The Management of Voted Grants and Contributions

Government is doing better at managing grants and contributions

Chapter 6, May 2006 Report of the Auditor General

Ottawa, 16 May 2006—In her Status Report tabled today in the House of Commons, the Auditor General of Canada, Sheila Fraser, says the government has made satisfactory progress in addressing problems identified in her 2001 audit of grant and contribution programs.

"Although we're pleased at the better control over grants and contributions, recipients have said the administrative burden imposed by the government's requirements is daunting," said Ms. Fraser. "We believe departments should streamline their management of grants and contributions to address the problem."

The government spends around $17.5 billion a year on voted grant and contribution programs (those whose funding requires Parliament's approval each year). The follow-up audit looked at a sample of programs at Canadian Heritage, Human Resources and Skills Development Canada, Indian and Northern Affairs Canada, Public Health Agency of Canada, and the Social Sciences and Humanities Research Council of Canada.

Four of the five departments had satisfactory controls to ensure that recipients of grants and contributions were eligible and were monitored according to risk. Those departments had the tools, automated systems, procedures, and employees with appropriate training to run grant and contribution programs effectively. But the audit found that Indian and Northern Affairs Canada needs to significantly improve its management of grants and contributions.

"I am pleased that, for the most part, the Treasury Board Secretariat and the departments we audited have responded to our past concerns," said Ms. Fraser.

The Auditor General's Status Report, first released in 2002, is one of the reports from the Office of the Auditor General tabled each year in the House of Commons. It follows up on the government's progress in addressing recommendations from previous reports. The Auditor General concludes that progress is either satisfactory or unsatisfactory, taking into account the complexity of the issue and the amount of time that has passed since the original audit.

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The chapter "The Management of Voted Grants and Contributions" is available on the Office of the Auditor General of Canada Web site.

Information:

Communications
Tel.: (613) 952-0213, ext. 6292
E-mail: communications@oag-bvg.gc.ca