I think the situation is the inverse of what has been suggested here. Federal crown corporations have been following accrual accounting since 1984. So it is in place and functioning well in crown corporations. The Auditor General has indicated that accrual accounting has been adopted by the government ministries, departments, and agencies. But our concern is that the government has not yet adopted accrual-based principles in the budgeting and appropriations processes. That concern relates to
departments, not crown corporations.
We made a recommendation in our special examination report that VIA Rail in its next corporate plan should outline all the repercussions and issues premised on its investments plan. In collaboration with government officials, the board and management should develop alternative strategies to enable the corporation to fulfill its mandate within the funding envelope the government has provided.
The corporation responded by saying, “Management agrees that access to infrastructure is key to realizing half of the benefits set out in the medium term investment plan.... ... Management agrees with the recommendation” and “has prepared an assessment of the impact of not increasing frequency in the Quebec City-Windsor corridor.... An alternative plan was developed to mitigate the impact of not realizing the benefit of additional frequencies in the Quebec City-Windsor corridor” and this “alternative plan was incorporated into the 2009-2013 corporate plan, which is currently under discussion with the representatives” of the Department of Transport.
So the committee may wish to look at that 2009-2013 corporate plan and talk to the corporation about its alternative strategies and whether or not its funding requirements are being met.