Financial Management Institute
Professional Development Session October 2015

To share CFOB’s progress on transforming our
organization to improve and strengthen our
operations and services.
 Sharing our transformation vision
 How we leveraged the Deficit Reduction Action Plan (DRAP)
to chart a new and necessary course for the Health Canada
(HC) finance function
 Where are we in our journey
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
Chief Financial Officer Branch (CFOB) of Health
Canada operates within a demanding and complex
financial environment, comprising:
• A large, decentralized department ($4B and 9,000+ FTEs) with
financial offices supporting multiple regions and branches
• A sizable Grants and Contributions program (44%) and an advanced
user fee revenue regime
• Substantial First Nations and Inuit health programming (65%)
• Shared jurisdiction between federal/provincial/territorial
governments and new partnerships
• Significant long-term issues of affordability and sustainability
• Significant portfolio responsibilities
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
The Health Canada Portfolio:
•
•
•
•
•

Health Canada (HC)
Public Health Agency of Canada (PHAC)
Canadian Food Inspection Agency (CFIA)
Canadian Institutes of Health Research (CIHR)
Patented Medicine Prices Review Board (PMPRB)
Key areas of responsibility:
• Providing access to quality health services for First Nations and Inuit
• Regulating the safety of products, food, contaminants, pathogens
• Anticipating, preparing for, responding to and recovering from public health
threats
• Providing leadership on health promotion, protection, and capacity
• Contributing to research and knowledge development
• Supporting provincial/territorial health systems
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
DRAP was based on reductions of up to 10%:
• For Health Canada: about $200M (ongoing)
• For CFOB: $2.9M (ongoing)

By any standard, this is substantial
• All the more so given the seemingly continuous increase in demand /
workload in most sectors including Finance

CFOB’s Strategy to address its on-going reduction:
•
•
•
•
Developed a unifying vision and a change agenda for CFOB
Consulted portfolio partners for shared services potential
Consulted IFMS Management and Operations Boards
Crafted a Transformation Roadmap to guide our evolution
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Financial Management Transformation
Target State Model
• Services are optimized for the needs of the front office, giving managers direct access to information,
services and tools needed to manage resources.
• CFO organizations spend less time on routine operational transactions, freeing them up to increasingly
focus on higher-value strategic and analytical services.
• Services are enabled through a business model based on streamlined, standardized business processes
and information, and rationalized applications.
Strategic Services
Front Office
Managers
Focus of CFO
Organization
Strategic direction, business planning,
and performance measurement.
Advisory
Analytical Services
Expertise-related. Advice and direction,
reporting, control and audit.
Assisted
Operational Services
Process and transaction oriented (e.g. AP/AR).
Range from simple to complex.
Self- service
Business
Process
Information
Applications
Candidates for
consolidated/
shared delivery
Application
Management
Services
IT Infrastructure
Source: Treasury Board
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CFOB’s transformation focuses on the following:

Organizational Vision
• Design a leaner, highly efficient, more integrated and responsive
organization, demonstrably further along the shared services continuum,
with clearer accountabilities
• Incorporate a re-balancing of financial management responsibilities and a
standardization of financial management practices consistent with the
nationalization of the CFOB mandate

People
• Maintain an adequate, effective and sustainable level of resource capacity
across our organization
• Develop a dedicated, service oriented, strengthened, high-value resource
management, internal control, and corporate planning and reporting
capability for Health Canada
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
Implemented Procure to Pay System (P2P)–
Centralized end to end electronic processing for AP and
procurement. Reduced processing centres from 26 to 2.

Established Shared Services Accounting Hubs –
2 Hubs are now operational servicing both PHAC and HC. One in the
Ottawa and one in Winnipeg.

Realized Clustering Opportunities
• HC hosting both PHAC and AANDC on SAP.
• HC and PHAC adopting the AANDC G&Cs Information System
(GCIMS).
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
Resource Management Directorate (RMD)
Transformation Initiative

Enhancement of our Systems and Tools - Planning
for Enterprise Performance (PEP) Project

Continuous Business Process Improvement
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
Design and implement a streamlined, integrated,
standardized and consolidated RMD organizational structure
that will:
• Strengthen Advice Capability and improve Oversight and Accountability
by re-defining the FMA role to be more strategic, value added insight,
and less focused on transactional activities.
• Strengthen Corporate Reporting and Analysis and increase access to
corporate information; and
• Make better use and Leverage Technology in SAP for operational
planning, budget and forecast information

