annual report to parliament 2012-2013

[section 3: Agency governance and the Board of Management]

The Board of Management (the Board) comprises 15 directors, from across Canada and appointed by the Governor in Council, who offer the Canada Revenue Agency (CRA) an external and diverse business perspective from the private, public and not-for-profit sectors. The Board is mandated, under the Canada Revenue Agency Act, to oversee the organization and administration of the CRA, and the management of its resources, services, property, personnel and contracts.

The Board undertakes its oversight role in cooperation with CRA management to ensure that the CRA has a robust strategic framework to support the core programs it delivers and the implementation of its long-term strategic direction - Vision 2020; and that sound management practices are in place.

Members of the Board of Management (left to right)

Bottom Row: Fauzia Lalani, Andrew Treusch, Susan J. McArthur, Sylvie Tessier, Margaret Melhorn
Top Row: Richard (Rick) Thorpe, Luce Samoisette, Myles Bourke, Richard J. Daw, Gordon Gillis, James R. Nininger, Raymond Desrochers, Gerard J. Fitzpatrick, Norman G. Halldorson, Robert (Bob) M. Manning

[board priorities and accomplishments for 2012-2013]

The Canada Revenue Agency had a challenging year based on a number of factors including: establishing spending reduction targets across the Agency and, specifically, in the national capital region; managing the evolution of Shared Services Canada; and ensuring the core business of the Agency of delivering tax and benefit services to Canadians was maintained. This was done while evolving the strategic plan which would enable the Agency to implement a number of transformative measures aimed at ensuring cost reduction and efficiency gains. The Board strongly feels that the Agency delivered on these key commitments.

In addition, the Board witnessed its own changes, as the Board prepared to bid farewell to Ms. Susan J. McArthur, whose term as Chair of the Board ended on August 3, 2013, and welcomed the arrival of Mr. Andrew Treusch as Commissioner and Chief Executive Officer, and Ms. Margaret Melhorn, who was nominated by the Northwest Territories.

In support of the Agency during this reporting period, the Board continued to provide oversight in all areas for which it has statutory responsibilities as stated in the Canada Revenue Agency Act - Administration of the CRA, Organization of the CRA, Management of Resources, Management of Services, and Management of Personnel, in line with the Board's priorities, as articulated in the CRA's Corporate Business Plan 2012-2013 to 2014-2015.

[strategic outlook and oversight of the change agenda]

In 2012-2013, the Board oversaw the ongoing successful implementation of a robust strategic agenda known as Vision 2020. Vision 2020 forms the basis of a transformative agenda aimed at moving the CRA into a more agile and innovative entity that provides more effective and efficient service to Canadians. The Board monitored implementation progress in areas such as; changes to services and electronic service delivery, human resources and financial impacts, and workforce development.

In addition, the Board continued to provide guidance and direction in the development of the Corporate Business Plan (CBP), one of its key roles. As such, the Board approved the CBP 2013-2014 to 2015-2016 which set out the strategies that will enable the CRA to continue to make progress toward Vision 2020, keep in step with government priorities, and to build the workplace and workforce it needs to succeed. The Board also continued to monitor the Agency's Corporate Risk Profile and the development of performance indicators, which will enable it to assess the overall performance of the CRA and measure success in achieving its strategic objectives.

To ensure that the CRA's internal accountability structure continues to be aligned with plans and priorities identified in the CBP, the Board continues to provide input to senior executive performance agreements and to monitor and assess their performance. To this end, in 2012-2013, the Board set clear performance expectations for the Commissioner-Chief Executive Officer (CEO) at the beginning of the year, monitored progress and assessed performance at the end of the year. Similarly, the Board contributed to the performance agreements and assessments of key senior executives including the Chief Financial Officer (CFO); the Chief Audit Executive; and Assistant Commissioners of the Information Technology, Human Resources, and Strategy and Integration branches.

