Thank you, Mr. Chair and members of the committee, for this opportunity to discuss the Public Accounts of Canada 2021.
I am pleased to be speaking to you from the traditional unceded territory of the Algonquin Anishinaabe people.
The Public Accounts of Canada 2021 include the consolidated financial statements for fiscal year 2020‑2021, which ended March 31, 2021, in addition to other unaudited financial information.
I am pleased to note that, for the twenty-third consecutive year, the Auditor General has released an unmodified or “clean” audit opinion.
This demonstrates once again the accuracy of Canada's financial reporting and the Government of Canada's commitment as an institution to the responsible financial management and oversight of taxpayer dollars.
I would like to thank the financial management community of the Government of Canada for their excellent work in helping to prepare the public accounts. Its members are responsible for maintaining detailed records of the transactions in their departmental accounts and maintaining strong internal controls.
I would also like to recognize my colleagues at the Department of Finance and the Receiver General for their ongoing support and co-operation in producing the public accounts.
Last but not least, I would like to thank the Office of the Auditor General for its continued co-operation and assistance.
Allow me to present a few financial highlights from the documents.
The government posted an annual deficit of $327.7 billion, compared to a deficit of $39.4 billion the previous year, which was $26.4 billion less than that projected in Budget 2021.
One of the main drivers compared with the prior year relates to program expenses excluding net actuarial losses. Those increased by $270.1 billion, or close to 80%, from 2020, largely reflecting transfers to individuals, businesses and other levels of government under the economic response plan.
The Public Accounts of Canada 2021 were tabled on December 14, 2021. The timing of the tabling was a result of the need to ensure that all the necessary adjustments were made to the government's consolidated financial statements in response to a September 29, 2021 court decision, as well as factoring in the time necessary to print the books.
This court decision altered the estimated contingent liability that was reported in the original financial statements completed on September 9. The government considered the impact of the court ruling and concluded that it required an adjustment to its financial statements. Accordingly, the financial statements were reopened and adjusted after the closing entry was received from Indigenous Services Canada. This is explained in Volume 1, Section 2, Note 22, subsequent events.
This revision is aligned with best practice, as well as public sector accounting standards and Canadian auditing standards. In fact, standards require the Auditor to consider facts up to the time that the financial statements are issued.
The Auditor General then audited the revised estimated contingent liability and dual dated her audit report date on November 19, 2021, to reflect the extension of her audit.
The Public Accounts of Canada 2021 were then finalized, sent for printing, and tabled on December 14, 2021.
While this court decision necessarily delayed the publication of the public accounts, I would note that under the Financial Administration Act, the President of the Treasury Board is required to table the public accounts by December 31, or, if the House of Commons is not sitting during that period, within the first 15 days once the House reconvenes.
I would also like to note that it is not unusual for the public accounts to be tabled in December in years when there is a fall election. In 2019, for example, they were tabled on December 12. In 2015, they were tabled on December 7.
Finally, Mr. Chair, as you know, the government committed to undertake a study of potential changes to the Public Accounts of Canada. We received preliminary feedback from the Library of Parliament on the presentation and format of the Public Accounts of Canada and have started engaging key stakeholders on potential changes to enhance their clarity and usability. Any proposed changes will be carefully examined to ensure that the government’s financial information continues to support transparency and accountability to parliamentarians and Canadians.
As this project advances, the government will continue to work closely with parliamentarians and stakeholders.
This concludes my remarks. Thank you for your attention.
We'd be happy to take any questions.
Thank you.