PACC Committee Report

RECOMMENDATION 11

That, following consultation with Treasury Board Secretariat, departments and agencies begin to include relevant evaluation plans in their reports on plans and priorities starting in fiscal year 2002–2003 and begin to include any relevant findings from those evaluations in their performance reports beginning with the reports for the period ending 31 March 2003.

Furthermore, Parliament must be informed of the full scope of internal audit and evaluation activities taking place in departments and agencies. The Committee accordingly recommends:

RECOMMENDATION 12

That Treasury Board Secretariat instruct all departments and agencies to include a list and synopsis of all internal audits and evaluations completed during the just ended fiscal year in their performance reports, beginning with the reports for the period ending 31 March 2002.

Conclusion

Internal audit and evaluation have much to offer in terms of delivering government programs and initiatives that provide the best value to citizens and taxpayers. Internal audit can assure departmental managers that the right financial controls and risk management procedures are in place and are working. This function can also send warning signals to avert loss of control and rein in spiralling costs. For its part, evaluation can facilitate the fine tuning of programs and activities to ensure that they are effective, efficient, and cost effective. Evaluations can potentially provide useful information to Parliament and Canadians on the performance of programs and initiatives.

Over the last ten years, audits have shown that internal audit and evaluation functions have operated below potential. Shortcomings can be traced to lack of emphasis on the importance of the two functions, insufficient human and financial resources to support them, lack of clarity, and sometimes confusion in their underlying policy framework. The new policies and additional funding represent important steps needed to invigorate these functions and allow them to make a full contribution to better government.

Many past problems with internal audit and evaluation relate, not to flawed policy, but to lack of rigorous implementation. There are limits, therefore, to what new policies can achieve if the will to make them work is not sustained. The Committee expects that if those involved – Treasury Board Secretariat, departments and agencies, the Office of the Auditor General, and Parliament – continue to scrutinize the implementation and operation of these policies, the results will be reflected in expectations that are met rather than missed.

Pursuant to Standing Order 109, your Committee requests that the Government table a comprehensive response to this report.

A copy of the relevant Minutes of Proceedings (Meetings Nos. 8, 15 and 18) is tabled.

Respectfully submitted,

John Williams, M.P.
Chair