  Strengthening the power of the Auditor General
The context
One of the most important roles of Parliament is to hold the government to account for its use of taxpayers' dollars. To do this effectively, parliamentarians need objective and
fact-based information about how well the government raises and spends public funds. The Auditor General is an independent and reliable source of such information.
In addition, the Government spends about $26 billion each year in transfer payments for grants and contributions to individuals, corporations, and non-government organizations. It
is imperative that the Government ensure these programs are well managed.
What this means for Canadians
These changes will reassure Canadians that their Government is using their tax dollars wisely. They will strengthen the role of the Auditor General as an independent and
reliable source of information about government spending. To maximize the use of taxpayer money, the Government will ensure that it roots out non-performing or irrelevant
programs. Finally, these measures will enhance the ability of Canadians and organizations to access government programs and services, and ensure that third parties that receive
federal funding are not faced with an unnecessary administrative burden.
The Action Plan
The Federal Accountability Act will:
- give the Auditor General the authority to "follow the money" by inquiring into the use of funds that individuals, institutions, and companies receive under a funding agreement
with any federal department, agency, or Crown corporation;
- require the Government to include provisions in all funding agreements that recipients keep records and co-operate with the Auditor General on request; and
- require every department to review, at least once every five years, the relevance and effectiveness of its grants and contributions programs.
In addition, the Government will ensure that the Office of the Auditor General has adequate resources to fulfill its mandate. The Government will continue to respond publicly to
the Auditor General's recommendations, and will make sure that independent departmental audit committees monitor the implementation of corrective action plans.
The Government established an independent blue-ribbon panel to review the draft policy on transfer payments, identify barriers to accessing grants and contributions programs and
consider eliminating legislative barriers, and report to the President of the Treasury Board by December 2006.
For more information
For more information on this specific measure, please refer to the relevant section of the Action Plan, or contact us. |
