Strategic Context

As the Ministry of Finance pursues its mandate over the next three years, the state of the province's economy is a critical factor in the ministry's ability to achieve its goals and objectives.

According to BC's independent Economic Forecast Council, the B.C. economy grew 4.0 per cent in 2006, stronger than the 3.6 per cent expected at the start of the year. B.C.'s economic growth is expected to ease somewhat, but remain strong for 2007 through 2011. Further information on B.C.'s current economic outlook may be found in the Budget and Three-Year Fiscal Plan released as part of Budget 2007.

Within the broader context, the ministry has implemented an Enterprise Risk Management program to identify and manage internal and external risks and to realize new opportunities. Other strategies being undertaken in response to specific risks.

Cross Government Context

This table identifies potential cross government risks and ministry mitigation strategies/capacity to address these risks.

Potential Risk Mitigation Strategies
Globalization of economic and financial markets will increase competition for investment. Develop taxation, financial and corporate regulatory policy that reinforces British Columbia's position as an attractive place to invest and create jobs.
Maintain competitive tendering of treasury business functions to obtain optimal pricing and certainty of service delivery.
Economic and commodity market fluctuations and unexpected shocks (e.g., terrorism, avian flu and forest fires) could affect revenues, personal and corporation income taxes and other revenues as well as increase government expenditures. Continue to apply a forecast allowance to the summary accounts bottom-line, to account for risks to revenue, expenditure, Crown corporation and schools, universities, colleges and health authorities (SUCH) sector forecasts and to increase the likelihood of meeting the forecast target. Use of prudent forecasting practices, such as a forecast allowance, recognizes the uncertainties in predicting future economic developments.
Inflationary demands may cause pressure on capital spending. Update the principles and guidelines contained in the Capital Asset Management Framework to ensure public-sector agency capital assets are acquired and managed in the most cost-effective manner possible.
Use prudent assumptions in the preparation of the fiscal plan.
Use risk management to plan, develop and implement mitigation strategies.

Ministry Context

This table identifies challenges which exist within the ministry and strategies/capacity to address these challenges.

Challenges Strategies
International demand for financial professionals (e.g., CGA's, CMA's, CA's) means the ministry must be competitive in recruiting and retaining staff.
Continuing trend of adopting international accounting standards increases reporting complexity and the need for qualified accounting professionals.		 Develop and implement recruitment and retention plans.
The legislated implementation of Generally Accepted Accounting Principles (GAAP) will ensure that the province's reporting is consistent with the most recent accounting standards. This may result in the need to continue to evaluate business processes within both core government and affected broader public sector organizations. British Columbia is a leader in timely and transparent financial reporting, becoming the first province in Canada to introduce a balanced budget and fiscal plans prepared in accordance with GAAP, fully consolidating the SUCH sector in its government reporting entity. Furthermore, British Columbia is the only province with legislation that requires the use of GAAP for estimates, budgets, quarterly reports and public accounts. The ministry will continue to work closely with the Auditor General, the Accounting Policy Advisory Committee, and national standard setting organizations to ensure British Columbia continues to lead the provinces in the timeliness of its financial reports and in providing the most comprehensive set of public disclosure documents in Canada.

This table identifies opportunities available to enhance ministry capacity and initiatives to maximize the opportunities.

Opportunity Initiative
Improve service delivery, and enhance efficiency and productivity through innovative technology. Continue to increase the functionally of corporate accounting systems, government use of electronic banking services and online services to the public and businesses.
Continue to shift from focusing on input controls to achieve outcomes and ensuring accountability for results. Continue to develop frameworks for financial management, governance, procurement and performance budgeting to free up resources to address other ministry Priorities.
The Government of British Columbia has adopted Enterprise Risk Management as the framework for strategic and operational decision-making to effectively manage potential opportunities and adverse effects. Continue to integrate Enterprise Risk Management practices into ministry's operational and decision-making activities including the development of the service plan and internal audit plan.
The ministry's Integrated Planning Framework consolidates and streamlines the various planning activities, enhancing the ministry's resource capacity.

Pursue opportunities to further embed the Integrated Planning Framework into the ministry's planning activities.
Continuously seek opportunities to improve efficiencies in planning and reporting activities.
Partnership and recruitment initiatives with education institutions provide opportunities to build capacity in areas where specific skills are needed but not available in the organization. Forge partnerships with education institutions to recruit graduates that possess relevant skills (such as financial and accounting) to address succession and vacancy challenges.
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