PACP Committee Report

Government Response to the Second Report of

the House of Commons

Standing Committee on Public Accounts,

entitled

“Chapter 2, “The Governor In Council

Appointment Process,” of the 2009 Status Report

of the Auditor General of Canada”

Government Response to the Second Report of the House of Commons Standing
Committee on Public Accounts, entitled “Chapter 2, “The Governor In Council
Appointment Process,” of the 2009 Status Report of the Auditor General of Canada”

In the spring of 2009, the House of Commons Standing Committee on Public Accounts examined Chapter 2 of the March 2009 Status Report of the Auditor General of Canada (AG) which reviewed the Government’s processes for making Governor in Council (GiC) appointments to Crown corporations, small public entities and the Immigration and Refugee Board (IRB).  The Committee also examined the response of the Privy Council Office (PCO) and the IRB to the AG’s findings.  The Committee issued its report in March 2010 with six recommendations.  The Government’s response to these recommendations follows below.

Standing Committee Recommendation 1

That the PCO provide the House of Commons Standing Committee on Public Accounts with an action plan to implement the six-point plan agreed to, as well as the Auditor General’s recommendations contained in her March 2009 Status Report, Chapter 2, by 31 March 2010.

A.    Action Plan to Implement the Six-Point Plan

The Government is pleased to report that the six-point action plan outlined by the Clerk of the Privy Council to the Standing Committee on June 11, 2009, has been implemented and that supplementary actions have also been taken, as outlined below. Guidelines and policies established pursuant to the six-point plan are now integrated into PCO’s day-to-day operations.

1.    Guidance on Appointment Process

In February 2009, the document, A Guide to Managing the Governor in Council Appointments Process (the Guide), was developed by the Government and distributed to Ministers to ensure they are better equipped to manage appointments within their respective portfolios. This document provides guidance on all aspects of the appointment process, including roles and responsibilities, effective vacancy management, selection processes, and guidelines with respect to appropriate timing of notification of reappointment decisions. It also provides specific guidance on effective communications with organizations and appointees on appointment issues.

Since November 2008, regular workshops have been provided to departmental officials and Ministers’ staff to provide guidance on the appointments process. At the most recent workshop in November 2009, representatives from three departments outlined their management practices to increase the exchange of best practices within the GiC community. Participants expressed satisfaction with the workshop as a useful learning experience, which provided information that could be applied directly to their work in support of appointment processes. An updated version of the Guide (October 2009) was distributed to participants at that time.

Further, as committed to in the six-point action plan, revisions to the Guide will be made as required and opportunities for training and orientation on the appointment process will continue to be offered to keep the GiC community, departmental officials and Ministers’ staff up-to-date on developments.

2.    Improvement in Vacancy Management

The Government has improved its management of vacancies by developing processes and adopting new practices. Portfolio departments and Ministers’ offices receive a vacancy management report each month which outlines all appointments set to expire within the upcoming 12 months.

In addition, with the same objective to better manage vacancies, the Government sought the cooperation of all Crown corporations to update the profiles of their boards of directors.  The Government is pleased to report that 96% of the board profiles have been received and posted on the GiC Appointments website.  These profiles include roles and responsibilities of members; representation; required competencies, skills and experience for individual members and for the Board as a whole.  Board profiles are instrumental in helping Ministers to manage upcoming vacancies by identifying in advance the skill sets required of potential candidates for future board appointments.

3.     Management of Upcoming Expiries

The document, A Guide to Managing the Governor in Council Appointment Process, includes new guidelines setting out expectations for Ministers to provide written notice to appointees as to whether or not they will be reappointed.  It indicates that the Government’s intention should be communicated to incumbents of leadership and full-time positions at least six months before the end of their term and that part-time incumbents be advised at least three months before the end of their term.  This addresses a key recommendation of the Auditor General.

As previously described, the monthly vacancy management report notes all full-time and part‑time vacancies that will occur within the next twelve months.

Taken as a whole, this information should assist Ministers and all parties involved in the appointment process to better plan for upcoming expiries.

4.     Increase Transparency and Access to the GiC Appointments Process

PCO manages the GiC Appointments website (launched in 2006), where opportunities for GiC positions are advertised.  This website was refined in December 2007 to make it easier to navigate, more visually appealing to site visitors, and more easily used as an information tool on the appointment process.  The website provides the general public, interested candidates and appointees with an overview of the appointment process, as well as reference documents related to GiC appointments (i.e. guidelines for public office holders, salary ranges and terms and conditions for full-time appointees). Also available is an up-to-date list of GiC positions by federal organization, showing the occupied and vacant positions, the names of the incumbents, and the start and expiry dates of their appointments.  While the detailed information on the website was previously available only as a paper document, updated and published twice yearly, it is now updated daily and is readily accessible to the public. 

