2003/04 – 2005/06 SERVICE PLAN Ministry of Finance

Goals and Core Business Areas

Goals

To realize our vision and mission, the Ministry of Finance has established five goals which will guide our activities during the three years addressed in this Service Plan. These goals reflect the strategic shifts driven by the Government’s New Era commitments and include:

1. Implementing government’s three-year fiscal plan and balancing the budget beginning in 2004/05
2. Creating a tax and regulatory climate that stimulates economic growth
3. Effective and efficient financial and risk management
4. Comprehensive, timely and transparent financial and performance planning and reporting
5. A progressive, innovative and knowledgeable workforce

The following section provides further information on the purpose and intended outcomes associated with each of these goals. A number of high-level objectives are also linked to their respective goals to better illustrate the direction we are pursuing to successfully achieve our goals and realize our intended future.

Goal 1: Implementing government’s three-year fiscal plan and balancing the budget beginning in 2004/05

A strong and vibrant provincial economy is a key goal in the government’s three-year strategic plan. The ministry will assist government in achieving this goal by maintaining a competitive tax regime and assisting ministries to meet their budget and service plan targets, thereby eliminating the structural deficit and balancing the budget. The ministry will also coordinate the management of labour relations policies and practices in the public sector to foster an efficient and effective workforce.

Once the provincial budget is balanced beginning in 2004/05, the ministry will assist in identifying opportunities to reduce the overall debt burden and see the province’s debt to GDP ratio decline to a level that remains among the lowest of the Canadian provinces.

Objectives

1.1 Balance provincial budget annually beginning in 2004/05

1.2 Effective cash and debt management

1.3 Effective management of public-sector labour relations and human resource strategies

Goal 2: Creating a tax and regulatory climate that stimulates economic growth

The Ministry of Finance plays a critical role in the development of a healthy investment climate in the province. Specifically, the ministry is responsible for delivering on the government’s commitment to establish a competitive tax environment to support business development and investment. Several of the initiatives the ministry has undertaken to improve the province’s business climate include:

• reducing the general corporate income tax rate by three percentage points
• introducing a provincial sales tax exemption for production machinery and equipment
• eliminating the corporation capital tax for general corporations
• several sector specific tax measures

These cuts were partially offset by increases in Medical Services Plan (MSP) premiums and the provincial sales tax rate to fund compensation increases in the health sector. In addition to the tax cuts, focused on increasing business investment, the ministry has also delivered on the government’s promise to reduce personal income taxes and ensure the personal tax burden of British Columbians is among the lowest in the country.

The ministry also supports the government’s goal of reducing regulation and red tape, thereby making it easier and more attractive for business to locate and invest in the province. Ministry initiatives include the passage of the new Business Corporations Act, which streamlines existing requirements and provides more flexibility for business incorporations, and the review of legislation that regulates the financial services and real estate sectors. The ministry will play a lead role in creating e-government solutions through the electronic delivery of all corporate and personal property registration services, as well as e-banking services for government programs.

Objectives

2.1 Establish a tax environment that encourages economic growth

2.2 Support business development and investment

Goal 3: Effective and efficient financial and risk management

The Ministry of Finance is responsible for the Government’s overall financial and risk-management framework. This involves the establishment of appropriate legislation, policies, procedures and training and reporting at a corporate level to ensure the province’s resources and obligations are appropriately managed in support of effective service delivery. The framework reinforces individual and corporate accountabilities for outcomes, maintains the corporate standards for stewardship of resources, management of liabilities and risk, and the collection and disbursement of public funds.

Key activities include financial, procurement and accounting policy development, internal audit and advisory services, risk management, and compliance monitoring. The policies are risk-based to ensure they add value and are consistent with the risks they are intended to address. Programs focus on areas of greatest risk with a goal of making broad systemic change to improve performance. This ensures that finance and administration functions are provided using the optimal mix of resources and funding.

Objectives

3.1 Implement a risk-based approach to managing government resources

3.2 Improve the government-wide responsibility and accountability framework for financial management

Goal 4: Comprehensive, timely and transparent financial and performance planning and reporting

The Government is committed by legislation to fully move to Generally Accepted Accounting Principles (GAAP) by April 1, 2004. British Columbia currently leads the provinces in this regard. Financial results and updated forecasts as compared to the budget are publicly reported quarterly and annually in accordance with legislated dates. Accounting practices, policies and procedures are developed and maintained in order to support the accuracy, completeness, timeliness and reliability of these reports. Accounting advice and assistance is provided on new initiatives, existing business operations and systems development.

The Budget Transparency and Accountability Act (BTAA) also sets out requirements for service plans and annual service plan reports for all ministries and government organizations. Service plans describe the goals and objectives to be achieved and the performance measures and targets that will gauge success, with the reports providing an account of actual results. Assistance is provided to ministries through service plan and report guidelines and other supports.

Objectives

4.1 Compliance with statutory reporting and budgeting requirements and with GAAP

4.2 Increase transparency and accountability for both expenditures and performance

Goal 5: A progressive, innovative and knowledgeable workforce

We recognize each of our ministry goals is dependent upon the continued support and professionalism of a highly skilled and knowledgeable workforce. It is our staff who drive the quality and value of the services we provide to our clients, stakeholders and the people of British Columbia.

