I believe that means that those institutions are not complying with the act. They have a duty to ensure the act is complied with. However, they are not doing it. If your paragraph means anything, in English or in French, it means that they are not auditing, and if they are not auditing, they are not complying with the act. It is their obligation to do so.
For someone who is supposed to monitor them, I find you extremely indulgent, and that troubles me. You cannot give parliamentarians on this committee a paragraph such as this to read without expecting to startle them. Your answer startles me even more. I would have expected you to say that this is troubling, that you are going to take such and such a measure to ensure that those institutions ensure that the Official Languages Act is complied with when they contract certain services out to third parties. There are serious indications that this is not being done.