Public sector organizations provide programs and services to B.C. citizens. When there’s a need for a new program or service, it’s usually integrated into an existing ministry or organization. If the government determines that the program or service can’t be delivered most effectively by an existing ministry or organization, a new public sector organization is established.
Establishing a public sector organization is a complex process. The Crown Agencies and Board Resourcing Office (CABRO) guides the ministry responsible for the new organization through the creation process to ensure all steps are followed and to prevent unintended consequences.
A new public sector organization may be established when the following is needed:
- Expertise from a private sector board of directors on an ongoing basis
- Increased operational flexibility
- Independent administration
- An independent authority to collect contributions
Cabinet Submission
The ministry proposing the new organization prepares a Cabinet submission that includes a detailed business case for its creation.
Once Cabinet and Treasury Board approve the submission, the Cabinet appoints a minister who will be responsible for the new organization.
Determine Legislation
Most public sector organizations must be supported or enabled by legislation.
Enabling legislation is the preferred method for creating the organization, however other types of legislation may also be considered, including:
- Business Corporations Act
- Omnibus Act
- Society’s Act
- Regulations under an existing statute or enabling legislation
Create Committees
Committees contribute to the overall effectiveness of the organization and ensure best practices are consistently followed. There are certain committees that must be established within each organization.
Establish Policies and Processes
Policies and processes set standards for the operation of the organization and are established by the board of directors.
Examples of policies and processes that are established when an organization is created are:
- Standards of conduct/code of ethics
- Budgeting and financial reporting
- Communications
- Accounting
- Reporting structure
- Procurement and contract management
- Meetings and quorum
- Records retention