The CRA Board of Management

Overview

The Canada Revenue Agency Act provides for the establishment of a Board of Management (Board) consisting of 15 directors appointed by the Governor in Council. Under the provisions of the Act, the Board oversees the organization and administration of the Canada Revenue Agency (CRA), including overseeing the management of its resources, services, property, personnel, and contracts.

In fulfilling this role, the Board brings a forward-looking strategic perspective to the CRA’s operations, fosters sound management practices, and is committed to efficient and effective service delivery.

The Board’s goal is to ensure that the CRA has a robust strategic framework to support its ongoing activities and that sound monitoring and reporting practices are in place.

Introduction

The Board’s chapter of the Annual Report to Parliament 2010-2011 illustrates how the Board fulfilled its statutory responsibilities and realized its priorities as outlined in the Corporate Business Plan 2010-2011 to 2012-2013.

The chapter also highlights the Board’s strategic and fiduciary contributions to ensure the CRA achieves its goals and objectives and meets the expectations of Canadians.

The Board’s collaboration with CRA management in 2010-2011 contributed to enhancing the effectiveness and efficiency of the CRA and the Board, thereby maintaining the CRA’s reputation as a leader and innovator in management practices in Canada’s public service. It also ensured that the CRA is a responsive, effective and trusted tax and benefits administration.

Board’s priorities and accomplishments for 2010-2011

2010-2011 was a very challenging year, with several significant priorities and an environment of economic restraint.

In 2010-2011, several key challenges monitored by the Board and the CRA formed the backdrop against which the Board’s most noteworthy achievements, for the year, were realized:

• Ensuring a sustained tax and benefit system, while considering evolving compliance challenges, higher expectations for service delivery options, budgetary constraints, and an increasing number of government-wide initiatives;
• Addressing the sustainability and responsiveness of information technology (IT) systems and infrastructure to support new and on-going business needs; and
• Ensuring human resources (HR) capacity and capability in an environment of challenging and changing demographics.

The Board’s most significant accomplishments are described in the following pages. They are aligned to its most important priorities in the five general areas of its oversight responsibilities (Administration of the CRA, Organization of the CRA, Management of Resources, Management of Services, and Management of Personnel) and the Board’s governance practices.

Additional information regarding the CRA’s accomplishments in many of these priority areas can be found under Chapter 6 – Maintaining business sustainability – management results.

Administration of the CRA

Enterprise risk management

The Board continued to play a valuable role in enterprise risk governance and management. The Board approved the Enterprise Risk Management (ERM) Policy; which is aligned with the ERM vision for the CRA. The Board contributed to the formalization and clarity of roles and responsibilities, with regard to enterprise risk management, and an effective governance structure for risk direction, oversight, and control. The Board also provided direction in the development of the CRA’s Corporate Risk Profile. With a forward view, the Board ensured that risks were considered in the development of the CRA Corporate Business Plan 2011-2012 to 2013-2014.

CRA strategy and strategic planning

The Board played an important oversight role in the development of major CRA long-term strategies, particularly in the identified areas of challenges of IT and HR.

The Board oversaw the development of the CRA Information and Technology Security Strategy 2010-2013, which maps the collective security needs of the CRA and addresses the ever increasing risks to information and its supporting technology.

The Board approved the CRA’s Strategic Direction for Employment Equity 2010-2011 to 2012-2013, a multi-year strategic employment equity plan. The Board also provided direction into the CRA’s continued efforts to ensure strategic alignment and integration of HR planning with business planning as part of the CRA’s Workforce Renewal efforts.

In addition, the Board provided direction into the development of the CRA Emergency Management (EM) Governance Framework and approved the CRA EM Policy, which reflects an enhanced role for the Board in the event of an emergency.

As part of its annual Strategic Planning meeting, the Board provided direction to the CRA regarding its Service Delivery and Web Presence Strategic Plan.

Management oversight

In continuing its efforts to evolve the Board of Management Oversight Framework (BoMOF), the 2010-2011 Framework was revamped. In concert with the maturation of the CRA’s management systems and processes, emphasis was placed on ensuring the BoMOF provides more results-based evidence. Expectations were also reviewed and modified to better address the Board’s areas of oversight.

