Public Accounts Committee on Dec. 18th, 2024

Evidence of meeting #159 for Public Accounts in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was accounts.

A recording is available from Parliament.

On the agenda

Public Accounts of Canada 2024

MPs speaking

Nathaniel Erskine-Smith

Nathalie Sinclair-Desgagné

Richard Cannings

Also speaking

Karen Hogan Auditor General of Canada, Office of the Auditor General

Annie Boudreau Comptroller General of Canada, Treasury Board Secretariat

Chris Forbes Deputy Minister, Department of Finance

Evelyn Dancey Assistant Deputy Minister, Fiscal Policy Branch, Department of Finance

11:10 a.m.

Liberal

Francis Drouin Liberal Glengarry—Prescott—Russell, ON

You advised department officials on Monday, but we found out at 4:30 p.m. yesterday. That is disrespectful to members.

11:10 a.m.

Conservative

The Chair Conservative John Williamson

Thank you, Mr. Drouin, for your point of order.

Ms. Hogan, you have the floor for five minutes.

11:10 a.m.

Karen Hogan Auditor General of Canada, Office of the Auditor General

Mr. Chair, thank you for this opportunity to discuss our audit of the Government of Canada's consolidated financial statements for the 2023-24 fiscal year.

I would like to acknowledge that this hearing is taking place on the traditional unceded territory of the Algonquin Anishinabe people.

With me today are Andrew Hayes, deputy auditor general, and Sana Garda and Etienne Matte, who are financial audit principals.

Our audit of the government's financial statements is the largest of the audits carried out by my office. It involves almost every one of our financial auditors working to ensure that the data presented in the statements is complete and accurately reflects the government's financial results for the year. This work serves to help Parliament exercise its oversight of the government, promotes transparency and accountability and encourages good financial management.

You will find our independent auditor's report on the government's consolidated financial statements starting on page 55, volume I, of the Public Accounts of Canada 2024.

We issued an unmodified or clean audit opinion on the government's consolidated financial statements. A clean opinion means that the information in the financial statements was presented fairly and in accordance with Canadian public sector accounting standards. In other words, readers can rely on the information provided in the financial statements.

In 2023, our auditor's report was dated September 7, and the public accounts were tabled on October 24. This year, the government took longer to finalize the consolidated financial statements, which caused delays in completing our audit. The tabling of the Public Accounts of Canada happened yesterday.

The public accounts are a key accountability document. They help Canadians and parliamentarians understand how public funds were spent compared to the commitments and promises the government made in the year's budget.

When this information is not available in a timely way, its usefulness and relevance is compromised, and the opportunity for Parliament to use this information for decision-making is reduced.

Each year, my office also provides Parliament with a commentary that highlights important information about the results of all our federal financial audits. This year, we are drawing attention to opportunities for improvement that we noted in the financial reporting process. The office of the comptroller general leads and oversees financial accounting and reporting across the federal government. Based on the results of our work, greater oversight is needed from that office for significant transactions and new programs across the government.

This year's commentary highlights a weakness that we have covered in past reports: 80% of Crown corporations did not have their corporate plans approved before the start of their fiscal year. Delays in approving these plans must be addressed because they result in operational inefficiencies, project delays or additional costs.

We also raise observations about pay administration, deficiencies in the IT general controls over some key government systems, the accounting for asset retirement obligations and national defence's inventory. These are recurring issues that my office continues to monitor.

Mr. Chair, I would like to thank the dedicated staff across the many departments, agencies and Crown corporations involved in preparing the government's financial statements.

This concludes my opening remarks. We would be pleased to answer any questions the committee may have. Thank you.

11:15 a.m.

Conservative

The Chair Conservative John Williamson

Thank you.

We will now hear from Ms. Boudreau, who will have five minutes for opening remarks.

11:15 a.m.

Annie Boudreau Comptroller General of Canada, Treasury Board Secretariat

Mr. Chair, thank you for the opportunity to appear before the committee today.

I'm pleased to be joined by officials from my department: Blair Kennedy, executive director, and John Daley, senior director.

As committee members are aware, the production of the Public Accounts of Canada is set out in the Financial Administration Act. Deputy heads and chief financial officers of organizations are responsible for the accuracy of the information provided and are required to follow the Government of Canada's accounting policies, which are based on public sector accounting standards.

The production and finalization of the public accounts are a joint responsibility between the Receiver General for Canada, the Department of Finance and the Treasury Board of Canada Secretariat, which includes the Office of the Comptroller General of Canada.

As comptroller, one of my responsibilities is providing leadership for financial management within the Government of Canada. My office provides government-wide leadership on accounting standards and preparation of the departmental financial statements, including the preparation of the Public Accounts of Canada.

The Department of Finance is responsible for the part containing the financial statement discussion and analysis, which sheds light on the variances with the budget. The receiver general compiles the data received from departments, agencies and Crown corporations, and publishes the public accounts.

Lastly, the Auditor General performs an audit of the consolidated financial statements included in the public accounts. I am pleased to say that, for the 26th year in a row, the Auditor General has issued an unmodified, or clean, opinion on these financial statements. This demonstrates the high quality of Canada's financial reporting and the work of my colleagues in the public service. I would like to thank the financial management community of the Government of Canada, the Department of Finance, the receiver general and the Office of the Auditor General for their help in preparing the public accounts.

I would now like to touch on the timing of this year's public accounts, which I know has been of interest to this committee.

The government is legally required to table the public accounts no later than December 31 following the end of the fiscal year or within the first 15 days once the House reconvenes if it is not sitting during that period. I want to assure the committee that we always endeavour to table the public accounts at the earliest opportunity.

Several significant and new transactions were accounted for as part of the preparation of the 2023-24 consolidated financial statements. My team and I needed to take adequate time to ensure that the results presented were fair and credible and were in accordance with public sector accounting standards.

Some of these transactions included contingent indigenous liabilities and provisions for accounts receivable and loans, in particular COVID-19 programs and the Canada student loans service. The government also had to assess whether any important events happened between the financial statement date and the finalization of the public accounts.

Specifically, it had to determine whether certain events should be accounted for or explained in more detail in the notes to the financial statements. One situation requiring additional information was the recent confirmation of the non-permitted $1.9‑billion surplus in the public service pension fund. Further analysis and work was necessary to complete this year's public accounts, which is why their tabling was delayed.

Regarding our response to the committee's recommendation that the tabling date be moved up, we remain committed to tabling the next public accounts by October 15, 2025, barring any exceptional circumstances.

I would like to thank the committee for its interest and this opportunity. As the newly appointed comptroller general of Canada, I am honoured and privileged to be here today to discuss the Public Accounts of Canada 2024. My colleagues and I would be pleased to answer the committee's questions.