Financial Management: Developing a Capability Model
Assistant Auditor General: Douglas G. Timmins
Responsible Auditor: Hugh
The Purpose of This Chapter
"I have agreed to work with Treasury Board and the senior financial
community to help make financial management more effective. This will include
developing a framework of financial management and control standards, assessing
the current state of financial management against these standards, determining
the skill and experience requirements of financial staff, and helping develop
specific measures to advance the state of financial management control."
November 1995 Report of the
Auditor General of Canada
2.7 We have begun, in consultation with the Treasury Board
Secretariat, a study of financial management in the federal government. The
ultimate objective of the study is to develop a model of financial management
that will permit us, the Treasury Board Secretariat and departmental managers to
assess the financial management capability of departments against an agreed-upon
2.8 This chapter represents the first step in that process. In this
chapter, we briefly review some of the factors that have led us to undertake
this endeavour. Second, we set out the scope of the project and propose a
definition of financial management and its objectives in the government context
by way of a Financial Management Activity Model. Third, we propose an approach
to developing a methodology for assessing financial management capability. This
methodology is based on an adaptation of the Software Engineering Institute's
Capability Maturity Model, which was developed by it to assess software
development firms. We believe that this approach can be successfully applied to
create a Financial Management Capability Model.
2.9 At the end of this chapter, we indicate the steps in the
development process that will need to be followed from here. Critical among
these is widespread consultation with financial and operational managers
throughout government. This step is important both to take advantage of their
wisdom and experience as we develop the Model and to help ensure that it is
widely accepted by the financial community once it has been completed. The ideas
in this chapter are not being presented as the final word. Rather, we hope that
these ideas are seen as a first word and provide the basis for future
discussion. Further information on the study's objectives can be found at the
end of the chapter in the section About the Study .
Why This Study?
A long-standing concern 2.10
Despite a number of royal commissions, audits, studies and Treasury Board
Secretariat initiatives over the years, achieving effective financial management
across government organizations remains, in our view, a top priority that
continues to require senior management attention. The effectiveness of
financial management still varies among organizations and often within an
organization over time.
2.11 The Office of the Auditor General continues to observe and report
on significant problems, across a broad range of government operations, that
occur as a consequence of failings in financial management practices. Examples
2.12 These observations
and many others raise questions concerning the strength of financial management
in the federal government. For instance:
- a lack of financial information for managing resources and controlling
costs, which results in decisions being made without knowing the financial
consequences of those decisions. Illustrations of this weakness were reported
in Chapter 17 of our September 1996 Report, "Human Resources Development
Canada - Canada Pension Plan: Disability" and in Chapter 32 of our November
1996 Report, "Canadian Heritage - Parks Canada: Management of Historic
- instances of insufficient involvement of senior financial officers in
important decisions, with significant operational and financial implications.
An illustration of the consequences of this weakness was reported in Chapter
15 of our 1993 Report, "Department of Fisheries and Oceans: Northern Cod
Adjustment and Recovery Program";
- inadequate information for management of fixed assets, which results in
excess inventory. The estimated cost savings of eliminating unnecessary
inventory could be up to $1.25 billion. This example was reported in Chapter
23 of our November 1996 Report, "Materiel Management in the Federal
- inadequate activity-based management information to support the
determination of user fees. An illustration of the impact of this issue was
reported in Chapter 32 of our November 1996 Report, "Canadian Heritage - Parks
Canada: Management of Historic Canals".
- Are financial controls adequate?
- Do managers fully understand what government programs/services cost?
- Do ministers and deputy ministers have the financial information, advice
and support they need for decision making and for meeting their obligations to
account for the use of public money?
- Are accountability relationships clearly established and understood so
that managers are held to account for the financial impact of their decisions?
- Does the management culture within the federal government understand,
value and recognize the important role that financial management can and
should play in assisting departments to achieve their objectives?
- Do the consequences flowing from failures in financial management provide
an incentive for managers to pay attention to these issues?
- Are there impediments to effective comptrollership within the federal
Increased demand for financial
information 2.13 Increasingly, there is a demand for complete,
accurate and timely financial information that, when combined with meaningful
performance information, allows management and parliamentarians to put the cost
of government programs in perspective. Some ministers have expressed to our
Office their concern and frustration over the lack of appropriate financial
information to support strategic decision making.
