Ministry 2003/04 Annual Service Plan Report - Government of British Columbia.
   

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

The Government committed by legislation to fully implement Generally Accepted Accounting Principles (GAAP) by April 1, 2004. During the past year, the ministry has worked closely with its partner organizations to successfully undertake this significant shift. Full compliance with GAAP requires the preparation of timely, transparent and accurate financial information based on standards developed by the independent Public Sector Accounting Board. As a result of the progress made, British Columbia currently leads the provinces in this regard.

Effective financial planning and reporting also requires the public release of financial results and updated forecasts as compared to the budget on a quarterly and annual basis in accordance with legislated dates. These and other financial activities, including new initiatives, existing business operations and systems development, draw heavily upon the expertise and assistance of the ministry's accounting experts.

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. Over the course of the year, the ministry shifted away from centrally managing the service planning and reporting process for government as a whole given the substantial internal capacity and expertise that has been developed in the provincial public sector.

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

Objective 4.1 Compliance with statutory reporting and budgeting requirements and with GAAP

Full implementation of GAAP by 2004/05 meets a legislated requirement in the Budget Transparency and Accountability Act and provides British Columbians and the investment community with the information they need to make informed decisions. British Columbia is the first senior provincial jurisdiction in Canada to legislate compliance with GAAP.

Key Strategies Core Business Areas
1. Full implementation of Generally Accepted Accounting Principles (GAAP)

• Financial and Economic Performance and Analysis

• Financial Governance Accounting and Reporting

• Treasury
2. Use technological advancements to simplify reporting processes
3. Continue to refine the ministry's website and publications with a particular focus on investors and credit rating agencies

Achievements

  • Established the accounting policies, training materials and reporting mechanisms necessary to support full implementation of GAAP.
  • Developed the capacity and frameworks for including the SUCH sector into the government reporting entity by 2004/05. The expansion of government reporting on the SUCH sector will for the first time provide a truly comprehensive understanding of all provincial government expenditures and revenues.
  • Released the 2002/03 Public Accounts and the Balanced Budget and Ministerial Accountability Act report to the public on June 27th. British Columbia was the second province to release its Audited Financial Statements for the fiscal year 2002/03.
  • Completed a comprehensive review and update of Treasury's website in order to provide investors and credit rating agencies with the information they require to analyze the province's fiscal position and debt portfolio.
Performance Measure 2001/02 Actual 2002/03 Actual 2003/04 Target 2003/04 Actual 2003/04 Variance
Full Implementation of GAAP Partial Partial Partial Partial On Track
Selection Rationale: The Ministry and the Office of the Auditor General has been involved in estimates changes and financial consolidation and reporting changes to effect full application of GAAP for 2004/05. All material aspects of GAAP's implementation including incorporation of schools, colleges, universities and health organizations were included in the 2004/05 budget tabled on February 17th, 2004.

 

Performance Measure 2001/02 Actual 2002/03 Actual 2003/04 Target 2003/04 Actual 2003/04 Variance
Delivery date for annual Public Accounts1 July 11, 2002 June 27, 2003 July 15, 2004 June 29, 2004 Beat the statutory release date by 2 months and the target by 2 weeks
Selection Rationale: Timely release of financial reporting is critical for effective use of the information and helps instill public confidence in government's ability to manage its resources. The Budget Transparency and Accountability Act requires release of the province's financial statements (Public Accounts) by August 31st, following each March 31st, fiscal year end.
1  Note that the Public Accounts for the fiscal year shown are not published until 3-4 months after the end of that fiscal year. The delivery dates shown are actually in the following fiscal year. Accordingly, while the legislated date is August 31st, the release date for the 2003/04 Public Accounts will be June 29, 2004.

Objective 4.2 Increase transparency and accountability for both expenditures and performance

Government remains committed to demonstrating the value generated by the resources its receives from the public. Establishing the linkages between the Estimates, ministry budgets and the activities of related core business areas are critical for understanding the products and services public funds support. Over the past year, the ministry has played an important role in creating these linkages allowing for ongoing evaluations of program cost-effectiveness and potential opportunities for improvement.

Meaningful transparency and accountability also requires that the ministry provide members of the public with timely responses to their inquiries. Frequently, public inquires require the input of specialized areas of the ministry and all public correspondence is treated as a matter of priority.

Key Strategies Core Business Areas
1. Link ministry spending to core businesses and performance measures/targets

• Financial and Economic Performance and Analysis

• Executive and Support Services

2. Timely response to correspondence

Achievements

  • Worked with ministries to refine their core business area structure to better reflect their activities and budgeting processes.
  • Conducted a review of the correspondence system to identify potential areas of improvement.
Performance Measure 2001/02 Actual 2002/03 Actual 2003/04 Target 2003/04 Actual 2003/04 Variance
Alignment of Estimates, Budgets, and core business areas Varies Varies Substantially Aligned Substantially Aligned On Track
Selection Rationale: Alignment of the Estimates with the core business areas in ministry service plans provides a direct linkage between inputs (dollars and FTEs) and the outcomes achieved. This information is essential for ensuring the transparency and accountability for both expenditures and performance.
Full alignment of Estimates, Budgets and core business areas was achieved with the release of the 2004/05 Estimates and ministry service plans in February 2004.

 

Performance Measure 2001/02 Actual 2002/03 Actual 2003/04 Target 2003/04 Actual 2003/04 Variance
Percentage of responses to ministerial correspondence completed within two weeks 15% 40% 70% 47% 23 percentage point shortfall
Selection Rationale: Achieving the ministry standard of completing minister's correspondence within a two-week period ensures correspondents receive timely and relevant information. The Deputy Minister's office is the lead in this initiative.
Variance: Ministry efforts to provide full and complete information in response to correspondence from the public often requires the involvement of program specialists. Given the significant number of initiatives undertaken, the ministry has been challenged during peak periods, especially at budget time, to achieve its performance target.

 

  
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