As in previous years, the Board assured itself that the CRA has a rigorous approach to resources management. This was important this past year, given the context of implementation of the Agency's transformation and spending reduction measures while staying focused on the delivery of its core business. To this end, the Board monitored CRA's planned allocation of resources, performance and spending. In addition, the Board assured itself that the CRA continued to improve its controls over financial management and reporting, and the security and protection of taxpayer information.

The Board and CRA's management continued to pursue enhancements to the Board of Management Oversight Framework (BoMOF) and the annual assessment of performance using a risk-based approach. As a key accountability instrument that complements the Management Accountability Framework assessment managed by the Treasury Board Secretariat, this year the BoMOF assessment focused on 12 key management expectations of strategic importance such as Management of Business Change, Agency Performance Indicators and Integrity.

[meeting service needs]

During the reporting period, the Board oversaw the CRA's provision of services to Canadians, including the security of tax and benefits information, to ensure the needs of taxpayers and businesses are met in a fair, professional and respectful manner. As such, the Board reviewed annual updates regarding the CRA Service Strategy, service standards and service complaints. The Board also reviewed special edition reports from the Taxpayers' Ombudsman and engaged with CRA on efforts to address service-related concerns and potential transformation agenda impacts on services.

With the ongoing implementation of CRA's transformation agenda, the Board provided insights and guidance on the CRA's approach for its integrated Service Strategy for 2013-2014 to 2015-2016, which sets out goals and deliverables for service, integrity and compliance. The strategy's roadmap will advance the CRA's Vision 2020 strategic directions by setting out initiatives the Agency will implement over the next one to three years to improve services to Canadians and ensure all taxpayers pay their fair share while maintaining Canadians' trust.

[information technology responsiveness and sustainability]

Information technology (IT) remains an integral part of the CRA's capacity to efficiently and effectively deliver its core programs and successfully implement its transformation initiatives. Therefore, during the planning period, the Board continued to provide oversight of major information technology projects, including the T1 Systems Redesign and a new data centre designed to support increased business operations and ensure continuity. It further strengthened project oversight through the use of independent third party reviews. The Board approved the CRA's IT Strategy and Plan 2012-2015 and the Information and Technology Security Strategy 2012-2015. The Board also monitored the Agency's Strategic Investment Plan to ensure it remains prudently focused on sustaining aging applications, while continuing to invest in the Agency's vision for the future.

The Board monitored the evolution of the CRA's Operating Protocol 2013-2014 with Shared Services Canada (SSC) and the SSC-CRA IT Governance Framework to ensure that the CRA's business programs continue to be well served, with quality and cost effective IT infrastructure services. The Board also provided direction into the development of the SSC-CRA Relationship Assessment Framework and future reporting mechanisms, in support of an effective, productive working relationship with SSC.

[workforce and workplace of the future]

The Board monitored the Agency's Strategic Human Resources change management approach to enable a successful transformation and sustained workforce engagement.

Through timely discussions on Executive Cadre (EC) Succession Planning, the Board assured itself that the CRA possesses the leadership capacity, talent, and skill sets required to lead and manage transformation and business change. Of note, CRA's management sought guidance and insights from the Board regarding combining the positions of Chief Risk officer and Chief Audit executive and merging of the Audit and Evaluation Branch with the Enterprise Risk Management Branch, an initiative that addressed succession, workforce synergies and efficiency gains, without compromising the independence of either the internal audit or the risk management function. The Board also provided direction and guidance on CRA talent management and recruitment efforts.

The Board approved strategies and policies aimed at strengthening the culture of excellence and integrity and sustaining a respectful, healthy and innovative work place of the future. Of note were an update to the CRA Code of Ethics and Conduct, the Work Place Violence Prevention Policy, the Occupational Health and Safety Policy, the Staffing Program Policy and an update to the Agency Strategic Workforce Plan 2012-2013.

Bill C-45 "Jobs and Growth Act 2012" introduced legislative changes to the Canada Revenue Agency Act. The Board therefore recommended to the President of the Treasury Board the Collective Bargaining Mandate with the Public Service Alliance of Canada - Union of Taxation Employees, and closely monitored the collective bargaining negotiations. As in the past, the Board continues to carefully balance the interests of the CRA while keeping in mind government wide considerations.

