Thank you very much, Mr. Chairman and members of the committee.
I've got a few opening comments, which I'll shorten to give you more time for questions.
I'd like to thank you for inviting me to appear before the committee to discuss the November 2006 report of the Auditor General regarding the Office of the Correctional Investigator.
I would in particular like to discuss the actions my office is taking to strengthen financial management and internal audit in small departments and agencies. My office has provided advice and support to the Office of the Correctional Investigator in responding to recommendations.
For example, we've assisted the office in acquiring the services of an interim senior financial officer. We are also providing financial management and internal audit advice and support, and we've also worked closely with the Office of the Auditor General to review the audit material. I would like to thank especially Mr. Jean Ste-Marie and Mr. Neil Papineau for their ongoing assistance in this matter. I'm also co-chairing the advisory committee with Mr. Sapers to ensure a coordinated and comprehensive response by government.
Clearly, however, this case also indicates a need for broader efforts to strengthen internal audits and financial management across government as a whole. My office is leading this effort, and our work is well supported by the Federal Accountability Act that came into effect on December 12, 2006.
As part of the accompanying Federal Accountability Action Plan, which complements the act, the government also committed to implementation of the policy on internal audit. Let me say a few words about the internal audit policy, which came into effect on April 1, 2006.
Under the policy, the Office of the Comptroller General has a mandate to conduct horizontal and other audits of small departments and agencies. We are conducting our first horizontal audit of travel and hospitality in small departments and agencies and we will be reporting this in the next few months. My office expects to complete this work in the next few months.
In our next small departments and agencies audit we will review the use of delegation of authority. We're also exploring the possibility of conducting an audit of the financial management practices associated with overtime, leave, and taxable benefits. By conducting these audits we can support small departments and agencies in identifying problems and implementing solutions and we can resolve issues before they have a chance to escalate.
There is also a broader policy review under way that will support our efforts to strengthen financial management across government.
That review is near completion and the report will be presented to the President of the Treasury Board in the near future. Once the new financial policies are in place, everyone's role and responsibilities will be clearly defined, and accountabilities will be clear.
The Federal Accountability Act and action plan, the review of the financial management policies, and the policy on internal audit and the management and accountability framework are just some of the many actions we have taken to strengthen financial management, internal audit, and overall accountability across the government. These actions address many of the issues raised in the Auditor General's report.
No systems, measures, or sanctions can completely eliminate problems in an organization as large as the Government of Canada, but we can mitigate the risk.
Thank you very much. I look forward to your questions.