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

Strategic Context

Ministry Overview

The Ministry of Finance plays a key role in establishing, implementing and reviewing government’s economic, fiscal and taxation policies. The ministry’s core businesses include banking, accounting, financial and economic reporting, risk and debt management, capital project oversight, regulating the financial and real estate sectors, and serving as the registrar of corporate entities, personal property and manufactured homes. Through the Public Sector Employers’ Council, which is chaired by the Minister of Finance, the ministry also helps to co-ordinate labour relations policies and practices across the public sector.

The ministry’s clients include Treasury Board, Cabinet, Government Caucus Committees, ministries, agencies, boards, commissions, Crown Corporations, businesses, investors and financial-sector agencies. Through its support of the government’s New Era commitments, the ministry also broadly serves the people of British Columbia.

Updates from the Previous Plan

Over the course of the past year, the ministry has made significant progress in implementing the Government’s New Era commitments and related projects that fall under our responsibility. These successes as well as our ongoing efforts to improve performance reporting have resulted in several changes from our Service Plan 2002/03 – 2004/05.

The ministry has worked in partnership with a number of other public sector agencies to improve the delivery of services. As part of this initiative, the ministry has transitioned the following programs to other organizations and will no longer oversee their activities or report upon their performance:

Business Partnerships and Capital Division have been integrated into Partnerships British Columbia, a new private-sector-focused agency responsible for encouraging public-private partnerships (P3s) in the British Columbia public sector.

Corporate Accounting System has been transferred to the newly formed Shared Services Agency to provide the financial infrastructure necessary for delivering cost-effective shared corporate services to government.

The ministry has also assumed several new responsibilities since the release of our previous service plan. These responsibilities include oversight of pension plans, procurement governance, and the provision of strategic financial, human resources and information management services to a pod of clients. This pod includes the Ministry of Finance, Ministry of Management Services, Ministry of Provincial Revenue, Premier’s Office and other government agencies. Accordingly, we have been allotted increased resources and identified additional strategies related to these new functions. Readers of this year’s plan will also find supplementary information on our planned activities and performance that will allow a more comprehensive understanding of our organization. Appendix A provides an overview of all of the changes to the performance measures and targets included in last year’s service plan.

Planning Context

The factors that present challenges, opportunities and risks for the Ministry of Finance over the next three years include:

Cross-Government Environment

• The British Columbia economy grew by 1.9 per cent in 2002, faster than the 0.7 per cent expected at the time of last year’s budget, according to the province’s independent Economic Forecast Council. The Council now expects growth in British Columbia’s economy to rise to 2.7 per cent in 2003
• Resolution of the softwood lumber dispute could affect forest revenues, personal and corporation income taxes and other revenues
• Energy, forest and other commodity prices could be higher or lower than assumed
• Globalization of economic and financial markets increases competition for investment
• Demand-driven program spending may vary from forecasts
• Expansion of the government reporting entity to include segments of the broader public sector could increase ministry workloads and result in additional pressures on the timely delivery of statutory financial statements
• Government’s commitment to encourage alternative public service delivery, including public-private partnerships may impact internal resources

Ministry Environment

• Technological innovations provide opportunities for greater productivity and efficiency
• An aging workforce presents significant succession and recruitment challenges
• Full implementation of Generally Accepted Accounting Principles (GAAP) may result in additional workloads within both core government and affected broader public sector organizations
• Implementation of government’s shared services system requires adjustment to roles and responsibilities of governance functions for financial and procurement services

Risk Mitigation

The ministry is undertaking a number of initiatives in order to reduce or eliminate the risks we expect to confront over the coming years. These initiatives include:

• Providing for an annual forecast allowance based on the expected risks associated with the budget estimates
• Establishing conservative mid-range estimates
• Implementing an Enterprise-wide Risk Management program
• Focusing on human resources and succession planning
• Ensuring labour relations policies and mandates incorporate fiscal, policy and labour-market goals
• Continued testing and updating of ministry business continuation plans

Vision

To be a responsive organization that is a model for leadership in promoting sound fiscal management and governance in an open and accountable public-sector environment.

Mission

To develop a sustainable fiscal plan, to prudently manage government finances, and to create a sound policy and regulatory framework that supports the creation of a strong and vibrant economy.

Values and Leadership Philosophy