In keeping with the Government’s Public Sector Renewal Initiative, our ministry has identified, and will continue to identify, a number of opportunities to enhance the leadership, support and developmental opportunities our staff requires and deserves. We will foster a more proactive and visionary leadership at all levels of the organization. Employees will also be actively involved in the development of the ministry’s Human Resource Management Plan.

As we work towards achieving our ministry goals, we will be recognized by our clients and stakeholders as a progressive, innovative and knowledgeable workforce, that delivers our services efficiently, effectively, and with a clear sense of pride and purpose.

Objectives

5.1 Proactive and visionary leadership

5.2 Performance-focused workforce

5.3 Learning and innovative organization

Core Business Areas

The ministry provides a wide range of functions related to our mandate of promoting sound fiscal management and governance in the provincial government. In order to efficiently and effectively deliver these functions, the ministry has been structured into seven core business areas each with specific responsibilities for the provision of programs and services. The core business areas include:

1. Financial and Economic Performance and Analysis
2. Financial Governance, Accounting and Reporting
3. Treasury
4. Financial and Corporate Sector Services
5. Public Sector Employers’ Council
6. Risk Management
7. Executive and Support Services

Collectively these core business areas include all of the ministry’s programs and services and directly contribute to at least one of our goals.

Core Business Area 1: Financial and Economic Performance and Analysis

The primary role of Financial and Economic Performance and Analysis is to:

• develop the government’s three-year fiscal plan and identify, assess, monitor and manage significant risks and opportunities relating to the plan
• provide financial, economic, revenue, capital, taxation, and intergovernmental fiscal relations advice to the minister, Treasury Board, Cabinet, Government Caucus Committees, government ministries and agencies, and other stakeholders
• manage the government budget, service plan, and service plan report processes
• produce the budget, estimates, quarterly reports, and the budget consultation document; as well as internal reports and related analysis

Core Business Area 2: Financial Governance, Accounting and Reporting

The primary role of Financial Governance, Accounting and Reporting is to:

• provide accounting policy and analysis to ministries, Crown Corporations, agencies and the schools, universities, colleges and hospitals (SUCH) sector, resulting in financial information that is clear to the public
• provide accounting advice on public private partnerships (P3s) and financing proposals
• provide financial and management regulation by establishing policy, procedure, and legislation that define the financial management framework for government, provide a purchasing governance framework, provide assurance that the financial and management policy framework is operating as intended through a risk-based approach, process legal encumbrances for government, and provide internal audit services to support ministry and cross-government performance, risk management, and control activities
• provide financial reporting by preparing and publishing the public accounts and contributing to other financial reports for timely reporting, decision making, and financial transparency, and by working with the Auditor General and accounting standards organizations on appropriate accounting standards and their application to the province

Core Business Area 3: Treasury

The primary role of the Treasury is to:

• deliver cost effective banking, cash management, and electronic banking services to ministries, Crown corporations and government agencies
• ensure the borrowing needs for the provincial government and its agencies are met, provide support for corporate and project finance initiatives, and efficiently manage debt settlement operations and reporting
• manage investor relations initiatives and act as the primary liaison with domestic and international credit rating agencies

Core Business Area 4: Financial and Corporate Sector Services

The primary role of Financial and Corporate Sector Services is to:

• Oversee the financial and real estate sectors including:
  

  — operation of the Financial Institutions Commission (FICOM) and the Credit Union Deposit Insurance Corporation

— regulation of credit unions, trust companies, pension plans, insurance companies, captive insurance companies, and insurance licensees

— regulation of real estate licensees and mortgage brokers

• Operate registries services including:

— registration of all business entities, non-profit organizations, and co-operatives that operate in British Columbia

— maintenance of registries of security interests (liens) in personal property and of the ownership and location of manufactured homes in the province

• Provide policy analysis and advice to government in support of legislative frameworks for the regulation of the province’s financial services, real estate, and corporate as well as commercial sectors

Core Business Area 5: Public Sector Employers’ Council

The primary role of the Public Sector Employers’ Council (PSEC) is to:

• set and coordinate strategic directions in human resource management and labour relations and advise government with respect to labour relations and pension and benefits issues in the provincial public sector

Core Business Area 6: Risk Management

Risk management includes risk identification and assessment processes, risk transfer, risk financing, risk mitigation, claims/litigation management, and security and business continuity planning.

The primary role of Risk Management is to:

• develop and manage comprehensive risk management programs that seek to minimize the risks the provincial public sector faces by virtue of its programs, operations and assets, including public education, health care, Crown corporations, and other public entities
• assist public agencies (school districts, health authorities, universities, colleges, institutes, BC Buildings Corporation, and BC Housing Management Commission) in improving the seismic safety of existing and future public buildings. The pilot program for Seismic Mitigation will be completed in 2002/03; future requirements will be funded within the established annual operating and capital budgets for each agency

Core Business Area 7: Executive and Support Services

The primary role of Executive and Support Services is to provide:

• executive and administrative support to the Minister and Deputy Minister’s offices
• strategic support to ministry operations, programs, and external client organizations in the areas of finance, human resources, information management, and information access and records services
• funding in support of Government House
• funding in support of Partnerships British Columbia