Financial Administration Act

Financial Administration Act
Saffron Blaze · CC BY-SA 3.0 · source
Title	Financial Administration Act
Enacted by	Parliament of Canada
Year	1985
Citation	1985, c. F-11 (Can.)
Status	in force

Contents

Financial Administration Act

The Financial Administration Act is federal legislation that sets out the framework for the management of public funds, fiscal accountability, and the administration of Crown assets in Canada. It prescribes authorities for Treasury Board of Canada Secretariat, Minister of Finance (Canada), and deputy ministers, and intersects with statutes such as the Department of Public Works and Government Services Act, Public Service Employment Act, and the Access to Information Act. The Act underpins financial control mechanisms used by agencies like the Canada Revenue Agency, the Royal Canadian Mounted Police, and Crown corporations such as Canada Post.

Background and Purpose

The Act was developed amid fiscal reform debates involving figures such as Brian Mulroney and institutions including the Bank of Canada and the Privy Council Office. It addresses accountability models debated after events like the implementation of the Auditor General of Canada’s modern mandate and controversies involving Department of Indian Affairs and Northern Development. The purpose aligns with principles espoused in reports from the Task Force on Program Review, recommendations by the Treasury Board Secretariat (Canada), and international standards promoted by the International Monetary Fund and the Organisation for Economic Co-operation and Development.

Originally consolidated in statutes influenced by earlier measures from the Statute Revision Act era, the Act was revised following policy shifts during the premierships of Pierre Trudeau and Brian Mulroney. Subsequent amendments reflected priorities from the Budget Implementation Act packages presented by successive Minister of Finance (Canada), including structural changes proposed under Jean Chrétien and later adjustments during the tenures of Paul Martin and Stephen Harper. Notable changes responded to reviews by the Office of the Auditor General of Canada and to federal initiatives like the Public Sector Salary Transparency Act and reforms associated with the Federal Accountability Act.

Provisions delineate authorities for spending approval, accounting standards, and asset stewardship across departments such as Health Canada, Public Services and Procurement Canada, and Global Affairs Canada. The Act establishes grant and contribution rules affecting programs like those administered by Employment and Social Development Canada and defines trust accounting for entities such as Canada Pension Plan Investment Board. It prescribes financial controls tied to instruments like the Consolidated Revenue Fund and mechanisms for borrowing under the auspices of the Canada–U.S. Intergovernmental Agreement-era fiscal arrangements. The structure comprises parts addressing appropriation, expenditure control, internal audit, and records management relevant to agencies including the Canadian Armed Forces and the National Research Council (Canada).

Administration is carried out by the Treasury Board of Canada Secretariat with oversight from the Privy Council Office and audits by the Office of the Auditor General of Canada. Implementation involves applying policies from the Canadian Public Service Agency and financial directives that affect Crown corporations like Export Development Canada and regulatory bodies such as the Canada Deposit Insurance Corporation. Training and compliance activities invoke standards used by organizations like the Institute of Chartered Accountants of Ontario, the Canadian Institute of Chartered Accountants, and academic centers such as the Munk School of Global Affairs and the School of Public Policy (University of Calgary).

Proponents argue the Act strengthened accountability across departments including Indigenous and Northern Affairs Canada and Veterans Affairs Canada, and streamlined fiscal oversight for entities like Canada Mortgage and Housing Corporation. Critics from think tanks such as the Fraser Institute and advocacy groups like the Canadian Taxpayers Federation have pointed to perceived centralization of authority in executive offices associated with Prime Minister of Canada and potential constraints on parliamentary appropriation powers described in debates in the House of Commons of Canada. Further criticism has arisen in cases reviewed by the Supreme Court of Canada and hearings before the Standing Committee on Public Accounts, with commentators from universities including University of Toronto and Carleton University calling for reforms to enhance transparency and adapt to digital records standards promoted by bodies like the Treasury Board Secretariat (Canada) and the Information Commissioner of Canada.

Category:Canadian federal legislation