Office of the Auditor General of Canada’s 2024–25 Departmental results report

At a glance

This departmental results report details the Office of the Auditor General of Canada’s (OAG’s) accomplishments against the plans, priorities, and expected results outlined in its 2024–25 Departmental Plan.

Raison d’être and operating context

Text version of At a Glance infographic

In the 2024–25 fiscal year, the Office of the Auditor General of Canada used $132.4 million in parliamentary authorities and had 752 full‑time‑equivalent employees.

With these resources, we completed the following:

100 financial audits of the federal government, territorial governments, Crown corporations, and other organizations, as well as more than 60 other financial engagements
20 performance audits of government activities and programs (17 federal and 3 territorial)
3 special examinations of Crown corporations
1 annual report on environmental petitions
1 annual commentary report on our financial audit work

Key priorities

In the 2024–25 fiscal year, the OAG advanced multiple initiatives in support of our core responsibility, legislative auditing, with a particular focus on the following priorities:

Transformation. Furthering our multi‑year transformation initiative, focusing on transforming audit processes, practices, and reporting; on transforming internal service delivery and business processes; and on information technology (IT) modernization.
Engagement with our interested parties. Engaging with parliamentarians and our other interested parties, including international peers, to build on strong relationships, gather input, and use information gathered to deliver added value and increase our relevance.
Skilled, inclusive, and engaged workforce. Fostering a skilled, inclusive, and engaged workforce and a healthy, inclusive, and respectful work environment.

Highlights for the OAG in 2024–25

Total actual spending: $132,403,257
Total full-time-equivalent staff: 752

For complete information on the OAG’s total spending and human resources, read the “Spending and human resources” section of this report.

Summary of Results

The following provides a summary of the OAG’s achievements in 2024–25 under its main area of activity, called “core responsibility.”

Core responsibility: Legislative auditing
- Actual spending: $132,403,257
- Actual full-time equivalent staff: 752
In 2024–25, we completed 20 performance audits, 3 special examinations of Crown corporations, 100 financial audits and more than 60 additional financial engagements, and our annual environmental petitions and financial commentary reports, as detailed in the infographic above. In addition, we follow up on recommendations issued in our audits to assess whether they have been implemented, and we report on this through our departmental result indicators. We measured the percentage of audit recommendations implemented for each of the types of audits we conduct. The 2024–25 results can be found in Exhibit 1.

For more information on the OAG’s core responsibility of legislative auditing, read the “Results—What we achieved” section of this report.

Message from the Auditor General of Canada

I am proud to present the OAG’s departmental results report for 2024–25. Over the past fiscal year, we have made progress in achieving important milestones that strengthen our ability to fulfill our mandate. I am also pleased to highlight the results of our efforts to provide legislators with independent information to support their role in holding government to account for financial responsibility, well‑managed programs, and transparency in public reporting.

In this report, you will find an overview of our key initiatives, our performance results, and the impact our work has had over the past fiscal year. However, before highlighting specific achievements, I want to acknowledge that my office’s results in the most recent Public Service Employee Survey reflect that we have been an organization that has been navigating significant change over the last few years to modernize who we are and how we work. Change is challenging, and our survey results flag important concerns and areas where we must improve. Senior management remains committed to listening, learning, and taking meaningful action so that we can better support our employees through this transition. In a time of transformation like the one we are navigating, it is the strength and commitment of individuals that carry the organization forward. I am grateful for their contributions, and I will be relying on all employees as we continue to modernize our approaches, increase our efficiency, and enhance our productivity. I look forward to continuing this journey with them throughout the second half of my mandate.

This report represents the second year that we are reporting on our revised departmental results framework. Our departmental result indicators help measure the progress that audited organizations have made in implementing the actions that they committed to in response to our audit recommendations. This in turn promotes greater transparency and accountability in improving public sector programs and services. Of our 3 departmental result indicators, 2 have exceeded their targets this year.

Our legislative audit work, the core of our mandate, remains central to our efforts. The professional services contracts audit discussed good practices that all federal organizations should follow when procuring professional services on behalf of the federal government, while the audit report on cybercrime recommended several ways for Canada’s cybersecurity systems and processes to be strengthened across organizations. The follow‑up audit of child and family services in Nunavut, the fourth on this topic since 2011, found that while the territory’s Department of Family Services had taken initial actions to address previously identified failures affecting services for children, youth, and families, much work remains to be done to ensure that sufficient protection is provided under Nunavut’s Child and Family Services Act. We have committed to regular follow‑up audits on this topic because it has a significant and direct impact on the health and well‑being of children and families in Nunavut.

As part of our performance audit work, the Commissioner of the Environment and Sustainable Development provided Parliament with audit reports that focused on increasingly important issues related to climate change and sustainability and included topics such as contaminated sites in the North, advancing the government’s goal to reduce plastic waste by 2030, and protecting species at risk in Canada. The 2024–25 fiscal year also marked our second year of reporting under the Canadian Net‑Zero Emissions Accountability Act, assessing progress on climate change mitigation measures and providing recommendations to guide further action.

In 2024–25, we advanced several important internal initiatives. For example, we made key improvements to our audit processes as part of a multi‑year effort to strengthen how we select and conduct audits. We also made progress in modernizing our services and IT infrastructure, renewed several of our workspaces, and achieved key milestones in our broader workplace renewal plans.

I would like to express my deepest gratitude to everyone who has contributed to our successes this past year. I am exceptionally proud of the outstanding work delivered by our dedicated employees, who consistently uphold the highest standards of quality and integrity. And as I mentioned above, with our combined strength and commitment, together we will transform the organization to accomplish great things for a better Canada, one audit at a time.

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

Results—What we achieved

Core responsibility: Legislative auditing

In this section

Description
Quality of life impacts
Progress on results
Details on results
Key risks
Resources required to achieve results
Related government priorities
Program inventory
Contracts awarded to Indigenous businesses

Description

Our audit reports provide objective, fact‑based information and advice on government programs and activities. With our audits, we support Parliament in its authorization and oversight of government spending and operations.