2.14 Similarly, as government moves to alternative forms of service
delivery, the demand for reliable financial and performance information to
support strategic decision making is expected to increase. Both financial and
performance information will increasingly be required to support such decisions
as the implementation of user fees to recover costs or to assess alternative
program delivery strategies.
Systemic weaknesses or isolated
instances? 2.15 Consideration of this issue raises one further
question. Do the observations noted above signal serious systemic weaknesses in
the structure of financial management, or are they merely isolated instances? On
the one hand, if one judges the financial management capability of the
government solely by the reports of financial management failings, then one
could be led to be concerned. On the other hand, the Government of Canada is a
very large organization in which many important financial management decisions
are made every day. Viewed in this context, one could reasonably expect that
even in an organization in which the overall level of financial management is
satisfactory, a certain number of bad decisions could be made. This study is
intended to provide a perspective that will permit us to put our observations in
context and respond to the questions posed.
2.16 Current assessment. The Financial Administration Act
, Treasury Board policies and Receiver General directives have established
at great length, and often in great detail, the standards for financial
management in the federal government. To date, financial management activities
in departments and agencies have largely focussed on complying with directives
from central agencies, adhering to control processes and ensuring that resources
are used in compliance with legislative authorities.
2.17 In essence, many organizations have employed a largely mechanical
approach to financial management functions. Although this approach may ensure
that these functions are performed in accordance with established directives, it
does not ensure that operational managers recognize and understand their broader
financial management responsibilities. Similarly, this approach does not ensure
that financial management activities become integrated into departmental
operations and assist the organization in achieving its intended results at
"reasonable" cost in terms of human, technical and financial resources. Nor does
this approach enable the function to place the financial implications of
decisions, directives or policies front and centre for management to consider.
In other words, at the point where an organization makes significant operational
decisions, financial management staff are not routinely asked to provide the
analysis and advice for senior management to assess the financial consequences
of these decisions.
2.18 To date, the effectiveness of financial management within
government organizations has rested, to a large extent, on the strength,
willpower and initiatives of individual senior financial officers. Yet such
initiatives have not always been sustainable after those individuals have left
the organization. In other words, an individual's initiatives are often not
enough to "institutionalize" effective financial management within an
2.19 In discussions with Treasury Board Secretariat officials, we
agreed that based on the evidence currently available, neither we nor they could
reliably answer the questions raised. At the same time, we agreed that more
knowledge is essential to be able to put in perspective the failures in
financial control that came to our attention, to provide a systematic basis for
improving the quality of financial management, and to be able to provide
information to Parliament on the control of the public purse. The purpose of
this study is to develop a methodology that will permit a systematic assessment
of the financial management capabilities of departments and agencies.
2.20 In order to put financial management issues in perspective, the
Office of the Auditor General would like to be able to draw broad conclusions on
the government's financial management capability. However, existing assessment
methodologies have tended to follow a piecemeal approach - focussing on
analyzing only particular aspects of financial management. They do not provide
an analysis or assessment of the general state of financial management in the
federal government. Although existing methodologies include criteria for
effective financial management, they do not provide a tool for organizations to
determine what type or level of financial management they need. Nor do they
provide guidance to organizations on how to improve financial management
functions, where necessary.
2.21 Additionally, most of the existing approaches to assessing
financial management have their origins in the private sector and tend to
emphasize issues, concerns and expectations more appropriate to that environment
than to the ongoing realities of public sector management. Put simply, in the
private sector, management spends money in order to generate money. The measures
used to monitor money spent versus money generated, such as net profit, return
on investment and increased share values, are key performance indicators for
managers that are closely monitored by them on an ongoing basis.
2.22 In the public sector, money is raised through taxes so that it
can be spent to achieve the objectives of the government. For the public sector
manager, money is one of several resources that are blended and brought to bear
on program objectives. As such, financial information acts much like a fuel
gauge - something to be consulted occasionally, and more often near the end of
the trip to be sure that there will be enough fuel left to make it to the gas
station. The more important information for the public sector manager relates
the costs of program delivery to the degree of objective attainment. This
information is more difficult to create and, if it were available, could be
obtained only occasionally. All of this means that financial management in the
private sector and public sector takes on very different forms and appearances.
Although the forms may occasionally provide a comforting sense of familiarity
looking from one sector to the other, their content is often significantly
2.23 Finally, the piecemeal approach to assessing financial management
ignores the interrelationships of financial management and other components of
organizational control, which together are essential for overall effective
management of an organization. We believe that understanding these relationships
is critical. Good financial management is more than just the sum of the pieces.
