Chief Financial Officer Attestation

The Guideline on Chief Financial

Officer Attestation for Cabinet

Submissions

Welcome to the Financial Management Institute WebinarThursday, January 14, 2014 1:00pm EST

Panel:• Jean Roussel, Senior Advisor, Financial

Management Sector, Treasury Board of Canada Secretariat

• Erin Campbell, Senior Privy Council Officer, Privy Council Office

Moderator:• Nadia Mills, Senior Policy Analyst,

Financial Management Sector, Office of the Comptroller General, Treasury Board of Canada Secretariat

Purpose• To provide an overview of the new

Guideline on CFO Attestation for Cabinet Submissions

– Explain the process and the main requirements.

– Discuss the way forward on implementation.

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Context• Ministers expect sound business cases and quality financial

information supported by appropriate due diligence when making decisions on Cabinet proposals and their proposed use of resources.

• The current cost containment environment requires continued CFO vigilance in reviewing Cabinet submissions.

• Real interest in developing guidance for the CFO community to ensure a uniform approach to providing attestations, and a common understanding of processes and requirements.

• The implementation of the new guideline will be closely monitor by central agencies and these will provide the necessary support to departments and agencies. 4

Context (cont’d)• OCG worked with CFOs and PCO to develop the Guideline

on CFO Attestation for Cabinet Submissions.

• The CFO Attestation process will support the growing interest for improved costing.

• The new Guidance for the Preparation of TB Submissions will include specific direction on the CFO Attestation Letter.

• The PCO Drafter’s Guide to Cabinet Documents also provides updated information on CFO Attestations.

• The new Guideline has been in effect since January 1, 2014. 5

Expectations• As part of their due diligence CFOs should:

• Be empowered through the new Guideline to fulfil their role.

• Conduct robust analysis, at an appropriate level, to support decision making.

• Challenge the assumptions and proposals made by program areas, (noting CFO not accountable for the non-financial program elements of submissions).

• Understand the drivers of financial resource requirements and associated risks.

• Maintain supporting documentation.6

How to best support the process• Be involved early in the development of Cabinet

submissions (TB Submission or Memorandum to Cabinet (MC)).

• Leverage business intelligence from Financial Management Advisors.

• CFO organization to be proactive by informing stakeholders of Attestation requirements.

• When multiple departments are involved in a Cabinet Submission, timely communication between them will be essential.

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CFO Attestation Letter• Contains six assertions plus an overall conclusion.

• For each Assertion, CFO may flag observations or issues that were not resolved in the Cabinet submission development.

• CFO signs and dates the formal Attestation Letter.

• Attestation Letter to be annexed to the TB Submission.

• CFO Attestation findings to be summarized in Memorandum to Cabinet Due Diligence Section.

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MCs and CFO Attestation• Information on incorporating attestations into MCs

can be found in the Drafter’s Guide to Cabinet Documents.

• No changes have been made to the current MC template.

• CFO Attestation findings should be summarized in the Memorandum to Cabinet’s Due Diligence Section.

• This section can also be used to indicate any material observations on which the attestation is based.

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MCs and CFO Attestation• If additional space is required to set out the

attestation and its underlying analysis:

– The CFO attestation letter is not to be attached to the MC.

– Additional detail could be included in the Detailed Program Description Annex.

• Drafters are encouraged to engage their CFOs early in the MC development process.

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Summary of the Six Assertions

1. Assumptions with financial implications are documented/reasonable.

2. Significant risks with financial implications are considered and disclosed.

3. Financial resource requirements are disclosed.

4. Funding is identified and sufficient to address financial requirements.

5. Proposal is compliant with financial legislation and financial policies.

6. Key financial controls and reporting are, or will be in place.

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CFO overall conclusionsCFO overall conclusions:• Take into consideration six assertion statements and

observations.• Each possible conclusion, standard text is offered.• Should include any relevant information.

• Three types of opinions or conclusions:1. Sufficient information for decision-making.2. Unable to assess.3. Substantial financial issues or risks.

• Last two opinions warrant explanation.12

Impact on Departments• More effort required to complete the Cabinet

document before submitting to TBS/PCO.

• Organizational capacity to support the CFO with his/her Attestation may be an issue for some.

• Joint submissions will require additional coordination between CFO organizations:– CFO to exercise judgement in what is the required

level of assurance from other departments.– Lead department to collect required Attestation(s).

• Timing/information gaps for due diligence review. 13

Questions and Answers

Be sure to tune in to next month’s webinar!• “ID Theft: fallout, investigation, and prevention”• Panel: Jennifer Fiddian-Green and Dt. Ian

Nichol• Wednesday, February 12th, 2014 at 1:00pm

TBS & PCO – Points of contact• Jean Roussel – Senior Policy Advisor,

jean.roussel@tbs-sct.gc.ca, (613) 957-8087

• Erin Campbell – Senior Privy Council Officer, ecampbell@pco-bcp.gc.ca, (613) 952-4883

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