Thank you, Mr. Chair. Good morning. And also good morning to members of the public accounts committee.
I'm here today with John Morgan, assistant comptroller general for the financial management and analysis sector. We are pleased to appear before you this morning to discuss user fees.
Having recently returned to the Office of the Comptroller General after a few years, I have noted the significant change in how user fees are managed. In particular, the User Fees Act of 2004 has had a real impact. The transition from what was previously a Treasury Board policy to the legislative provisions of the User Fees Act has brought about some important changes.
Managing user fees requires that departments do a number of things, including stakeholder consultation, impact analysis, costing, dispute management, and setting service standards.
Last week I spoke with the chief financial officers of the six departments included in the Auditor General's report, with the purpose of discussing action plans and how to share best practices. We agreed that an interdepartmental committee would be struck, focusing on issues such as costing and service standards. I believe this step will help advance user fee management.
As noted in our response to the Auditor General's chapter on the management of user fees, the Treasury Board Secretariat is supportive of her observations and recommendations.
Continued improvement is the ongoing objective both for TBS within its role of providing central guidance, and for departments in terms of strengthening the practices I just mentioned.
The Treasury Board Secretariat action plan to address the recommendations is as follows:
Firstly, in March 2008 we effectively fulfilled one recommendation by releasing a revised guide to costing. Our plan for the next period is to promote its use across government.
Secondly, by November 2008 we will provide the President of the Treasury Board with an analysis of challenges in implementing the User Fees Act.
Thirdly, by March 2009 we will update our guidance to departments in setting fees.
And fourthly, over the course of the upcoming months we will work with the six audited departments regarding the Auditor General's recommendations directed their way. We will also engage other departments.
Before closing, may I bring to your attention some improvements worth mentioning.
Departmental performance reports now contain more user fee information than ever before. Cost, revenue, and performance information is widely available, and more departments are committing to these kinds of improvements.
In 2004 Treasury Board introduced a policy that asked departments to develop service standards for all external user fees. Today, 85% of user fees have service standards. Before 2004 this was not mandatory and only a few departments had service standards.
Since 2003-2004, TBS has conducted an annual review of the user fee information departments reported in their Departmental Performance Report.
This past year we have included the results of our reviews in the management accountability framework exercise, as part of the department's rating in relation to financial management and control.
Thank you. I look forward to your questions and comments.