Purpose

  1. The purpose of this Memorandum of Understanding (MOU) is to:
    • Set out the accountability relationships between the Minister and the Public Service Commission through its Chair;
    • Set out the roles and responsibilities of the Minister, the Chair and the Deputy Minister; and,
    • Set out the expectations for the operational, administrative, financial, auditing and reporting arrangements between the PSC and the Ministry.
  2. This MOU should be read together with the Public Service of Ontario Act, 2006. This MOU does not affect, modify or limit the powers of the PSC as set out in the Public Service of Ontario Act, 2006, or interfere with the responsibilities of any of its parties as established by law. In case of a conflict between this MOU and any act or regulation, the act or regulation prevails.

Definitions

In this MOU:

  1. “Act” means the Public Service of Ontario Act, 2006 that governs the Agency;
  2. “Agency” means the Public Service Commission;
  3. “AAD” means the Management Board of Cabinet Agencies and  Appointments Directive;
  4. “Appointee” means a member appointed to the Agency by the Lieutenant Governor in Council, but does not mean an individual employed or appointed by the Agency as staff;
  5. “Chair” means the Chair of the Public Service Commission;
  6. “Deputy Minister” means the Deputy Minister of the Treasury Board Secretariat;
  7. “MBC” means Management Board of Cabinet;
  8. “Minister” means the President of the Treasury Board;
  9. “Ministry” means the Treasury Board Secretariat;
  10. “PSC” means the Public Service Commission;
  11. “PSOA” means the Public Service of Ontario Act, 2006;
  12. “TB” means Treasury Board;
  13. “Regulations” means the regulations, as amended, made under the Act.

Agency’s legal authority and mandate

  1. The PSC is continued under PSOA.
  2. The PSC may exercise the powers and shall perform the duties and functions assigned to it under PSOA or any other statute, including those prescribed by the Lieutenant Governor in Council and those delegated to it by MBC.
  3. The mandate of the PSC  is to ensure
    • the effective management and administration of human resources in relation to public servants that the PSC or its delegates appoint to employment by the Crown under Part III of PSOA and in relation to deputy minister
    • the non-partisan recruitment and employment of public servants that the PSC or its delegates appoint to employment by the Crown under Part III of PSOA.

Agency classification

The PSC is classified as a Regulatory Agency without governing board under the AAD.

Guiding principles

The parties agree to the following principles:

  1. The Minister acknowledges that the PSC exercises powers and performs duties in accordance with its legal mandate. The Minister acknowledges as a paramount requirement the need for the PSC’s regulatory decisions to be made, and be seen by the public to be made, independently and impartially.
  2. The Minister acknowledges that the PSC plays a meaningful role in the development of the policies and programs of the government, as well as in the delivery of those policies and programs.
  3. The Chair acknowledges that accountability to the government through the Minister is a fundamental principle to be observed in the management, administration and operations of the PSC.
  4. As an agency of the government, the PSC complies with all applicable legislation, TB/MBC and government directives and policies and conducts itself according to the management principles of the Government of Ontario. These principles include ethical behaviour; prudent; efficient, and lawful use of public resources; fairness; high quality service to the public; and openness and transparency to the extent allowed under law.
  5. The PSC is committed to supporting and developing policies and programs designed to create a diverse and inclusive organization that delivers excellent public service and encourages all employees to achieve their full potential.
  6. The PSC and the Ministry agree to avoid duplication of services wherever possible.

Accountability relationships

Minister

  1. The Minister is accountable to the Legislative Assembly for the PSC’s fulfillment of its mandate and its compliance with government administrative policies. For these purposes the Minister reports and responds to the Legislative Assembly on the affairs of the PSC.
  2. The Minister is accountable to the Cabinet for the performance of the PSC and its compliance with the government’s operational policies and broad policy directions.
  3. The Minister is responsible for representing the PSC in the Cabinet and its committees, the Legislative Assembly, and before committees of the Legislature.
  4. The Minister is accountable for receiving the PSC’s annual report and tabling it in the Legislative Assembly.