[board governance]

The Board continues to function in an effective and efficient manner that successfully supports the operations and transformation agenda of the CRA.

The Board conducted the 2012 Board Evaluation with participation of key members from CRA senior management. In response to the survey results, a way forward for enhancements of Board engagement, processes and practices was developed and implemented. The year was also marked by close collaboration with senior management to increase time for key strategic discussions at Board meetings, and leverage Board expertise and engagement as part of these discussions.

[conclusion]

The Board is confident that, again this year, it continued to provide strong oversight of the organization and administration of the CRA, in those areas under its purview, while providing management with real time strategic insights and guidance, to better position the Agency for the future.

[board membership]

The Board of Management of the CRA is made up of 15 members appointed by the Governor in Council. They include the Chair, the Commissioner and Chief Executive Officer, a director nominated by each province, one director nominated by the territories, and two directors nominated by the federal government. Members of the Board bring an external and diverse business perspective from the private, public, and not-for-profit sectors to the work of the CRA.

The Board is mandated to oversee the organization and administration of the CRA, and the management of its resources, services, property, personnel and contracts. It undertakes its oversight role in cooperation with CRA management to ensure the CRA fosters sound management and service delivery.

The following are the Board members, as of March 31, 2013.

Susan J. McArthur, B.A., ICD.D
Chair, Board of Management
Senior Investment Banker
Jacob Securities Inc.
Toronto, Ontario

Myles Bourke, B.Comm., FCPA, FCA
Corporate Director
Lethbridge, Alberta

Richard J. Daw, FCA, CMC
Senior Counsel
Deloitte
St. John's, Newfoundland and Labrador

Raymond Desrochers, B.Comm., CA, CFE
Partner
BDO CANADA LLP Chartered Accountants & Consultants
Winnipeg, Manitoba

Gerard J. Fitzpatrick, FCA, TEP
Partner
Fitzpatrick & Company Chartered Accountants
Charlottetown, Prince Edward Island

Gordon Gillis, B.A., LL.B.
Corporate Director
Eureka, Nova Scotia

Norman G. Halldorson, B.Comm., CA, FCA
Corporate Director
Clavet, Saskatchewan

Fauzia Lalani, P.Eng.
Director, Logistics Services
Suncor Energy Services Inc.
Calgary, Alberta

Robert (Bob) M. Manning, B.B.A.
Associate
Owens MacFadyen Group
Saint John, New Brunswick

Margaret Melhorn, BA, MA
Corporate Director
Yellowknife, Northwest Territories

James. R. Nininger, B.Comm., M.B.A., Ph.D
Corporate Director
Ottawa, Ontario

Luce Samoisette, LL.M., MS Taxation, DDN, LL.B.
President
Université de Sherbrooke
Sherbrooke, Quebec

Sylvie Tessier, B.Sc, M.B.A., P.Eng., ICD.D
Director of Professional Services
Hewlett Packard Software and Solutions
Toronto, Ontario

Richard (Rick) Thorpe, CMA, FCMA
Corporate Director
Penticton, British Columbia

Andrew Treusch, B.A., M.A.
Commissioner of Revenue and Chief Executive Officer
Canada Revenue Agency
Ottawa, Ontario

[committee membership and director participation]

The Board of Management is supported by four committees that undertake much of the detailed review of items brought before the Board for the Board's consideration. The following table shows the membership of each committee as well as directors' committee attendance over the course of the 2012-2013 fiscal year.

(Footnote 1): Board meetings and teleconferences.

(Footnote 2): The six meetings include two discussions of financial statements. The Commissioner-Chief Executive Officer attended as an observer in regular closed sessions of the Audit Committee.

(Footnote 3): The four meetings include a Board evaluation teleconference.

(Footnote 4): The eight meetings include four meetings to discuss collective bargaining.

Governor in Council rates of pay

Source: www.appointments-nominations.gc.ca

Date modified:

2013-11-06