Mr. Chairman and members of the committee, thank you very much for the invitation to appear today to discuss the Auditor General's 2017 Spring Report on Managing the Risk of Fraud.
I am pleased to be here in my role as Comptroller General of Canada.
The Office of the Comptroller General of Canada works to strengthen the stewardship of taxpayer dollars and government assets across the federal public service, and thereby to support the overall effectiveness of public administration in Canada. We are responsible for providing functional direction with respect to financial management, internal audit, investment planning, procurement, project management, and the management of real property and materiel across the federal government. I would like to thank the Office of the Auditor General for its work on this chapter. It is most timely.
The government recently introduced a new policy on financial management as well as a new policy on internal audit, both of which took effect on April 1, 2017. Amongst other things, these policies reinforce how departments establish, monitor, and maintain a risk based system of internal control over financial management. As the Office of the Comptroller General assists departments in determining how best to implement these new policies, this audit will be most helpful.
Mr. Chair, the Government of Canada is committed to the sound stewardship of taxpayer dollars.
As a result of his review, the Auditor General recommended that the Treasury Board of Canada Secretariat should: increase awareness of the importance of managing fraud risks by supporting senior management in implementing fraud risk management; and consider issuing specific guidance on managing fraud risks and how its implementation could be monitored.
Mr. Chair, we agree with the Auditor General’s findings and are taking steps to implement these recommendations. In addition to introducing the policy I mentioned, the Treasury Board Secretariat is working with organizations to ensure they are effectively managing and monitoring fraud risks.
In May of this year, departments and agencies were contacted to remind them of deputy ministers’ responsibilities under the new policy on financial management. These responsibilities include establishing, monitoring, and maintaining a risk-based system of internal control over financial management; providing reasonable assurance that financial resources are safeguarded against material loss; and taking prompt corrective action when control weaknesses and material unmitigated risks are identified, including the risk of fraud.
At the same time, departments and agencies were also directed to comply with specific standards issued by the Institute of Internal Auditors on the management of fraud risks in accordance with the new policy on internal audit.
Moreover, in June 2017, a presentation was made to members of the internal audit community on their role regarding fraud.
Mr. Chairman, as you can see, much work has been done to address the Auditor General’s recommendations.
Going forward, the secretariat will continue to consult with departments and agencies on the need to update its guidance on the management of fraud risks. Going forward, this challenge is one of striking a balance between raising awareness and not overburdening departments and agencies with new requirements in the area of reporting and monitoring.
Thank you for your time today.
I look forward to your questions.