2.24 In saying this, it is not our intent to dismiss the work that has
been done. The issues raised are important. Rather, our intent is to build upon
the existing work and to give it a structure that will meet current needs.
New approaches to control models
2.25 The impact of technology and the flattening of the traditional
organizational pyramid structure demand more reliance on control through
informal means such as shared values, shared vision and open communication. As a
result, in today's business environment, the term "control" has sometimes taken
on a broader meaning than just internal control over transactions and financial
reporting. This growing (and possibly necessary) reliance on informal controls,
based on shared values and effective communication, is important in compensating
for reductions in formal checks and balances. Additionally, these changes have
placed increasing importance on strong and clear accountability arrangements
supported by systems that will produce valid and timely information on results.
2.26 In response to this trend, the Canadian Institute of Chartered
Accountants (CICA) established the Criteria of Control Board (CoCo). Its role is
to provide guidance to organizations on designing, assessing and reporting on
their control systems. This guidance reflects the broader concept of control as
a key element of good management. It describes and defines control in a manner
that goes beyond traditional internal accounting controls. It also includes
criteria for overall effective control in an organization, which includes the
achievement of results and the financial performance associated with achieving
2.27 Similar guidance has also been developed and issued by other
professional bodies, for example: Internal Control - Integrated Framework,
issued by the Committee of Sponsoring Organizations of the Treadway Commission
in the United States; and the Cadbury report, issued in the United Kingdom.
2.28 All of these concerns and trends, together with the changing
nature of government, indicate a need for a revitalized framework for financial
management. The framework being proposed in this study is intended to recognize
the role of financial management within the broader concepts of organizational
Initiatives to Improve Financial
Management 2.29 The Office of the Auditor General has set, as a
long-standing strategic priority, the goals of influencing the quality of
financial management and control within the federal government and improving the
understanding of the role that financial management can and should play.
2.30 As discussed earlier, our concern led us to our decision to work
together with the Treasury Board Secretariat to begin the present study. We
believe that, as part of moving forward, our Office and the government need
baseline information about departments' financial management capability. This
study is a first step in getting that information. As the study progresses, and
as resources become available, the Treasury Board Secretariat has indicated its
desire to be more closely involved in this project. We welcome this
2.31 The President of the Treasury Board has created an Independent
Review Panel on Modernization of Comptrollership. Its task is to review and
report on how the comptrollership function should evolve to reflect the changing
business and operating needs of the government. The Panel was created because of
the profound changes the government is undergoing in how it operates, the
resources available to it, and the challenges, risks and opportunities facing
it. The Panel's work is considered to be pivotal in helping government deliver
on its commitment to provide more effective financial management. The Panel has
indicated it will consult broadly on key aspects of comptrollership, including:
2.32 We have been informed that the decision to establish a
high-profile Panel like this reflects the seriousness with which Treasury Board
Secretariat officials view the concerns that we have raised about financial
management. The Office is committed to working with the Independent Panel and
the Treasury Board Secretariat in achieving better financial management in the
Government of Canada. The Panel's report will be taken into account as this
study progresses. We will be interested in seeing the extent to which the Panel
addresses the questions raised in paragraph 2.12.
- financial management;
- accountability and performance reporting;
- audits and reviews; and
- related areas such as financial information and public sector management.
Developing a Financial Management
Defining Financial Management
2.33 Experience has shown that financial management is a term that
has almost as many meanings as there are people who use it. Indeed, the lack of
clarity about what the term encompasses has probably contributed to the
difficulties in making progress in the area over the years. Accordingly, we have
begun our study by suggesting a definition of financial management in terms of
the activities that we believe it includes. In the private sector, financial
management is often thought of as including two areas of activity frequently
covered by the terms "treasury" and "comptrollership". In government, the
activities usually associated with the treasury function, such as cash flow
management, debt management, investment and corporate budgeting, are carried out
jointly by central agencies - the Department of Finance, Receiver General and
the Treasury Board Secretariat. Our current study excludes these activities from
its scope. Thus our definition of financial management is intended to refer only
to those financial management activities that are carried out in the departments
and agencies of the government. We have also excluded, at this time, the issues
of financial management in Crown corporations.
2.34 Financial management in departments and agencies is an important
component of what financial and program managers do in delivering programs
within their organizations. Specifically, in carrying out their financial
management responsibilities, the managers' role is to:
Effective financial management is therefore a critical activity that helps
an organization assess the cost of achieving its objectives, account for the
results of its operations and discharge its accountability obligations.
