ARCHIVED - MAF Assessment: Department of Finance Canada - 2008

1.1 Leadership: Strong

• Regarding Values and Ethics Leadership, the organization is maintaining its Round V (2007-08) assessment of Strong. It has submitted a Management Assertion to CPSA that no significant changes have occurred within the organization to affect this rating.

1.2 Infrastructure: Strong

• Regarding Values and Ethics Plans, the organization is maintaining its Round V (2007-08) assessment of Strong. It has submitted a Management Assertion to CPSA that no significant changes have occurred within the organization to affect this rating.
• Organization monitors risks in regard to possible breaches of public service values and ethics, and risk management is integrated into decision making.

1.3 Culture: Strong

• Organization, on an ongoing basis, uses employee feedback from across the entire organization to measure its values and ethics culture and employee engagement.

2.1 PAA Consistency: Acceptable

• The Strategic Outcome statement(s) can be understood within and outside the department as a benefit to Canadians, however its/their clarity should be improved.

2.2 Measurability: Acceptable

• All elements of the Program Activity Architecture are in alignment with the Strategic Outcome(s).
• An inventory of programs has been developed and most of the listed programs meet the definition of a program.

2.3 Quality:

• The organization has developed a weak performance measurement framework.

3.1 Business Plan: Acceptable

• Sector or branch business plans are generally aligned with the corporate business plan.

3.2 Governance Structure: Acceptable

• Resource reallocation is generally proactive when or where required.

4.2 Participation in Priority Initiatives: Acceptable

• The organization contributes effectively to priority interdepartmental initiatives.
• The organization shows strength in its participation in Public Service Renewal.
• Senior management is actively engaged in Public Service Renewal and is involving employees at all levels.

4.3 Portfolio Coordination: Acceptable

• Adequate attention paid to developing coherent policy or program approaches across portfolio.
• The Department's portfolio coordination is effective.

Finance Canada was assessed with regards to its participation in the Web of Rules (Acceptable) and Public Service Renewal (Strong) initiatives, and for its portfolio coordination responsibilities.

5.1 Supporting Information: Acceptable

• Response to TBS comments is appropriate.
• Submission contains an adequate level of detail.

5.2 Analysis: Acceptable

• Appropriate and complete links to MRRS, strategic objectives, etc., are used.

5.3 Consultations: Acceptable

• Established capacity to initiate consultations with TBS with sufficient lead time is evident.

5.4 Quality control: Acceptable

• Established capacity for consistency of information throughout documents is evident.

6.1 Quality: Acceptable

• Evaluations submitted to TBS discuss in a cursory way the limitations of the methodology and data sources used.
• The majority of evaluations submitted to TBS consistently address questions of program relevance, success and effectiveness.
• The majority of evaluations submitted to TBS consistently employ appropriate methodologies to gather data and inform the analysis.

6.2 Neutrality: Acceptable

• Senior management committee is in place to support, oversee and monitor the evaluation function and management accountabilities arising from evaluations and evaluation related products. The committee is chaired by the deputy head or senior level designate. The committee meets regularly during the year.
• Some resources dedicated to evaluations are directed by the Head of Evaluation, some resources are directed by the program base.

6.3 Coverage: Opportunity for Improvement

• The organization has shown evidence of moving towards full coverage of all ongoing programs of grants and contributions over a five year cycle as per 42.1 of the FAA. Year to year percent coverage indicates organization is on track to achieve 100% coverage.
• A one-year plan has been developed and shared with TBS. The plan has information on evaluations planned, completed and carried over and include links to the organization's PAA. As well, the organization has committed to developing a multi-year risk-based plan.
• Option 1: The organization has committed to moving toward full evaluation coverage of their program base (e.g. over a five year cycle). However, relatively low number of evaluations are completed each year and they cover less than 10%.
• The organization has shared its risk-based evaluation plan with TBS. The evaluation plan has information on evaluations planned, completed and carried over. It also includes links to the organization's PAA.

6.4 Usage: Opportunity for Improvement

• Active, systematic and regular tracking of management action plans arising from evaluation recommendations is in place.
• Evaluation commitments, plans and requirements are delivered on time or extensions are due to circumstances beyond the department's control. Organization occasionally requests extension from TBS.
• Some evaluations submitted to TBS incorporate data from a performance measurement system to support the evaluation. Submitted evaluations usually cite data availability and/or quality as constraints.
• The results of evaluations are rarely brought for consideration in TB submissions, Memorandum to Cabinet, RPPs, DPRs and Strategic Reviews.

