Evidence of meeting #41 for Environment and Sustainable Development in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was audit.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Sheila Fraser  Auditor General of Canada, Office of the Auditor General of Canada
Ron Thompson  Interim Commissioner of the Environment and Sustainable Development, Office of the Auditor General of Canada

11:50 a.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

That's one of the options.

11:50 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

It was one of the options, and we would certainly like to hear what members think about it.

11:50 a.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

I will tell you what I think, if I may.

I'm trying to remember back to the reports that you released that had a big impact. I live in a rural riding. The gun registry one, for example, had a big impact through the media.

11:50 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

Media impact.

11:50 a.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Sure, yes. True indeed, because we are still with the gun registry.

The sponsorship program. I'm trying to imagine one of these little books being presented along with your conclusions on the sponsorship program and trying to imagine any attention being given, no matter what was in this environment book, because what happened in those moments in terms of the media and the public attention clearly went to something that was quite large and lasted for a year or two.

My opinion, and I am not so much asking a question as I am stating this, is that the chances of the environment being elevated even further with you releasing other reports on other audits just based on past experience and effectiveness—I'm really suspicious of that. I just can't imagine a report on water quality on first nations reserves given by the Commissioner of the Environment standing with a sponsorship program report. It's got a snowball's chance. There's just no way.

11:50 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

I would just assure the committee that I hope I never have to have another report like sponsorship.

11:50 a.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

I'm sure the current government hopes you never have another report like the sponsorship as well.

11:50 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

We have issued probably close to 150 audits. I would say there have been three or four that have received that kind of exceptional media attention.

11:55 a.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

My last question—

11:55 a.m.

Conservative

The Chair Conservative Bob Mills

Hopefully we'll get back to you.

Mr. Warawa.

11:55 a.m.

Conservative

Mark Warawa Conservative Langley, BC

Thank you.

Ms. Fraser and Mr. Thompson, the reason why you're here before us today, of course, is for us to hear your testimony regarding the motion that was tabled last week from Mr. McGuinty suggesting that the office of the environment commissioner be separate from the Auditor General's office.

I have a couple of questions. Mr. Chair, I will be splitting my ten minutes with Mr. Harvey, so I'll just be taking five.

How is the Office of the Auditor General audited?

11:55 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

11:55 a.m.

Conservative

Mark Warawa Conservative Langley, BC

Yes. Can your office be audited?

I really appreciate the job that you've done in making sure you measure the effectiveness of how we work as government. I love your reports. I keep in my folder here the highlights since 1998. I won't read those. But I'm sure you'll be keeping this government accountable too.

How is your office audited?

11:55 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

In fact, several audits are done of us. Obviously a financial audit is done each year. That is done by a private sector accounting firm, and those audits are published in our departmental performance report.

The real issue, though, is not our management of finances, because it is not that complicated within our office. The issue is really about the quality of the work we do and what we have done.

In 2001, I believe, we had a peer review done of our financial audit practice by a major firm in the private sector. The report was released in 2004.

In 2000 we had an audit done of our performance audit practice, of which the environmental audit is part. That was done by peers of ours. An international team—the audit offices of France, Norway, and the Netherlands, led by Great Britain—did an audit of us. The report is on our website. As with any audit, there were recommendations, and our action plan to address those recommendations is there as well. We are planning to have another peer review done by an international group of colleagues before the end of my term.

11:55 a.m.

Conservative

Mark Warawa Conservative Langley, BC

You mention in paragraph 7 that your office has become a world leader in environmental auditing. You've also mentioned that in the 50 nations in the international auditing community, most governmental environmental auditing is done through an auditor general's office or through a design similar to what we have. Is that because of the success we've had in Canada—because we are world leaders—or is it the other way around?

11:55 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

I'm not sure I can answer that. There are some countries—New Zealand, for instance—that have a distinct commissioner of the environment. Most countries, though, do not have that kind of position, and most countries, quite honestly--well, some of the European countries do a fair bit of environmental auditing work. I would look at countries like the Netherlands, Norway, and probably Great Britain, to a certain extent; they in fact do environmental auditing, and it is done by the auditor general or the auditor general's equivalent, so it is part of their work.

I was trying to make the point in my opening statement that our environmental audit practice is not limited simply to reports issued by the commissioner. It is integrated into all the audit work we do, even financial audits or audits of crown corporations; the environmental aspect is integrated throughout the practice.

11:55 a.m.

Conservative

Mark Warawa Conservative Langley, BC

What would be the pros and cons, the advantages or disadvantages, of having the commissioner's office separate from your office?

11:55 a.m.

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

As I said earlier, I think the issue is really about the role the separate office would have. If it were to have a role of policy analysis advice to government, that is obviously not a role we could play, and so obviously there would not be a conflict with us. If it were set up as a separate audit group, I would be concerned for a number of reasons. Duplication would be one, but also we would have to continue to have a group of environmental auditors within our office to be able to do all our other audits. The environment is a very important part of government management, so I would certainly be very reluctant to say I'm not going to do that anymore and someone else will do it.

I look at other organizations that exist and may have an auditing role as well—for example, in the case of the Public Service Commission, which has an audit role over classification, we still continue to do audits of human resource management, so it's not because somebody else may have parts of it that we would not audit a very important issue.

Noon

Conservative

Mark Warawa Conservative Langley, BC

Thank you.

Noon

Conservative

The Chair Conservative Bob Mills

Mr. Harvey is next.

Noon

Conservative

Luc Harvey Conservative Louis-Hébert, QC

Ms. Fraser, I listened to my colleagues' questions and I think they're trying to politicize the environment commissioner's role. Based on their questions, they seemed to be trying to make the commissioner a policy advocate.

The Auditor General's role is apparently to compare the government's objectives and the outcomes. Is that correct?

Noon

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

The objectives must be made clear and explicit, whether via legislation, a policy, or some other mechanism. Objectives may, for example, be announced during an election campaign by a party hoping to form a government. We wouldn't comment on such objectives. However if a policy or legislation were adopted, we would review its implementation and audit the way in which the government is meeting its objectives.

Noon

Conservative

Luc Harvey Conservative Louis-Hébert, QC

If there were to be an independent environment commissioner, would you still need to conduct environmental audits?

Noon

Auditor General of Canada, Office of the Auditor General of Canada

Sheila Fraser

Absolutely. The environment is a very important issue and is part of many of our audits. We would need to continue with our environmental auditing and maintain the expertise we have at the office.

Noon

Conservative

Luc Harvey Conservative Louis-Hébert, QC

So if this comes about, there would be a direct duplication of a service.