Standing Committee on Public Accounts

HOUSE OF COMMONS CHAMBRE DES COMMUNES OTTAWA, CANADA K1A 0A6

Comité permanent des comptes publics

For immediate release

Ottawa, March 24, 2009 -

The federal government needs to establish a firm timeline for implementing accrual appropriations, according to a report of the Standing Committee on Public Accounts tabled in the House of Commons today by Chair Shawn Murphy, MP.

Each year, the federal government publishes the Public Accounts of Canada, which includes the government’s consolidated financial statements. Since 2002-2003, these statements have been prepared on an accrual basis. However, the government’s spending plans, the Estimates, are prepared on a modified cash basis. This means that it is difficult to compare the government’s spending plans to its actual spending at year end.

In its report, the Public Accounts Committee congratulates the government for receiving the 10th unqualified opinion in a row on its financial statements. However, the Committee believes that the government is moving too slowly towards implementing accrual appropriations and must establish a firm timeline for doing so.

“Clear and consistent financial reporting standards are vital for transparency,” said Mr. Murphy. “This can only be fully achieved if the government stops hesitating and moves towards accrual appropriations.”