Strengthening auditing and accountability within departments

On April 11, 2006, the Government of Canada introduced the Federal Accountability Act and Action Plan, delivering on its commitment to make government more accountable. This is one of a series of fact sheets describing proposed actions to respond to this commitment.

The context

It is vital to government accountability that, within the framework of the minister's overall responsibilities and his or her accountability to Parliament, the roles and responsibilities of deputy ministers are clear. In addition, independent, objective, and timely internal audit services within departments provide assurance to deputy ministers and reinforce good stewardship practices and sound decision making.

The Action Plan

To clarify roles and responsibilities and strengthen internal audit, the Federal Accountability Act will:

• designate deputy ministers and deputy heads as accounting officers who are accountable before the appropriate committee of Parliament to answer questions related to their responsibilities;
• require that a clear process be followed in the event that a minister and deputy minister are unable to agree on the interpretation or application of a Treasury Board policy, directive, or standard;
• require that deputy heads ensure an appropriate internal audit capacity and establish departmental audit committees;
• ensure that audit committees in Crown corporations are independent of corporation management; and
• make fraud involving public funds committed by officials an offence, carrying a maximum term of five years in prison for fraud of $5,000 or less, a maximum term of 14 years in prison for fraud over $5,000, and automatic dismissal for any official convicted of this offence.

In addition, the Government will implement the new Treasury Board Internal Audit Policy and develop a compliance framework that includes training and tools for employees, disciplinary codes to provide clarity on misconduct and related consequences, and consistent application of disciplinary measures.

For more information

For more information on this specific measure, please refer to the relevant section of the Action Plan, or contact us.