Opening Statement to the Standing Committee on Public Accounts

Passport Office—Passport Services
(Chapter 3 - April 2005 Report of the Auditor General of Canada)

20 October, 2005

Sheila Fraser, FCA
Auditor General of Canada

Mr. Chairman, thank you for this second opportunity to present the results of our audit of Passport Services. With me today is Mr. Richard Flageole, Assistant Auditor General, and Paul Morse, the Principal responsible for this audit.

In this audit we examined whether the Passport Office, which is now called Passport Canada, has effective control over the issuance of passports and whether it achieved reasonable levels of service, at a reasonable cost.

We found that Passport Canada is struggling to meet increasing security expectations and demands for responsive service. We observed the following

• Although examiners are well trained, Passport Canada had difficulty verifying identity information and did not have a quality assurance system over the passport entitlement process and the examiner function. It did not monitor the effectiveness of security controls over the issuing of passports.
• The requirements for appropriate security clearances for examiners and restrictions on access to the passport issuing system were not properly enforced.
• Examiners were also lacking some basic tools to detect document fraud. Checks with guarantors were not being performed, monitored, and documented as required.
• Passport Canada had a deficient watch list because it had not found ways to automatically obtain data from other government sources to update its watch list, for example, for those on parole or charged with serious crimes. Without a complete watch list, examiners cannot properly assess if they should refuse someone a passport.
• Passport Canada had met some key service standards but had not developed reliable cost information tied to these standards. Passport Canada and Foreign Affairs Canada did not consult with stakeholders about the manner in which passport and consular services are being delivered and how costs are being controlled. This information is required to justify current user fees and any future fee increases.

Many of the issues we raised are under the control of Passport Canada. Other issues require the co-operation of other federal or provincial government departments.

Following the tabling of my report last April, Passport Canada and Foreign Affairs Canada presented in May 2005 to this Committee a detailed action plan to deal with the issues we raised. Recently, they provided us with an update of action taken under the action plan. We have not audited the information they provided to us, but the update showed that many improvement initiatives were undertaken.

In particular, for those areas where Passport Canada is able to deal directly with the problems noted, it seems to be moving briskly to correct most of these. For example, it indicated that it has dealt with the problems of access to the system and security clearances for examiners.

Where the action plan calls for co-operation from other federal government departments or from the provinces, there are some clear indications of progress, such as MOUs that have been signed for the electronic transfer of security information. However, the action plan is less specific as to the measures needed for implementing improvements, the time frames, or the accountability for doing so, where such co-operation is required. For instance, the plan has not provided detailed information on the measures needed to allow electronic identity verification.

The Committee may wish to ask officials from Passport Canada and Foreign Affairs Canada the following questions:

• When will Passport Canada have an acceptable quality assurance system for the work done by examiners?
• What is the time frame to establish an operational system across jurisdictions to verify identity, and who will be held accountable for the implementation of such a system?
• Have targets been set for having electronic links for security data sharing in place under the new MOUs?
• What is the timing for implementing a better cost system, and when will stakeholders be consulted on the costs and benefits of consular fees and passport fees?

Mr. Chairman, this concludes my opening statement. We would be pleased to answer the Committee's questions. Thank you.