Overall to be a Trusted Business Partner
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1. HC
Restructuring
Central Agency
Driven
2. G&Cs
Management
10. OCG-FMBP
Client
Service
Client
Service
Organizational
4. Aftermath
of Tripartite
Agreement
Infrastructure
8. Costing
7. Investment
Planning
Executive
Requirements
3. FN
Programs
Financial
Support
Execution
9. CFO
Attestation
HC Business
Improvement
Decisions
6.
6.
Strengthened
Strengthened
CorporateCorporate
&
Reporting Reporting
&
Analysis Analysis
5. Aftermath of
FOD
Transformation
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Business
Partner
Value Creation
There are
transformation
drivers that we
must respond to
in order to serve
all our clients
appropriately.
We need to be
doing much more
of this –better
and faster
Business Analytics
Decision Support Services
Stewardship & Governance
Drive the Delivery of the financial
Policies
We have been
doing
this in a
decentralized
and varied
fashion for years
Expertise Based Services
Such as Costing
Finance Processes
Delivery of Transaction Processing
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• RMD structure is realigned to meet the
need of Senior Management and
efficient operations of RMD
• Financial system capability is leveraged
to provide timely and accurate financial
and non financial information
• Advice capability and oversight is
strengthened. FMA role is more
strategic and provide more value
added insight. Financial information is
available at finger’s tip
• Management practices, roles and
business processes are consolidated
and made more efficient through
technology with a focus on the
comptrollership function
• More corporate focus for horizontal
management.
• Leveraging SAP for planning,
budgeting, forecasting and integrated
performance report
• Costing activities are standardized and
operate within a known business
process and clear roles and
responsibilities
• HC’s roles are realigned to promote
efficient and effective G&Cs
management
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•
Four clear organizational segments established:
1.
2.
3.
4.
•
•
•
Financial Management Services – for Branches and Regions with colocation
Corporate Resource Management Services – for departmental and
horizontal needs
Investment Planning Services – for integrated resource management
Policy and Infrastructure Services – for continued capacity building as
we undergo this and further transformation
Dedicated FMA presence maintained
Enhanced organizational alignment
Corporate Performance Measurements (CPM) improvements with
focus on non-financials
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Took stock of CFO accountabilities: reviewed OCG/TBS/FMBP policies, directives and competencies
Set a Functional Framework and redefine the Functional
Business Model: defined RMD key functions and activities
Redefined RMD Roles & Responsibilities
Stakeholder engagement
Designed a flexible organizational chart to support DM &
CFO accountabilities and responsibilities
Leveraging technology - SAP for analytics - Business
Requirements
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Roles: Steward , Operator, Catalyst, Strategist
Contributory
Primary
• Financial Analysis &
Advice
• Resource Supply
• Financial Planning &
Budgeting
• Forecasting and
Budget Review
• Investment Proposal
& Challenge
• Costing, User Fee and
Cost-Benefit Analysis
• Preparation of TB
Submissions and MCs
• Strategist
Responsibilities
Policy &
frameworks
• FMCF (BMF)
• Internal Financial
Monitoring & Reporting
• Revenue Management
• Management of
Expenditures
• Internal Controls
• Internal Audit
• Grants & Contributions
Management
• Performance
Measurement
Processes and Methods
• FI Development
• Financial Statements
• Business Requirements
for Financial Systems
• Statutory Reporting:
RPP, DPR and Proactive
Disclosures
• Continuous
Improvement and
Change Management
• Relationship Building
Service &
Transactions
• Asset Management
• Strategic Risk
Management
Business Analytics &
Advice
Policy Framework for Financial Management
OCG Financial Management – Business Processes
Financial Administration Act
Trusted Business
Partner
Financial Management Competency Model
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Budget Management
Framework
FMAs will use a risk-based approach with better tools in the challenge of
the MVR information
Salary Management
Streamline and standardize SM towards a National Salary Management
Strategy and clear roles and responsibilities
Grants & Contributions
Strong financial oversight on G&Cs and clear roles and responsibilities
Costing
Costing Instruments for IP purposes; Costing User Guide
CFO Attestation
Improved workflow processes and regular review meetings with programs;
guidance, instruments and clearer roles and responsibilities
Define FMA Responsibilities
Functional Framework, Clarification on core financial
management roles and responsibilities.
RACI
RMD and clients will benefit from clearer delineation of roles and
responsibilities under CFO Model
Leveraging Technology
Maximizing use of technology via PEP Project, etc
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PEP
Project
we are
here!
Change
Agent
Network
-
Leveraging Technology:
enhance systems and tools
- Final RMD Organizational
Engagement and
BR gathering
Structure & Transformation Announcement
- RMD Staffing Strategy & Vacancy Management Strategy
- Workshops for Task Teams
- Lunch & Learn Sessions for Employees
- Consultations with Human Resources
All Staff
Meeting
- Launched eight Task Teams
- Organizational Re-Structuring
- Transformation Drivers
Started
here!
- Business Metrics
- RMD Functional Framework
- Announcement of RMD Transformation and Vision
- Consultation with Clients & Stakeholders
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FINANCIAL
BMF
• Strategic and fact-based
advice
• Integrated reporting –
linking financial and
operational data
• Data mining, data
modeling & predictive
analytics
• Enterprise resource
planning
• Multi-dimensional
reporting
• Business analytics
• Single version of truth
NON FINANCIAL
HR –
People
Soft
PEP
SOLUTION
RPP
DPR
P2P
BPC
MVR
Investment
Planning
GCIMS
PAA
OPS PLAN
SFT
Performance
Mgt.
Indicator
BI Tools
Business Warehouse
SAP - FM
SAP - CO
PEP = Planning for Enterprise Performance
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The Planning for Enterprise Performance (PEP) solution will:
 Transform existing planning and reporting business
processes, creating a standardized environment, fully
integrating strategic, operational, and financial information
needs
 Implement common best practices and processes on a
common technology platform, with a uniform data repository
 Establish a standard set of intake, analysis and reporting
tools
 Serve as a trusted system of record
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Opportunities & Benefits:




