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Core 1..48 Committee House of Commons CANADA Standing Committee on Government Operations and Estimates OGGO Ï NUMBER 011 Ï 1st SESSION Ï 39th PARLIAMENT EVIDENCE Tuesday, June 20, 2006 Chair The Honourable Diane Marleau Also available on the Parliament of Canada Web Site at the following address: http://www.parl.gc.ca 1 Standing Committee on Government Operations and Estimates Tuesday, June 20, 2006 Ï (0905) I can tell you we take our responsibilities, as one of the key central [English] agencies, very seriously. We're obviously here to provide account- ability in terms of how tax dollars are spent, and I look forward to The Chair (Hon. Diane Marleau (Sudbury, Lib.)): Welcome to the opportunity to hear the concerns of members and answer their the Honourable John Baird, President of the Treasury Board. questions. It's your first time before this committee. It's not your first time The Chair: Did you prepare a written submission? before committees. I'd invite you to introduce the people with you, perhaps, and to say just a few words. I know you've wanted to say Hon. John Baird: I have some notes here that I could share, but something, so go ahead. in the interest of time I'll waive that. Hon. John Baird (President of the Treasury Board): Thank you The Chair: You did say you wanted to leave at 10:15. Is that very much, Madam Chairwoman. correct? Maybe I'll ask the officials with me to identify themselves, Hon. John Baird: Yes, I wanted to see if there was a possibility. because they've all got very unique titles. At the Treasury Board we Bill C-2 is at the report stage at committee, beginning at 10 o'clock, have assistant secretaries, not ADMs, so I want to make sure to get and a number of the members of the Bill C-2 committee—a number them right. of our colleagues—have presented amendments at report stage and I did want to see if it was possible for me to participate in that debate Maybe we'll start with Daphne. out of respect to our colleagues. Ms. Daphne Meredith (Associate Secretary, Corporate Prio- rities and Planning Sector, Treasury Board of Canada Secretar- The Chair: We'll see what we can do for you. iat): My name is Daphne Meredith and I'm the assistant secretary of Hon. John Baird: Any help would be appreciated, Madam corporate priorities and planning at the secretariat. Chairwoman. Mrs. Coleen Volk (Assistant Deputy Minister, Corporate The Chair: Thank you. Services Branch, Treasury Board of Canada Secretariat): I am Coleen Volk. I am an assistant deputy minister of corporate services. The first questioner will be Madame Ratansi. Ms. Linda Lizotte-MacPherson (Associate Secretary, Treasury Board of Canada Secretariat): I am Linda Lizotte-MacPherson, Ms. Yasmin Ratansi (Don Valley East, Lib.): Welcome, associate secretary. Minister, and welcome to your team. Mr. Charles-Antoine St-Jean (Comptroller General of Cana- I am new to this committee and I get to ask you the first question. da, Office of the Comptroller General, Treasury Board of The Office of the Comptroller General was created and I think it was Canada Secretariat): I am Charles-Antoine St-Jean, Comptroller part of the process coming out of the Gomery, or pre-Gomery. It is a General. very important function because it is an internal audit function, and I Mr. David Moloney (Senior Assistant Secretary, Expenditure see that there has been an increase in the main estimates of about $14 Management Sector, Treasury Board of Canada Secretariat): I million, if I am not mistaken. am David Moloney, assistant secretary, expenditure management. Could you just explain details of what this will involve? How will The Chair: You don't have to touch the mikes, by the way. this office operate? How many people will that involve? What is the Somebody controls them. It really shifts things if you do. $14 million for? Mr. Baird. Hon. John Baird: I'll just respond briefly and then ask the Hon. John Baird: I'm very pleased to be with you this morning to Comptroller General to elaborate. hear any concerns and to answer any questions and take any issues back to the secretariat and to my colleagues. The Office of the Comptroller General is not new. Back in the spending reductions of 1995 the office, in some respects, was I'm joined by much of the senior management team here today. eliminated, and in other respects was merged with that of the We also have additional officials behind me, should there be any Secretary of the Treasury Board, the senior deputy minister at more specific questions on a specific area. Treasury Board. 2 OGGO-11 June 20, 2006 What the previous government started was basically to re- is accountable to put in place the internal audit function so that they establish it as a stand-alone position. I think many of the resources can be accountable for the management of their department—to that it has—basically with inflation—is putting it back to the level make sure that there's quality control, to make sure we have the right that it had in 1993 to a great extent. people in place, the right process, and the right tools. I agree with the previous government's decision to re-establish it. I Hon. John Baird: I think, as well, there's always a debate, and think it's an important component of our capacity to be able to this is one thing we're going to weigh with experience. Deputy strengthen internal audit and our capacity to be able to catch.... When ministers are, of course, accountable. Now, with Bill C-2, they would you have a budget of $200 billion, no matter who is in government be accountable before a committee such as this one. there will be challenges from time to time. Hopefully the Comptroller General will establish processes to minimize that, and there is the function to identify any challenges or problems earlier. That said, the Department of Justice acts as the lawyer for every department. That probably goes further than we'd like to go with Charles-Antoine. respect to internal audit, but it's not an all-or-nothing scenario. So I Mr. Charles-Antoine St-Jean: Yes, thank you very much, Mr. think we're going to watch very closely how it evolves. President. And thank you very much for the question. I feel strongly that there should be important checks and balances taken from the Comptroller General on each department. Some Essentially, as the president said, the plan is to rebuild the Office deputies might find that unwelcome, but there are some CEOs of of the Comptroller General to what it was back in 1993. In mid-2004 companies in the private sector who might find some of the we started with an office that had a complement of about 60 or 65 increased audit requirements—through an audit committee of a people. Back in 1993, with the same parameters, there were about publicly traded company, for example—to be onerous. So the 200 people, so we're at mid-course to rebuild the office. We're at challenges we're having in the public sector really aren't much about 120 people now, and the plan is that by the end of 2007-08 we different from what the companies based in your own riding would will be back at that strength level. be facing on a day-to-day basis. Essentially, from an internal audit perspective it would be to Ï (0910) conduct audits for small departments and agencies. The ability doesn't exist at the moment. Also, it would conduct horizontal audits Ms. Yasmin Ratansi: I'm not questioning that. I fully understand, for the Government of Canada—certain contracts, travel, what- because it's a risky business. We are in a risky business: we're ever—and also establish a practice inspection to make sure that we managing taxpayers' dollars. do have quality internal audit throughout the system. That's one of the components of the Office of the Comptroller General that we will do. Are you the chief internal auditor? Are there managers of audit in every government department who will be reporting to you if they Hon. John Baird: I should point out that this an area Mr. Alcock see any risks? started, and I think it was wise on his part. Ms. Yasmin Ratansi: I agree. We've seen classic examples. A case in point is Mr. Guité. Can we I come from the internal audit department. I was the risk manager not have checks and balances in place through a risk management for internal audit in the provincial government, so I understand strategy, where you have your managers report to the chief internal where you're coming from. auditor, who would be you, so then you can directly report to the President of the Treasury Board? What I need to understand in terms of reporting structure is whether you are directly under the Treasury Board. If you're going department by department, are you going to be creating internal audit I'm just trying to conceptualize it. units within each ministry? How will that function? Mr. Charles-Antoine St-Jean: Essentially, the model at the Hon. John Baird: The Comptroller General, as established by the present is a mix, where we do have a functional relationship with the previous president, Mr. Alcock, is a deputy minister rank. It operates Comptroller General and a hierarchical relationship with the deputy out of the Treasury Board Secretariat, and it would work with the minister.
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