Thank you, Mr. Chair. It is a pleasure to appear before this committee today. I would like to acknowledge that we are on the traditional territory of the Algonquin people. It's always good to remind ourselves.
Before I begin, I would like to take a few moments to repeat my apologies for not being able to attend your meeting on February 15. I also want to acknowledge the committee for its study on the management of fraud risk within certain federal departments. Your work helps maintain the strictest standards of integrity, standards that ensure public trust in the management of the Government of Canada's accounts.
Indigenous and Northern Affairs, as it is currently styled, comprises 4,900 employees working in 13 regional offices and in headquarters. I have read the report prepared by the Auditor General of Canada on this study, and I am pleased that the Auditor General found that Indigenous and Northern Affairs Canada had many good practices already in place.
My department and I agree with the six recommendations put forward to improve our fraud risk controls.
I would like to go through each of the recommendations briefly and provide an update for the committee on our progress in implementing them.
The first is the recommendation on improving our method of assessing fraud risk, relating to clause 1.29 of the report.
My department and I agree with the recommendation that fraud risk assessments be reviewed and updated periodically following best practices. Our current fraud risk assessment was first completed in 2014 and updated in 2016. A review and update of the department-wide fraud risk assessment will commence in 2017-18. We intend to follow a regular cycle of review from that point on.
The second recommendation in paragraph 1.39 relates to training.
My department has complied with both aspects of this item.
The first was to provide targeted training for employees in operational areas at higher risk for fraud. Specifically, applicable employees in all regions received training on construction fraud awareness by December 2016.
The second aspect of this recommendation was to ensure that all employees take mandatory training in values and ethics in a timely manner. Since 2008, INAC has offered values and ethics training to staff at headquarters and in the regions. In 2016, values and ethics training became mandatory for all staff. I should note that I receive monthly reports on sessions delivered and on attendance. We have also added a component on fraud to ensure that this topic remains top of mind to staff.
The third and fourth recommendations, found in paragraphs 1.54 and 1.55, have to do with how we handle conflicts of interest. On this particular issue I would like to report that we have put in place revisions to our conflict of interest log system to provide the level of detail that is required for better follow-up and for better tracking. We have also done the necessary follow-up work for employees working in operational areas at high risk for conflict of interest.
The fifth recommendation, clause 1.71, relates to fraud in contracting.
We have implemented a number of measures to date to comply with this recommendation, including training, improved records management, a review of contract files, and improved quality assurance. Finally, we are exploring ways to detect potential procurement fraud risks using software.
The sixth and last recommendation, found in paragraph 1.80, relates to fixing any weaknesses in how we manage allegations of fraud within the department. We agree with the recommendation, and I am happy to report that we are in the process of developing a tracking log that will be ready by this coming December. We take very seriously allegations of fraud, and we use every opportunity to educate or improve our processes based on findings made in assessing such allegations.
In sum, Mr. Chair, my department welcomes the recommendations of the Auditor General and is well on its way to a strengthened approach to fraud risk management. With our complex service delivery models, fraud risk management is of the utmost importance.
I thank the committee for their attention. I would be delighted to answer their questions.
Thank you very much.