Up to 2007-8, FIN-IAE reported limited capacity and a need for increased coordination of the evaluation function. In 2008-9, FIN took some positive steps to address this situation, including increases in resources and FTEs for evaluation activities, development of a five-year rolling evaluation plan, and the drafting a FIN Evaluation Policy. These steps position FIN for future gains in evaluation quality, neutrality, coverage and utilization.

7.1 MRRS Basis: Acceptable

• Good links between performance and plans are present.
• Strong linkages between resources and results are consistently demonstrated in the reports.
• The DPR consistently discusses any changes in resources and how they affected results.

7.2 Credible information: Strong

• DPR consistently provides independently verifiable evidence-based performance information.
• Strong linkages between PA and Strategic Outcome (SO) level performance are consistently made in the DPR.

7.3 Context: Acceptable

• DPR is generally balanced – the report presents both positive and negative aspects of performance and substantiation or explanation is generally provided.

8.1 Change plan: Strong

• The organization has the capacity to evaluate whether or not change is required.

8.2 Engagement: Acceptable

• Change management related training programs are available to some components of the organizations.

8.3 Assessment: Acceptable

• Results are apparent.

9.1 Engagement: Acceptable

• Accountability for key risks is assigned to senior management.
• Each year, senior management reviews/approves the Corporate Risk Profile more than once.
• Senior management encourages effective Risk Management and a risk-smart culture.
• Senior management ensures that the organization's Risk Management approach is tailored to the specific needs of the organization and is adjusted as required.
• Senior management reviews the organization's Risk Management approach within the current three-year planning cycle.
• The organization has a common risk assessment approach and it has been approved by senior management.

9.2 Implementation: Acceptable

• Risk Management guidance and tools that enable the organization's risk management approach are made available to staff.
• The Corporate Risk Profile is systematically (horizontally and vertically) implemented into all operational levels across the organization.
• The organization's Risk Management approach is regularly communicated to staff and stakeholders.

9.3 Integration: Strong

• Operational level risks are prioritized into key risks and are adjusted as required.
• Risk information and Risk Management principles are ingrained in senior management reporting.
• Risk information is routinely consulted in senior management decision-making. This is done systematically and explicitly.
• Risk information Risk Management principles are ingrained in planning and resource allocation decisions.
• The organization makes course corrections on an ongoing basis based on Risk Management performance and new information.

9.4 Continuous Improvement: Acceptable

• Comprehensive risk information was extensively gathered from internal sources of the organization for preparing the CRP.
• Corporate risks are consistently linked to the organization's strategic outcomes and are adjusted as required.
• Many relevant external sources are consulted during the development of the organization's CRP.
• The CRP provides a reliable assessment of the quality of risk information used.
• The organization adequately builds on past experience, better practice, and adjusts to fit any changes in management structures, priorities or strategic direction.
• The organization has implemented most recommendations provided during its last MAF assessment.

In MAF Round V, the Department of Finance was identified as being in the early stages of integrated risk management and should be recognized for its efforts to move forward on most opportunities identified.

Two areas merit mention – Finance's development and implementation of an integrated planning model that explicitly includes risk, and its development and approval of a risk communications strategy.

10.1 Fair: Acceptable

• Organization is undertaking action to improve the classification program in accordance with its level of risk.
• Evidence shows that labour relations matters are consistently and appropriately managed/addressed.
• Evidence shows that the organization is in compliance with Labour Relations and Compensation Operations direction (terms and condition of employment, collective agreements and/or applicable legislation).
• Evidence shows that the organization meets standards of timeliness in payments to employees.

10.2 Enabling: Strong

• Organization demonstrates the necessary linguistic capacity to provide personal and central services and supervision in both official languages.
• Organization is representative of all four employment equity designated groups.
• Promotions among employment equity groups are greater than or equal to previous year's performance.
• Separations among employment equity groups are equal or greater than previous year's performance.
• Work instruments, electronic systems and communications with employees are always or nearly always available in both official languages.

10.3 Healthy and safe: Acceptable

• Employees feel recognized for positive performance.
• Evidence shows that the organization has an inadequately managed program to protect employees' occupational health and safety.

