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Public Accounts committee  Do you mean some of the changes that SDTC made?

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  I think it was more that Innovation, Science and Economic Development Canada, the department responsible for monitoring the compliance with the contribution agreement between the government and the foundation, made changes very quickly. They clarified the role of an observer who might sit on the board of directors of a foundation, and they improved their information requests from this foundation and others in order to have better information to monitor the use of public funds and the management of conflicts of interest.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  When there are such chains of contracts over a short period for work that is very similar, the risks are increased. So I wonder about that. I wonder a lot about the reasons behind such practices. In this case, it has led to several important findings. At the beginning of a process, you have to determine why you need a contract and what kind of contract you need.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  Over the period audited...yes.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  For the services that McKinsey provides...yes.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  That's correct.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  I think your question touches on an important element of determining what should be done by everyone at the start of a procurement process. Before you decide that you want to issue a contract, you should figure out what you need this contract for. Is it to help with capacity issues?

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  I would say that the extent to which policies were not followed in terms of contracting and risks to value for public money varied across organizations. This is the first time we've been able to look at how Crown corporations and departments or agencies award contracts. We found that this lack of compliance exists in all organizations.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  Yes, that must be done. The lesson I would take from all of this is that it's important to have proper oversight. Monitoring is necessary. Whether we're talking about the awarding of contracts or the governance of a foundation, it is important to closely monitor the use of public funds and ensure compliance with policies and statutes.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  I don't think adding more rules helps the situation. It is really a matter of following the existing rules and determining the root cause of what we are seeing. We would have to see if there are too many rules and if they are too complicated. We have to evaluate that process as a public service.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  Mr. Chair, we can provide that information. I believe that Mr. Hayes would like to add.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  These are really big questions spanning 12 years. The public service has changed so much over the course of 12 years. I would start by telling you that, as an auditor, if you haven't documented something, it didn't happen. It's important, if you're making a judgment call or if there is a potential conflict of interest, that you ensure you're properly documenting decisions, mitigating measures....

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  I have to get back to you on the specifics of the dates. I don't have that level of information on all 97 contracts at my fingertips today.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  Yes, you're correct in that the CRTC seized devices as they were investigating an allegation against the anti-spam legislation. During that investigation, they uncovered that a law enforcement agency had a criminal investigation ongoing. I do not know the nature of that criminal investigation.

June 4th, 2024Committee meeting

Karen Hogan

Public Accounts committee  Yes, the CRTC was informed of the possibility of being served with a warrant after they had provided the electronic information to law enforcement. In an expedited fashion, they did accelerate cleaning the devices or deleting the contents of the devices and returning them. The incorrect information they provided to law enforcement was around the timing.

June 4th, 2024Committee meeting

Karen Hogan