Financial Authority Policy 31-402 | Effective Date: September 26, 2024

Policy 

WorkSafeNB has established this policy to communicate the foundation of its financial management discipline, which is built upon four key elements.

Legislation and policies

1. The Workplace Health, Safety and Compensation Commission and Workers’ Compensation Appeals Tribunal Act (the WHSCC and WCAT Act) provides several provisions related directly and indirectly to financial authority.

• Subsection 8(1) - The affairs of WorkSafeNB shall be administered by a board of directors consisting of the following persons who shall be appointed by the Lieutenant-Governor in Council.
• Subsection 10(1) - The President and Chief Executive Officer (CEO) is the chief executive officer of WorkSafeNB and is responsible to the board of directors for the operations of WorkSafeNB within the guidelines established by the board of directors.
• Section 7 - In addition to the responsibilities prescribed in sections 4 and 5, WorkSafeNB shall…(i) prepare and approve its operating and capital budgets, (j) plan for the future of the workers’ compensation system.
• Subsection 16(1) - WorkSafeNB, the president and CEO of WorkSafeNB or the chairperson of the Appeals Tribunal may delegate any of his or her powers, duties, authority or discretion under this Act, the Workers’ Compensation Act, the Firefighters’ Compensation Act or the Occupational Health and Safety Act, to one or more persons in the manner and subject to the terms and conditions WorkSafeNB, the president and CEO or the chairperson of the Appeals Tribunal, as the case may be, considers appropriate.
• Subsection 16(2) - A person may sub-delegate any powers, authority, duty or discretion which has been delegated to the person under subsection (1), if permitted to do so by the terms and conditions of the delegation.

2. WorkSafeNB also complies with other applicable legislation and standards, including but not limited to the Income Tax Act (Federal), Excise Tax Act (Federal), the Procurement Act (New Brunswick) and International Financial Reporting Standards.

3. Implementation of these legislative provisions are guided in-part by By-law No. 1 and WorkSafeNB’s policies, directives, and procedures.

Principles

4. Principles grounded in best practice guide WorkSafeNB’s financial management policies, directives and practices, which include:

• Value for money - WorkSafeNB plans and manages with prudence and probity, assets are safeguarded, and resources are used effectively, efficiently and economically to achieve its strategic and operational objectives. 
• Accountability - WorkSafeNB establishes clear responsibilities for financial management that provide assurance to stakeholders regarding the effective use of the Accident Fund and the results achieved.
• Transparency - WorkSafeNB provides its stakeholders and government with pertinent, reliable and timely financial and related non-financial information and reports so that they can be well-informed of the use and management of the Accident Fund.
• Risk management - WorkSafeNB establishes effective and efficient systems of internal control, where controls are proportionate to the risks they aim to mitigate yet support innovation and results for stakeholders.
• Sustainability - WorkSafeNB makes financial decisions that consider the long-term financial health of the workers’ compensation system, including allocating resources to initiatives that align with WorkSafeNB’s strategic plan, business transformation, and continuous improvement objectives.
• Flexibility and Adaptability -WorkSafeNB integrates elements into its discipline that allows agility in financial planning and decision-making.
• Continuous Improvement - WorkSafeNB also aligns itself with best practices both in its operations and in the financial management discipline, this involves realigning with accounting standard changes and reviewing efficiency and effectiveness of financial policies and processes regularly.

Authorities and responsibilities

5. Financial authorities and responsibilities at WorkSafeNB are defined in By-law No. 1 and further detailed through WorkSafeNB’s directives.