Chair

  1. The Chair is accountable to the Minister for the performance of the PSC in fulfilling its mandate, and for carrying out the roles and responsibilities assigned to the Chair by the PSOA, applicable TB/MBC and government directives, and this MOU.
  2. The Chair is accountable for reporting to the Minister, as requested, on the PSC’s activities including a letter confirming the Agency’s compliance with applicable legislation, TB/MBC and government directives and accounting and financial policies.

Deputy minister

  1. The Deputy Minister is accountable to the Secretary of the Cabinet and the Minister for the performance of the Ministry in providing administrative and organizational support to the PSC and for carrying out the roles and responsibilities assigned by the Minister, PSOA, applicable TB/MBC and government directives, and this MOU.
  2. The Deputy Minister is accountable for signing and submitting an annual attestation indicating that the PSC is in compliance with the mandatory requirements of the AAD and other applicable TB/MBC and government directives and for providing documentation demonstrating compliance with the AAD by indicating the PSC’s compliance with each mandatory requirement in a report to Treasury Board Secretariat.

Conflict of interest

Appointees of the PSC who are public servants are subject to the rules governing conflict of interest and political activity under PSOA and the Regulations. The Chair is responsible for informing government appointees to the PSC who are not public servants of their obligation to fulfill the duties of their appointment in a professional, ethical and competent manner and avoid any real or perceived conflict of interest and to declare a personal or pecuniary interest that could raise a conflict of interest concern at the earliest opportunity to the Chair or to the Minister or the Minister’s designate in the case of a Chair.

Roles and responsibilities

Minister

The Minister is responsible for:

  1. Reporting/responding, within prescribed timelines, as applicable, to the Legislature and Cabinet on the PSC’s performance and compliance.
  2. Determining the need for any review, including any risk-based review, and recommending to TB/MBC the elimination or consolidation of the PSC, or any change to the PSC’s mandate and/or powers and public appointments.
  3. ecommending to TB/MBC the powers to be given to, or revoked from, the PSC when a change in the mandate of the PSC is being proposed.
  4. Reporting and responding to the Legislative Assembly on the affairs of the PSC.
  5. Receiving the annual report from the PSC and tabling it in the Legislative Assembly.
  6. When appropriate or necessary, taking action or directing that corrective action be taken with respect to the PSC’s mandate or operations.
  7. Informing the Chair of the government’s priorities and broad policy directions for the PSC.
  8. Consulting, as appropriate, with the Chair (and others) on significant new directions or when the government is considering regulatory or legislative changes for the PSC.
  9. Developing the PSC’s MOU with the Chair and signing it into effect after it has been signed by the Chair.
  10. Reviewing and approving the PSC’s annual business plan.
  11. Recommending to TB/MBC any provincial funding to be given to the PSC; and,
  12. Directing that a periodic review of the PSC be conducted as necessary and making subsequent recommendations to TB/MBC.

Chair

The Chair is responsible for:

  1. Setting the goals, objectives, and strategic directions for the PSC within its mandate as defined by PSOA and setting overall priorities.
  2. Providing leadership to the PSC and directing the affairs of the PSC so as to fulfill its mandate as defined by PSOA.
  3. Ensuring PSC compliance with legislative and TB/MBC policy obligations.
  4. Developing performance measures and targets for the PSC, and monitoring the performance of the PSC.
  5. Ensuring that the PSC operates within its approved budget allocation, if any, in fulfilling its mandate; ensuring that public funds are used with integrity and honesty; and, directing corrective action relating to the operations of the PSC be taken, if needed.
  6. Developing the PSC’s MOU with the Minister and signing it on behalf of the PSC.
  7. Ensuring timely communication with the Minister regarding any issues or events that may concern, or can reasonably be expected to concern, the Minister in the exercise of the Minister’s responsibilities.
  8. Reviewing and approving the PSC’s business plan and annual report and submitting it to the Minister in accordance with the time lines specified in this MOU.
  9. Ensuring that the PSC’s MOU, business plan and annual report are made available to the public on a government or provincial agency website within the timelines required in the AAD.
  10. Providing the Minister, the Deputy Minister and the President of Treasury the Board with a copy of any audit report, a copy of the PSC’s response to each report, and any recommendations in the report.
  11. Advising the Minister annually on any outstanding audit recommendations.
  12. Informing government appointees to the PSC who are not public servants of their obligation to fulfill the duties of their appointment in a professional, ethical and competent manner and avoid any real or perceived conflict of interest and to declare a personal or pecuniary interest that could raise a conflict of interest concern at the earliest opportunity to the Chair or to the Minister or the Minister’s designate in the case of a Chair.
  13. Recording any declared or apparent conflicts of interest and taking appropriate action promptly.
  14. Making sure that appropriate management systems are in place (financial, information technology, human resource) for the effective administration of the PSC.
  15. Making sure that an appropriate framework is in place for PSC appointees to receive adequate orientation and training.
  16. Making sure that PSC appointees are aware of and comply with applicable TB/MBC and government directives.
  17. Carrying out effective public communications and relations for the PSC as its chief spokesperson; and,
  18. Cooperating with any periodic review of the PSC directed by the Minister or TB/MBC.

Deputy Minister

The Deputy Minister is responsible for:

  1. Advising the Minister on the requirements of the AAD and other applicable TB/MBC and government directives.
  2. Advising the Minister on the operation of the PSC or its consolidation or elimination.
  3. Establishing a framework for reviewing and assessing the PSC’s reports;
  4. Advising the Minister on documents submitted by the PSC to the Minister for review or approval, or both.
  5. Advising and assisting the Minister on meeting assigned ministerial responsibilities with respect to the PSC.
  6. Attesting to the TB/MBC, as required, the PSC’s compliance with the mandatory accountability requirements set out in the AAD.
  7. Ensuring the Ministry undertakes a review of the PSC’s mandate at least every seven years as required by the AAD and that the results of the mandate review are reported to TB/MBC for approval.
  8. Undertaking reviews of the PSC as directed by the Minister.
  9. Cooperating with any review of the PSC as directed by the Minister or TB/MBC.
  10. Monitoring the PSC on behalf of the Minister while respecting the PSC’s authority; identifying needs for corrective action, where warranted; and recommending to the Minister ways of resolving any contentious issues that might arise from time to time.
  11. Ensuring that the PSC has an appropriate risk management framework and mitigating strategy in place for managing risks that the PSC may encounter in meeting its program or service delivery objectives.
  12. Ensuring that the Ministry completes a risk assessment evaluation for the PSC as required by the AAD and reports high risks, if any, to TB/MBC on a quarterly basis.
  13. Negotiating a draft MOU with the Chair of the PSC as directed by the Minister.
  14. Ensuring that appropriate Ministry staff review the PSC’s business plan.
  15. Consulting with the PSC’s Chair, as needed, on matters of mutual importance including services provided by the Ministry, applicable TB/MBC and government directives, and Ministry policies;
  16. Meeting with the Chair as needed or as directed by the Minister; and,
  17. Arranging for operational, administrative, financial and other support to the PSC as specified in this MOU.

Reporting and public posting requirements

Business plan

  1. The Chair will ensure that the Minister is provided with the PSC’s annual business plan for approval within the timelines established by the Minister for this purpose.
  2. The Chair is responsible for ensuring that the PSC’s annual business plan fulfills the requirements of the AAD.
  3. The Chair will ensure that the business plan includes a risk assessment and risk management plan to assist the Ministry in developing its risk assessment and risk management plan information in accordance with the requirement of the AAD.
  4. The Minister will review the PSC’s annual business plan and will promptly advise the Chair whether or not the Minister concurs with the directions proposed by the PSC. The Minister will advise the Chair where and in what manner the PSC’s plans vary from government or ministry policy or priorities, and the PSC will revise its plan accordingly.
  5. The Chair is responsible for ensuring that the PSC’s business plan includes a system of performance measures and reporting on the achievement of the objectives set out in the business plan. The system must include performance goals, how they will be achieved, and target time frames.
  6. In addition, the Chair of TB/MBC may require the Minister to submit the PSC’s business plan to TB/MBC for review at any time.
  7. The Chair is responsible for ensuring that the PSC’s business plan is made available to the public on a government or provincial agency website within 30 days of the Minister’s approval.

