Canadian Air Carrier Protective Program Financial Audit for Fiscal Year 2003-04
Final Report
June 1, 2004
Audit and Evaluation

Table of Contents

• Background
• Objectives, Scope and Approach
• Audit Results
• Audit Team
• Appendix 1

Background

“The Government of Canada, in response to the events of September 11, 2001, allocated funding resources within Budget 2001 over the next five years to meet rigorous new standards for security in airports and on aircraft operated by Canadian air carriers transporting passengers.

Upon the request of the Department of Transport (“Transport Canada”), the RCMP agreed to establish the Canadian Air Carrier Protective Program (CACPP) to provide Aircraft Protective Officers (“APO”) on board flights designated by the Minister of Transport as requiring the presence of APO’s and on board other selected flights.” [1]

As a result, an agreement was signed on September 17, 2002 between the Canadian Air Transport Security Authority (“CATSA”) and the RCMP for the establishment, operation and funding of the CACPP. This agreement covers the period from April 1, 2002 to March 31, 2007.

Objectives, Scope and Approach

Scope:

The audit focused on the financial accounting provided by the RCMP to CATSA by May 15, 2004 detailing the actual expenses for the CACPP for the fiscal year beginning April 1, 2003 and ending March 31, 2004.

Approach:

The audit work was carried out between August 2003 and May 2004 and was conducted in accordance with the Standards for the Professional Practice of Internal Auditing. These standards require that the audit be planned and performed in such a way as to obtain reasonable assurance as to whether the financial information is free of material misstatement. The auditincluded such tests, as considered necessary, to provide reasonable assurance that the above audit objectives were achieved. These tests included, but were not limited to, examining, on a sample basis, financial transactions, reviewing supporting documentation, and performing interviews. The criteria used in the audit were based on the details of the Agreement between CATSA and the RCMP.

Audit Results

Based on the results of our audit, we conclude with reasonable assurance that the financial report provided by the RCMP to CATSA of the Allowable Costs incurred by the RCMP with respect to its participation in the CACPP (see Appendix 1) for the fiscal year beginning April 1, 2003 and ending March 31, 2004 is fairly stated, in all material respects, and that all costs included within such accounting constitute Allowable Costs for the purposes of this Agreement.

More specifically, we conclude that the:

A) annual financial accounting for actual Allowable Costs incurred for the CACPP is fairly stated, in all material respects; and,

B) Allowable Costs included in the annual financial statement is appropriate based on the Schedule “A” of the Agreement.

Audit Team

Raffaella Bertorelli, Acting Director Internal Audit Corporate Infrastructure Services
John Dupuis, Acting Senior Financial Auditor
Dave Coderre, Audit Principal
Sandra Lopes, Financial Auditor
Isabelle Franche, Auditor
Winston Hum, Auditor

Appendix 1

[1] Agreement Between CATSA and the RCMP for the Establishment, Operation and Funding for the CACPP

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