Public Sector Support Thought Leadership Strategy Research Guidance and Support Department Presentation at FMI Manitoba November 2017

The broader perspective 2 The broader perspective Public Financial Management Standard Setting Awards / Conference Public Interest Advocacy Thought Leadership International Learning & Development Setting the foundation

Our definition Thought Leadership 3 Our definition Thought Leadership The development of content that is innovative, covering trends and topics that can influence public sector financial management.

Setting the foundation Defining public sector context Identifying public sector universe Determining relative importance (size/membership) Establishing public sector vision Developing strategic plan Implementing advisory committee (PFMAC) Defining PFM Establishing PFM framework Identifying key stakeholders Identifying main products Identifying relevant topics Identifying potential projects Identifying funding opportunities Developing strategic alliances

Economic dimension 40% of GDP (40 year average) 20% of employment (3.6 million jobs) $640 billion in expenditures

Public sector universe 4 Public sector universe Comprised of: General Government All instances of government (federal/provincial/territorial/aboriginal/municipal) Public universities and colleges Public school board Public health and social services institutions Non-autonomous government pension funds Canada and Quebec pension plans (CPP/QPP) Government Business Enterprises Entities usually established via an Act of Parliament or Legislature and often referred to as Crown Corporations Examples: national central bank (BofC), monetary authorities, postal service, port authorities, marketing boards, lottery corporations, liquor authorities, electricity corporations, investment and financing corporations, gaz and electricity commissions, etc.

Total expenditures: $640 billion (2015-16) Government spending Total expenditures: $640 billion (2015-16)

Public sector workforce 5 Public sector workforce

Public sector membership 6 Public sector membership 20% of CPA membership Up to 40,000 members

Our vision To support excellence in public sector financial management and governance that contributes to increased transparency and accountability over the use of public funds. Upholding considerations of high professional standards for public service strategy, governance, performance, risk, sustainability, assurance and oversight.

Our strategy Strategic Goals Output CURRENT FUTURE Set the foundation for RGS support Universe / materiality / membership / vision / advisory committee / definition / framework / stakeholders / products / resources Maintain inventory of relevant PFM topics and resources Research inventory / PFMAC validation Identify priority issues and potential projects Project inventory / Leaders forum / Survey / PFMAC validation Develop resources addressing priority issues Keystones / Insights / Briefings Identify, promote skills required to add value Insights on leadership Build and grow our strategic partnerships Partnership agreements / Collaboration initiatives FUTURE Advocate for strong PFM Literacy tools / analytical framework Create a one-stop-shop for PFM knowledge Resource centre Export PFM knowledge and expertise Consulting assignments

Key stakeholders Elected officials Government administrators and advisors Professionals who design, implement, operate, review, and evaluate PFM Legislative auditors The public in general / taxpayers

Our advisory committee - PFMAC Role: Provides advice regarding PFM support activities Promotes CPA Canada’s products (Keystone, Insights, Briefings) Serves as ambassadors to CPA Canada Membership: 8-10 members representing all instances of government, academia and legislative audit institutions 2-3 year term with one renewal option

The CIPFA definition of PFM « The system by which financial resources are planned, directed and controlled to enable and influence the efficient and effective delivery of public sector goals » Chartered Institute of Public Finance and Accountancy (CIPFA)

A framework for PFM

PFM Thought Leadership Relevant topics PFM Thought Leadership Legislation Standards Accountability Transparency Governance Performance Management Leadership Risk Management Strategic Planning Long-Term Financial Planning Debt Control Deficit Control Budgeting Public Consultations Taxation User Fees Revenue Forecast Expenditure Forecast Asset Management Technology Assurance Oversight

PFM Thought Leadership Main products PFM Thought Leadership Keystones Keystones are produced to advocate sound public financial management across the sector. Keystones utilise input from subject matter experts and stakeholders to create best practice guidelines that lead the way in public finance. Insights Insights provide detailed commentary and analysis on current issues and developments affecting public financial management and governance. Briefings Briefings are designed to pull out key PFM information of relevance to public sector stakeholders and practitioner's.

Keystones - Potential projects Product Thought Leadership Project Keystones Balancing budgets – Strategies and options The Cost of Government Debt – A growing concern Life cycle asset management – For improved decision-making Infrastructure management in the digital age – From principles to practice The economic plan - Reconcilling the views of economists and accountants Good governance standards for public services – International framework Governance and accountability in the public sector – A guide to financial literacy Connecting money, policy and priorities – A guide to financial literacy Managing a jurisdiction’s financial health – A guide to financial literacy The role of the chief executive officers – Securing positive results The role of the chief financial officer – Securing positive results The role of the chief audit executive – Securing positive results Managing the risk of fraud and corruption – Code of practice Shaping the financial function to meet new and future challenges Outsourcing considerations – Pitfalls to avoide Delivering effective financial management – A whole system approach Building a performance tracker – Benefits of data driven analysis

Insights - Potential topics Product Thought Leadership Topic Insights Accountability, performance and transformation – CIPFA FM model Building financial resilience Building partnerships Enabling change Developing sustainability and transformations plans Leading in hard times Making strategic planning work Budgeting for outcomes Managing growth Managing downturns Getting started on long-term financial planning Probability management in financial planning Risk-based reserves Structuring the revenue forecasting process Determining service levels Managing debt capacity Telling the whole story Developing a balanced scorecard

Briefings – Key features Product Thought Leadership Advice Briefings Can be developed for any topic of relevance to public sector financial management Can be developed for any significant issues impacting public financial management Provides ability to quickly highlight issues, challenges and/or opportunities for public sector stakeholders Questions directors should ask

Funding opportunities Explore possibility of obtaining funding from entities or individuals who share our vision for strenghtening public financial management and are interested in contributing to our efforts to make a difference and/or raise the bar. Solicit funding from existing government programs

Collaboration Agreements / initiatives Strategic Alliances Collaboration Agreements / initiatives

Questions?

Annex A: CPA Canada PFM guidance Public Sector Support Standard-Setting Authoritative guidance Focus is on financial accounting, reporting and auditing Public Sector Accounting Standards Canadian Auditing Standards Public Sector Guidelines Non-authoritative guidance focus is on financial accounting and reporting Statements of recommended practices (SORP) Research, Guidance and Support (RGS) Focus is on public financial management Keystones Insights Briefings

Annex B: Public sector challenges Aging population Declining workforce Increasing health care costs Increasing OAS costs Quality of education Disruptive technologies Environement and climate change Protection of natural resources Infrastructure gaps / costs Terrorism and security Defense costs

Annex C: Public sector concerns ? ? ? Taxation levels Deficits and debt levels Role and size of the public sector Fiscal management discipline Credibility of financial reporting Service delivery models Budgeting and resource allocation Prioritization of expenditures Deteriorating infrastructure Value for money

Annex D: Role for finance leaders Making a Difference Improve the quality of outcomes Ensure long-term sustainablity of public services Affect how funding is used to address priorities Ensure availability of resources for investment and re-investments Demonstrate the cost-effectiveness of decisions Provide strong financial stewardship, accountability and transparency in the use of public funds Enhance public trust