ARCHIVED - Government's Response to the Fourth Report of the Standing Committee on Public Accounts

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Since the time of the 10^th Report of the Standing Committee on Public Accounts of the 38^th Parliament (the "10^th Report"), the government has introduced the Federal Accountability Act (the "Act") and Action Plan.  The Bill was passed by the House of Commons in June 2006, and is currently before the Senate Standing Committee on Legal and Constitutional Affairs.  The government recognizes the concerns raised in the 10^th Report and believes that this response addresses those concerns regarding the management responsibilities of deputy ministers and their accountability before committees of Parliament by designating heads of departments and other federal government organizations as accounting officers.  The government is committed to working with the Committee on matters of accountability and recognizes the dedication of all members of the Committee to improve those issues.

Recommendation 1

That deputy ministers be designated accounting officers with responsibilities similar to those held by accounting officers in the United Kingdom

The proposed Actdesignates deputy ministers and deputy heads of all government departments and agencies as accounting officers for their respective organizations, and as such accountable before the appropriate committee of Parliament to answer questions related to their managerial responsibilities.  These responsibilities are set out in the Act and consist of the following:

• ensuring that resources are organized to deliver departmental objectives in compliance with government policy and procedures;
• ensuring that there are effective systems of internal control;
• signing the departmental accounts; and
• performing other specific duties assigned by law or regulation in relation to the administration of their department.

The scope of an accounting officer's responsibilities under the proposed Act are substantially the same as those proposed in the 10^th Report, and likewise resemble those of accounting officers in the United Kingdom.  At the same time, they are consistent with the existing statutory responsibilities of deputy ministers and deputy heads of agencies in the Government of Canada.  Deputy ministers continue to be responsible for regularity and propriety; economy, efficiency and effectiveness; financial and management systems for departmental programs and public property.  This is also consistent with the existing ministerial accountability for the overall management of departments, as discussed in the response to Recommendation 2 below.

With regard to the specific recommendation that the personal responsibility of accounting officers for negligence and wrongdoing not diminish over time, under the Act the accounting officer for a government body is the current deputy head of that body, who alone has the departmental support required to answer questions before a parliamentary committee and to correct problems.  In matters of unlawful or improper conduct, responsibility is by its nature personal and not dependent on the accounting officer remaining in his or her position.  Thus, to this extent, a former accounting officer will remain responsible for his or her personal conduct.

This setting out of deputy ministerial management responsibilities in one statute, together with the creation of a statutory obligation to appear before parliamentary committees to answer questions regarding those responsibilities, will support high standards of departmental management within the Government of Canada in a number of ways.  For example, it sends a strong message concerning the importance of sound departmental management and clarifies the role of deputy ministers in achieving it.  Additionally, it ensures that Parliament will have the information it requires to assess the way in which all government departments and agencies are managed.

Recommendation 2

That as accounting officers, deputy ministers be held to account for the performance of their duties and for their exercise of statutory authorities before the House of Commons Standing Committee on Public Accounts.

Deputy ministers and other senior officials have long supported the accountability of their ministers by appearing before parliamentary committees to provide background information and answer technical or other factual questions, including those pertaining to the management of their departments. 

The proposed Act makes this responsibility of deputy ministers and deputy heads of all government agencies to answer questions relating to their management responsibilities a matter of law.  As the legislation also makes clear, this legal obligation is undertaken within the framework of ministerial responsibility and accountability to Parliament.  As set out in the Federal Accountability Act, accounting officers are obligated to appear before the appropriate Senate or House of Commons committee and answer questions put to them by committee members in respect of the carrying out of the responsibilities and the performance of duties referred to in the proposed Act, as set out under Recommendation 1.  But accounting officers are not accountable to Parliament in the manner of ministers, in the sense of being politically accountable and subject to its censure or its demands that specific courses of action be taken.  Neither would it be appropriate for accounting officers to engage in broad policy discussions that could involve the defence or criticism of either Government or Opposition policy.  Ministers alone have this relationship of political accountability to Parliament, which is a central tenet of Canada's system of responsible government.  Accordingly, the fundamental accountability between a minister and Parliament and between a minister and his or her deputy minister have not been altered but have been reinforced and clarified in legislation.

Recommendation 3

That specified procedures be adhered to when deputy ministers (as accounting officers) are in disagreement with their ministers regarding administration and operation of their departments

With respect to potential disagreements between ministers and deputy ministers in matters of departmental administration, the Federal Accountability Act establishes, as part of the accounting officer mechanism, a more systematic and effective means of addressing such disagreements. 

Specifically, the proposed Act requires that, in the event that a minister and deputy minister are unable to agree on the interpretation or application of a Treasury Board policy, directive or standard:

• the deputy minister seek guidance in writing from the Secretary of the Treasury Board;
• if the matter remains unresolved, the minister refer the matter to the Treasury Board for a decision; and
• a copy of the Treasury Board decision be shared with the Auditor General as a confidence of the Queen's Privy Council for Canada.

As is currently the approach, all other matters of disagreement would be raised with the Clerk of the Privy Council. 

The government believes that this approach will achieve the objectives of the Committee's Report.  At the same time, recognizing the importance of the minister-deputy minister relationship, it will not merely document the disagreement for the purposes of assigning blame after the fact.  Rather, it will facilitate the prevention and authoritative resolution of disagreements, and will contribute to the consistent application of government management policies, within the framework of ministerial responsibility.  Providing the decision to the Auditor General will also assist the Auditor General in the conduct of his or her work, for example by helping him or her to assess the nature and appropriateness of transactions within government departments.

Recommendation 4

That the government endeavour to retain deputy ministers in their positions for periods of at least three years; however their responsibilities are in no way diminished should their tenure be less than the recommended three years

The appointment of deputy ministers is based on the operational and policy needs of the government.  Stability and continuity are very important, but flexibility is also necessary to ensure these needs can be met.

The government is confident that the measures proposed in the Federal Accountability Act and Action Plan, once implemented will strengthen accountability and ensure that all government officials, from ministers and deputy ministers to employees are aware of their responsibilities.