Strategy, Accountability and the New Role of the CFO: Modernizing Financial Management in Government

Governments in Canada disperse nearly $400 billion on behalf of their citizens each year. Their capacity to deliver highly effective financial management strategies has become a major concern. The trend to providing long-term financial advice, contributing to business decisions and developing strategies is gaining momentum. Based on a research study of the practices of financial leaders in federal and provincial governments, interviews and two commissioned research papers, this report examines the current state of financial management in the public sector, with a particular focus on the federal government. It defines the components of strategic financial management and proposes strategies for closing gaps in capacity. In 11 recommendations, the report lays out a roadmap for engaging stakeholders in long-term change, drawing on quality information and building a high-performing workforce. These recommendations call on deputy ministers to set the standards and culture of financial management to make the necessary changes happen.