- identify and manage financial risks;
- have available, on a timely basis, relevant, accurate and reliable
information that allows them to understand the financial implications of
decisions before making them;
- report on financial and operational results (see Chapter 3 for a current
assessment of the central accounting function); and
- protect against fraud, financial negligence, violation of financial rules
or principles, and losses of assets or public money.
2.36 The essential activities and components of financial management
are illustrated in Exhibit 2.1 , the Financial Management
Activity Model. While not specifically set out in the Exhibit, the Activity
Model also includes the informal controls and practices that are essential
components of the overall management framework and hence can have a critical
effect on how financial management will function in a particular organization.
These components include:
2.37 There are several key processes
that underlie the Financial Management Activity Model. They include:
- organizational environment;
- human resources policies and practices; and
- communication practices through which the organization's objectives and
purposes are communicated.
2.38 The responsibility for
these processes and functions is not restricted to departmental financial
managers. Some of the responsibility will also extend to departmental
operational and program managers, depending on the nature of the department.
- the expenditure and revenue cycles;
- cost accounting;
- payroll and benefits accounting;
- providing support for performance measurement and reporting;
- financial reporting;
- financial planning and budgeting; and
- asset and liability management.
2.39 Exhibit 2.2 extends the Financial
Management Activity Model by illustrating how the activities and components of
financial management are related to the specific objectives of financial
management, which in turn link to the broader objectives of financial
study is designed to respond to the need that we and the Treasury Board
Secretariat have identified for a methodology that will permit us to reliably
assess the financial management capability of departments and agencies.
- managing financial risks;
- serving accountability; and
- supporting operational decisions.
2.41 In developing this financial management framework, we intend to
work co-operatively with the Treasury Board Secretariat and the government
financial community and to implement a process that incorporates extensive
consultation with the management teams within departments and agencies.
2.42 As part of this study, we are developing a Financial Management
Capability Model that will describe key elements needed for effective financial
management and control. The Model, described in more detail below, is not
intended to provide a definitive answer on the expectations for financial
management in departments. Nor does it prescribe a complete approach for
assessing financial management. Rather, it is intended to provide a basis for
beginning discussions and developing consensus on the essential components of
effective financial management.
2.43 The main principles underlying this study are the following:
- Financial management, working in concert with other components of an
effective management framework, should be used to assist organizations in
achieving their objectives and accounting for the cost of the results of their
- Management should be responsible both for determining the appropriate
level of financial management capability for its organization and for
establishing the necessary processes and practices needed to achieve and
maintain this capability.
- Not every organization requires the same level of financial management
capability. The appropriate level should be commensurate with the nature and
complexity of the organization and the risks to which it may be exposed. We
recognize that "no one size fits all".
- Financial management activities must be cost-effective. In other words,
the cost of maintaining control should be commensurate with the risk the
controls are intended to address.
The Financial Management Capability
Model 2.44 The purpose of the proposed Capability Model is to
provide a tool that a government organization can use to:
As the size or complexity of an organization or the risk associated with its
activities increases, so does the need for more sophisticated financial
management capabilities. The proposed Model will set out an evolutionary path
that an organization can follow in developing more sophisticated financial
management practices, if necessary. It will also show the steps needed to
progress from a level of financial management typical of a start-up organization
to strong, effective financial management practices associated with a more
mature and complex organization.
- determine its financial management requirements based on the nature,
complexity and associated risks of its operations;
- assess its financial management capabilities against established
- identify any gaps between what the organization requires and what it is
capable of, in terms of financial management. Having identified these gaps, an
organization can then address any significant imbalance between its
requirements and its capabilities and, subsequently, work toward developing
the appropriate level of financial management capability.
2.46 An important first step in addressing financial management issues
is to treat the entire financial management function as a set of integrated
business processes that support the people working in the organization in the
achievement of its objectives. These processes, when properly performed, yield
an appropriate degree or level of financial control. Clearly, a fully effective
financial management framework must consider the relationships of all the
required tasks, the tools and methods used, and the skills, training and
motivation of the people involved.
