RECOMMENDATION
That Treasury Board Secretariat and the Office of the Auditor General
submit separate reports to the Committee on the status of efforts to establish a
new funding mechanism for the Office of the Auditor General by 30 September
2005.
RESPONSE
The Government recognizes the value of the work performed by the Auditor
General and her Office and the benefits provided to the Government,
Parliamentarians and Canadians. The Auditor General plays a crucial role
in advising Parliament on how program delivery and management practices can be
improved.
In its response
to the Seventh
Report of the Standing Committee on Public Accounts tabled on June 22, 2005,
the Government indicated a commitment to launching, "a pilot project for a
new funding and oversight mechanism for Agents of Parliament for the 2006-07
Main Estimates."
The Government recognizes the important role Agents of Parliament play in
reporting to Parliament on Government activities. The Government is firmly
committed to a new funding and oversight mechanism for Agents of Parliament by
implementing a two-year pilot project for the 2006-2007 and 2007-2008 Estimates
process. The participating Agents include the: Office
of the Auditor General of Canada, Office
of the Privacy Commissioner, Office
of the Information Commissioner, Office
of the Official Languages Commissioner, and the Office
of the Chief Electoral Officer.
The proposed pilot project is designed to reflect the degree of independence
of Agents of Parliament, the role of Parliament in budget and oversight matters,
and the responsibility of the Government for the sound stewardship of public
resources. Moreover, as the Agents of Parliament have distinctive
mandates, the Government is proposing a mechanism that is flexible enough to be
applied to all Agents.
Comprehensive consultations over the past several months have been held with
the Office of the Auditor General, along with the other four participating
Agents of Parliament, Parliamentarians (including the Chair of the Standing
Committee on Public Accounts), and other experts to develop this new funding
and oversight mechanism. Drawing on this advice, the Government is pleased
to commit to an approach to the pilot that would include the establishment of a
parliamentary oversight panel (or equivalent) to assess the Estimates of Agents
of Parliament including related financial and management performance and provide
oversight. This panel would receive submissions from Agents during the fall
period, which coincides with the usual Annual
Reference Level Update process. The Government will work with
Parliamentarians to put in place a parliamentary oversight panel (or equivalent)
as soon as possible.
The Treasury Board Secretariat would provide, as input to a parliamentary
oversight panel, the broad budgetary parameters as well as an assessment of the
Agents' submissions. The recommendations of the parliamentary oversight
panel would be submitted by the Speakers to the Treasury Board for inclusion in
the Estimates.
Over the course of consultations, there was broad agreement that, reflecting
their unique relationship with Parliament and with Canadians, Agents of
Parliament have a special duty of care to maintain the highest standards of
financial and management performance. In this regard, it is proposed that
all Agents of Parliament be subject to periodic, independent, third-party
financial and performance reviews in addition to applicable peer review
mechanisms. Appointment of the independent reviewer and the terms of
reference for these reviews would be directed by the parliamentary panel.
Upon finalization, these reviews would be released publicly.
As required under the Financial
Administration Act- Schedule I.1., Agents of Parliament would be
expected to continue to adhere to Treasury Board policies and directives.
Consistent with the standards applicable to other public service entities,
Agents of Parliament would still be required to submit annual Reports
on Plans and Priorities and Departmental
Performance Reports to Parliament. In addition, the Office of the
Auditor General will continue to exercise its audit responsibilities with
respect to Agents of Parliament.
Should the application of Treasury Board policies and directives, in the view
of any Agent of Parliament, be incompatible with an Agent's statutes or the
degree of independence required to carry out an Agent's mandate, the
parliamentary oversight panel could consider the matter at the request of the
Agent and formulate recommendations to Government.
This pilot is consistent with the reports of the Standing Committee on Public
Accounts, as well as of the Standing
Senate Committee on National Finance, and the Standing
Committee on Access to Information, Privacy and Ethics. It represents
a significant change from current funding and oversight mechanisms for Agents of
Parliament.
Over the coming weeks, to assist the parliamentary panel in undertaking the
initiative, the Government will be working with Parliamentarians and Agents of
Parliament on a workplan for moving forward on this important initiative.
In this regard, the Government is committed to continuing with the collaborative
approach that has characterized this endeavour and will work with the Auditor
General along with other Agents of Parliament to ensure successful
implementation of the pilot.
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