Our audits also help territorial legislatures, boards of Crown corporations, and audit committees in their oversight of the management of government activities. Those charged with governance use our audit findings to hold their respective organizations to account for the handling of public funds.

Financial audits assess whether the annual financial statements of the Government of Canada, the territories, Crown corporations, and other organizations are presented fairly, consistent with applicable accounting standards.

Performance audits assess whether government organizations manage programs with due regard for economy, efficiency, and environmental impact and measure their effectiveness. We have also incorporated the assessment of equity, diversity, and inclusion as a priority area for our performance audits.

Special examinations assess whether Crown corporation systems and practices provide reasonable assurance that assets are safeguarded and controlled, resources are managed economically and efficiently, and operations are managed effectively.

Quality of life impacts

As an independent agent of Parliament, the OAG indirectly contributes to the Quality of Life Framework for Canada domains, subdomains, and indicators. Our reports inform Parliament on the efficiency, effectiveness, economy, and environmental effects of government programs and financial management.

Through our legislative assurance reports, we highlight areas for improvement in government programs and services that, when acted upon, positively affect Canadians’ quality of life.

The framework’s domain, subdomain, and indicator that relate most closely to legislative auditing are as follows:

Domain: Good governance
Subdomain: Democracy and institutions
Indicator: Confidence in institutions

Progress on results

This section details the OAG’s performance against its targets for its departmental result under its core responsibility of legislative auditing.

The OAG maintains a departmental results framework for reporting corporate results in accordance with the Treasury Board’s Policy on Results. Our framework came into effect on 1 April 2023 and was included in our 2023–24 Departmental Plan. Our indicators measure our influence by examining the percentage of audit recommendations that have been implemented and the improvement in terms of specific measures.

Exhibit 1—Targets and results for legislative auditing

Exhibit 1 shows the target, the date to achieve the target, and the actual result for each indicator under legislative auditing in the last 2 fiscal years.

Departmental result: Government acts on recommendations to improve public sector programs, service delivery, and financial management and reporting.

Exhibit 1—Targets and results for legislative auditing
Departmental result indicator	Target	Date to achieve target	Actual result^{Footnote 1}
Percentage of performance audit and special examination recommendations implemented	At least 85% of the recommendations have been implemented, 3 years after tabling	31 March 2025	2023–24: 84% 2024–25: 88%^{Footnote 2}
Percentage of financial audit recommendations implemented	At least 85% of the recommendations have been implemented, 2 years after they were issued	31 March 2025	2023–24: 91% 2024–25: 88%^{Footnote 3}
Percentage of measures examined for which progress made is assessed as “substantial improvement”	At least 85% of the measures have improved, 3 years after tabling	31 March 2025	2023–24: 50% 2024–25: 55%^{Footnote 4}
Footnote 1 The OAG’s departmental result indicator results for the 2022–23 fiscal year can be found in Exhibit 2 in the OAG’s 2022–23 Departmental Results Report. Return to footnote 1 referrer Footnote 2 For this indicator, we looked at 17 special examination recommendations (covering the 3 special examination reports published in the 2021–22 fiscal year, with 1 recommendation from these reports not yet due so not yet assessed) and 41 performance audit recommendations (covering 10 performance audit reports published from 2018 to 2021). Of the 17 special examination recommendations, 16 were assessed as having been implemented, 3 years after tabling. Of the 41 performance audit recommendations, 35 were assessed as having been implemented, 3 years after tabling. Between 2018 and 2021, the OAG issued 264 recommendations in federal performance audit reports. For the performance audit recommendations included in the indicator results for 2024–25, we prioritized recommendations made starting in 2018. This approach provided a larger pool of recommendations to work from (as opposed to looking only at reports from up to 3 years prior), as there were fewer audits than usual completed in 2020 because of the COVID‑19 pandemic. The audit reports reviewed were chosen on the basis of impact and importance to the public and parliamentarians. In the fiscal years to come, the process will change to provide an overview of the status of most or all recommendations made. Return to footnote 2 referrer Footnote 3 For this indicator, we looked at the 102 financial audit recommendations with a due date between 1 April 2022 and 31 March 2025. Of the 102 recommendations, 88% were assessed as having been implemented, 2 years after they were issued. Return to footnote 3 referrer Footnote 4 For this indicator, we looked at 11 measures from the same 10 performance audit reports that we reviewed for the first indicator (issued from 2018 to 2021). Of these, 6 were assessed as having substantially improved. Four results were assessed as improved, but we did not rate the improvements as substantial. In 1 case, there was no significant change. Return to footnote 4 referrer

The “Results” section of the infographic for the OAG on GC Infobase provides additional information on results and performance related to its program inventory.

Details on results

The following section describes the results for legislative auditing in 2024–25 compared with the planned results set out in the OAG’s departmental plan for the year.

Planned results, as reported in the OAG’s 2024–25 Departmental Plan, were as follows:

Audit operations

We planned to complete more than 90 financial audits, 25 performance audits, and 3 special examinations of Crown corporations during the 2024–25 fiscal year, as well as our annual commentary on our financial audit work and our annual report on environmental petitions, and to continue work on our Update on Past Audits searchable online tool.

Results achieved:

We completed 100 financial audits, 20 performance audits, and 3 special examinations of Crown corporations during the 2024–25 fiscal year. We also completed our annual commentary report on our financial audit work and our annual report on environmental petitions. For details, see the “Our current results: Audit operations” section of this report.

Corporate initiatives

We planned to advance several internal organization‑level initiatives in 2024–25, including advancing the 3 streams of our multi‑year transformation journey—audit, service, and IT; advancing our ongoing engagement initiatives with our interested parties and using feedback from these initiatives to inform and improve our audit approach; and continuing work on various initiatives to support and foster a skilled, inclusive, and engaged workforce.