11.1 Productive: Strong

• A significant number of employees indicate their organization supports their career development and learning needs.

11.2 Principled: Strong

• Communications with and services to the public in both official languages are always or nearly always available.
• Employees consider that they always or nearly always can communicate in the official language of their choice within their organization and work instruments, electronic systems and communications in both official languages are always or nearly always available.
• Necessary linguistic capacity is in place as is shown by the vast majority of incumbents of bilingual positions who meet the language requirements of their position.
• Organization is representative of all four employment equity designated groups.
• Progress against the previous year's performance on recruitment, promotion and separation for employment equity groups equal the organization's average for all employees.
• Promotions among employment equity groups are greater than or equal to representation.

11.3 Sustainable: Acceptable

• Evidence indicates human resources planning integrated with business planning is generally in place and governance/organizational infrastructure generally exists to support it.

11.4 Adaptable: Acceptable

• A sufficient number of employees indicate their organization encourages continuous learning, improvement and innovation.

12.1 Governance: Acceptable

• IM requirements are integrated as a part of the approval, development, implementation, evaluation, and reporting of departmental policies, programs, services, or projects.
• IM is represented in the corporate-wide governance structure and/or in the corporate-wide governance or approval committee(s).
• Some responsibilities are identified for IM policy development/implementation.
• Participation is evident in GC-wide approaches and initiatives related to developing, implementing, sharing, and leveraging IM policies and practices.

12.2 Strategy: Acceptable

• A current and active IM strategy identifies support to business priorities and operations, information needs and accountabilities, IM policy considerations and is partially integrated with other corporate strategies, plans and planning cycles.
• An IM strategy implementation plan, including some timelines and resources, is underway and some achievements to date are identified.
• IM awareness activities are underway in the department to help staff and executives understand their IM roles, responsibilities and accountabilities.

12.3 Privacy Act: Acceptable

• Most of the organization’s collections of personal information are described in registered Personal Information Banks and/or Classes of Personal Information in accordance with the requirements of the Privacy Act.
• Organization submitted an Annual Report to Parliament and addressed all of the mandatory reporting requirements.

12.4 Access to Information Act: Acceptable

• Most of the organization's functions, programs, activities and related information holdings have been appropriately identified and described in its 2008 Chapter of Info Source: Sources of Federal Government Information.
• Some institution-specific Classes of Records do not meet Treasury Board Secretariat requirements.

13.1 Leadership: Acceptable

• The senior official has responsibility and accountability for the full scope of information technology responsibilities and ensures that information technology supports organizational outcomes.
• Adequate participation in setting government-wide directions for information technology is evident.

13.2 Planning: Acceptable

• Acceptable information technology plan is in place that aligns with the government-wide directions for information technology and departmental business needs.
• Organization has aligned corporate and information technology governance structures and has an integrated planning process.

13.3 Value: Strong

• Organization analyzes and plans for the appropriate use of information technology shared services to an optimal extent.
• Organization demonstrates management commitment to service costing, asset management, performance measurement and reporting to ensure value delivery.

14.3 Materiel Management: Acceptable

• Some elements of a materiel management framework are evident.

14.1 Investment Planning: Finance Canada has provided evidence that investment priorities are considered as part of the planning and decision-making process linked to business plans.

15.1 Governance and Oversight: Acceptable

• Business cases are not required and there is no evidence that they are used to support project proposals.
• There is evidence of formal project governance and oversight mechanisms and that approved projects are generally linked with the strategic plans and priorities of the organization through established organization-wide procedures. Approval and corrective action decisions are documented.
• There is no evidence that the organization has exceeded Treasury Board approval limits.

15.2 Effective Management of Project Resources: Opportunity for Improvement

• The organization’s funding models, which do not generate cost estimates at the work package level or consider historical and/or industry benchmarks, are not complete and project funds are not fully committed.
• There is evidence of some processes and procedures which support resource management. However, these are largely informal and do not extend across the organization.
• There is no evidence that the organization has failed to meet TB conditions regarding projects.
• While project management related training is made available by the organization for employees, there are no processes to ensure that employees with project management responsibilities are encouraged to complete relevant training and the number of qualified project managers is unknown.

