Agency Creation

Government Policy

Agency establishment will be based on a standardized process.

Discussion

When the establishment of an agency is being considered, particular attention should be paid to why the agency is being established and whether some level of autonomy from government will make the agency more effective.

Part of the approval process for new or revised agencies will involve creating a business case. The business case must balance timeliness and scope of responsibilities of the proposed agency.

Approval Process

Approval processes for agencies vary depending on the classification of the agency. All corporate enterprise, public trust, service delivery and regulatory/adjudicative agencies must receive Cabinet approval.

Depending on the business case, nature and scope of responsibilities, advisory agencies may or may not require Cabinet approval as determined by the minister.  For example, advisory agencies being created with enabling legislation should also have Cabinet review of the business case as part of the approval process. Advisory agencies being created under the Government Organization Act may not necessarily require cabinet approval

Business Case

A proposal by a ministry to establish (or revise) an agency must, at a minimum, include the following in its business case.

Need for an Agency

  • assurance the proposed entity meets the agency definition
  • need for some level of autonomy from government and rationale for why the agency model is the best way to carry out the function in question
  • justification that no existing entity (ministry, agency, etc.) can better carry out the function

Type of Agency

Risk and Cost Analysis

  • cost effectiveness
  • financial and risk assessments
  • staffing implications
  • liabilities (e.g., indemnification, GST status)

Alignment of Structure with Mandate

  • clear and appropriate structure to the work of the agency
  • mandate, appointments, roles and responsibilities, interactions with government, authority for communications, accountability mechanisms, and reporting requirements are clear and appropriate
  • means of assessing and evaluating agency performance
  • any shared services involved (e.g. Service Alberta, use of departmental resources)
  • applicability of existing legislation
  • agency review and dissolution procedures
  • means of establishing the agency (i.e. draft legislation)

Ministries should proactively consult with the Auditor General of Alberta during the agency establishment process to seek advice on whether a proposed agency will require some form of audit, and what type of audit processes (internal/external) would be the most suitable.

The Agency Governance Secretariat can assist ministries in understanding and using the business case process, as well as in building on leading practices in agency governance. Early discussion with the Secretariat is encouraged.

Download: Government of Alberta Draft Agency Creation Business Case Requirements (pdf, opens in a new window)