The official financial results of the government are published in the Public Accounts of Canada and in the annual financial report of the Government of Canada on an annual basis.
The practice of netting revenues and expenses in the public accounts and in the annual financial report changed in fiscal year 2002-03. This change involved eliminating the netting of some revenues and expenses and presenting these only on a gross basis instead of both net and gross.
These financial statements received an unqualified, clean, audit opinion from the Auditor General. The Auditor General viewed this change as a major improvement in financial reporting.
The government does not have immediate plans to discontinue the practice of presenting the net authorities to be voted in estimates, that is, vote netting, but the government’s commitment to increasing transparency and improving reporting to Parliament will provide an opportunity to look at how the presentation and transparency of this information could be improved in the future.
The public accounts also present expenditures against budget; however, the budget is prepared on a net basis. Adjustments were made to the budget figures presented in the public accounts to disclose budgets on a gross basis, so that they could be accurately compared against actual amounts expended. The Auditor General endorsed this approach and commended the government for presenting expenditures against budget in the public accounts.
Fiscal year 2002-03 was the first year that the public accounts disclosed expenditures against budget. This was in response to recommendations for public sector accounting from the Canadian Institute of Chartered Accountants. The federal government was early in its adoption of this recommendation.
In addition, the government has already signaled its intention to review the Financial Administration Act, to look at issues of accountabilities and discipline.
We will continue to engage and consult parliamentarians on these issues.