October 2007 Report of the Auditor General of Canada to the House of Commons

The Auditor General's next Report is expected to be tabled in the House of Commons on 30 October 2007. The following is a brief description of the seven chapters contained in the Report.

Chapter 1—Safeguarding Government Information and Assets in Contracting. The audit examined how the federal government ensures the security of sensitive information and assets that it makes available to industry in the course of contracting. It looked at the main program set up to provide the necessary safeguards, the Industrial Security Program delivered by Public Works and Government Services Canada. The audit also looked at how the three federal organizations with the highest numbers of contracts processed by the Industrial Security Program—Public Works and Government Services Canada (PWGSC), National Defence, and the Royal Canadian Mounted Police (RCMP)—carry out their responsibilities for security in contracting (industrial security) under the Government Security Policy. The audit also reviewed the role of Defence Construction Canada, as the contracting authority for defence projects, and the Treasury Board Secretariat’s role in monitoring the implementation and effectiveness of the Government Security Policy.

Chapter 2—Management and Control Practices in Three Small Entities. This was the first of a series of planned audits of management and control practices in small federal organizations. The audit included the Canada Industrial Relations Board, the Canadian Forces Grievance Board, and the Courts Administration Service. It looked at the controls applied by the three entities in the use of acquisition cards, contracting, executive travel, hospitality, executive compensation, and selected areas of human resources management. It also examined whether the entities’ management and control practices comply with government policies in these areas.

Chapter 3—Inuvialuit Final Agreement. The audit examined how and to what extent the federal government has fulfilled its obligations under its 1984 agreement with the Inuvialuit (the Inuit of the Western Arctic). The Agreement transferred about 91,000 square kilometres of land to the Inuvialuit, along with a total payment of just under $170 million; in return, the Inuvialuit relinquished their claim to 335,000 square kilometres that had been part of the original claim. The principles expressed in the Agreement include enabling Inuvialuit to participate equally and meaningfully in the economy and society of Canada’s North and of the nation; protecting and preserving the wildlife, environment, and biological productivity of the Arctic; and preserving Inuvialuit cultural identity and values within a changing Northern society. The audit looked at the actions taken by several federal departments to meet their specific obligations under the Agreement: Indian and Northern Affairs Canada (the lead federal department), Environment Canada, the Parks Canada Agency, Fisheries and Oceans Canada, and Public Works and Government Services Canada.

Chapter 4—Military Health Care—National Defence. The provision of health care to members of the Canadian Forces falls under the National Defence Act rather than the Canada Health Act. The audit examined how National Defence determines that the Canadian Forces physical and mental health care system provides military members with timely, consistent access to quality health care at military sites; it did not look at the provision of health care to members deployed on missions. The audit also examined how the Canadian Forces health care system ensures that its health practitioners are qualified and can maintain their clinical skills and their licenses to practice.

Chapter 5—Keeping the Border Open and Secure—Canada Border Services Agency. The Canada Border Services Agency was created in December 2003 to integrate the front-line border management and enforcement activities of three other agencies. The audit examined whether the Agency’s approach to border management is based on threat and risk assessments and achieves the desired levels of border openness and security. More specifically, we looked at how the Agency identifies and intercepts people and goods that represent a high risk to Canada and, at the same time, facilitates the free flow of low-risk people and goods into Canada.

Chapter 6—Management of the 2006 Census—Statistics Canada. As Canada’s national statistical agency, Statistics Canada is required to carry out a census of the Canadian population every five years. The audit examined whether Statistics Canada applied its established quality assurance systems and practices in managing the 2006 Census of Population. It looked at the Agency’s efforts to improve the quality of Census data on selected hard-to-count groups and to what extent the 2006 Census program complied with the government’s risk management policy, particularly in its ability to recruit and retain the temporary field staff needed, and in managing the risks to the privacy of respondents.

Chapter 7—Technical Training and Learning—Canada Revenue Agency. The audit examined how well the Canada Revenue Agency identifies and analyzes its needs for technical training and learning solutions to support its tax administration mandate. It also looked at how well the Agency evaluates the effectiveness of its training and learning activities. The audit focused on three key branches—Compliance Programs, Appeals, and Legislative Policy and Regulatory Affairs—and the training provided to their auditors, investigators, appeals officers, and rulings officers, who play a key role in interpreting tax legislation and ensuring compliance with it.