The Government continues to improve transparency and access to the GiC appointments process.  For example, the application process for candidates interested in leadership and quasi-judicial positions is being simplified and made more accessible through the development of an online application system. Acting as a central database for all applications, this web-based tool will foster greater efficiency in the internal management of selection processes.

5.    Increased Rigour of the Appointments Process

The Government has broadened the scope of its recruitment efforts to GiC positions.  Qualified candidates for these positions are recruited following improved and rigorous selection processes, which includes the development of selection criteria, advertising strategies and an assessment of shortlisted candidates through interviews and reference checks. These elements are essential features of an accessible, competency-based and transparent selection process.

PCO has also developed common generic selection criteria for the four types of leadership positions:  Chairs of Crown corporations, Chief Executive Officers of Crown corporations, Heads of agencies and Chairs of administrative tribunals.  Common generic selection criteria supports a more rigorous appointment process by providing consistency in selection criteria for similar types of positions across all portfolios.

6.    Enhancement of the Training and Orientation for Stakeholders and Appointees

PCO established a program of one-on-one orientation sessions for new GiC appointees in leadership positions (i.e. Chairs, Heads of agencies and Chief Executive Officers of Crown corporations) to ensure appointees are fully aware of their roles, responsibilities and accountabilities.  These sessions are well attended and the curriculum is reviewed regularly.  As part of its commitment to ensure the learning needs of new appointees are met, PCO has established Learning Advisory Committees to solicit feedback from participants, which informs updates and revisions to the curriculum.

In addition, PCO provides regular workshops on the appointments process to facilitate the sharing of best practices to portfolio departments and Ministers’ offices.

B.    Auditor General’s Recommendations

In her March 2009 Status Report, the Auditor General of Canada (AG) made four recommendations on the Government’s process for making GiC appointments to Crown corporations, small federal entities and the Immigration and Refugee Board (IRB).   All recommendations have been acted upon by the Government.

AG Recommendation 1: The PCO should complete its project to determine the optimal complement of appointees for each Crown corporation.

In Budget 2009, the Government initiated a review of GiC positions in agencies, boards, commissions and Crown corporations to improve the governance and functioning of the federal organizations while maintaining the appropriate level and quality of services to Canadians.

In fiscal year 2009-2010, the Government reviewed approximately 2700 GiC positions in over 200 federal organizations across 24 ministerial portfolios.  The review resulted with the decision to eliminate 245 GiC positions.  The reductions include GiC positions to the boards of Crown corporations, as well as agencies, administrative tribunals, and in a small number of cases, the conversion of GiC-appointed positions to public service positions. Within the 48 Crown corporations, the review will result in the reduction of 66 positions in 14 organizations. 

Part 8 of Bill C-9, which amends approximately 40 pieces of legislation and makes the required consequential amendments to various administrative Acts, received Royal Assent on July 12, 2010. Legislation will come into force on a day to be fixed by order of the Governor in Council.

AG Recommendation 2: The Government should clarify its expectations regarding the level of Crown corporation board involvement in director and chief executive officer (CEO) search and selection.

It is the Government’s expectation that where the legislation provides the board with the authority to appoint the CEO, with the approval of the GiC, or to recommend the appointment of the CEO to the GiC, the board manages the selection process.  Where the legislation provides the GiC with the authority to appoint the CEO, the selection process is determined by the Government, in consultation with the board.

As recommended by the AG, the Government clarified its expectations regarding the level of Crown corporation board involvement in director and CEO search and selection.  As referred to in Point 1 of the action plan, guidance was provided to Ministers in February and October 2009 to specifically address this issue.  PCO also confirmed the Government’s expectations in an e‑mail to the Chairpersons of all corporations (June 2009).

AG Recommendation 3: The Government, supported by the Privy Council Office in view of its significant role in the GiC appointments process, should ensure that timely appointments are made to Crown corporations, small federal entities and the Immigration and Refugee Board of Canada.

As noted in Point 1 of the action plan, guidance on strong vacancy management practices was developed by the PCO and provided to Ministers and Deputy Ministers through the publication, A Guide to Managing the Governor in Council Appointments Process (February 2009).

Additionally, to facilitate timely appointments, monthly vacancy management reports (produced by PCO) are distributed to each portfolio department and each Minister’s office at the beginning of each month, enabling them to monitor and respond to terms expiring over the upcoming 12 months.

Significant progress has also been made since 2008 to appoint members to the IRB in a timely manner.  The IRB has not fallen below 80% of its full complement of members since January 2009, and has been above 95% of its full complement of members since November 2009.

AG Recommendation 4: The Government should ensure that appointees (incumbents and applicants), Crown corporations, small federal entities, and the Immigration and Refugee Board of Canada receive appropriate and timely communication of GiC appointment and reappointment processes and decisions.

