Public Accounts committee  Certainly we're happy to see that CBSA is moving forward and having a strategy to do all these reconciliations, and now are going back into further and further years. What is still outstanding is the ability to have this receivable system that they thought they would be able to put in place in 2013.

Public Accounts committee  No. We're not in a position to do that. That's not part of the audit.

Public Accounts committee  Mr. Chair, I don't think I would be in a position to really answer that question. The scope of the audit really was to look at the financial reporting against the accounting framework. In terms of program spending—

Public Accounts committee  That's what we had to spend the time and effort to audit, and we are satisfied that those transition adjustments, as well as the line-by-line consolidation work, are properly conducted.

Public Accounts committee  I would make a few comments, but I'm sure Mr. Ralston would like to jump in because he is a member of the public sector accounting board. Auditor General Michael Ferguson is also a member. Essentially, a lot of these standard-setting bodies try not to reinvent the wheel. They look at one another's conceptual framework, and where it needs to differ is when they define the differences; they articulate them in individual standards that we need to follow.

Public Accounts committee  Thank you, Mr. Chair. The important distinction is the accounting framework that supports that reporting entity. In the case of crown corporations, a lot of them are government business enterprises, so in the first instance they are not reliant on appropriation from Parliament.

Public Accounts committee  The information the member is referring to is not part of section 2. We audit only section 2 of volume I, so that's not actually subject to audit.

Public Accounts committee  We do have an international strategy within the Office of the Auditor General. One tranche of that is really trying to help other jurisdictions, other legislative auditors, to advance their work. Within that strategy, it does call for us to be at a forum that is called INTOSAI. That is a natural forum where legislative auditors of different countries come together and share practices.

Public Accounts committee  I guess I would just add to what Mr. Ralston said. The purpose of the financial statements, the public accounts, is to look at the financial results. What the member is looking for are program results in terms of how much money is being spent there, and perhaps for what purpose and all of that.

Public Accounts committee  That is a difficult question. I'd rather not address that, because I think different provincial colleagues have their views about treating transfer payments. It is indeed a fairly complex issue that the accounting profession is struggling with.

Public Accounts committee  Thank you, Mr. Chair. The information that the member was referring to can be found on page 2.15. In note 3(vi), you see the two significant transactions that have been referred to. Both of them have to do with the HST. In the case of B.C., we'd signed an agreement with them to assist them in the harmonization process.

Public Accounts committee  Thank you, Mr. Chair. Yes, indeed, the inventory at National Defence accounts for most of what we own as a government as a whole; I believe it's about $6 billion out of $7 billion. The issue is inventory as well as what they called asset-pooled items, which are like repairable spare parts.

Public Accounts committee  Significant audit effort is being mounted to audit the accounts of the Government of Canada. First and foremost, we do work at the component level; by that, I mean the various parts that make up the whole of the public accounts. This means that we need to have all the plans for major components, such as significant departments and agencies.

Public Accounts committee  Thank you, Mr. Chair. It is a very commendable result for the Government of Canada. It speaks to the high quality of the preparation in the first instance. It also speaks to a good working relationship between both sides. When we have come across differences, there has been a lot of openness in discussing them and making adjustments when necessary.

Public Accounts committee  Essentially, the audit opinion speaks to the fair presentation of the financial statements in comparison to its accounting policies, which conform with the public sector accounting standards. So the extent to which the financial reporting and the various results fall in line and are consistent with the framework earns that clean opinion.