Results achieved:

We advanced several of our ongoing corporate‑level initiatives in 2024–25, including work on our transformation initiative, engagement with our interested parties, and a focus on our workforce. For details, see the “Corporate initiatives” section of this report.

Our current results: Audit operations

Our role in supporting a well‑managed and accountable government is to deliver high‑quality audit work in a timely manner to Parliament, the territorial legislative assemblies, and the boards of the Crown and territorial corporations we audit. We are always looking to enhance the impact and value of our audit work to better inform decision makers and those charged with oversight responsibilities.

To assess the impact of our work on government organizations, we measure the percentage of recommendations that are implemented by the organizations we audit. This independent reporting to parliamentarians about improvements that are being made in public institutions because of our audit work promotes greater accountability and transparency in the public sector and thus contributes to improved public sector performance.

Audit quality management

Our system of quality management is a key element in ensuring that the audits we conduct meet professional standards and deliver value to Canadians. It provides the structure and support that our audit teams need to carry out high‑quality work.

In line with professional auditing standards, we evaluate our system annually to ensure it is appropriately designed, effectively implemented, and operating as intended. Our most recent evaluation identified opportunities for improvement in the application of risk assessment procedures and in the timeliness of internal reviews of our audit work. To address these, we have taken concrete actions such as enhancing training and strengthening oversight. This ongoing work reflects our continued commitment to audit excellence and continuous improvement.

Financial audits and other engagements

The OAG conducts financial audits and related work across various jurisdictions every year, including

the federal government’s consolidated financial statements, the results of which are published annually in the Public Accounts of Canada
the consolidated financial statements of the governments of Nunavut, Yukon, and the Northwest Territories, which are published annually in each territory’s public accounts
the financial statements of most Crown corporations and territorial corporations and other federal organizations

During the 2024–25 fiscal year, we completed 100 financial audits. The objective of financial audits is to provide an opinion on whether an organization’s financial statements are prepared, in all material respects, in accordance with the applicable financial reporting framework. In addition, when applicable, the objective is also to provide an opinion on whether the transactions that have come to the auditor’s notice during the audit of financial statements complied with specified authorities. An unmodified audit opinion indicates that the financial statements of the organization are prepared, in all material respects, in accordance with the applicable financial reporting framework and that the transactions that we looked at during the audit of financial statements complied with specified authorities.

In the 2024–25 Departmental Plan, we had reported that we planned to complete more than 90 financial audits in the 2024–25 fiscal year. The variance between the number of planned and reported financial audits for 2024–25 derives mainly from 2 elements:

timing differences relating to when audits were expected to be completed and when they were actually completed
a change in the OAG’s reporting methodology for the number of financial audits completed in a given fiscal year (beginning in the 2023–24 Departmental Results Report, we are reporting on the number of audit opinions issued instead of the number of organizations for which we have issued at least 1 audit opinion)

During the 2024–25 fiscal year, 98% of our financial audit opinions were issued on an unmodified basis. The 2 audit opinions that were modified were for territorial audits, and both relate to qualifications. The first qualification was because the organization did not present its public accounts to the legislative assembly by the required statutory deadline. The second qualification was because management had not implemented reliable inventory procedures and we were unable to validate inventory quantities by alternative means.

As part of our financial audit work, we issue recommendations when we have identified opportunities for changes that would improve internal control systems, streamline operations, or enhance financial reporting practices. The impact and value of our audits is fully realized when our recommendations are implemented. We expect at least 85% of recommendations to have been implemented, 2 years after they are issued. From 1 April 2022 to 31 March 2025, 88% were implemented.

In addition to financial audits, we worked on more than 60 other financial engagements during the 2024–25 fiscal year, including agreed‑on procedure engagements for First Nations groups in relation to tax administration agreements.

During 2024–25, we also presented our annual commentary on financial audits, which provides information to Parliament on matters of significance raised during our financial audits of federal organizations. In the Commentary on the 2023–2024 Financial Audits, released in December 2024, we presented information on the results of our federal financial audits, including our audit opinions, approvals of corporate plans for Crown corporations, and COVID‑19 benefit overpayments. Our report includes observations on the Government of Canada’s consolidated financial statements, including the preparation of the consolidated financial statements, pay administration issues for government employees, deficiencies in general controls over key government IT systems, asset retirement obligations, and issues in National Defence inventory and asset pooled items. We also included a section with additional insights on environmental, social, and governance reporting.

Performance audits

The OAG conducts many performance audits every year of federal and territorial government departments, agencies, and other organizations. A performance audit is an independent, objective, and systematic assessment of how well the government is managing its activities, responsibilities, and resources. Performance audits may look at a single government program or activity, an area of responsibility that involves several government organizations, or an issue that affects many organizations.

Performance audits provide assurance and, when appropriate, recommendations for improvement to assist Parliament and its committees or the legislative assemblies of the territories in their scrutiny of the government’s management of resources and delivery of programs.

In the 2024–25 fiscal year, we presented 20 performance audit reports: 17 to the Parliament of Canada, 1 to the Yukon Legislative Assembly, 1 to the Legislative Assembly of Nunavut, and 1 to the Northwest Territories Legislative Assembly. We also completed several other reports, such as our annual report on environmental petitions. Details for all these reports appear in the “List of reports” section of this report, including a reconciliation of planned and completed reports for the 2024–25 fiscal year.

Parliament’s prorogation in early January 2025 was the main reason for the gap between the number of performance audits we had planned for 2024–25, as reported in the 2024–25 Departmental Plan, and what we reported. Without Parliament sitting, we were not able to present our audit reports for tabling. See the “List of reports” section for details.

