Standing Committee on Public Accounts

Comité permanent des comptes publics

For immediate release

Ottawa, December 13, 2017 -

Federal organizations selected for study by the Office of the Auditor General of Canada (OAG) did not appropriately manage all of their fraud risks; however, there were a number of sound practices in all the organizations examined, according to a report of the Standing Committee on Public Accounts tabled today in the House of Commons by the Hon. Kevin Sorenson, Chair of the Committee.

In the spring of 2017, the OAG released a performance audit that focused on fraud risk management in the following five federal organizations (selected for their variance in operations and size):

• Canadian Food Inspection Agency;
• Global Affairs Canada;
• Health Canada;
• Indigenous and Northern Affairs Canada; and
• Public Services and Procurement Canada.

Although these organizations had good governance structures to help manage fraud risk, some did not use a strong enough approach to assess them, and none made sure that the specific controls examined worked as intended. Furthermore, the Committee also found that while the Treasury Board of Canada Secretariat developed guidance for departments and agencies to help them assess and manage overall departmental risks, it did not provide specific guidance on fraud risk management or monitor how departments and agencies managed their risk of fraud.

To address the concerns identified in this study, the Committee has made seven recommendations to help ensure that the selected federal organizations better manage the risk of fraud, and one recommendation to the Treasury Board of Canada Secretariat to help ensure it continues to monitor and advise federal organizations on how to manage the risk of fraud.

For example, the Committee has recommended that the Canadian Food Inspection Agency, Global Affairs Canada, Health Canada, Indigenous and Northern Affairs Canada, and Public Services and Procurement Canada need to provide the Committee with a report detailing what progress has been made with regard to identifying operational areas at higher risk for fraud and developing targeted training for employees in these areas, and ensuring that employees are taking mandatory training in a timely manner.