Evidence of meeting #17 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 video is available from Parliament.
11:50 a.m.
Liberal
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Let him answer the question. That's not a point of order.
11:50 a.m.
Conservative
11:50 a.m.
Liberal
11:50 a.m.
Liberal
Peter Fragiskatos Liberal London North Centre, ON
I would just ask that our colleague allow witnesses to answer the question. There have been a lot of interruptions. I was going to raise a point of order earlier, but they seemed to fade. Now they've come back.
I understand the colleague has an interest in the matter. That's no problem. He's doing his job, but let's give witnesses the courtesy to be able to simply answer questions.
11:50 a.m.
Conservative
The Chair Conservative John Williamson
I agree, witnesses need to be given the courtesy to answer. When the member is pressed for time, I do understand his urgency to get answers, as well. I'll try to balance that.
The floor goes back to you, Mr. McCauley.
11:50 a.m.
Comptroller General of Canada, Treasury Board Secretariat
Thank you very much.
In discussion with the department in question and with the Auditor General, obviously we made the call. I made the call that we needed to modify and amend the previously signed statements because there was a material change and it was before the tabling of the actual documents.
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
In your memory, have the public accounts been reopened before?
11:50 a.m.
Comptroller General of Canada, Treasury Board Secretariat
They haven't in my memory, to be honest with you, and not since I've been here, for sure. This is a very exceptional circumstance.
We had an event and it gave us information that we felt would put us in a better position to revalue and re-estimate potential liability. The difference was material, so we needed to make sure that—
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Have you ever had a similar event? Has this ever come up before? Surely we've had lawsuits settled. We've had oil shocks and price changes.
11:50 a.m.
Comptroller General of Canada, Treasury Board Secretariat
In my recollection and experience, usually events happen after March 31 and before the actual first audit report is signed. I've seen that happen where we adjust based on this new information.
This time it happened after the signing. We needed the House to table the public accounts. Because there was such a lag time because of the elections and reconvening of the House, I felt—
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Let me interrupt you there. You talked about a lag time because of the election, but even with the election they were signed off on September 9, so they were ready to table. I don't see that as an excuse.
11:50 a.m.
Comptroller General of Canada, Treasury Board Secretariat
There was no Parliament to table it into. The Parliament reconvened on November 19, if I'm not mistaken.
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
You could've tabled it then.
What would have happened if you hadn't reopened it? What cataclysmic event would have happened if we just tabled the books as originally signed off?
11:50 a.m.
Comptroller General of Canada, Treasury Board Secretariat
The Auditor General was aware that there was new information. I don't know what the Auditor General would have done, but my opinion is that there was a chance that the books would have been qualified, so again—
11:50 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Ms. Hogan, would you have reopened them on your own without the government approaching?
11:50 a.m.
Auditor General of Canada, Office of the Auditor General
The decision to reopen the financial statements once they've been signed off is not one for me to make. The decision that I can make is the impact on my audit opinion. I can tell you that the Government of Canada's financial statements have not had a double dating before since accrual accounting, but we have double dated an audit report in the past, back in 2010. There was a double dating of the public service pension plan audit report for a similar event, a lawsuit that was settled subsequent to year-end. It is very rare that subsequent events are of such importance that the financial statements need to be adjusted.
But in this case, it was a decision of the government to take up.
11:55 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
Do you think this is a case of such importance as you just mentioned?
11:55 a.m.
Auditor General of Canada, Office of the Auditor General
I looked at why the adjustment was made and how it was made and I believe it was appropriate, which is why my opinion is an unmodified opinion and has been double dated to take into account the one event that adjusted the financial statements.
11:55 a.m.
Conservative
Kelly McCauley Conservative Edmonton West, AB
But you mentioned the wording “of such importance”. Do you believe this is of such importance to reopen audited books?
11:55 a.m.
Auditor General of Canada, Office of the Auditor General
It was financially significant and had a pervasive effect on many liabilities, so it was important enough by the preparers, which is the Comptroller General's office, to be adjusted. Because that adjustment occurred, the standards required that I audit it and opine on it, which I have done and issued a clean opinion.