6. Specifically, (but subject to its terms, as may be amended by the board of directors from time to time) By-law No. 1 – General Business Affairs requires, in part, that:

• WorkSafeNB’s Signing Officers are the individuals holding the positions enumerated below, whether permanently or temporarily in that position, and/or otherwise as may be designated or removed by the board of directors, by ordinary resolution, from time to time (collectively, the “Signing Officers”): 
  • President and CEO;
  • General counsel;
  • Vice-president, Strategy & Finance;
  • Vice-president, Claims Management & Rehabilitation;
  • Vice-president, Prevention;
  • Chief information officer;
  • Executive director, Corporate Communications; and
  • Executive director, Human Resources
• Contracts, documents, or instruments in writing requiring the signature of WorkSafeNB be signed by two (2) Signing Officers, with at least one being the president and CEO, general counsel or vice-president, Strategy & Finance.
• Execution by two (2) Signing Officers is not required for documents or instruments in writing issued pursuant to the Occupational Health and Safety Act, Workers’ Compensation Act or the Firefighters Compensation Act.
• Written hospitality contracts and related agreements (e.g., hotels, meeting venues) may be signed by any one (1) of the Signing Officers only, and their respective authority relating to the same may be delegated by each of them from time to time in their sole discretion.
• The board of directors may designate Signing Officers of WorkSafeNB in compliance with legislation.
• The Signing Officers may commit funds and authorize payments on behalf of WorkSafeNB or delegate their respective authorities in accordance with WorkSafeNB’s financial authority policies.

7. The General Counsel’s Office reviews all agreements and contracts with the exception of those that:

• Have a total value of less than $100,000 and is not an agreement or contract involving the:

a) Exchange of personal health information;

b) Exchange of employee information;

c) Construction, modification, repair of or addition to real property; or

d) Provision of health services;

• Adhere to a standard form of agreement or contract (as determined by the General Counsel’s Office);
• Serve as a renewal to a standard form of agreement or contract; or
• Are an offer of employment.

8. Board of director’s approval is required prior to signing any agreement or contract that:

• Is outside the ordinary course of business as defined in this policy;
• Is a multi-year contract that does not allow for termination for convenience, without fee or penalty, within 60 days;
• Concerns the purchase, sale, mortgage or lease of land; or
• The president and CEO determines that board consideration and approval is required.

9. These authorities and subsequent delegations are specifically addressed in WorkSafeNB directives, when appropriate.

10. In addition, all WorkSafeNB employees must adhere to Directive 33-000.44 Code of Ethics and the board of directors must adhere to Policy 41-013 Code of Conduct. Both documents affirm staff and board moral and ethical behaviour related to WorkSafeNB financial resources.

Practices and processes

11. In addition to adhering to applicable accounting standards, WorkSafeNB also implements practices for efficient control and management of funds:

• Transparency and public disclosure means that WorkSafeNB regularly produces timely financial reports and periodic forecasting for management, the board’s Finance and Investment Committee and Audit Committee, and stakeholders. WorkSafeNB also ensures its internal workforce has strong, dedicated financial professionals to support executives as strategic partners in providing advice and decision-making.
• Segregation of duties and clear accountabilities are defined and documented in directives. Clear roles and responsibilities also may include leveraging WorkSafeNB’s supply chain management function to help acquire cost effective goods and services in a manner aligned with provincial legislation.
• Oversight of higher-risk operations and quality assurance emphasizes the regular critical analysis of key performance indicators and the alignment of resources with annual planning priorities and objectives.
• Independent audit and evaluation functions are vital to WorkSafeNB’s financial management discipline. This includes an annual evaluation of financial statements by an external auditor as required by legislation, periodic audits of various aspects of financial management by WorkSafeNB’s internal auditor, and oversight of financial matters by the board’s Finance and Investment Committee and Audit Committee.

12. WorkSafeNB clearly documents its financial discipline and practices within a comprehensive structure of policies, directives, procedures, resources, and forms; and regularly self-assesses the control environment to ensure adherence to its discipline and that safeguards are effective. This will enable financial rigor, creating value for our stakeholders. The structure focuses on six primary functions with a series of topics documented under each. These topics may be adjusted as organizational requirements evolve. The functional areas may include:

• Account Structure;
• Authority;
• Purchasing and Contracts;
• Business and Travel Expenses;
• Paying People; and
• Managing Funds.

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