2.47 The Model being developed proposes to establish a framework for
strengthening financial management based on many small evolutionary steps. These
steps have been organized into five progressive "capability levels". To achieve
a level of capability, an organization would be expected to satisfy all the
requirements of that level and any preceding levels. As depicted in Exhibit 2.3 , the five levels of
capability proposed are:
2.48 We have proposed these
levels because we believe they:
- financial control;
- enhanced financial control;
- financial management; and
- enhanced financial management.
2.49 The Capability Model is being designed to be descriptive
- not prescriptive. When completed, it will not tell an organization how to
improve its financial management practices. Rather it will suggest what will be
needed to achieve a certain level of capability. The Model is intended to set
out a path for making the needed improvements by defining the financial
management requirements for each level.
- represent reasonable steps or building blocks that allow an organization
to progress toward its appropriate level of financial management capability;
- suggest interim goals for improving financial management; and
- highlight immediate priorities for correcting any imbalance between an
organization's financial management requirements and its actual capabilities.
2.50 The Model will provide a framework for both determining the
financial management requirements of an organization and comparing those
requirements with the organization's actual capabilities.
2.51 In addition, the Model should reflect specific attributes or
financial management capabilities that an organization at a particular level
would typically exhibit. An organization could be assessed against these
attributes to determine where it is on the financial management continuum
according to the Model. While at a lower level on the capability framework, an
organization may demonstrate some of the characteristics associated with a
higher level of capability.
2.52 In summary, the incremental improvements or practices at each
level of the Model are seen as the building blocks that allow an organization to
establish effective financial management, and provide guidance for continuous
The Five Proposed Capability Levels
2.53 Each level will profile different capabilities in each of the
key components or activities of financial management illustrated in the
Financial Management Activity Model (Exhibit 2.1) .
start-up level describes the financial management characteristics of a new
organization or program that has not yet established its key policies, practices
and controls. Accordingly, this level, unlike the others, would not be viewed as
a stable environment in which an organization or a program would wish to remain.
Any accomplishments in establishing controls to contribute to the achievement of
objectives, or the achievement of the objectives themselves, depend on the often
isolated efforts of specific individuals, and there is no certainty that those
accomplishments would be repeatable. An organization that has experienced
dramatic changes in its operations - for example, amalgamation with another
department or the relocation of operations - may also be at the start-up level
of its financial management capability if it does not effectively manage the
increased risks associated with the change.
The requirement for departments and agencies to comply with central agency
practices and procedures for producing the Public Accounts of Canada and to meet
the requirements of the Central Accounting System should ensure that most
departments are able to maintain, on a consistent basis, a financial control
framework. This control framework would represent the minimum requirements to
satisfy the Financial Administration Act , Treasury Board policies and
Receiver General directives.
2.56 Organizations at this level would be fully capable of processing
their accounts payable. They would have begun to establish accounts receivable
systems. Planning would largely be geared toward obtaining approval of
appropriations and complying with Treasury Board's minimum requirements, that
is, the Business Plan and Part III of the Estimates. Financial information would
be historically oriented rather than future-oriented. Control efforts would
focus on remaining within the vote and not allowing funds to lapse.
2.57 At this level, organizations' financial management capabilities
would primarily be focussed on meeting the requirements of the Central
Accounting System in order to have transactions processed.
Enhanced financial control level
2.58 At the enhanced financial control level, an organization's
control processes would normally have been tailored to suit its needs, as
opposed to only satisfying minimum requirements. There would also be an
expectation that a risk-based approach to installing controls would be in place,
with the focus on making them cost-effective. Accounts payable and receivables,
if applicable, would be well managed and there would be control over assets and
liabilities. Management would receive historical financial information on a
timely basis. Analytical information would be produced as necessary, and not as
part of routine financial reporting. Planning and budgeting processes would be
working properly, and the organization may occasionally generate future-oriented
information for decision making.
2.59 Since analytical information would not be routinely generated at
this level, an organization's ability to make cost-effective decisions may be
Financial management and enhanced
financial management levels 2.60 An organization at one of these
levels would be expected to be capable of maintaining effective financial
control. It would routinely produce quantitative information for decision making
(results would be reported and measured in terms of their effectiveness). At the
financial management level, the organization would have started to recognize and
implement concepts inherent to effective financial management, such as
activity-based costing, benchmarking and performance measurement. However, there
would still be room to improve the financial control and financial system advice
and integrate or institutionalize financial management throughout the
organization. This integration would involve linking finance more closely with
2.61 The enhanced financial management level would represent a fully
capable organization where financial management and control would be fully
integrated with departmental operations. A financial management culture, as well
as a process for measuring whether the organization has achieved its objectives
and the cost of doing so, would have been firmly established throughout the
2.62 At these levels there would be a well-established process, such
as a strong internal audit function, for providing assurance to management that
the organization is operating as it should.