Annual report

  1. The Chair is responsible for ensuring that the PSC’s annual report, as required by the AAD, is submitted to the Minister for tabling in the Legislative Assembly. The Chair will submit the annual report to the Minister within 90 days of the end of PSC’s fiscal year which is April 1 – March 31.
  2. The Minister shall lay the report before the Legislative Assembly at the earliest reasonable opportunity.
  3. The Chair is responsible for ensuring that the PSC’s annual report is made available to the public on a government or provincial agency website  within 30 days after tabling in the Legislature.

MOU

The Chair is responsible for ensuring that this MOU is made available to the public on a government or provincial agency website within 30 days of the Minister’s approval.

Other reports

At the request of the Minister or Deputy Minister, the Chair is responsible for supplying specific data and other information that may be required from time to time for the purpose of ministry administration within prescribed timelines.

Communications

The parties to this MOU recognize that the timely exchange of information on the operations and administration of the PSC is essential for the Minister to meet the Minister’s responsibilities for reporting and responding to the Legislative Assembly on the affairs of the PSC. The parties also recognize that it is essential for the Chair to be kept informed of the government initiatives and broad policy directions that may affect the PSC’s mandate and functions.

The parties, therefore, agree as follows:

  1. The Chair will keep the Minister advised, in a timely manner, of all planned events and issues that concern or can be reasonably expected to concern the Minister in the exercise of the Minister’s responsibilities.
  2. The Minister will consult with the Chair, as appropriate, on broad government policy initiatives or legislation being considered by the government that may impact on the PSC’s mandate or functions.
  3. The Minister and the Chair will consult with each other on public communications strategies and publications. They will keep each other informed of the results of stakeholder and other public consultations and discussions.
  4. The Minister and the Chair will meet at least annually or as requested by either party, to discuss issues relating to the fulfillment of the PSC’s mandate, management and operations.
  5. The Deputy Minister and the Chair will meet at least quarterly or as requested by either party to discuss issues relating to the efficient operation of the PSC and the provision of services by the ministry to the PSC.

Administrative arrangements

Applicable Treasury Board/Management Board of Cabinet and government directives

  1. The Chair is responsible for ensuring that the PSC operates in accordance with all applicable TB/MBC and government directives, as well as applicable Ministry financial and administrative policies and procedures.
  2. The Chair will develop procedures and will operate the PSC in accordance with all administrative policies established and specified in all Treasury Board/Management Board of Cabinet directives or guidelines, or any amendments to those directives or guidelines or new directives or guidelines which come into effect after the date this MOU is executed. These directives include, but are not limited to the following:
    • Agencies and Appointments Directive
    • Accountability Directive
    • Advertising Content Directive
    • Management and Use of Information and Information Technology (I&IT) Directive in conjunction with the Corporate Policy of Recordkeeping  as applicable
    • Procurement Directive
    • Travel, Meal & Hospitality Expenses Directive
    • Procurement Directive on Advertising, Public and Media Relations and Creative Communications Services.

Administrative and organizational support services

  1. The Deputy Minister is responsible for providing the PSC with operational, administrative and organizational support services as appropriate.
  2. The Deputy Minister will ensure that the support services provided to the PSC are of the same quality as those provided to the Ministry’s own divisions and branches.

Legal services

The PSC will receive legal services from the Ministry’s Legal Services Branch. In the event that the PSC requires external legal services (for instance if the use of Crown counsel would result in a conflict of interest), such services will be acquired by the Ministry’s Legal Services Branch for the PSC in accordance with the Ministry of the Attorney General’s Corporate Operating Policy on Acquiring and Using Legal Services.

