2005-2006 Priorities of the Office of the Comptroller General
Strengthen Internal Audit
| context and expected results |
As part of the 2004 budget, the government made a clear commitment to
reorganize and bolster the internal audit function on a government-wide basis
and to ensure comprehensive audit programs, based on sound risk analysis, of all
departmental activities.
Within the Secretariat, the Comptroller General of Canada and his office are
leading efforts to strengthen the internal audit function. Significant changes
must be made in the manner in which the internal audit function is currently
conducted. A strong internal audit function across government requires strong
internal audit organizations in both the Office of the Comptroller General and
in departments and agencies, backed by certified professionals and by
independent audit committees. Internal audit organizations must be supported by
generally accepted standards and practices, and by methodologies that support
consistent, high-quality auditing across government. Quality must be monitored
by the Office of the Comptroller General, and work must be undertaken to
strengthen internal audit capacity through recruitment and retention
initiatives, strengthened liaison and partnership with professional
associations, and curriculum development.
The expected results of these efforts include more relevant, timely, and
quality audits and more effective use of audit information in planning and
decision making across government, which will enhance the stewardship of public
resources through independent, objective, and timely assurance services, based
on sound risk analyses of departmental and major horizontal activities, in a
manner consistent with legislation, regulations, and Treasury Board policies and
direction.
In 2005-06, the Office of the Comptroller General (OCG) will build on current
initiatives and continue to move forward on multiple tracks to strengthen
capacity, develop standardized internal audit methodologies and plans, and
initiate audit plans for small departments, and selected horizontal and
government-wide audits.
| Key Elements of Plan and
Milestones |
Time Frame |
| Select standardized internal audit
methodologies and tools. |
December 2005 |
| Complete one internal OCG-led,
government-wide horizontal audit. |
December 2005 |
| Develop three-year plans for a) audits of
small departments and agencies and b) government-wide horizontal audits. |
March 2006 |
| Staff the new OCG, using a phased approach to
find and recruit high-calibre professionals. This includes capacity to
perform assessments of departmental internal audit functions. |
Substantially completed by March 2006
and fully completed by March 2007 |
| Monitor the performance of the internal audit
function across the Government of Canada on an ongoing basis and report
on findings to the Secretary of the Treasury Board. |
ongoing |
|
It is expected that the changes that will occur over the next few years will
require significant cultural change for internal audit professionals and
departmental managers.
Success will require clear expectations and sustained commitment. Having
qualified departmental chief audit executives and effective audit committees
will be key. In addition to providing certification standards, the need to
recruit, train, and retain is fundamental. Implementation plans will depend on
ongoing support for the Office of the Comptroller General and line departments.
The targets are deliberately aggressive to reflect the urgency of this work and
achieve a singular focus; while every effort will be made to achieve them, there
are many factors outside the direct control of the Office of the Comptroller
General that could influence their achievement. A focus on change management
will also be required to support the larger community of internal auditors and
mitigate any concerns of departmental managers with new standards and
methodologies. Further, strong linkages between the Office of the Comptroller
General and the development of a core learning agenda will be essential.
Strengthen Financial Management
| context and expected results |
As part of the 2004 budget, the government made a clear commitment to
re-establish the Office of the Comptroller General to rigorously oversee all
aspects of government spending.
To deliver on this commitment, the Office of the Comptroller General is
continuing its efforts to strengthen the financial management and control
framework, including policies, guidance, systems, analyses, and advisory
services across the federal Public Service as a whole. The Office of the
Comptroller General also continues to ensure that the financial statements of
the federal government provide complete and accurate information in accordance
with accepted accounting principles and time frames set out by the government.
The Office of the Comptroller General is also supporting government-wide efforts
to ensure that financial systems introduce modern, timely information systems to
track all spending and provide appropriate tools for effective scrutiny and
decision making.
As with internal audit, significant change is required. Stronger financial
management organizations are needed in both the Office of the Comptroller
General and in line departments and agencies. These organizations must be led by
certified professionals and supported by effective policies and practices.
Additional effort is required to strengthen oversight of government spending,
including review and sign-off of new spending initiatives, supported by
appropriate financial controls, monitoring, and enforcement mechanisms.
The expected results of these efforts include more rigorous and timely
financial management, audit, and verification systems, as well as improved
financial management information and decision making.
In 2005-06, the Office of the Comptroller General will build on current
initiatives and continue to move forward on multiple tracks to strengthen
financial management and deliver on its commitments.
| Key Elements of Plan and
Milestones |
Time Frame |
| Obtain approval with respect to the roles,
responsibilities, and profiles for departmental comptrollers. |
June 2005 |
| Obtain approval with respect to the process
and criteria for review and sign-off of new spending proposals,
including monitoring and reporting provisions. |
September 2005 |
| Develop a five-year strategy for the ongoing,
annual audit of financial statements of departments and agencies. |
September 2005 |
| Develop and implement enterprise-wide
standards and processes for financial analysis and reporting on
financial position and results. |
December 2005 |
| Explore the feasibility of having the federal
government's audited annual unqualified consolidated financial
statements and the Public Accounts ready for tabling much earlier. |
December 2005 |
| Staff the new OCG, using a phased approach to
find and recruit high-calibre professionals. |
substantially complete by March 2006 |
| Fully implement the review and sign-off
process throughout the Government of Canada. |
June 2006 |
| Update the financial management control
framework. |
September 2006 |
| Renew financial management policies in
support of strengthened comptrollership. |
March 2007 |
| Complete the staffing of the OCG. |
fully complete by March 2007 |
| Determine the specific administrative areas
that will need to be supported by the Government of Canada's new
financial systems. |
as appropriate within the scope
of the Lead an Integrated Approach to Internal Service Transformation
priority |
| Develop associated business processes and
standards for data and information, and implement these in selected
departments and agencies. |
|
It is expected that the changes that will occur over the next few years will
require significant cultural change for the financial management community, as
well as departmental managers.
As a result, success will require clear expectations and sustained
commitment. Having qualified departmental comptrollers will be key. In addition
to providing certification standards, the need to recruit, train, and retain is
fundamental. Implementation plans will depend on ongoing support for the Office
of the Comptroller General and line departments. A focus on change management
will also be required to support the larger community of financial managers and
mitigate any concerns of departmental managers may have with new policies,
standards, and methodologies. Furthermore, strong linkages between the Office of
the Comptroller General and the development of a core learning agenda will be
essential. The targets are deliberately aggressive to reflect the urgency of
this work and achieve a singular focus; while every effort will be made to
achieve them, there are many factors outside the direct control of the Office of
the Comptroller General that could influence their achievement.
|
