Specialist support	2		Integrated risk management framework Strengthened results-based management
Shared values and ethics Supports a regime of democratic, professional, organizational and personal values that result in ethical behaviour, attitudes and decisions. Supports an open, accessible, values-driven and results-oriented environment.	9. Ethics and values framework	2	Values and ethics champion	Results for Canadians Integrated risk management framework Procurement and asset management reform Strengthened results-based management Improved reporting to Parliament TBS Office of values and ethics
Integrated performance information Combines the most critical financial and non-financial data and appropriate advice in support of decision-making, results management and reporting.	10. Business planning	2	Strategic priorities and strategic planning framework New business planning process Strengthened internal audit and evaluation function	Results for Canadians Integrated risk management framework Revised internal audit and evaluation policies
	11. Resource allocation	3.5	New executive management committee structure Strategic priorities and strategic planning framework Financial Information Strategy (FIS) New business planning process Strengthened internal audit and evaluation function TB submission process review	Revised internal audit and evaluation policies Financial Information Strategy (FIS)
	12. Budgeting and forecasting	3	Strategic priorities and strategic planning framework Financial Information Strategy (FIS) New business planning process Strengthened internal audit and evaluation function	Revised internal audit and evaluation policies Financial Information Strategy (FIS)
	13. Corporate performance information	2	Business intelligence tools New business planning process
	14. Operating information	2	Business intelligence tools Strengthened internal audit and evaluation function	Revised internal audit and evaluation policies
	15. Client satisfaction measurement and monitoring systems	2	Strategic priorities and strategic planning framework
	16. Evaluative information	2	Business intelligence tools Strengthened internal audit and evaluation function	Results for Canadians Active monitoring Revised internal audit and evaluation policies
	17. Service standards	2	Business intelligence tools
	18. Financial information	2.5	Financial Information Strategy (FIS) Business intelligence tools	Financial Information Strategy (FIS)
	19. Cost management information	2	Financial Information Strategy (FIS)	Financial Information Strategy (FIS)
Integrated risk management Assumes a comprehensive framework that is integrated into planning, decision-making and monitoring.	20. Risk management framework	2	Strategic priorities and strategic planning framework	Results for Canadians Integrated risk management framework Active monitoring Strengthened results-based management
	21. Authority levels	4	New executive management committee structure
Rigorous stewardship Includes responsibilities to safeguard public assets, develop, operate and support key control systems, management processes, infrastructure, standards and measures ofsuccess.	22. Business process improvement	3	Strengthened internal audit and evaluation function	Revised internal audit and evaluation policies
	23. Tools and techniques	4	Strengthened internal audit and evaluation function Business intelligence tools	Revised internal audit and evaluation policies
	24. Transaction tracking systems	2.5	Business intelligence tools Strengthened internal audit and evaluation function TB submission process review	TB submission process review
	25. Knowledge enabling technology	3	Business intelligence tools	Improved reporting to Parliament
	26. Consistency of information	2.5	Financial Information Strategy (FIS) Business intelligence tools New business planning process	Financial Information Strategy (FIS)
	27. Internal controls	3	Strengthened internal audit and evaluation function TB submission process review	Active monitoring Procurement and asset management reform Revised internal audit and evaluation policies TB submission process review
	28. Accounting practices	3	Financial Information Strategy (FIS) Strengthened internal audit and evaluation function	Financial Information Strategy (FIS) Revised internal audit and evaluation policies
	29. Internal audit and review	2	Strategic priorities and strategic planning framework Strengthened internal audit and evaluation function	Results for Canadians Revised internal audit and evaluation policies Strengthened results-based management
	30. External audit and review	3	Strengthened internal audit and evaluation function	Active monitoring Revised internal audit and evaluation policies
Clear accountability Involves closer links with the community, increased transparency and public confidence in accountability.	31. Clarity of senior management responsibilities and organisation	3	New executive management committee structure
	32. Performance agreements and evaluation	3
	33. Incentives	3.5
	34. External reporting	2	Strategic priorities and strategic planning framework Financial Information Strategy (FIS) New business planning process Strengthened internal audit and evaluation function	Results for Canadians Financial Information Strategy (FIS) Revised internal audit and evaluation policies Strengthened results-based management Improved reporting to Parliament

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