Our federal performance audits completed in 2024–25 include the Auditor General’s June 2024 report on professional services contracts, which found that nearly 100 contracts awarded to McKinsey & Company by 20 federal departments, agencies, and Crown corporations between 2011 and 2023 often disregarded procurement rules and failed to demonstrate value for money. This audit highlighted basic requirements and good practices that all federal organizations should follow when procuring professional services on behalf of the Government of Canada and made a recommendation, agreed on by all audited organizations, that the organizations that have not already done so should implement a proactive process to identify conflicts of interest in the procurement process.

Another June 2024 report of the Auditor General, which focused on combatting cybercrime, found breakdowns in enforcement, tracking, and analysis between and across the organizations responsible for protecting Canadians from cybercrime. The report recommended several ways for Canada’s cybersecurity workforce and systems and processes to be strengthened across organizations.

The Auditor General’s June 2024 report on Sustainable Development Technology Canada found that there were significant lapses in the foundation’s management of public funds in accordance with its legislative mandate and with contribution agreements between the foundation and the Government of Canada and that Innovation, Science and Economic Development Canada did not sufficiently monitor compliance with the contribution agreements. As of May 2025, the House of Commons Standing Committee on Public Accounts had held 18 hearings on this report. We appeared 3 times at these hearings to discuss our audit findings in the report.

The Commissioner of the Environment and Sustainable Development’s April 2024 report on contaminated sites found that sites in northern Canada had not been managed to reduce the financial liability under the Federal Contaminated Sites Action Plan and the Northern Abandoned Mine Reclamation Program. Since the launch of the action plan in 2005, the financial liability for known contaminated sites increased from $2.9 billion to $10.1 billion. Recommendations in the report aim to reduce financial liability related to contaminated sites and to lower environmental and human health risks for current and future generations.

In November 2024, the Commissioner released his second report on the 2030 Emissions Reduction Plan, under the Canadian Net‑Zero Emissions Accountability Act, which found that although the federal government had advanced a variety of mitigation measures to support progress toward a net‑zero transition, implementation of measures in the plan remained insufficient to meet Canada’s target of reducing greenhouse gas emissions by 40% to 45% below 2005 levels by 2030. Making progress on implementing federal climate change measures to reduce emissions is crucial for Canada to significantly and rapidly reduce its greenhouse gas emissions and avoid current and future severe effects of climate change.

As noted above, recommendations from our performance audits highlight important areas where improvements are needed to enhance outcomes and services for Canadians and to ensure that the government’s management practices, controls, and reporting systems are functioning as they should, on the basis of organizations’ own public administration policies and best practices. We expect at least 85% of recommendations to have been implemented, 3 years after audit reports are tabled. For performance audit recommendations (including special examinations) for which progress was examined in the 2024–25 fiscal year, 88% were implemented.

While performance audits are designed to identify areas for improvement, they also highlight where government programs are delivering meaningful results. For example, between 2019 and 2023, the Canada Summer Jobs program funded more than 460,000 jobs for youth, helping to improve their success in both current and future labour markets. Youth who participated in the program had better long‑term earnings compared with those who did not. Similarly, in the audit of Canada’s response to cybercrime, the Royal Canadian Mounted Police and Communications Security Establishment Canada were found to be well coordinated in their responses to high‑priority cases, such as attacks on Government of Canada systems and critical infrastructure. These findings reflect the government’s ongoing efforts to deliver programs that produce tangible benefits for Canadians while protecting critical systems.

Special examinations

The OAG audits most, but not all, Crown corporations. The Financial Administration Act requires the OAG to audit federal parent Crown corporations at least once every 10 years.

Special examinations are a form of audit that focuses on the operations of parent federal Crown corporations. These audits examine whether a Crown corporation’s systems and practices provide reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively.

In our 2024–25 Departmental Plan, we reported that we planned to complete 3 special examinations. As planned, we completed special examinations of Pacific Pilotage Authority Canada, the Canadian Air Transport Security Authority, and the Canadian Tourism Commission in the 2024–25 fiscal year. The Canadian Tourism Commission report did not contain any recommendations. The other 2 special examination reports included recommendations for improvements in various areas, including the management of operations, corporate governance, and risk mitigation. For 1 of these 2, the report on Pacific Pilotage Authority Canada, we also reported a significant deficiency in relation to the pilotage waiver process.

International work

The OAG maintained its active participation and contributions to the International Organization of Supreme Audit Institutions (INTOSAI) committees and working groups throughout the 2024–25 fiscal year. We also continued our collaboration with the Canadian Audit and Accountability Foundation’s International Development Program, welcoming 2 fellows from the Office of the Auditor General of Rwanda. In addition, the OAG contributed to the peer review of the European Court of Auditors, specifically in the data analytics segment.

The OAG hosted an international meeting of the INTOSAI Working Group on Financial and Economic Stability on central banking auditing. We also welcomed delegations from 6 countries and organizations, including elected officials, auditors, and representatives from the Organisation for Economic Co‑operation and Development and the Intercultural Development Inventory, to exchange knowledge, strengthen institutional relationships, and explore opportunities for collaboration.

Corporate initiatives

As outlined in our 2024–25 Departmental Plan, in addition to our core audit work, our priorities included work under several initiatives under 3 umbrellas: our ongoing transformation initiative, engagement with our interested parties, and a focus on our workforce. A new strategic plan for the second half of the Auditor General’s mandate was also approved. In the 2024–25 fiscal year, we advanced the following corporate initiatives in support of these principles.

Audit transformation

As part of our audit transformation stream, in 2024–25, we undertook several key initiatives aimed at enhancing the efficiency, relevance, and impact of our audit work.

The audit selection process was supported by a more comprehensive environment scan and analysis. The list of potential new audits was reviewed and ranked by a committee of cross‑functional staff. These improvements made the process more effective to ensure that we are focusing on the most significant and timely topics.

We also began exploring the integration of artificial intelligence (AI) into auditing to increase effectiveness, efficiency, and productivity. See the “Innovation” section for details.