15.3 Effective Management of Project Results: Acceptable

• The organization requires that project milestones, deliverables and outcomes are documented for major projects.
• There is a clear link between the review process and project management governance and oversight mechanisms.
• There is evidence of organization-wide procedures and processes which communicate project monitoring and performance information to project managers and project oversight mechanisms.
• There is evidence that the organization monitors project performance and uses this information to support corrective action.

16.1 Governance and Oversight: Acceptable

• Effective and accountable procurement management processes and controls are in place (e.g., contract review mechanisms, documented decision making, guidance documents, appropriate delegation instruments or proper use of delegated authorities).

16.2 Meeting Operational Requirements: Acceptable

• Efficient and integrated procurement information systems and processes are in place.
• Procurement processes that contribute to cost savings and value for money are in use.
• Qualified procurement human resources exist.

Effective and accountable procurement management processes and controls are in place. Qualified procurement human resources exist. Procurement processes that contribute to cost savings and value for money are in use.

17.1 Authorities and Policies: Acceptable

• Audit report results show evidence of deficiencies that are of serious concerns.
• Departmental procedures, tools, training and support for those individuals delegated with Section 34 authority show evidence of solid financial management practices.
• Departmental processes for classification of moneys, internal controls for receiving and recording money and depositing money show evidence of solid financial management practices.
• Departmental processes for informing those delegated with Section 33 authority of their responsibilities and dealing with requests for payments that are problematic show evidence of good financial management practices.
• Departmental processes to provide individuals delegated Section 33 authority with the information necessary to assess and approve specific transactions and to assess the adequacy of Section 34 account verification show evidence of solid financial management practices.
• The reporting of external user fee information meets or nearly meets the requirements of the reporting guidelines.

17.2 Public Accounts Reporting: Strong

• Few Central Financial Management Reporting System (CFMRS) coding errors.
• Greater than 97% (Grade A) of Public Accounts plates completed on time.
• No errors found during the course of the OAG Public Accounts audit.

17.3 Management Capacity: Acceptable

• A reasonable proportion of FIs and management team members in the financial management organization have current, approved learning plans.
• A significant amount of training is provided for the financial management organization.
• Many processes in support of a sound succession plan for key positions are in place.
• Positions, the duties of which are being performed by an individual indeterminately appointed to that position, comprise a low proportion of the FI segment of the financial management organization.
• Positions, the duties of which are being performed by an individual indeterminately appointed to that position, comprise a reasonable proportion of the positions on the management team of the financial management organization.
• There is a position (or positions) established in the financial management organization that is dedicated to community management and development.

17.4 Financial Statements: Acceptable

• All concerns identified in the audit readiness assessment are addressed in a detailed action plan.
• Several known financial internal control weaknesses remain unremedied.
• The Financial Statements are compliant with Treasury Board Accounting Standard 1.2 – Departmental and Agency Financial Statements and reporting deadlines were met.

17.5 Internal Reporting: Strong

• The internal financial reporting package is accompanied by a comprehensive discussion and analysis.
• The internal financial reporting package is presented to senior management less than 15 calendar days after period end.
• The internal financial reporting package is presented to senior management ten or more times per year.
• The process for reviewing information before it is presented to senior management to ensure no material errors or omissions is well established.
• The scope of the internal financial reporting package is comprehensive.

17.6 Other Initiatives: Strong

• Evidence of some initial measures taken towards implementing the Guide to Costing.
• The organization has identified financial management initiatives in such areas as policies, reporting, systems and community development.

The department improved its overall rating from an Acceptable to a Strong by improving the quality, timeliness and accuracy of its trial balance and Public Accounts plates and the quality of its internal financial reporting.

18.1 Internal Audit governance: Acceptable

• There is an approved Internal Audit Charter in line with the 2006 Policy on Internal Audit.
• The Implementation Plan covers all of the required policy elements.
• Ongoing monitoring of, and progress in implementing, key elements of the plan are on track with planned timelines.
• Chief Audit Executive reports solely and exclusively to the Deputy Head.
• An independent Departmental Audit Committee has either recently been established or is scheduled to be in place and is on track with planned timelines.
• There is an approved Departmental Audit Committee Annual Plan for fiscal year 2008-2009.
• There is an approved Departmental Audit Committee Charter in line with the 2006 Policy on Internal Audit.