The BoMOF complements the Management Accountability Framework (MAF) assessment conducted by the Treasury Board of Canada Secretariat. Both of these tools ensure that the CRA is effectively meeting its responsibilities based on rigorous and evidence-based assessments.

This year, the Board is proud to report that the assessment of the CRA revealed very positive results. Of the 19 expectations assessed, the CRA was rated “Strong” for 15 expectations and “Acceptable” for four. Details regarding both the BoMOF and MAF assessments can be found in Chapter 6 of the Annual Report.

Organization of the CRA

The Board fulfilled its responsibilities, in this area, by setting performance objectives for the Commissioner-Chief Executive Officer at the beginning of the year, monitoring progress through the year, and assessing performance at the end of the year. This practice complements the federal government’s performance assessment process for deputy heads.

In 2010-2011, the Board’s key objectives for the Commissioner-Chief Executive Officer included the following: appointment of a Chief Risk Officer; ensuring successful CRA and Board Strategic Planning Meetings; continued enhancements of financial systems and processes; enhancing project management in support of strategic investment priorities; continued progress against the CRA’s service strategy; successful transition to the CRA of provincial employees related to the Provincial Sales Tax Administration Reform; and leading knowledge transfer and succession planning exercises at the senior levels of the CRA.

To further ensure that the accountabilities of senior executives are aligned with CRA priorities and Board objectives, the Board continued its practice of providing input into the performance agreements and assessments of members of CRA senior management whose responsibilities relate to the Board’s oversight and responsibilities. These executives included the Chief Financial Officer (CFO), Chief Audit Executive, Chief Information Officer, Chief Risk Officer (CRO), Assistant Commissioner, Human Resources Branch, Assistant Commissioner, Strategy and Integration Branch, and the Corporate Secretary.

This past year, by invitation of the Commissioner-Chief Executive Officer, the Board participated in the selection process for the CRO and the CFO, whose responsibilities relate to the Board’s oversight responsibilities.

Management of resources

Each year, the Board fulfills its fiduciary oversight responsibilities by reviewing and monitoring the CRA’s planned allocation of resources, performance, and spending, including approving the CRA’s financial statements and major investment projects.

The Board oversaw a number of initiatives aimed to strengthen financial accountability at the CRA. These included the approval of the CRA Policy Framework for Financial Management and Corporate Finance. Also, the Board continued to monitor the progress of the Chief Executive Officer/Chief Financial Officer certification process of internal controls over financial reporting: a key management initiative to maintain business sustainability through the enforcement of accountability and oversight. The Board also approved the CRA Internal Fraud Control Policy, as part of a comprehensive Internal Fraud Program, which clearly articulates roles, responsibilities, and accountabilities for the control of fraud.

The Board oversaw the development of the CRA’s 2010-2011 to 2014-2015 Strategic Investment Plan, including the IT Infrastructure Investment Plan, thus ensuring that the CRA has a sound information technology strategy and investment plan, and that the existing portfolio of projects continues to align with the CRA’s priorities.

The Board was also involved in overseeing and monitoring major projects, such as Provincial Sales Tax Administration Reform for Ontario and British Columbia, which was completed successfully, and on schedule, in June 2010.

One key initiative in support of IT sustainability and IT infrastructure that the Board continued to regularly monitor was the CRA’s ongoing efforts to secure data centre co-location services with Public Works and Government Services Canada (PWGSC) and the Bank of Canada. A contract was awarded for the provisioning of data centre services within the National Capital Area, as the outcome of a successful collaborative procurement effort between the CRA, PWGSC and the Bank of Canada.

Management of services

CRA service delivery remained an important focus for the Board, and in particular, the leveraging of technology for service channels, and the potential use of evolving social media.

The Board closely reviewed and monitored the ongoing implementation of the CRA Service Strategy to ensure self‑serve channels are promoted and enhanced, the use of more expensive services is optimized, and technology is leveraged across all channels. A particular focus was placed on the CRA’s Internet presence. In addition, the Board monitored the CRA’s review of its service standards to ensure optimal and effective service to its clients.

The Board reviewed the second Annual Report from the Office of the Taxpayers’ Ombudsman in December 2010 and continued to receive regular updates from the Taxpayers’ Ombudsman on service-related concerns.