We advanced our audit software upgrade project, completing the planning phase and securing expertise to migrate historical data and to train users. The new system, to be implemented in the second half of 2025–26, will strengthen our tools and support high‑quality, value‑added audits going forward.

Digital transformation: Advancing digital capabilities

In 2024–25, the OAG advanced its multi‑year digital services transformation, guided by a 3‑year integrated roadmap and digital enablement plan. The OAG embedded digital expertise across its audit and corporate services, providing targeted support in project management, business analysis, vendor management, and user experience design.

We continued to build digital literacy and competencies through tailored learning initiatives, and we advanced our data strategy by modernizing reporting tools to support integrated, evidence‑based performance reporting.

The OAG also began shifting from internally managed systems to externally hosted enterprise applications to improve reliability, security, and scalability. Key milestones included the successful configuration of and data migration to SAP in preparation for a 1 April 2025 launch of the financial system and the planning to adopt the Public Service Performance Management and the Executive Talent Management System applications. The OAG completed infrastructure upgrades to support a secure and modern hybrid work environment and enhance network communications across Government of Canada organizations, and we continued the rollout of Microsoft 365 applications and features.

Services transformation

In 2024–25, the OAG advanced its service transformation efforts with a focus on enabling better decision making, increasing transparency, and streamlining internal processes in both finance and human resources. A key achievement was developing and implementing several enterprise‑level reporting dashboards, which provide management with access to timely, transparent, and integrated data across the organization.

The OAG also made progress in laying the groundwork for future system transitions.

To support employee experience and client service, the OAG modernized several service delivery platforms. These included implementing a ticketing system for task management, launching a dynamic onboarding journey leveraging new and existing platforms, and strengthening training resources for auditors, including adding new courses and updating existing ones. Together, these initiatives reflect the OAG’s commitment to continuous improvement and its strategic shift toward providing more agile, responsive, and client‑centred internal services.

While the OAG made significant progress on several modernization and optimization initiatives, the pace of change also brought its share of challenges. There was additional effort required from internal resources to manage workload and learn new processes. The integration of new tools and technologies with existing systems proved more time‑consuming than expected. These efforts required extensive coordination across teams and revealed a growing need for stronger governance mechanisms to manage interdependencies and ensure cohesive implementation.

Engagement with our interested parties

During 2024–25, we continued our work on engaging with our interested parties, including parliamentarians and international peers. We surveyed federal parliamentarians and legislators in the 3 territorial legislatures as part of our ongoing engagement initiatives to seek feedback externally and used the information gained to inform our audit approach and reporting. The survey results were very positive. At the international level, we continued our engagement activities through the INTOSAI committees and working groups, peer reviews of other audit institutions, and collaboration with representatives from other international audit organizations. For details, see the “International work” section of this report.

Skilled, inclusive, and engaged workforce

During 2024–25, the OAG prioritized fostering a skilled, inclusive, and engaged workforce by enhancing our human resource and learning system. We delivered 5 targeted sessions on harassment prevention, equity, and heritage topics. We also conducted a thorough review of our human resource policies suite to reflect best practices for diversity, equity, accessibility, and inclusion. In tandem, we launched office‑wide training for leadership development and implemented a framework for employee resource groups.

These initiatives collectively contribute to creating a healthy, inclusive, and respectful work environment, which is essential to the ongoing success and well‑being of our workforce.

OAG FLEX—Optimization of the hybrid work environment

In 2024–25, we increased the frequency of employees coming to the office. In our Ottawa office, we are leveraging a hybrid working model in temporary, modernized workplaces while our permanent workspace is being renovated. In 2024–25, planning began for redesigning the future workspaces to Government of Canada standards, which will optimize collaboration, productivity, and wellness for employees.

Public Service Employee Survey results

While much progress has been made to transform and modernize our office over the past year, our employees have voiced a number of concerns through the 2024 Public Service Employee Survey. We have begun a comprehensive review of the feedback and are prioritizing concrete, measurable steps to address the issues raised. We recognize the importance of strong employee engagement and are committed to addressing the important issues that employees have highlighted through the survey.

Key risks

The OAG proactively manages potential events that could affect its ability to achieve its planned results. In the 2024–25 fiscal year, the OAG continued to implement a range of measures aimed at mitigating risks and supporting the delivery of audits. We continuously monitor our risk landscape, adjusting our mitigation strategies in response to changes in the business environment.

Resources required to achieve results

Exhibit 2—Snapshot of resources required for legislative auditing

Exhibit 2 provides a summary of the planned and actual spending and full‑time equivalents required to achieve results. See the “Analysis of the past 3 years of spending” section of this report for an explanation of the variance between planned and actual spending.

Exhibit 2—Snapshot of resources required for legislative auditing
Resource	Planned	Actual
Spending	$127,534,214	$132,403,257
Full-time equivalents	770	752

The “Finances” section of the infographic for the OAG on GC Infobase and the “People” section of the infographic for the OAG on GC Infobase provide complete financial and human resources information related to the OAG’s program inventory.

Related government priorities

Gender-based analysis plus

The OAG incorporates gender‑based analysis plus (GBA Plus) in its internal decision making and its audit work to provide parliamentarians and all Canadians with information on the government’s progress toward its gender, equity, diversity, and inclusion priorities. A summary of the activities to support the advancement of Canada’s GBA Plus commitments is included in a supplementary information table accompanying this report. In addition, we apply a GBA Plus lens to selected internal operations (such as policies and services), which aligns with the OAG’s ongoing commitment to maintaining a healthy, safe, diverse, and inclusive workplace.

