Thank you and good morning, Mr. Chair.
I want to begin by acknowledging that we are gathered on the traditional unceded territory of the Algonquin Anishinabe people.
With me today are Deputy Auditor General Andrew Hayes and the principals and directors responsible for the audits. Mr. Hayes will answer questions about the three environmental audits that were led by the commissioner of the environment and sustainable development.
The nine performance audit reports that were just tabled in the House of Commons touch on issues that matter directly to Canadians, including national security, public health, financial integrity, government services and environmental protection. Although the subjects are varied, these audits tell an important story about how federal organizations manage risks and deliver results.
Overall, our audits found progress in some areas, but they also revealed persistent problems in others. In several cases, we found that organizations were slow to address known issues. This contributed to delays, higher costs and programs that did not deliver their expected benefits. In contrast, our audits of two newer programs showed positive results and identified early opportunities for improvement.
Our audits of ammunition management and the public health emergency stockpile found weaknesses in how the organizations planned for future needs and managed essential supplies. In both cases, problems that had been identified through earlier audits had not been fully addressed. These weaknesses raise concerns about preparedness for future needs.
National Defence lacked reliable inventory information and a comprehensive assessment of the ammunition it needed, both for regular use and for its strategic stockpile. Its inventory controls also needed improvement, and there were significant gaps between what was required and what was available in some inventory classes. Without reliable information and sound planning, National Defence does not have a clear picture of the types and quantities of ammunition it needs.
The Public Health Agency of Canada responded to all 81 requests for medical supplies it received over the last two years. However, our audit found significant weaknesses in how the agency managed the stockpile for public health emergencies. It did not know the types and quantities of many supplies it needed to respond to major public health events in the future.
These findings highlight the importance of sound planning and acting on known problems before an emergency occurs. Responding to immediate needs is important, but so is being prepared for the future.
We also found weaknesses in how organizations managed major investments and measured results. The Canada Border Services Agency invested more than $800 million to develop and maintain the system it uses to process duties and taxes on commercial imports. While the system is operational, the agency has not realized expected benefits. Employees continue to rely on manual workarounds and older systems because some functions that the new system was meant to include were deferred to meet the planned deployment date.
Our audit of contracts to modernize federal call centre technology found problems with procurement and contract management. Costs increased, modernization was reduced, and weaknesses in planning for replacement systems created a risk that services to Canadians could be interrupted. We also found that Shared Services Canada did not consistently verify invoiced amounts or exercise rigorous controls over payments, which echoes findings from previous procurement audits.
We found similar concerns about effectiveness at the Financial Transactions and Reports Analysis Centre of Canada. This centre helps protect Canada's financial system from money laundering and terrorist financing. The centre takes an average of nearly four months to provide financial intelligence to law enforcement agencies. We also found that the centre had relaxed its approach to how it supervises businesses. As a result, there was less assurance that these businesses were meeting their legal obligations.
The findings from these three audits highlight the importance of both effectiveness and efficiency. Whether managing major investments or carrying out critical responsibilities, federal organizations should be able to demonstrate that they are achieving their intended results.
Transparency and accountability are also fundamental responsibilities of federal organizations. In that regard, our environmental audits raised concerns about how departments were working to meet Canada's commitments.
In our audit on the implementation of the Canadian Net-Zero Emissions Accountability Act, we found that Canada was moving further away from its 2030 greenhouse gas emissions target. The government's latest projections showed a smaller reduction in emissions than previously anticipated. As planned measures changed, with some being cancelled or adjusted, Environment and Climate Change Canada did not report how Canada's plan will shift to meet the government's 2030 reduction target.
In our audit of thermal coal commitments, we found that Environment and Climate Change Canada stopped working to implement Canada's ban on thermal coal exports. It did so without completing planned assessments or informing Canadians. In addition, Global Affairs Canada had not publicly reported on progress and implementation challenges related to Canada's financial support for developing countries moving away from coal-fired electricity.
In these first seven audits, we see the importance of preparing for challenges and delivering results. During the pandemic, we saw that the public service could rise to the challenge.
However, being as prepared as possible also means learning from experience and addressing weaknesses before they become persistent problems. This means optimizing the use of public funds and being transparent about results, challenges and the progress made.
Looking ahead, our two remaining audits show how newer programs can deliver results from the start and identify opportunities for improvement early.
These audits show that organizations can deliver results quickly.
Our audit of Health Canada's monitoring program for pesticides in water, which the department launched in 2024, shows that this program is already producing useful information and informing regulatory decisions. Now the department needs to take the next step and follow up on all pesticides identified as posing a higher risk based on monitoring carried out to date.
Similarly, our audit of the Canadian dental care plan, which was launched just under three years ago, found that Health Canada efficiently managed this new program to provide access to affordable dental care. As of March 2026, almost seven million people had registered for the plan. Our audit showed opportunities to build on these strong early results.
For example, Health Canada can improve its communications, better measure if oral health is improving for people receiving services and reduce barriers to access. For example, 61,000 children in care across Canada currently cannot access these dental benefits.
Acting on our findings will help federal organizations address known weaknesses, seize opportunities for improvement, better prepare for the present and the future, and deliver strong results that Canadians expect.
That concludes my opening remarks.
We would be pleased to answer any questions committee members may have.
Thank you.