Management of personnel

The Board monitored and provided direction to the CRA’s efforts in talent management, succession planning, and knowledge management across the organization, including the executive cadre. The CRA continued to witness significant movement in its senior executive ranks, including the arrival of a number of Assistant Commissioners and Deputy Assistant Commissioners.

The Board continued to oversee the CRA’s integration of human resources (HR) planning and business planning. In this regard, the Board approved the 2011-2012 update to the CRA Strategic Workforce Plan to ensure workforce goals and objectives are in place to support the strategic priorities identified in the Corporate Business Plan.

The Board provided direction into the CRA’s approach for the development of an Integrity Framework. The Framework is a comprehensive collection of policy instruments, programs, and processes that support the CRA in balancing two significant responsibilities: fostering the CRA’s culture of integrity; and, preventing, monitoring, detecting, and managing breaches of employee integrity.

The Board closely monitored contract negotiations with the Public Service Alliance of Canada, including the review and approval of the CRA’s negotiating mandate, pursuant to the Canada Revenue Agency Act. The successful outcome of the contract negotiations was achieved in record time, prior to the expiry of the previous collective agreement, and resulted in a new two-year agreement. This contract was the first negotiated within the federal government since the implementation of the federal government’s Expenditure Restraint Act in 2009.

Board governance

Since its creation, the governance structure of the CRA is increasingly recognized as a model for other organizations with the Board as a cornerstone of this structure.

The Board continued to look at ways to improve its governance practices and enhance the effectiveness and efficiency of its processes. The Board Ad Hoc Committee to Review Board Process and Content put forth proposals to this end, late in 2010. The Board also approved enhancements to the BoMOF.

In keeping with best governance practices, the Board monitored the implementation of the action plan developed as a result of the 2009 full scale Board evaluation. The Board also conducted a self-assessment whose results were positive overall.

The Board also held its annual Strategic Planning Meeting with senior management to reflect upon and engage in in‑depth deliberations and generative discussions on key issues facing the CRA.

From an appointment perspective, the Board welcomed a new member from Newfoundland and Labrador.

Conclusion

In 2010-2011, the Board continued to provide strong oversight of the organization and administration of the CRA, including the management of its resources, services, property, personnel, and contracts.

Working collaboratively with CRA management, the Board successfully achieved its priorities in a challenging year.

The BoMOF enabled the Board to measure and monitor the CRA’s performance in those areas that fall under the Board’s purview. The positive results of the assessment provide Canadians with assurance that the CRA is actively engaged in pursuing management excellence.

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 following are the Board members, as of March 31, 2011. Footnote 1

Susan J. McArthur, B.A., ICD.D
Chair, Board of Management
Managing Director
Jacob Securities Inc.
Toronto, Ontario

Camille Belliveau, CFP, FCGA
Executive Director
Groupe EPR Canada Group Inc.
Shediac, New Brunswick

Myles Bourke, B.Comm., FCA
Corporate Director
Chartered Accountant
Lethbridge, Alberta

Richard J. Daw, CFP, CMC, FCA
Executive in Residence
Faculty of Business Administration of Memorial University
St. John’s, Newfoundland and Labrador

Raymond Desrochers, B.Comm., CA, CFE
Partner
BDO Dunwoody LLP Chartered Accountants
Winnipeg, Manitoba

John V. Firth, BFA, EPC
Financial Advisor
Whitehorse, Yukon Territory

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

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

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

James J. Hewitt, FCMA
Corporate Director
Penticton, British Columbia

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

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

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

Linda Lizotte-MacPherson, B.Comm.
Commissioner 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. In December 2008, the Board designated responsibility to review and approve, each year, the Board of Management Oversight Framework (BoMOF) and the BoMOF performance assessment of the CRA, to a new sub-committee.

The following table shows the membership of each committee over the course of the fiscal year, as well as directors’ committee attendance. The rates of pay of Governor in Council appointees are also provided.

Table note 1

Includes all regular meetings, teleconferences, and Annual Strategic Planning Meeting. Return to table note 1 source text

Table note 2

Commissioner-Chief Executive Officer attends as an observer in regular closed sessions of the Audit Committee. Return to table note 2 source text

Footnote 1

As of March 31, 2011, one position on the Board was vacant. Return to Footnote 1 source text