United Nations 2030 Agenda for Sustainable Development and the Sustainable Development Goals

All of the OAG’s audits—financial audits, performance audits, and special examinations—contribute to Sustainable Development Goal (SDG) 16 (Peace, Justice and Strong Institutions) of the United Nations’ 2030 Agenda for Sustainable Development. In addition, the OAG is committed to aligning its direct engagement audit work to support the agenda and the underlying 17 SDGs. We consider the goals when planning and reporting on all direct engagements. During the 2024–25 fiscal year, 13 of the goals were referenced in the OAG’s published performance audits, and the SDG framework is referenced in 2 reports (Exhibit 3). In addition, internally, we have committed to completing actions that contribute to SDG 10 (Reduced Inequalities), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action) in our departmental sustainable development strategy. These actions include mandatory training on Indigenous topics, working toward meeting workforce availability percentages for employment equity groups at the OAG, and incorporating elements of the Greening Government Strategy into OAG procurement practices and internal policy instruments.

In the 14 audit reports that included SDGs, some had specific audit findings related to specific goals. For example, the performance audit of programs to assist seniors found that Employment and Social Development Canada had worked with Statistics Canada to further disaggregate data collected about seniors to better understand seniors’ poverty, contributing to advancing work related to SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities). In addition, the audit of agriculture and climate change mitigation found that Agriculture and Agri‑Food Canada had aligned its program indicators to SDG 2 (Zero Hunger) and SDG 13 (Climate Action) to report on its contribution to the SDGs.

Exhibit 3—The number of United Nations’ Sustainable Development Goal references in the OAG’s direct engagements for the 2024–25 fiscal year

Sustainable Development Goals
Sustainable Development Goal	Number of references
Goal 1: No poverty	1
Goal 2: Zero hunger	1
Goal 3: Good health and well-being	1
Goal 5: Gender equality	1
Goal 6: Clean water and sanitation	1
Goal 7: Affordable and clean energy	1
Goal 8: Decent work and economic growth	1
Goal 9: Industry, innovation and infrastructure	3
Goal 10: Reduced inequalities	3
Goal 12: Responsible consumption and production	3
Goal 13: Climate action	5
Goal 14: Life below water	1
Goal 15: Life on land	1
No specific goal	2

More information on the OAG’s contributions to Canada’s Federal Implementation Plan for the 2030 Agenda and the Federal Sustainable Development Strategy can be found in our departmental sustainable development strategy.

Innovation

In the 2024–25 fiscal year, as part of its innovation agenda, the OAG re‑established its Innovation Lab and carried out more than 20 explorations aimed at gaining time savings, improving process efficiency, and building internal knowledge of AI.

The lab experimented with AI in several ways, including an AI coaching pilot in partnership with Human Resources and a cloud‑based sandbox, which involved using a Shared Services Canada platform to run multiple experiments (translation, speech‑to‑text, first‑draft generation). We also used generative AI tools for document summarization and the creation of preliminary findings that helped support the work for some of our reports.

The Innovation Lab also delivered 6 office‑wide learning events on AI throughout the 2024–25 fiscal year, including specific sessions on how AI prompts can be used in audit work.

Also in 2024–25, the Innovation Lab successfully experimented with a mobile audit evidence capture application. This application will be scaled up during the 2025–26 fiscal year. Furthermore, a lessons‑learned exercise informed a 2025–26 experimentation agenda that includes advanced data analytics for financial audits and the integration of disruptive technologies in upcoming performance audits.

Collectively, these achievements established the governance, skills, and technical foundations needed to scale up AI solutions office‑wide in 2025–26.

Program inventory

The OAG’s core responsibility, legislative auditing, is supported by the sole program in our program inventory:

legislative audit

Additional information related to the program inventory for legislative auditing is available on the “Results” section of the infographic for the OAG on GC Infobase.

Contracts awarded to Indigenous businesses

Government of Canada departments are required to award at least 5% of the total value of contracts to Indigenous businesses every year.

The OAG’s results for 2024–25 are as follows.

Exhibit 4—Total value of contracts awarded to Indigenous businesses^{Footnote 1}

As shown in Exhibit 4, the OAG awarded 8.79% of the total value of all contracts to Indigenous businesses for the fiscal year.

Exhibit 4—Total value of contracts awarded to Indigenous businesses
Contracting performance indicators	2024–25 results
Total value of contracts awarded to Indigenous businesses^{Footnote 2} (A)	$994,347
Total value of contracts awarded to Indigenous and non-Indigenous businesses (B)	$11,310,011
Value of exceptions approved by deputy head (C)	$0
Proportion of contracts awarded to Indigenous businesses [A / (B−C) × 100]	8.79%^{Footnote 3}
Footnote 1 “Contract” is a binding agreement for the procurement of a good, service, or construction and does not include real property leases. It includes contract amendments and contracts entered into by means of acquisition cards of more than $10,000.00. Return to footnote 1 referrer Footnote 2 For the purposes of the minimum 5% target, the data in this table reflects how Indigenous Services Canada defines “Indigenous business” as either owned and operated by Elders, band, and tribal councils; registered in the Indigenous Business Directory; or registered on a modern treaty beneficiary business list. Return to footnote 2 referrer Footnote 3 We did not include the value of subcontracts in calculating this result. Return to footnote 3 referrer

In its 2024–25 Departmental Plan, the OAG estimated that it would award a minimum of 5% of the total value of its contracts to Indigenous businesses by the end of 2024–25.

To ensure Indigenous businesses receive appropriate consideration in OAG procurement activities, awareness sessions have been conducted with employees responsible for business units and program areas that establish procurement plans. This helps embed the commitment to awarding contracts to Indigenous businesses at every stage of our procurement planning process.

To support economic reconciliation with Indigenous peoples, we have reserved opportunities for qualified Indigenous suppliers for major spend categories. Pre‑qualified methods of supply were identified in many areas where there is recurring contracting activity.

We have strengthened our internal governance to enhance oversight, identify emerging opportunities for Indigenous businesses, and manage related risks. Additionally, we have implemented quarterly tracking and reporting to monitor progress.