Freedom of information and protection of privacy

The PSC is subject to the requirements of the Freedom of Information and Protection of Privacy Act (FIPPA) and shall respond to access requests and privacy investigations directed to it by the Ministry’s Access and Privacy Office. The Chair is the institution head for the purposes of FIPPA.

Records management

  1. The Chair is responsible for ensuring that a system is in place for the creation, collection, maintenance, and disposal of records.
  2. The Chair is responsible for ensuring that the PSC complies with the TB/MBC Management and Use of Information and Information Technology (I&IT) Directive and with the Archives and Recordkeeping Act, 2006, Chapter 34, Schedule A.

Financial arrangements

Funding

  1. Funding for the ongoing administrative operations of the PSC will be provided by the Ministry in accordance with the Ministry’s budgeting priorities and procedures.
  2. Pursuant to Section 28 of the Financial Administration Act, the PSC shall not enter into any financial arrangement, financial commitment, guarantee, indemnity or similar transaction that would increase, directly or indirectly, the indebtedness or contingent liabilities of Ontario or seek the approval of the Lieutenant Governor in Council to do so, without the written approval of the Minister of Finance and/or the President of the Treasury Board. The Minister’s approval is required before seeking approval under the Financial Administration Act.

Financial reports

The PSC does not have a separate budget allocation. Administrative operational expenses form part of the Executive Programs and Services Branch budget within the Centre for Leadership and Learning, Treasury Board Secretariat.

Taxation status: Harmonized Sales Tax (HST)

The PSC is listed in Schedule A – Part II to the Reciprocal Tax Agreement between Ontario and Canada and is not liable to pay HST.

Financial audits

  1. The Minister may direct that the PSC be audited.
  2. The Ontario Internal Audit Division may carry out a periodic review and an internal audit.
  3. The PSC can be subject to periodic review and value-for money audit by the Auditor General of Ontario, under the Auditor General Act.
  4. The PSC will promptly provide a copy of every report from an audit to the Minister and the Deputy Minister. The PSC will also provide a copy of its response to the audit report and any recommendations therein. The PSC will advise the Minister annually on any outstanding audit recommendations.

Appointments

  1. The Chair is appointed by the Lieutenant Governor in Council pursuant to section 9 (2) of PSOA.
  2. The members of the PSC are appointed by the Lieutenant Governor in Council pursuant to section 9 (2) of PSOA.

Liability protection and insurance

The PSC is a “Protected Person” under the Government of Ontario General and Road Liability Protection Program covering third party liability where bodily or personal injury, death, or property damage including loss of use thereof is caused.

Effective date and duration of the MOU and periodic review of the MOU

Effective date and duration of the MOU

  1. This MOU becomes effective on the date it is signed by the parties and continues in effect until it is revoked or a new MOU is signed by the parties.
  2. If a new Minister or Chair takes office, the Minister and Chair must affirm by letter that the MOU will continue in force without a review; or alternatively, they may sign the existing MOU within six months of the change.
  3. Without affecting the effective date of this MOU, either the Minister or Chair may initiate a review of this MOU by written request to the other.
  4. A full review of this MOU will be conducted immediately in the event of a significant change to the PSC’s mandate, powers or governance structure as a result of an amendment to PSOA.

Periodic reviews

  1. The PSC is subject to a mandate review once every seven years.
  2. The PSC may be subject to a periodic review at the discretion and direction of TB/MBC or the Minister. The review may be risk-based and/or cover such matters relating to the PSC that are determined by TB/MBC or the Minister, and may include the mandate, powers, governance structure and/or operations of the PSC.
  3. The Minister will consult the Chair as appropriate during any such review.
  4. The Chair will cooperate in any review.

Signatures

Greg Orencsak, Chair, Public Service Commission

The Honourable Deb Matthews, President, Treasury Board