Accountability

Discussion 

Three primary tools can be used for agency accountability:

  • business plans that lay out how the agency intends to meet its mandate;
  • annual reports that indicate what the agency has done to advance its mandate, whether it has met its targets and progress towards intended outcomes; and
  • audit processes.

These tools will allow the governing body to know how the agency is doing and will also provide the minister and the public with key indicators of agency performance.  The minister can hold the agency to account for how it has exercised its responsibilities.

In many cases, agencies are already preparing business plans and annual reports, as well as conducting audits in ways that meet their particular needs.  The Agency Governance Secretariat will continue to work towards sharing leading practices related to the range of accountability tools and their applicability to various types of agencies.

Business Plan

A business plan is a document, produced annually, that contains the agency’s plans for a set of upcoming fiscal years (usually three years). It lists anticipated outcomes, sets targets, and presents high-level performance indicators.  Agencies that make financial decisions must include financial targets and plans.  Other details contained in the business plan will depend on the individual agency and any legislated requirements.  The business plan must be submitted to the responsible minister, on a timeline determined in the mandates and roles document.  Agencies are also encouraged to make these documents publicly available.

Annual Report

An annual report is a yearly document that details what was achieved during the previous year against the current business plan.  It provides information on whether the targets, indicators and outcomes were achieved.  Financial statements must be included for agencies that make financial decisions.  The annual report must be submitted to the responsible minister and must also be publicly available to Albertans.

Audit Processes

Ensuring that an agency’s financial matters are managed effectively is integral to good governance.  Financial audits exist to add credibility  that an agency’s financial statements fairly represent the organization's position and performance.  Transparent audit processes allow the government, regulators, other levels of government, private corporations, employees and the general public to be confident the financial statements are accurate.

An individual agency’s requirement for, and level of, auditing will depend on a number of factors, including:

  • the agency mandate;
  • the agency’s financial, organizational and reporting structures;
  • its ability to hold capital assets;
  • its ability to incur financial liabilities or enter into other commitments (e.g., through borrowing or making loans);
  • its ability to enter into legal agreements with other parties; and
  • agency revenues and/or expenditures that may be material to the operations of the government.

Beyond these audit requirements, an agency may also be audited at the request of the minister.

Enterprise Risk Management

Enterprise risk management (ERM) is defined as a continuous, proactive and systematic process to understand, manage and communicate risk from an organization-wide perspective. The Enterprise Risk Management Framework (and Reference Guide) for Government of Alberta Ministries establishes common principles of enterprise risk management and provides a means to assess the level of implementation of enterprise risk management processes in each ministry.