leadership, governance and accountability in the saskatchewan public service
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Leadership, Governance and Accountability in the Saskatchewan Public Service. Doug Matthies Saskatchewan Finance September 25, 2007. Overview. Introduction Context – Financial Integrity / Public Responding to the Challenge Changes and Emphasis Accountability Framework Where to Next. - PowerPoint PPT PresentationTRANSCRIPT
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Leadership, Governance and Accountability
in the Saskatchewan Public Service
Doug MatthiesSaskatchewan Finance
September 25, 2007
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Overview
Introduction Context – Financial Integrity / Public Responding to the Challenge
• Changes and Emphasis
• Accountability Framework
Where to Next
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Introduction
FMI Vision:…best practices related to the management of public
sector resources.
Values:• Sharing: …creating opportunities for sharing of
experience
• Relevance: …perspectives on the current challenges and best practices in public sector management
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Context – “Accounting Fraud” USA, UK, Australia, Canada, Italy, Belgium, India,
Germany, France, Chile, Ireland, …
ENRON, WorldCom, Parmalat, AOL, Kmart, JP Morgan, Merrill Lynch, …
AIG (2005)• restated financial statements, reduction in book value of
USD $2.7 billion • agreed to a fine of USD $1.6 billion. • two executives plead guilty to criminal charges
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Context – Japan Sept 13: Shinzo Abe, the Japanese prime minister, abruptly
announced his resignation yesterday the Mainichi newspaper reported a further possible explanation for
the unexpected resignation: a political funding scandal
May 28: Toshikatsu Matsuoka, Agriculture Minister, commits suicide hours before facing questioning in Parliament over money scandals
August 1: Norihiko Akagi, another Agriculture Minister, resigns following an accounting scandal
September 3: Takehiko Endo, who lasted one week as Agriculture
Minister, resigns over misuse of farm subsidies
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Context – Canadian Politics
Gomery Commission (sponsorship scandal) Shawinigate (Jean Chretien) Airbus (Brian Mulroney) Bingogate / Fantasy Gardens (BC) Constituency Allowances
• Newfoundland (4 MLA’s / 3 parties)
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Context – Saskatchewan Political level
• MLA Constituency Allowances (16 members)
• Caucus employee theft
Employees• Community Resources; loss > $1 million
• Sask Environment; loss > $300,000
• Inappropriate expenses / CVA use; <$1,000 ->$3,500
Venders• Fuel dealer; fictitious billings > $75,000
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Where Are We Now
Public is frustrated, demands better
Public wants to know problems are being fixed
Public expects consequences
Not just fraud, money is spent wisely
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How Do We Tackle This?
Leadership, Governance and Accountability
Three Interconnected PrinciplesAccountability
GovernanceLeadership
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Leadership (numerous concepts)
Ability to inspire others to achieve more
Characteristics of good leadership• Integrity (#1 quality in business survey)
• Clear vision
• Effective communicator
• Leads by example
Sets the moral culture of the organization
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Leadership (?)
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Governance (also numerous concepts)
Determines who has what power Establishes how decisions will be made What checks and balances will exist Sets out the institutions, rules and procedures Determines accountability requirements
Reinforced by strong performance management system
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Accountability
“Accountability…a broad concept that requires government to answer to elected officials and the public they represent to justify the raising of public resources and to explain the purposes for which they are used.” (From the CICA Handbook)
“There are four major approaches to addressing an accountability problem: rules, oversight, structure and leadership…” Peter Aucoin, “After the Federal Accountability Act”, Winter 2007 FMI Journal
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Rules
Financial Administration Act, Financial Administration Manual
Stronger internal controls Criminal record check policy
Emphasis: • not so much on new rules but on training and
applying existing rules
• Ensuring competent people
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Oversight
Internal or external scrutiny• Provincial Auditor
• Public Accounts Committee
• Freedom of Information
• Various other officers of the Legislature Expanding internal audit functions Quarterly Losses Report
Emphasis: Effective supervision
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Structure
“Balance / allocation of power” “Freedom from influence / negative
consequences for doing the right thing”
New fraud policies being drafted• Focus on ethical, positive environment
• Expectations of individuals
• Mechanism to safely report
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Leadership
PSC• Statement of Organizational Culture
• Code of Conduct
Improved Accountability • Enhance Accountability Framework
Accepting Responsibility
Emphasis: Culture of walk the talk
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Accountability Framework
Strategic Direction
Components
PLANNING
Government-wide Planning
Interdepartmental Planning
Department Planning*
Work Unit Planning
Individual Planning
PERFORMANCE MANAGEMENT
Performance Measurement
Risk Management
Program Evaluation
Individual Performance Review
REPORTING
Financial Reporting
Government-wide Performance Reporting
Department Performance Reporting
External Audits
Accountability for Performance
Results of performance measurement, program evaluations, and auditsFeedback influences future planning and resource allocation
* Includes human resources, information technology, capital and financial planning
Updated December, 2002Performance Management Branch
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Saskatchewan’s Framework
Intended to :Create a common approachFocus on outcomesLink policy objectives and expendituresMonitor performanceUtilize program evaluation and risk management
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Pace of Implementation
Progress on the Framework is steadyAuditor as the keen observer:
“Saskatchewan’s accountability system compares well with most Canadian jurisdictions, and in some respects, leads others …” (PA 2005 Fall Report - Volume 3)
Capacity and Timing
Challenge: Linkage between framework / budget
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Financial Reporting
Legislation:• Public Accounts / Quarterly Updates
Province’s Financial Statements – budget to actuals on both a GRF and Summary Financial Statement basis
Public Sector Accounting Board (PSAB) standards for Summary Financial Statements
Public Accounts payee listPerformance plan reporting
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Where to Next?
Ensure current problems addressed
Longer outlook and plans• Managing the growth
• Don’t repeat Calgary
• How are we managing the risks