Using the Capability Model
2.63 In keeping with the principle that managers are responsible for
financial management, we would expect that the use of the proposed Capability
Model, once fully developed, would follow the pattern set out in Exhibit 2.4 . As a first step, we would
expect that the senior management of an organization would systematically
analyze the cost and effectiveness of each key activity. The purpose of this
analysis would be for management to determine three things:
2.64 The second step would be for management
to determine, based on the results of its assessment, the level of financial
management capability it needs to meet its responsibilities. This step would
establish the required level of financial management capability for the
organization in light of its responsibilities. That level would be expected to
vary substantially among departments and agencies. For some (mainly small
agencies whose major financial activities focus on payroll), the basic financial
control level of capability might be sufficient. However, organizations with
operations involving largely expenditures and policy formation might well find
that they require an enhanced financial control capability. The largest and most
complex organizations may determine that they need to attain the financial
management or enhanced financial management levels.
- what financial risks it faces and which ones must be controlled;
- what financial information the organization needs to meet both internal
and external accountability requirements; and
- what financial information it needs to support its operational and policy
2.65 As shown in Exhibit 2.4 , the third step would be for
management to assess the organization's capability in each process area. This
assessment would likely involve a combination of traditional internal audit and
review procedures and self-assessment of controls.
2.66 If the assessment process reveals a discrepancy between the
necessary level of capability and the actual level, management would be expected
to review its earlier analysis to determine whether the discrepancy is the
result of either a deficiency needing to be remedied or an overstatement of the
required capability. In either instance, the discrepancy would need to be
2.67 Auditors can also use the Capability Model and the process to
assess an organization's level of financial management capability relative to
its requirements. As development of the Model proceeds, assessment tools and
guidelines will be developed to support an assessment process.
A Process of Consultation
2.68 In developing the Financial Management Capability Model, we
recognize that how we will achieve our objectives is as important as
achieving the objectives themselves. To this end, a critical component of our
work will be extensive consultation with central agencies and financial and
2.69 All these efforts are intended to provide input to the proposed
Model, to assist in developing a consensus on the framework and, ultimately, to
contribute to the achievement of effective financial management within the
2.70 We intend to carry out this study in several stages. The first
stage, represented by this chapter, was to develop the basic elements of a model
at a fairly high level of abstraction, and to put that work out for discussion
with public servants, parliamentarians, and other interested parties. The second
stage will be to elaborate the basic model by setting out for each of the
process areas in the Activity Model the capabilities expected at each level of
the Capability Model. Again, the results of this work will be the basis of
consultations. The third stage will be to develop detailed assessment criteria
and to validate them in selected departments. Finally, in conjunction with the
Treasury Board Secretariat and departments, we can begin to apply the Model to
do capability assessments and to continually refine the Model to improve the
effectiveness of financial management in the federal government.
2.71 Our ultimate objective is to be able to assess financial
management capability, both to identify areas where improvement will be needed
and to be able to place in their proper context the failures in financial
management that our Office observes from time to time. We believe that doing
this will enable us to meet our objective of encouraging better financial
management and to serve both Parliament and the public service better.
Treasury Board Secretariat's comments: The government notes the
progress being made in developing a model to determine requirements and assess
capabilities in financial management in departments. However, as explained in
the chapter, in view of the profound changes the government is undergoing in how
it operates, the resources available to it, and the challenges, risks and
opportunities it faces, an Independent Review Panel on Comptrollership has
recently been established that will review and make recommendations on the
comptrollership function within the government. The government will wish to
consider the recommendations from the Independent Review Panel before committing
to implementation of such a model.
Objectives The focus of this study is the financial management and
control activities of departments and agencies.
In carrying out this study, our Office, in conjunction with departments and
central agencies, wants to develop:
- a common understanding of what is meant by financial management in
government organizations (to date, any consensus has been only at a very high
- a basis for creating and institutionalizing an effective financial
management model, with input and feedback from financial and operational
- a new, systematic method that could be used to assess the general state of
financial management in government and to provide organizations with guidance
Study Team P. Elaine Grout-Brown
Christine S. Kelly
Bruce C. Sloan
For information, please contact Hugh McRoberts, the responsible auditor.