Reflections on the Working of Government

1
Reflections on theWorking of Government

• Presentation by Stephen Dixon
• Professional Development Week
• November 29, 2006

2
Spotlight on Accountability

• How did we get to where we are today?
• Have management reforms been effective?
• Where are we now?
• The Way Forward?
• What is your role in making it work?

3
How did we get here?

• Royal Commissions
• Glassco (1962) let the managers manage
• Lambert (1979) make the managers manage
• Auditor General
• FMCS (1976) lost control of the public purse
• FMCS II (1987) too many detailed directives
• Treasury Board
• PPBS (1960-70s), OCG (1977), IMPAC, ZBB, IMAA,
  Modern Comptrollership, Public Service 2000,
  accrual accounting, CASS, strengthened Internal
  Audit, a new CFO Concept
• The Gomery Commission of Inquiry

4
Have reforms been effective?

• G. Osbaldeston Keeping Deputy Ministers
  Responsible
• a long history of attempted reforms have met with
  limited success, including PPBS, MBO, A-Base
  reviews, OPMS, and strategic plans (1998)
• A.W. Johnson Reflections on Administrative
  Reform in the Government of Canada 1962-1991
  published by OAG
• the heart of the failure was that the advocates
  of the comprehensive reforms did not adequately
  cope with the questions of how the reforms would
  fit in parliamentary government
• Denis Desautels Reflections on a decade serving
  Parliament
• Financial management has not improved
  substantially Attitudes have begun to change,
  but we have yet to see the changes carried
  through to actual management systems. (2001)

5
Where are we now?

• Unclear role of the federal government
• Vague measures of results performance
• Imprecise roles accountabilities
• Weak information systems and reporting
• Internal control concerns
• Insufficient financial management expertise
• Plus que ça change, plus cest la même chose

6
The Way Forward?

• Far beyond my mandate today to outline a grand
  plan but here a few thoughts
• Clarify central agency versus departmental FM
  roles resulting in stronger DM authority and
  accountability
• Design simple yet more effective financial
  management and control processes and systems
  less is more!
• Match cost-effective control practices to the
  assessed risk and materiality of the particular
  activity
• Build a stronger FM community inclusive of both
  accountants and other financial professionals
• Better integrate departmental management and
  professional staff input into key business
  decisions

7
What is your role in making it work?

• Regardless of the flavor of the month FM process
  or system, you should consistently demonstrate
  professionalism along with
• Leadership you must be more than a follower
• Knowledge Skill up-to-date relevant
• Values and Ethics principled but value-added
• Common Sense dont let theory get in the way
• Speak Truth to Power the most important of all