Thank you, Madam Chair.
I'm happy to appear before your committee for the first time as the President of the Treasury Board.
I have with me, as I indicated, Mr. Wayne Wouters. I didn't indicate the title of Mr. St-Jean. Of course, he's the Comptroller General of Canada.
Today I'd like to update the committee on the activities of the secretariat in four areas: the implementation of the Federal Accountability Act and action plan, the expenditure management system, the accrual budgeting issue, and large IT projects.
I will begin with some brief remarks, after which I'll be open to answering questions.
Improving accountability in government has been our number one priority since we took office. Our commitment to accountability did not stop with the introduction of the Federal Accountability Act on April 11, nor with royal assent on December 12. We've delivered and will continue to deliver by ensuring that all aspects of the act and its companion action plan are implemented. Together they provide measures to reduce the influence of money in politics, protect whistle-blowers, and improve government contracting.
They strengthen financial management and internal audit functions within departments and ensure more consistent discipline for those who deliberately break the rules. They ensure that agents of Parliament, like the Commissioner of Lobbying and the Public Sector Integrity Commissioner, have the power they need to be effective, independent watchdogs.
But accountability is not just about putting in the right controls and rules to make government work better. It is also about accountability for real results for Canadians. Every year, some $27 billion is transferred to individuals, corporations, and NGOs through grant and contribution programs. Yet time and money are being wasted administering rules and processes that add little to results and nothing to accountability.
I'd like to take a moment to thank my predecessor, Mr. Baird, for the good work he did in this department and the initiatives he commenced. They have certainly made my transition much easier.
My predecessor appointed a blue ribbon panel to recommend ways to make the management of these programs more effective and efficient. The panel will be making its report public in the next few weeks, and I'll be making the government's response public at the same time.
We are also reforming government procurement policy. There is a new code of conduct for procurement that applies to both suppliers and public servants. There is a procurement ombudsman to review practices across the government, consider complaints, and help resolve disputes. These are just a few of the elements of accountability that we are working diligently to put into effect.
I would like to take a few minutes to explain in some detail how we are implementing the act. Let me begin by saying that officials at the secretariat and across government are doing their part to put the act into effect as quickly as possible.
Getting the act passed into law took a lot of hard work. Implementing this complex piece of legislation will take even more time and effort. This is because we need to ensure that all the pieces are in place to ensure a smooth transition.
Some of the major activities that need to be completed are as follows. We are developing several sets of regulations. Those regulations are evident from the act itself, for example, those around the administrative penalties under the Conflict of Interest Act. Some of these will require significant public consultations, and the regulations around the new provisions of the Lobbying Act are a good example of this.
So it's not simply a matter of the act coming into force and simply proclaiming a regulation; consulting needs to be done to ensure that this is done in an appropriate way.
A number of Governor in Council appointments will need to be made. Most of these, including the appointment of the new Commissioner of Lobbying, will require Parliament's review.
A number of the government's administrative policies will need to be amended, including the government's financial management and procurement policies.
Finally, in some cases organizations will need to put new work units in place to administer the new requirements. For example, crown corporations that will now be subject to the Access to Information Act will need to have personnel in place to administer ATI the day it comes into force.
Communications and outreach will also be critical. We will be informing the public, as well as departments and agencies, of the new provisions of the act as they are brought into force. We will ensure that all interested parties are aware of the implications and have the capacity to respond.
The Public Servants Disclosure Protection Act is a case in point. In order for this to be brought into force, several critical steps need to be completed. These include establishing the Public Servants Disclosure Protection Tribunal; ensuring that organizations are ready to fulfill their new responsibilities; and approving the Public Sector Integrity Commissioner to administer the act.
With regard to the last point, we are doing our part to select a strong candidate. When we bring forward our nominee for this position, I hope I can count on you as parliamentarians to ensure that the vetting process takes place as efficiently and as fairly as possible.
Training is also critical to the effective implementation of the FAA. We will be working with the Canada School of Public Service to update existing courses and to ensure that appropriate training is provided.
We have a lot to do to implement the act, but we are moving forward to implement the commitments in the federal accountability action plan. For example, there are several reviews under way to make government work better for Canadians, especially those who interact with government on a regular basis. These initiatives include the ongoing renewal of the government's management policies and the blue ribbon panel review of grants and contributions that I mentioned earlier.
In summary, we are working hard to bring the act into force as expeditiously as possible, but each of these activities will require time and resources to ensure that every organization is ready to properly administer the new activities and to comply with the law. The timetable for implementation will be finalized soon, after consultation with affected stakeholders. In the next few weeks, Treasury Board will begin the process of considering the enabling regulations that will implement the act. We will keep working at it until it's done and done right.
Madam Chair, the Federal Accountability Act was this government's first step in enhancing accountability in government. Improving how spending is managed through a new expenditure management system is the next step to ensure Canadians' hard-earned tax dollars are well spent. That's why, in November, we announced the directions for a new expenditure management system. Our goal is to ensure that every tax dollar spent is well spent. For new spending, that means making decisions in the context of other spending in the same area. For existing spending, it means an ongoing systematic review to make sure programs are still relevant and are achieving the intended results and that funding is adequate.
Simply put, our new approach to expenditure management will support managing for results by establishing clear responsibilities for departments to better define the expected outcomes of new and existing programs. Secondly, our new approach will support decision-making for results by ensuring that all new programs are fully and effectively integrated with existing programs by reviewing all spending to ensure efficiency, effectiveness, and ongoing value for money. Finally, we will support reporting for results by improving the quality of department- and government-wide reporting to Parliament. Ultimately, this new system will ensure that all government programs are effective and efficient, focused on results, and provide value for taxpayers' money.
In the time I have remaining, I'd like to address some of the committee's other concerns: the use of full accrual accounting for departmental budgeting and appropriations and our approach to large IT projects. I have received perhaps more briefing on accounting in the last month than I've received in quite awhile, and I'm beginning to understand how diligently my staff work at these issues. I know they're very much interested in what the committee has had to say on these issues, and I intend to work with the committee and work with the department to ensure that any changes in that respect are implemented carefully and indeed benefit Canadians.
I would like to thank you, Madam Chair, and the members of your committee for your efforts in improving financial management and reporting by the Government of Canada.
The benefits of accrual accounting are well accepted. The accrual method of accounting could improve transparency in financial management and therefore accountability. I'm sure you appreciate the complexities involved in designing and implementing such a system. That's why the secretariat is studying the issue carefully. Our position, which will be included in our response to the public accounts committee, will form the basis of the government's position to be presented in the debate on the concurrence motion for your committee's report. Until that time, I don't want to prejudge the outcome of our deliberations.
Another way we are working to improve accountability in government is by strengthening our ability to manage and implement large information technology projects. Specifically, we have developed an action plan, which builds on the progress made, to address the Auditor General's concerns in this area. That includes developing clear expectations with new policy and a directive on the management of IT projects, providing new guidance and tools, training and development programs, and strengthening the secretariat's oversight of large information technology projects.
Madam Chair, the technology underpins the delivery of almost every program and service we deliver to Canadians. That is why we take the management of these IT projects so seriously.
The theme that runs through every one of the activities I've talked about today is about improving accountability in government. I'm proud of the ongoing efforts on behalf of the people of this country that we as parliamentarians have made. Certainly in passing the Federal Accountability Act, we're working hard, I believe, to restore trust in government by ensuring we have the right measures in place to enhance accountability and manage spending, to provide value for money and real results for Canadians. We won't stop until the job is done.
Thank you. I'm prepared to answer questions.