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

Achieve department efficiencies and increase productivity
Integration of financial and operational data in unified enterprisewide solution
Empower optimal decision making by improving financial and
operational data analysis
Increase automation of manual processes
Minimize the use of black books.
Enhance visibility of performance information
Eliminate the ‘wet-ink’
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 Consistency in planning, performance monitoring and reporting
throughout the department.
 One version of the truth
 Reduction of duplicate information requests, spreadsheet-farming
and errors
 Improved operational communications, reporting, and costing
accuracy
 Leading Government
 Continued HC leadership in innovative management practices
 Next step in HC evolution to meet, and exceed, MRRS and MAF
standards
 Keeping pace with and inform GoC transformation
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 Ability to respond rapidly to changing needs
 Flexibility and confidence in our information to respond to
increasingly complex reporting requirements
 Workforce Empowerment
 Empowering staff to focus on higher value analytical and advisory
activities
 Reshaping HC as a forward-looking organization,
 Able to meet the expectations of a renewed Public Service workforce
(e.g. Blueprint 2020)
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Potential Value of Performance Management &
Budgeting
PEP Project
P2P
Cost Recovery
National Accommodation Strategy
Shared Services
Delivering Public Service for the Future:
Navigating the Shifts
Accenture study (2012)
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The objective of the PEP solution is to deliver a standardized planning and performance
reporting environment that fully integrates:
•
Strategic information,
e.g., TB Submissions, Priorities, Risks
•
•
•
Operational planning and reporting
Financial planning and reporting
Performance monitoring and reporting
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The scope for this project is clear and touches on every business line in Health Canada.

Strategic and Operational Planning
•
•
•
ensure timely and integrated financial and non-financial performance information, clearly linked to
outcomes.
bring value to front line planners, managers and executives
integrate fully with the budget management process
Financial Planning and Management

•
•
•
replace the current suite of financial planning system modules
plan by PAA/program and functional areas/cost centres
supporting the alignment of financial and non-financial information, budget development, and in-year
reconciliation of adjustments
Performance Planning and Business Analytics

•
•
•
•
•
provide improved tools for performance reporting and an extensible platform for business analytics
better access and alignment of priorities and strategies
improved transparency and accountability
analytical tools will assist managers to integrate resources and deliver performance
replace inefficient and disconnected tools (e.g. spreadsheets).
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Expanded HC SAP Architecture
Information Presentation Layer
Strategy Management (SSM)
Business Objects Business Intelligence (BI) Suite 4.0
• Alignment Visualizations (PAA/PMF > Risks > Logic Models)
• Scorecarding of Expected Results/Initiatives/Deliverables
• Performance Commentaries/Notations
• Dashboarding
• Self-Serve Interactive Analysis
• Exception & Customized Reporting
Planning Application Layer
Business Planning &
Consolidation
(BPC)
Notes
Management
(NM)
•
•
•
•
•
Multi-Dimensional Planning & Budgeting (i.e. CC, PAA, Fund, Work Plans)
Salary/Headcount Planning,
Qualitative Operational Info/Forms Management (Deliverables, milestones)
Traceability of Funding Sources
Workflow, Version Control, Document Management, Attestation
Data Management Layer
• Data Models
SAP NetWeaver
• Data Integration
Business Warehouse • Data Mining & Predictive Analytics
ERP Layer
• Funds / Budget
Mgmt & Control
(CCM Level)
Part of PWGSC Contract for SAP EIISS
FM
SAP - CO
• Cost Centre Accounting
• Project Systems MDM
• Operational Budgeting
(CCM/Bureau)
SAP Technology outside of EIISS Offering
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 Access to enhanced systems and tools that enable timely




reporting and business analytics
Ability to respond to the needs of their clients at all levels
Standardized and automated processes
A redefined role to be more value added and less focused
on transactional activities
Established employees competency profiles :
 provide insights into employee career aspirations

matching of employees skills with available jobs

Talent Management Strategy to facilitate career development
opportunities to help employee advancement
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
CFOB is leading the way in transformation:
• Integrated performance reporting - linking financials and operational
information
• Increasing focus on higher value analytical services
• Enabling services are enabled through a business model based on
standardized business processes and information (i.e. single version of
truth)

CFOB is already leaner, more integrated, more standardized,
more automated, and demonstrably further along the shared
services continuum, with:
 Clearer accountabilities and strengthened capability
 A more streamlined, technology-based, standardized, transactionoriented, accounting and procurement shared service
 Effective ongoing Internal Controls over Financial Reporting
 Continued leadership by building upon cluster foundation to offer
financial and program reporting and analysis improvements for HC, its
partners and the GoC at large
 Strengthened financial management advisory functions
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