General and Financial Management
- provide central
direction for general, financial and administration policies across
- ensure essential
processes are a part of management and financial administration systems
- define the framework
of accountability, organizational principles and functional relationships
for management and financial functions
- ensure financial
management processes and control systems are adequately documented,
communicated and understood
Administration Act, Part 2, establishes the organization, authority
and responsibility for ministries and central agencies to carry out government
operations and financial function activities.
The management principles
for government's operating framework are:
The key components of
the government's financial management framework include:
- resource allocation
decisions made during the budget process communicate the government's
- government and
ministry goals and objectives must be communicated clearly to the public
and staff throughout the hierarchy to ensure that all staff are working
toward the same ends;
- assignment of responsibilities to minimize duplication of tasks and to ensure that someone is responsible
for completing each function;
- staff who have
been assigned responsibilities are given the authority to carry them
out. Statutes grant authority to ministers and deputy ministers, and
the authority is delegated throughout the organization; and
- individuals are
held accountable for their stewardship after objectives have been established,
responsibility assigned, authority delegated and resources allocated
- legislation, regulations,
policies and procedures;
- financial planning
and budgetary control;
- systems and internal
- delegation of authorities
- adherence to standards;
- holding individuals
and organizations accountable for performance.
Control and Risk
to the broad area of control has evolved with new demands for enhanced
governance and has moved beyond traditional financial and general management
control. In any organization, the essence of internal control is purpose,
commitment, capability and monitoring. This is embodied in a redefined
management and comptrollership for government.
structures, systems, processes and culture all support management and
staff in achieving objectives. Control can assist in monitoring performance
by providing reliable information on measures used, which may lead to
further management decisions or actions. However, control cannot prevent
the taking of decisions that are, in retrospect, flawed. There are inherent
limitations even though due care and diligence may have been exercised.
Risk assessments are necessary in making choices in the face of uncertainty,
because of the possibility of adverse consequences from those choices.
Roles and Responsibilities
- Treasury Board acts as a committee of the Executive Council in matters relating to (Financial Administration Act, Section 4):
government management practices;
government financial management and control, including expenditures and assets;
evaluation of government programs as to economy, efficiency and effectiveness;
government personnel management; and
other matters referred to it by the Executive Council.
In addition, Treasury Board may make regulations or issue directives respecting:
the planning, management and reporting of capital expenditures by government and government bodies (Financial Administration Act, Section 4.1); and
accounting policies and practices for the government reporting entity, and the form and content of documents required to be made public (Budget Transparency and Accountability Act, Section 23).
- The Minister of Finance is responsible
and administration of the Consolidated Revenue Fund;
revenues and expenditures;
any other financial
matter not assigned to Treasury Board or to any other person.
The Minister of
Finance is also the chair of Treasury Board.
- Deputy Ministers, on behalf of their respective
ministers, are responsible for:
- supervising the
management of the business and affairs of their respective ministries.
Specific financial responsibilities are normally delegated, as appropriate,
to assistant deputy ministers and to other executive, senior and financial
officers. Deputy ministers review and approve matters related to ministry
operations, strategic direction and organizational structure to ensure
government and the public's best interests are served. Duties include:
- strategic planning,
review of service plans and identification of ministry opportunities
- approval of
annual operating and capital budgets;
- review principal
risks of the ministry and plans, systems and processes to manage
- oversight on
the reliability and integrity of internal control and management
information systems, and management practices and processes to ensure
compliance with applicable policy and legislation;
senior executive performance and succession planning; and
with stakeholders in a timely, accurate and effective manner.
- The Comptroller General is responsible for:
financial management and administration policy and procedures;
procedures for maintaining the central accounts of government;
Public Accounts and other financial statements and reports required
by Treasury Board or the Minister of Finance;
coordination of financial management and administration policy and
procedures, control and reporting systems; and
of ministry financial organizational structures.
- Treasury Board Staff are responsible for:
- providing the
support to Treasury Board necessary to fulfill its statutory
responsibilities, excluding those specific duties assigned by statute
or delegation to other central agencies such as the Office of the
Comptroller General and the BC Public Service Agency.
- Central Agencies such as Shared Services BC, the BC Public Service Agency and the Chief Information
Office are responsible for:
government-wide activities in specific areas under the authority of
different statutes and authorities.
- Ministry and agency systems of financial administration must integrate
and be fully compatible with government-wide systems to ensure a cohesive
framework for overall financial management and control.
- Ministries must establish, maintain and operate systems of financial
administration that are consistent with statutes, regulations, policy
- Deputy ministers must ensure staff that are assigned responsibilities
for program delivering, including financial administration, complete
their responsibilities in accordance with government policy.
- Deputy ministers must delegate authority for ministry systems of financial
administration to an executive financial officer, or to another officer
depending on the size, structure and activities of the organization.
This officer must be referred to as the chief financial officer and
must report to an executive financial officer.
- Executive financial officers are accountable for the overall performance
and effectiveness of ministry financial administration systems, and
in most cases, have responsibility for personnel, data processing and
general administrative services.
- Responsibility centre managers must manage the human, physical and
financial resources allocated to them for achieving their program objectives.
Ministries must ensure that responsibility centre managers are clearly
identified in their organizational structure and approve their signing
- Financial systems, processes and procedures related to a ministry's
system of financial administration are to be clearly defined, documented
and communicated to all levels within the ministry.
- Ministries must periodically review their financial administration
systems for compliance with policy, best practice improvements and to
ensure activities are carried out efficiently and effectively.
- Responsibility centre managers and their subordinate staff are subject
to the functional direction provided, on behalf of the deputy minister,
by executive and chief financial officers in matters related to the
financial administration and control.
- Personnel charged with functional responsibilities must have the requisite
qualifications and experience to assure an overall quality of management
and financial administration. Professional development and training
will be required as necessary to maintain standards.
- Position descriptions for personnel must reflect key functions and
activities for the organization, and accurately describe the knowledge,
skills and abilities required for the position.
- Deputy ministers, executive financial officers and, where applicable,
chief financial officers will be subject to the functional direction
and guidance of the Comptroller General in matters related to the administration
and control of the government's system of financial administration.
- The Comptroller General must be part of selection processes in appointing
chief financial officers.
- The Comptroller General must review any proposals for the establishment
of, or revision to, regulations under the Financial Administration
- The Minister of Finance must approve all proposals for the establishment
of, or revision to, Treasury Board Regulations prior to submission to
Treasury Board (see Information and References, Regulations,
Order in Councils and Directives).
- The Financial Management Branch, Office of the Comptroller General,
develops, issues and maintains the online Core Policy and Procedures
Manual. Review and consultation with Treasury Board Staff, the Deputy
Minister Committee, Assistant Deputy Ministers on Corporate Service Committee, Chief Financial
Officer Council, and other central agencies, as appropriate, must precede
the issuance of new policy.
- Ministries, central agencies and offices sponsoring amendments to
policy must circulate the proposed policy change to the Office of the
Comptroller General. In conjunction with the Office of the Comptroller
General, the ministry, sponsoring central agency or office, is responsible
for obtaining approval for the policy from the appropriate agency identified
in policy 16.