This policy takes effect on June 1, 2001.
Results for Canadians, the government's management
framework, requires the Treasury Board Secretariat (TBS) to work
in productive partnership with departments and agencies to
improve management practices. To implement this framework, TBS
and departments must share commitments to excellence in four
critical areas. First, government management must focus on
meeting the needs of citizens. Supporting this, managers must
apply sound public service values and place strong emphasis on
managing for results and responsible spending.
This framework fosters a modern management approach that
encourages initiative within departments to delegate authority to
the right level to achieve results. This approach supports
placing real decision-making authority at the front-line where a
direct citizen focus can be brought to the work. It also supports
a management regime that stresses leadership and values,
well-defined standards and sound risk management.
At the same time, the right systems must be in place to
provide appropriate monitoring and control. To this end, using a
risk management approach, departments are expected to actively
monitor the state of their management practices and controls and
TBS is expected to actively monitor the overall situation in this
area across government. This "active monitoring" regime is an
integral part of the modern management framework outlined in
Results for Canadians.
This policy describes how this specific aspect of the
framework, active monitoring, must be implemented through
collaborative two-way engagement and communication between TBS
and departments.
Consistent with the modern management framework outlined in
Results for Canadians, the purpose of this policy is to
define an effective regime to actively monitor the state of
management practices and controls throughout government.
The expected results of this approach include:
- better information sharing and improved understanding of the
effectiveness of management practices and controls, both within
departments and across government;
- timely assessments and preventative or remedial actions in
areas where control deficiencies or failures have been
identified; and
- improved assessments of the effectiveness of TB policies, and
earlier identification of the need for adjustments to existing TB
policies or for new policies.
Departments are responsible for ensuring that their programs
and activities are well managed, and that suitable management
practices and controls are in place and working. To this end,
they must actively monitor management practices and controls
within the department, and take early and effective remedial
action in areas where significant deficiencies are encountered or
improvements are needed. They must also inform TBS of significant
management concerns in a timely manner.
On behalf of the Treasury Board, TBS is responsible for
actively monitoring the overall situation to maintain an ongoing
awareness of the state of management practices and controls
across government. TBS is also responsible for supporting
departments in addressing specific risks, vulnerabilities,
control deficiencies and other significant management issues. In
cases where significant control deficiencies or failures occur,
TBS must ensure that the appropriate level of action is
taken.
This policy is issued under the authority of Section 7 of the
Financial Administration Act (FAA). It applies to all
institutions in Schedules I, I.1 and II of the Act.
Implementation of this policy requires a clear understanding
of the respective roles, responsibilities and accountabilities of
departments and TBS.
To meet the requirements of this policy, departments must
actively monitor their management practices and controls using a
risk-based approach. This includes having an "early notice"
capability in place within the department to detect and
communicate unacceptable risks, vulnerabilities or control
deficiencies or failures; taking early and effective preventive
and remedial action whenever significant potential or actual
deficiencies are identified; and providing early notice of
significant management concerns to TBS.
Specifically, departments are responsible for:
- establishing a capacity to actively monitor, on an ongoing
basis, management practices and controls;
- developing and maintaining, consistent with the Treasury
Board Integrated Risk Management Framework, an ability to detect
and communicate within the organization, as early as possible,
significant risks, potential and actual control failures, and
other significant management vulnerabilities;
- taking timely and effective action to address deficiencies in
management practices and controls; and
- ensuring the timely communication of significant management
concerns to TBS.
To meet the requirements of this policy, TBS must actively and
constructively engage senior departmental managers, including
internal audit and evaluation managers, in order to develop,
using a risk-based approach, a government-wide understanding of
the state of management practices and controls.
Specifically, TBS is responsible for:
- working in partnership with departments to actively monitor
management practices and controls in order to develop a current,
accurate and integrated understanding of the state of management
practices and controls across government, including an
understanding of significant management concerns in individual
departments;
- supporting departments in developing tailored solutions to
their specific management issues and concerns;
- leading and supporting, as appropriate, collaborative or
government-wide approaches to improvement; and
- assessing on an ongoing basis the effectiveness of Treasury
Board policies and recommending to Treasury Board, as
appropriate, changes that might be required to existing policies
or new policies.
On behalf of the Treasury Board, TBS is also responsible for
ensuring that, wherever there are serious management issues to
resolve, timely and effective action is taken by the appropriate
department or departments. To this end, where warranted, TBS is
responsible, in consultation with the Treasury Board and other
Central Agencies, for making appropriate interventions. The level
of intervention can range from providing advice and/or guidance
to withdrawing specific Treasury Board authorities or delegations
in the most serious of cases.
Deputy Heads are responsible for implementing this policy in
departments and the Secretary of the Treasury Board and
Comptroller General of Canada is responsible for implementing
this policy within TBS. This policy respects all other existing
Deputy Head and Ministerial accountabilities.
For the purpose of providing early notice to TBS, departments
are responsible for determining which matters represent a
significant concern relating to management practices and
controls.
Existing channels of communication may be used to provide
early notice. TBS contacts include the Secretary, Associate
Secretary, Deputy Comptroller General, Chief Information Officer,
Chief Human Resources Officer and all Assistant Secretaries.
These contacts will ensure that, once early notice is provided,
other relevant senior managers within TBS are appropriately
informed.
Consistent with the roles and responsibilities set forth in
this policy, TBS will develop measures and methodologies to
continuously assess and periodically evaluate the effectiveness
of this policy towards achieving stated results.
TBS will also monitor the implementation of this policy to
ensure that departments are meeting their obligation to provide
early notice of significant concerns about management practices
or controls in departments.
Access to Information Act
Communications Policy of the Government of Canada
Financial Administration Act
Official Languages Act
Privacy Act
Report of the Independent Review Panel on Modernisation of
Comptrollership in the Government of Canada
Results for Canadians: A Management Framework for the
Government of Canada (March 2000)
Treasury Board Policy on Delegation of Authority
Treasury Board Policy on Evaluation (April 2001)
Treasury Board Policy on Internal Audit (April
2001)
Treasury Board Integrated Risk Management Framework (April
2001)
Treasury Board Policy on Transfer Payments (June
2000)
Enquiries about this policy should be directed to:
Expenditure and Management Strategies Sector
Treasury Board of Canada Secretariat
L'Esplanade Laurier
300 Laurier Avenue West
Ottawa, Ontario K1A 0R5
Internet: pam-psa@tbs-sct.gc.ca
Facsimile: (613) 946-3718
Active Monitoring - is the activity whereby
departments and TBS,working in partnership, monitor
management practices and controls to assess their effectiveness
with a view to taking early and effective action where
significant risks, vulnerabilities or control deficiencies or
failures emerge, and adjusting management practices to prevent
recurrence.
Control Failure - represents a situation where
implicit or explicit controls are deficient, leading to control
vulnerabilities or failures.
Departments - includes, for the purpose of this
policy, all departments, agencies, boards, councils, commissions
and other bodies identified in Schedules I, I.1 and II of the
FAA.
Early Notice - relates to communicating, to the
appropriate departmental or TBS authority, significant risk,
control failure or management concerns that may arise from
actively monitoring management practices.
Management practices and controls - represent the
entire spectrum of policies, processes, procedures and systems
that enable a department to operate its programs and activities,
use its resources efficiently and effectively, exercise sound
stewardship, fulfil its obligations and achieve its
objectives.
Significant Management Concern - are as
determined by the department, with due consideration being given
to the seriousness of the problem, its root cause and its
potential or actual impact.
|