Core Policy and Procedures Manual

2.1 Objectives

• provide central direction for general, financial and administration policies across government
  
  
• 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

2.2 General

The Financial Administration Act, Part 2, establishes the organization, authority and responsibility for ministries and central agencies to carry out government operations and financial function activities.

2.2.1 Management Framework

The management principles for government's operating framework are:

• resource allocation decisions made during the budget process communicate the government's priorities;
  
  
• 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 to individuals.

• legislation, regulations, policies and procedures;
  
  
• financial planning and budgetary control;
  
  
• systems and internal controls;
  
  
• delegation of authorities and responsibilities;
  
  
• adherence to standards; and
  
  
• holding individuals and organizations accountable for performance.

2.2.2 Control and Risk

Government's approach 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.

Government resources, 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.

2.2.3 Roles and Responsibilities

• the government's expenditure plan;
  
  
• the allocation of human and financial resources to programs;
  
  
• organizational structures of ministries;
  
  
• personnel management; and
  
  
• government management practices.

• the management and administration of the Consolidated Revenue Fund;
  
  
• oversight of revenues and expenditures;
  
  
• government fiscal policy; and
  
  
• 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.

• 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 and challenges;
  
  
• approval of annual operating and capital budgets;
  
  
• review principal risks of the ministry and plans, systems and processes to manage such risks;
  
  
• 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;
  
  
• monitoring senior executive performance and succession planning; and
  
  
• communicating with stakeholders in a timely, accurate and effective manner.

• government's financial management and administration policy and procedures;
  
  
• policies and procedures for maintaining the central accounts of government;
  
  
• preparing the Public Accounts and other financial statements and reports required by Treasury Board or the Minister of Finance;
  
  
• direction and coordination of financial management and administration policy and procedures, control and reporting systems; and
  
  
• the approval of ministry financial organizational structures.

• 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.

• coordinating government-wide activities in specific areas under the authority of different statutes and authorities.

Various central agencies are responsible for policy. The general subject area, legislative authority and central agencies are identified in Information and References, Central Agency Policy Responsibility Areas.

2.3 Policy

2.4 Information and References

2.4.1 Central Agency Policy Responsibility Areas

Various central agencies are responsible for policy. The general subject area, legislative authority and central agencies are identified in Appendix A.

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