In February 2009, the Government established guidelines on communications throughout the appointment process to ensure that appointees are advised in an appropriate and timely manner of the Government’s intention to reappoint or not to reappoint: full-time appointees should be advised six months before the end of their term whether they will be recommended for reappointment, and part-time appointees should be advised three months before the end of their term.   Those guidelines are regularly reiterated by the Government through presentations to boards of directors and corporate secretaries of Crown corporations and to departmental and Ministerial staff, and are also contained in the Guide.   

Prior to making a recommendation for appointment to the GiC, the responsible Minister must contact the successful candidate to confirm interest in the position and to address any questions that may arise.

Once an appointment has been approved by the GiC, a communications plan is developed and executed, which includes public announcement of the appointment.

Standing Committee Recommendation 2:

That the PCO provide the House of Commons Standing Committee on Public Accounts with an interim status report on its progress in implementing the action plan by 30 September 2010.

PCO has fully implemented the six-point plan and developed policies and guidelines which are now integrated in its day-to-day operations.  The Government’s response to the Committee’s report serves as the interim status report requested by the Committee.

Standing Committee Recommendation 3:

That the Immigration and Refugee Board (IRB) provide the House of Commons Standing Committee on Public Accounts with an action plan on how it intends to determine an appropriate complement of IRB members by 31 March 2010.

Standing Committee Recommendation 5:

That the Government ensure that the Immigration and Refugee Board (IRB) is staffed with the necessary number of decision makers needed to process refugee claims and immigration matters in a timely manner.

The Government has taken a number of steps to ensure that the IRB is appropriately staffed to process refugee claims and immigration matters in a timely manner.

Since October 2008, the Government made 67 new appointments and 39 reappointments to the IRB to fill as many of the vacant GiC positions as possible and to allow it to increase its case resolution capacity.  The IRB has not fallen below 80% of its full complement of members since January 2009, and has been above 95% of its full complement of members since November 2009. 

The Balanced Refugee Reform Act (Bill C-11), which received Royal Assent on June 29, 2010, will introduce new measures to improve the processing of refugee claims.  The progress made on the appointment of IRB members combined with changes under the Act will contribute to resolving refugee claims in a timely manner and help reduce the current backlog of refugee claims (which, as of June 30, 2010, stood at approximately 55,000).

Among other changes, the Balanced Refugee Reform Act will introduce public servant decision‑makers at the Refugee Protection Division (RPD) within the IRB.  This change will contribute to the retention of expertise over the long-term and more flexibility in hiring practices to address unexpected surges/decreases in claims; it will help to ensure the RPD is continuously staffed with the necessary number of decision-makers. These public servant decision-makers will have access to the same training and resources currently available to GIC decision-makers.  Reforms under the Act are also expected to have a deterrent effect on abusive claims. 

Therefore, given the progress made by the Government on the appointment of IRB members and the significant changes planned to the composition of the IRB, in accordance with Bill C-11, it would not be appropriate to establish an action plan at this time. 

The IRB staffing strategy has already been shared at a general level with the House Standing Committee on Citizenship and Immigration.  The success of the new refugee determination system will be closely monitored and an evaluation conducted after three years, at which point how to address the remaining backlog, the feasibility of a volume based funding model and any unexpected issues, including staffing challenges, could be addressed.

Standing Committee Recommendation 4:

That the Government consider developing a policy that would govern notice of reappointment decisions, including fixed deadlines for communicating notice or reappointment to incumbent directors and officers.

In February 2009, the Government established guidelines for notice of reappointments decisions, including deadlines for communicating notice or reappointment to incumbent directors and officers.  The guidance provided is that incumbents in leadership and full-time positions should be advised at least six months before the end of their term and part-time incumbents at least three months before the end of their term.

Ministers are responsible for advising appointees within their respective portfolios. Portfolio departments and Ministers’ offices were provided with the guidelines and are reminded of the notice periods regularly through the monthly vacancy management report which highlight the upcoming vacancies for the next 12 months. The notice periods are also reinforced at the workshops offered to departmental officials and Ministers’ staff and through various fora where the Government attends and/or hosts (meetings with Corporate Secretaries and training sessions for board members and CEOs).

Standing Committee Recommendation 6:

That the Public Appointments Commission of Canada be implemented in accordance with the Federal Accountability Act.

The role of the Public Appointments Commission will be to ensure that competency-based, timely, consistent, and open and transparent requirements are set for appointment processes to federal agencies, boards, commissions and Crown corporations.  This will primarily be accomplished by the development and implementation of a Code of Practice that will outline minimum standards for selection processes for GiC positions within agencies, boards, Commissions and Crown corporations, and by monitoring, auditing and reporting on the Government’s compliance with the Code of Practice.  The mandate does not include the selection of candidates or the actual making of GiC appointments.