Financial Management Policy Suite Reset

Transcription

1 Financial Management Policy Suite Reset Presentation to FMI Office of the Comptroller General November 24, 2015

2 Purpose of the Presentation Describe the benefits of an effective Financial Policy Suite. Provide an overview of the Financial Management Policy Reset initiative. Update on planned changes to the Policy Suite and their associated benefits. Present the next phases of Policy Reset. 2

3 Policy Suite 101: Instruments Tailored to Policy Stakeholders Instrument Policy Directive / Standard Guidelines & Tools Collaborative Tools and Space Targeted Policy Actors Deputy Heads CFO, CIO, Head of HR, Senior Department Managers Managers, Practitioners Managers, Practitioners Scope Explains WHAT Deputy Heads are expected to undertake. Explains WHAT responsibilities and requirements are expected of departmental Managers to support the Deputy Head. Explains HOW practitioners can meet their requirements through formal TBS endorsed information. Provides additional information as to HOW practitioners can meet their requirements but through informal support tools and information. Practitioners share best practices, collaborate and answer questions in a web based, on-line forum. 3

4 Navigating the Policy Suite - Today An FI-03 in the Financial Operations Sector of a large Department is responsible for ensuring that any uncollectable receivables are correctly written-off at year-end. To find guidance on writing-off accounts receivable, he searches the TBS website for information. What do I need to consider to write-off an accounts receivable? Financial Officer 4

5 Navigating the Policy Suite Today Financial Officer 5

6 Importance: Financial Management Policy Suite Deputy Head CFO & DCFO Financial Officers As Accounting Officers of their departments, Deputy Heads are responsible and accountable for financial management. CFOs and DCFOs provide Deputy Heads with solutions and answers to their financial management policy issues and questions. CFOs and DCFOs rely on Financial Officers to provide interpretations and answers to support their policy response to Deputy Heads. The FM Policy Suite should be an informative and an easy-to-use resource to assist Financial Officers in providing: 1. Sound financial advice to management; and 2. Efficient financial services to their clients. 6

7 Assessment: FM Policy Suite - 5 Year Review To ensure TBS policy instruments are relevant and easy-to-use, TBS Policy Centres must perform mandatory 5 Year Policy Reviews. During the course of Financial Management s 5 Year Review of its Policy Suite, several findings emerged: Current requirements are a mix of prescriptive and descriptive advice. Many are difficult to understand and interpret. There are too many mandatory instruments: 50 instruments encompassing 717 requirements. Instruments lack a intuitive structure. Searching for information and navigating instruments is not user friendly. These findings were applicable to all Policy Centres. As a result, TBS launched the Policy Reset initiative. 7

8 Key Objectives: Financial Management Policy Reset Need to be clear why we have rules and rules need to be clear Secretary of the Treasury Board Streamline Efficiency Clarify Simplify User-Centric Keep only essential requirements to balance flexibility and control, and align to risk. Alleviate horizontal barriers and reduce reporting burden where feasible. Clarify the roles and responsibilities of policy stakeholders including CFOs and Deputy Heads. Simplify policy language to improve understanding and reduce need for interpretation. Develop a policy suite that is accessible, searchable and easy-to-use. 8

9 Evaluating and Reducing Mandatory Requirements Is the requirement unique? Can it be achieved by voluntary means? Does is contribute to a systemic safeguard? If kept, where is the requirement best placed? Renovated FM Policy Suite placed? Renovated Single FM Policy FM Policy Requirements Drop duplicate requirements Consider dropping or demoting requirements that can be achieved through voluntary means (e.g. Guidelines) Consider dropping non-systemic requirements that are not worth keeping. Vertical alignment of supporting FM policy instruments 9

10 Progress to Date: Streamlining Instruments and Requirements Significant progress has been made to date (though review process is still underway): Current Mandatory Instruments From 50 instruments to 11 proposed instruments. (Note 1) Mandatory Requirements From 717 requirements to 464 proposed requirements. (Note 1) Total Frameworks Policies Directives Standards Instruments Proposed Total Requirements Frameworks Policies Directives Standards Current Proposed To be Determined Note 1: The number of proposed instruments and requirements will change as consultations continue. 10

11 Progress to Date: Revised FM Policy Suite Financial Management (FM) Policy Policy on Transfer Payments (PTP) Role-Based Directives Process-Based Directives Directive on Departmental Financial Management Responsibilities Directive on Expenditure Authorities and Delegation Directive on Payments Directive on Transfer Payments Directive on Accounting Standards Directive on the Management of Sales Taxes Directive on Charging and Special Financial Authorities Directive on Assets and Liabilities Directive on Travel, Hospitality, Conferences and Event Expenditures FM Guidance/Support tools Guidelines (TBS) Formal OCG Tools Collaborative Community Tools TP Guidance/Support tools Guidelines (TBS) Formal OCG Tools Collaborative Community Tools 11