18.2 Internal Audit Professional Practices: Acceptable

• The Risk-Based Audit Plan was approved by the Deputy Head and sent to the Office of the Comptroller General in a timely manner.
• Annual Risk-Based Audit Plan methodology is evident and applied.
• All post-engagement follow-up activities are clearly identified.
• There is partial information on the planned use of all audit function resources.
• Vast majority of planned work is on audit assurance versus other types of activities.
• Continuity of previous years work is identified with status or rationale.
• Approved assurance products are consistent with policy and internal audit standards requirements.
• Reasonable completion rate of assurance products (number of assurance audit reports) against 2007-2008 Risk-Based Audit Plan.
• An Internal Quality Assurance and Improvement Program has been drafted.
• Post-engagement follow-up process is well documented, and all recommendations are followed up using a risk-based approach.
• The department or agency provides notification to the Treasury Board Secretariat on issues of importance on an ad hoc basis or is aware of this requirement.

18.3 Administration of the Internal Audit Function: Strong

• The Internal Audit Human Resources Plan is linked to the business plan, and includes an elaborated recruitment action plan and an external resourcing strategy that are being actioned in a formal manner.
• Investment in Certified Internal Auditor certification, learning and training represents a minimum of 5% of FTE salaries.
• Planned spending, *, was given to the Office of the Comptroller General. When comparing current spending of 2008-2009 with planned financial resources of 2007-2008, resource levels identified maintain the resource levels identified in 2007.
• Planned FTEs dedicated to internal audit have dropped when compared to the resource level identified in the planned internal audit function’s budget for 2008-2009.

18.4 Internal Audit Performance: Strong

• A comprehensive Chief Audit Executive Annual Report for 2007-2008 was presented to the Departmental Audit Committee and the Deputy Head and submitted to the Office of the Comptroller General.
• Regular periodic reporting on the follow-up of Management Action Plans is evident.

The department has continued to maintain momentum towards the achievement of the fundamental requirements of the 2006 Policy on Internal Audit. Progress has been made in the areas of Internal Audit Governance, Professional Practices and Reporting on Audit Performance.

19.1 Departmental Security Program: Attention Required

• Organization has limited or no evidence of leadership, administration, or implementation of a security program that includes key policy elements.
• Limited or no evidence that a security organization and governance structure have been put in place to effectively manage the organization's security program.
• Limited or no evidence that the organization's security program ensures the coordination of all security policy functions.
• Several deficiencies in meeting key policy requirements for the departmental security program.

19.2 Management of IT Security (MITS): Opportunity for Improvement

• Organization has achieved the three priority objectives that form the foundation for Management of Information Technology Security (MITS), but does not fully comply with MITS requirements.
• Some deficiencies in meeting key MITS requirements.

19.3 Business Continuity Planning (BCP): Opportunity for Improvement

• Organization has partially developed measures to provide for the continuity of critical business operations and services.
• Some deficiencies in meeting key BCP program requirements.
• Business Continuity Planning (BCP) program governance has not been fully established.
• Business Impact Analysis (BIA) has been completed to identify and prioritize the organization's critical services and assets.
• Establishment of business continuity plans and arrangements is in progress.
• Maintenance cycle has been put in place to review, test and audit business continuity plans.

20.1 Management Engagement – Service and CLF: Acceptable

• There are expectations set by senior management for an institutional focus on meeting the needs of clients, specifically with respect to service standards and client satisfaction measurement.
• There are generally documented and communicated priorities and goals for service at the institutional level; these priorities and goals are generally set by senior management based on the use of performance evidence.
• There is a committee at the institutional level, composed of senior management accountable for service, which has a documented and communicated responsibility for making decisions about the overall management of service.
• There is monitoring by senior management to ensure that the requirements of CLF 2.0 are being met institution-wide; this information is generally used to make timely and proactive decisions and course correction.
• There is monitoring of progress by senior management towards the achievement of the institution-wide goals for service, with course correction if necessary.

20.2 Public/client views: Strong

• Evidence of incorporating feedback in the implementation of its services, programs, policies or initiatives.
• Many strong tools are used to obtain views from clients.
• Strong evidence of making consultation results available to the public.
• There are plans to obtain views from clients.
• There is a clearly identified target clientele for public consultations.

20.3 Official Languages: Strong

• Analysis of the Annual Review on OL shows the institution is fully meeting its obligations.
• No complaint or minimal number of founded complaints exits.
• The institution has the necessary linguistic capacity to serve the public in both OL.