Taking Responsibility: Government and the Global CEO

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The findings in the global report not only resonate for Canada, but also specifically within the province of Alberta. There is a provincial focus on deficit and the talent crunch, and these are some of the key global issues highlighted in the report as well.

Engaging and forging partnerships with the private sector should be on the agenda of our public sector organizations. There is a lot of potential here, and we’re not doing as much of it as we should. Greater collaboration across jurisdictions and provinces should also be explored more to improve efficiency and also reduce overhead costs. While some organizations have explored it, it’s been a very slow process. A more aggressive and all-encompassing scope mandate for collaboration should be developed.

To support business growth, we need to take a serious look at reforming regulatory processes. In Alberta, the process is very cumbersome and expensive, discouraging businesses from investing their limited funds here. Things like the procurement process could be more efficient, but is currently very expensive and unclear.

In order to develop talent, the public sector needs to forge better partnerships with universities and colleges, and needs to make learning more industry-based. Two-way secondments between government and the private sector will also help develop talent on both sides. To attract and retain the best talent within the public sector, our public sector organizations need to take a serious look at salary levels and match them with private industry standards.

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Fiscally, our public sector is planning to move in the right direction as they contemplate ideas for cost cutting measures and service delivery efficiency. However, they’re operating on a lean budget and unexpected events can really catch them off guard. An example is the Manitoba flood; since the budget was so tight, where would the money come from to deal with the disaster? Government needs room to manoeuvre, in addition to finding alternative sources of funding services and capital projects. For example, many people don’t have much room in their discretionary income and can’t afford user fees, so rather than user fees, taxes based on service utilization could be considered.

Developing the infrastructure is extremely important for Canada and we need to channel funds in that direction. For many years the government hasn’t invested in infrastructure, and now is the time to get it back in place. We need to build on our strong foundation or there will be bigger ramifications that we’ll have to deal with in the future.

There’s a big opportunity to nurture the innovation and talent that Canadians have. A lot of good ideas are percolating and should be supported. We have rich natural resources; why not foster ideas to better add value to our own resources instead of exporting our resources, only to buy them back after another country has processed them? We also need to develop different demographics, especially the aboriginal population in Saskatchewan and Manitoba in which 60% of the population is 25 years or younger – a great opportunity given the aging baby boomer generation. Immigration is also a big opportunity; we have the need and should seek people with requisite qualifications to fill the labour gaps.

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One of the report’s key themes is the need for better public sector accounting standards globally, and in this regard, Canada has been very proactive.

The Public Sector Accounting Board (PSAB) in Canada recognizes the importance of comparability and consistency across the three levels of government. This is particularly relevant as the recent changes in accounting standards in Canada have resulted in more organizations following Public Sector Accounting Standards. PSAB has recently released new standards and is continuing to work on additional ones. Canada is well ahead of other countries around the globe who are still reporting on a cash basis.

The Government of Canada has learned from the experiences of the private sector, including the benefits of having robust internal controls over financial reporting in place , especially during events such as the financial crisis. Many Canadian Crown Corporations have formal processes in place to test the effectiveness of their internal controls over financial reporting while Federal Departments are moving in the same direction.

Change is coming at a fast pace and governments are challenged to keep up in determining the impact on financial reporting. They have to be better positioned to respond to changes in a more timely and flexible manner. If our major public sector organizations have to operate efficiently without financial reporting becoming a burden, they have to plan ahead. For example, if they explore new sources of funding by charging the private sector fees, they have to proactively know how it’s going to impact their financial reporting. They also have to be able to measure the impact of the changes and report on them with consistency.