Indigenous and Northern Affairs committee  First I have to say that when we talk about the federal government, we talk about an accountability framework that has evolved over time. What we have now is not what was in place years ago, right? We have a pretty integrated and complex accountability framework. First nations, we have to understand, generally have populations of about 500 people, so when we talk about an accountability framework for a population of about 500 citizens, I think we have to keep in mind that it cannot be and will not be as complex as what we see federally.

Indigenous and Northern Affairs committee  In answering that question, maybe what I could do is refer the honourable members to Financial Reporting by First Nations, a CICA study copyrighted in 2008. In that report, it speaks to the issue of capacity and what is required from first nations in capacity building, if in fact the CICA Public Sector Accounting Handbook were to be applied on the reserves.

Indigenous and Northern Affairs committee  Well, in terms of annual reports, I think we have to make a distinction between annual reports and general financial statements. General financial statements generally form part of an annual report that a first nation chief and council might prepare for the purposes of reporting to their community.

Indigenous and Northern Affairs committee  In terms of the performance report, there are limitations that come with general financial statements, audited financial statements, but they do provide the community members with assurance that the accounts of the first nation are as they are stated in the financial statements.

Indigenous and Northern Affairs committee  Good afternoon, Mr. Chairman I would like to thank you for inviting the office to speak about Bill C-27, an Act to Enhance the Financial Accountability and Transparency of First Nations. With me is Ronnie Campbell, Assistant Auditor General, who was formerly responsible for first nations' audits.

Public Accounts committee  Mr. Chair, I'll try to give a high-level explanation in response to the member's question. National Defence has conducted a number of options analyses related to the next-generation fighter jet project and the decision as to whether to go ahead with the joint strike fighter. They assessed the jet against four other options early in the process, back around 2005.

Public Accounts committee  Mr. Chair, we did not actually sit down and examine the difference that would apply if we used the industrial regional benefits policy versus what may result from the industrial participation under the F-35 program.

Public Accounts committee  Mr. Chair, we did not follow up on the helicopter chapter. So I am not in a position to provide the member with a specific answer.

National Defence committee  I would refer committee members to page 6, paragraph 5.6 of our chapter, when you have a chance to look at it. By third- and fourth-level maintenance and repair, what we mean are lengthier and more complex inspections, major repair, or complete equipment overhaul activities. These can take days, weeks, or months to complete.

National Defence committee  As equipment is required for operations or training purposes, there are maintenance and repairs prioritized. They are brought up to the required level and they are then used. National Defence would not put the safety of its personnel at risk by not doing this. If equipment was not ready, they would not use it.

National Defence committee  Your question has many elements. If you don't mind, I will begin with the part concerning the risks. For the record, I refer the committee members to page 28, paragraph 5.63. In that paragraph the department identified a number of risks related directly to the ISSCF framework itself.

National Defence committee  Yes, I think that's a fair observation.

National Defence committee  I think in terms of operations, National Defence will ensure it has the people in place to maintain the equipment in theatre, and that can be a combination of both the military and civilian and contract services. I've just been reminded that in fact they take the technicians with them when they go into operations.

National Defence committee  We didn't see any such situation during the course of this audit. I think the armed forces, as I've been exposed to it, as I've visited the bases, are very careful to make sure they don't expose their soldiers, their armed forces personnel, to risks because of maintenance and repair issues.

National Defence committee  Back in the spring of 2009, we tabled an audit entitled “Financial Management and Control—National Defence”. I would recommend that audit to the committee members. It talks about the planning processes within National Defence related specifically to, in some instances, the financial situation.