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ACFO presentation to the Legislative Committee on Bill C-2 (May 30)
June 5, 2006
The Association of Canadian Financial Officers represents approximately 3,000 FI-class financial officers in the public service. As the association's chair, I would like to first take the time to thank the Committee for having us here today and express my appreciation for the work that you are doing.
This is an historic occasion for Canada. The Federal Accountability Act has the potential to not only provide more accountability within the federal government, but also to increase Canadians' faith in their government and restore pride within the public service.
We will concentrate our remarks on three main points:
- The importance of consultations
- Long-term issues; and
- Preventative measures rather than reactive ones.
To start, I would like to express concern regarding the lack of consultation that took place while this legislation was drafted.
During the study of Bill-C11 by the Operations and Estimates committee, representatives of all political parties expressed concern about the lack of consultation with the public service. It was seen as a major cause of the bill's weaknesses.
We feel that some of the discussions that have taken place in this Committee could have been avoided if there had been more consultation with key stakeholders, such as our Association.
We understand that the Federal Accountability Act has been discussed as a plan on a political level since the last election was called. However it was not government policy at that time and debate was somewhat limited. Therefore, our opportunities to provide input have been few, if any.
When it comes to financial accountability I cannot think of any group more interested and concerned about this issue than financial officers. Financial officers are on the front line in the fight for accountability - it was a mistake to ignore them in the process of drafting Bill C-2.
Financial officers, through the association, should be consulted, not only on the drafting of such legislation, but also on the implementation. The combination of our experience and professional qualifications can only add value to the process.
As such, our first recommendation is that public service unions be included in the committee of deputy ministers that will be review existing Treasury Board financial management policies. This committee is part of the Action Plan that accompanies this bill.
Front-line public servants will undoubtedly offer a different perspective than management - an unbiased, informed and especially interested opinion that will lead to a better and more comprehensive approach to accountability.
It is important to recognize that this legislation will have a long-term impact on how things are done by the Federal Government. The previously mentioned committee is only one of a number of initiatives that aim to eliminate potentially restrictive rules and regulations.
We agree with these important measures but we're concerned that by focusing only on past rules and regulations, they do not go far enough.
Our second recommendation, as written in our latest report entitled  "Checks and Balances III: In Pursuit of Balance," is that there should be a similar test imposed on all new rules and regulations on financial management going forward. Such a test is essential in our efforts to balance the need for accountability and efficiency.
We also understand that there is a call to review this legislation every five years. We are wary of a process that plans to correct mistakes in five years and opens ourselves to the possibility of another wide-ranging reform. We would be better off spending a proper amount of time to arrive at a product that will stand the test of time.
It's important to allow for accountability, not only for today as a result of some scandals - but for tomorrow as well when accountability will no longer be on the front pages of newspapers. This will be the time when we will be most at risk.
As shown by our first two recommendations, the Association feels Bill C-2 missed an opportunity to take a proactive approach to accountability.
While the legislation provides for the strengthening of the office of the Auditor General, the hiring of more auditors and other reactive measures, we are concerned that there are not enough preventive measures.
Financial officers play just such a preventative role. As an Association, we believe that had a financial officer been embedded in the Sponsorship program it would have been less likely that such a scandal would have happened in the first place. This legislation should provide for a strengthening of the proactive role of financial officers within the government of Canada.
Financial officers carry professional and legal responsibility under the Financial Administration Act. They are also bound by professional codes of conduct and ethics, as many of our members have professional accounting designations.
It has been said the sponsorship scandal was caused not by a lack of rules but by the fact that they were not followed. In fact, the Auditor General told this very committee that "perhaps we should come back to principles of sound management instead of creating more rules."
Furthermore, she pointed to a lack of understanding of the existing rules as a major problem. This is something our association has also identified in previous reports. By virtue of their training and experience, Financial Officers can bring about a better understanding of the rules in place.
Therefore, our third and final recommendation is to ensure that financial officers are embedded in programs where there is an expectation for being accountable for the management of public funds.
It would be hard to find many Canadians opposed to the Federal Accountability Act. This legislation is extremely important and for that reason, due process must be observed. Canadians would rather have a delay in the acceptance of this legislation if such a delay will ensure the rules stand the test of time.
We ask all members and all parties to carefully weigh this in their decisions in the next few weeks. As public servants, we are concerned by the number of new rules and regulations drafted, announced and on occasion implemented every time a new scandal makes it on the front pages of the newspapers.
It's important to remember that when the political pendulum swings again and the eyes of the public turn to another area, it is the public servants that are left to implement and work within those rules and regulations.
This government and this Parliament have the ability to change the system and forge a document that will redefine our government, provide better accountability, and at the same time ensure that the government is effective and efficient in delivering its agenda.
There are many programs competing for funding and Canadians want to see value for their tax dollar. At the same time they want access to government services.
Implementation of any legislation that focuses on accountability needs to ensure that it does not run the risk of becoming an impediment that discourages Canadians from accessing government services.
Financial officers have the skills, experience and qualifications that will add value to the development and implementation of this legislation. We are eager to be part of that process.
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