To ensure that contracts awarded to Indigenous businesses are contributing to economic reconciliation with Indigenous peoples, any supplier that has been awarded a contract designated as set aside under the Government of Canada’s Procurement Strategy for Indigenous Business is required to demonstrate adherence to the program requirements. Compliance audits may also be leveraged to confirm that the ownership criterion, control criterion, and Indigenous content criterion, where applicable, are being satisfied.

Spending and human resources

In this section

Spending
Funding
Human resources

Spending

This section presents an overview of the department’s actual and planned expenditures from 2022–23 to 2027–28.

Refocusing government spending

In Budget 2023, the government committed to reducing spending by $14.1 billion over 5 years, starting in 2023–24, and by $4.1 billion annually after that. While not officially part of this spending reduction exercise, to respect the spirit of this exercise, we proactively reduced travel expenditures by 20% of planned spending in 2023–24—exceeding our 15% target. In 2024–25, we continued to limit travel, achieving a further 21% reduction.

Budgetary performance summary

Exhibit 5—Actual 3‑year spending on core responsibility (dollars)

Exhibit 5 shows the money that the OAG spent in each of the past 3 years on its core responsibility.

Exhibit 5—Actual 3-year spending on core responsibility (dollars)
Core responsibility	2024–25 Main Estimates	2024–25 total authorities available for use	Actual spending over 3 years (authorities used)
Legislative auditing	$127,415,620	$138,097,801	2022–23: $127,855,929 2023–24: $134,929,754 2024–25: $132,403,257

Analysis of the past 3 years of spending

In the 2024–25 fiscal year, the OAG spent $132.4 million of its total parliamentary authorities of $138.1 million, resulting in a lapse of $5.7 million. The OAG may carry forward up to 5% of its operating budget (on the basis of Main Estimates program expenditures) into the next fiscal year, subject to parliamentary approval. For 2024–25, the OAG expects a carry‑forward of approximately $5.6 million into the 2025–26 fiscal year.

The lower amount of actual spending in 2024–25 was primarily due to a reduction in full‑time‑equivalent staffing levels, as we continued to advance our transformation initiative and realized operational efficiencies. This aligns with our long‑term objective of building a more streamlined and agile organization while reinvesting savings into innovation and modernization. In addition, operational spending was reduced as part of a prudent financial management strategy in response to funding uncertainties.

The “Finances” section of the infographic for the OAG on GC Infobase offers more financial information from previous years.

Exhibit 6—Planned 3‑year spending on core responsibility (dollars)

Exhibit 6 shows the OAG’s planned spending for each of the next 3 years on its core responsibility.

Exhibit 6—Planned 3-year spending on core responsibility (dollars)
Core responsibility	2025–26 planned spending	2026–27 planned spending	2027–28 planned spending
Legislative auditing	$136,240,285	$134,622,488	$132,822,128

Analysis of the next 3 years of spending

Planned spending over the next 3 fiscal years reflects a gradual decrease, which aligns with our long‑term transformation strategy and anticipated workforce optimization while ensuring the continued delivery of our core responsibility.

The “Finances” section of the infographic for the OAG on GC Infobase offers more detailed financial information related to future years.

Funding

This section provides an overview of the department’s voted and statutory funding for its core responsibility. Consult the Government of Canada budgets and expenditures for further information on funding authorities.

Exhibit 7—Approved funding (statutory and voted) over a 6-year period

Exhibit 7 summarizes the OAG’s approved voted and statutory funding from 2022–23 to 2027–28.

Text version of exhibit 7
Fiscal year	Statutory	Voted	Total
2022–23	$12,958,843	$122,597,182	$135,556,025
2023–24	$13,913,313	$122,634,778	$136,548,091
2024–25	$14,574,610	$123,523,191	$138,097,801
2025–26	$15,007,077	$121,233,208	$136,240,285
2026–27	$14,945,049	$119,677,439	$134,622,488
2027–28	$14,945,049	$117,877,079	$132,822,128

Consult the Public Accounts of Canada for further information on the OAG’s departmental voted and statutory expenditures.

Human resources

This section presents an overview of the OAG’s actual and planned human resources from 2022–23 to 2027–28.

Exhibit 8—Actual human resources for core responsibility

Exhibit 8 shows a summary in full-time equivalents of human resources for the OAG’s core responsibility for the previous 3 fiscal years.

Exhibit 8—Actual human resources for core responsibility
Core responsibility	2022–23 actual full-time equivalents	2023–24 actual full-time equivalents	2024–25 actual full-time equivalents
Legislative auditing	732	780	752

Analysis of human resources for the last 3 years

In 2024–25, as we advanced in our transformation initiative, we reduced our full-time equivalent count, aligning with our long-term vision of a more streamlined and effective organization. This has freed up additional funds for further investments in innovation and transformation.

Exhibit 9—Human resources planning summary for core responsibility

Exhibit 9 shows the planned full time equivalents for the OAG’s core responsibility for the next 3 years. Human resources for the current fiscal year are forecast on the basis of year to date.

Exhibit 9—Human resources planning summary for core responsibility
Core responsibility	2025–26 planned full-time equivalents	2026–27 planned full-time equivalents	2027–28 planned full-time equivalents
Legislative auditing	750	740	740

Financial statements

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Management of the Office of the Auditor General of Canada (OAG) is responsible for the preparation of the accompanying financial statements for the year ended 31 March 2025 and for all information contained in these statements, in accordance with Canadian public sector accounting standards.

Management is responsible for the integrity and objectivity of the information in these financial statements. Some of the information in the financial statements is based on management’s best estimates and judgment and gives due consideration to materiality. To fulfill its accounting and reporting responsibilities, management maintains a set of accounts that provides a centralized record of the OAG’s financial transactions. Financial information submitted in the preparation of the Public Accounts of Canada, and included in the OAG’s Departmental Results Report, is consistent with these audited financial statements. In preparing the financial statements, management is responsible for assessing the OAG’s ability to continue as a going concern; disclosing matters related to going concern; and using the going concern basis of accounting, as applicable.