12 Progress to Date: Key Policy Changes Proposed Expected Changes Expected Benefits Transfer Payments Increased disclosure. Recalibrate approval authorities based on risk. Improved transparency. Continuing alignment to government priorities. Charging & Special Financial Authority Increased clarity on inter-departmental charging practices. Improved consistency and transparency. Accounting Standards Consolidate into a single mandatory directive and Handbook. Reduce duplication and eliminate accounting misinterpretations. Financial Mgmt Streamline requirements by eliminating duplication. Where feasible move requirements into guidance. Clear and concise requirements. Easily accessible requirements by topic. Minimize need for interpretations. 12

13 Guidance: User-Centric Approach Departments require the right guidelines in order to support their business needs, deliver effective financial services and operationalize policy requirements. Departments can avoid re-inventing the wheel by sharing tools and having a community space to collaborate. Financial Management Guidance/Support Tools Guidelines (TBS) - Formal TBS guidance issued as a Guideline. Formal OCG Tools - Tools that have been designed by other Departments and in collaboration with TBS are published as an example of a best practice. Collaborative Community Space - On-line interactive forum where users can share and post information such as tools, procedures and templates. The design and development of guidance is under the umbrella of the overall TBS Policy Reset initiative. 13

14 Policy Portal: One-Stop-Shop for Policy Information A fundamental rethink is required regarding the manner in which policy information and guidance is delivered and accessed by users. A One-stop-shop web portal to access Policy Suite information will eliminate undo burden on users and reduce the need for policy centre interpretation. Portal functionality must be informative to users, provide integrated policy information and be interactive. Informativ e Users can search for information based on topics, roles and responsibilities. Users can create preferences and receive user-specific policy information and updates. Integrated Policy information is interlinked and presented in a consolidated format. Only relevant sections of referenced material is displayed. Interactive Users can share tools and information, post questions and receive responses through a Community Forum. 14

15 Concept: Policy Portal - GCPedia OCG Policy Suite My Suite Community Forum Resources My Suite > Account Receivable Write-offs> Write-off Search By: Topic> Role> FM Process>? Questions? I easily found the steps to write-off an accounts receivable! Financial Officer TB Policy Policy requirement TB Directive Directive requirement #1 Directive requirement #2 TBS Guidance Guideline excerpt #1 Guideline excerpt #2 Accounting Handbook FIS Manual excerpt OGD shared tools OGD 1 template OGD 2 internal policy Mailbox > Policy Analyst > FAQ > My Questions > FAVOURITES Financial Management Policy Guideline on Costing POLICY UPDATES July 2015 Delegation of Authority Directive on THCE TOOLS & TEMPLATES AR Write-off Authorization Form FILE MANAGER Update Profile / Preferences 15

16 Key Milestones: Policy Reset # Financial Management Milestones Status Date* Develop a methodology to ensure a consistent approach to revise FM Policy Suite. Move from 12 policies to 2 policies (Financial Management Policy & Policy on Transfer Payments). Rationalize and consolidate mandatory requirements into a reduced suite of Directives. Hold preliminary consultations with key stakeholder groups (e.g. DCFO Advisory Committee, DG / ADM Transfer Payment Committee). Conduct internal integrity check of FMS Policies and Directives across OCG Policy Centres. Collaborate with FM community to enhance and develop guidance material and tools. Review policy impacts from analysis of Horizontal Barriers and Reporting Impact Assessments. Develop a user-centric web-based approach to access policy information and guidance (functional and non-functional communities. Hold horizontal reviews across TBS policy suites and governmentwide consultations. Completed July 2014 Completed Sept 2014 Completed Nov 2015 Completed Nov 2015 In Progress Dec 2015 In Progress In Progress Started Not Yet Started Roll-out revised Financial Management Policy Suite. Not Yet Started * Targeted completion dates are subject to change. 16

17 Contacts: Financial Management Policy Reset Ryan Pilgrim, CPA, CA Executive Director, Financial Management Policy Division Office of the Comptroller General Treasury Board of Canada Secretariat (613) Nathalie Meilleur, CPA, CA Senior Director, Financial Management Policy Division Office of the Comptroller General Treasury Board of Canada Secretariat (613) Kurt Chin Quee, CPA, CMA Acting Director, Financial Management Sector Office of the Comptroller General Treasury Board of Canada Secretariat (613) Sasha Slechta, CPA, CA Senior Policy Analyst, Financial Management Sector Office of the Comptroller General Treasury Board of Canada Secretariat (613)