Management is also responsible for maintaining an effective system of internal control over financial reporting (ICFR), which is designed to provide reasonable assurance that financial information is reliable; that assets are safeguarded; and that transactions are properly authorized and recorded in accordance with the Financial Administration Act and other applicable legislation, regulations, authorities, and policies.

Management seeks to ensure the objectivity and integrity of data in its financial statements through the careful selection, training, and development of qualified staff; through organizational arrangements that provide appropriate divisions of responsibility; through communications aimed at ensuring that regulations, policies, standards, and managerial authorities are understood throughout the OAG; and through an annual assessment of the effectiveness of the system of ICFR.

The system of ICFR is designed to mitigate risks to a reasonable level and may not prevent or detect all misstatements. It is based on an ongoing process designed to identify key risks, to assess the effectiveness of associated key controls, and to make any necessary adjustments.

The effectiveness and adequacy of the OAG’s system of internal control are reviewed through the work of internal audit staff, who conduct periodic audits of different areas of the OAG’s operations. Also, financial services staff annually monitor ICFR. As a basis for recommending approval of the financial statements to the Auditor General, the OAG’s Audit Committee reviews management’s arrangements for internal controls and the accounting policies employed by the OAG for financial reporting purposes. The Audit Committee also meets independently with the OAG’s internal and external auditors to consider the results of their work.

A risk‑based assessment of the system of ICFR for the year ended 31 March 2025 was completed in accordance with the Treasury Board’s Policy on Financial Management. The results and action plans are summarized in the 2024–25 Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting.

Raymond Chabot Grant Thornton Limited Liability PartnershipLLP Chartered Professional Accountants, Licensed Public Accountants, the independent auditor for the OAG, has expressed an opinion on the fair presentation of the financial statements of the OAG in conformity with Canadian public sector accounting standards, which does not include an audit opinion on the annual assessment of the effectiveness of the OAG’s ICFR.

[Original signed by]

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

[Original signed by]

Jean-René Drapeau, Chartered Professional AccountantCPA
Chief Financial Officer

Ottawa, Canada
10 July 2025

Independent Auditor’s Report

To the Speaker of the House of Commons

Report on the Audit of the Financial Statements

Opinion

We have audited the financial statements of the Office of the Auditor General of Canada (the “Office”), which comprise the statement of financial position as at 31 March 2025, and the statements of operations, change in net debt and cash flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Office as at 31 March 2025, and the results of its operations, the change in its net debt and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the Office in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Office’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Office or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Office’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Office’s internal control;
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management;
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Office’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Office to cease to continue as a going concern;
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Report on Compliance with Specified Authorities

Opinion

In conjunction with the audit of the financial statements, we have audited transactions of the Office coming to our notice for compliance with specified authorities. The specified authorities for which compliance was audited are the Financial Administration Act and its regulations and the Auditor General Act.

In our opinion, the transactions of the Office that came to our notice during the audit of the financial statements have complied, in all material respects, with the specified authorities referred to above.

Responsibilities of Management for Compliance with Specified Authorities

Management is responsible for the Office’s compliance with the specified authorities named above, and for such internal control as management determines is necessary to enable the Office to comply with the specified authorities.

Auditor’s Responsibilities for the Audit of Compliance with Specified Authorities

Our audit responsibilities include planning and performing procedures to provide an audit opinion and reporting on whether the transactions coming to our notice during the audit of the financial statements are in compliance with the specified authorities referred to above.

[Original signed by]

Raymond Chabot Grant Thornton Limited Liability PartnershipLLP
Chartered Professional Accountants,
Licensed Public Accountants

Ottawa, Canada
July 10, 2025

Office of the Auditor General of Canada
Statement of Financial Position
as at March 31

**(in thousands of dollars)**
	2025	2024
Financial assets
Due from the Consolidated Revenue Fund	9,618	14,590
Accounts receivable (note 4)	1,515	556
Accounts receivable held on behalf of the Government of Canada (note 4)	(1,380)	(125)
Financial assets subtotal	9,753	15,021
Liabilities
Accounts payable and accrued liabilities (note 5)	9,340	14,471
Vacation pay	9,168	9,668
Sick leave benefits (note 6b)	1,990	2,211
Severance benefits (note 6c)	1,304	1,491
Maternity/parental leave benefits (note 6d)	626	469
Liabilities subtotal	22,428	28,310
Net debt	(12,675)	(13,289)
Non-financial assets
Tangible capital assets (note 7)	2,887	3,220
Prepaid expenses	419	509
Non-financial assets subtotal	3,306	3,729
Accumulated deficit	(9,369)	(9,560)

Contractual obligations (note 10)

The accompanying notes are an integral part of these financial statements.

Approved by

[Original signed by]

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

[Original signed by]

Jean-René Drapeau, Chartered Professional AccountantCPA
Chief Financial Officer

Ottawa, Canada
10 July 2025

Office of the Auditor General of Canada
Statement of Operations
for the year ended March 31

**(in thousands of dollars)**
	2025	2025	2024
	Planned results (note 12)	Actual	Actual
Expenses (note 8)
Financial audits of Crown corporations, territorial governments, and other organizations, and of the consolidated financial statements of the Government of Canada	69,100	75,535	75,135
Performance audits	59,600	53,669	59,922
Professional practices	11,000	13,337	12,531
Special examinations of Crown corporations	5,300	5,317	3,778
Sustainable development monitoring activities and environmental petitions	2,400	2,083	2,290
Total cost of operations	147,400	149,941	153,656
Revenues
International audits	600	402	1,270
Other	-	120	190
Revenues earned on behalf of the Government of Canada	-	(67)	(159)
Net revenues	600	455	1,301
Net cost of operations before government funding and transfers	146,800	149,486	152,355
Government funding and transfers (note 3)
Net cash provided by the Government of Canada	-	137,491	135,713
Change in due from the Consolidated Revenue Fund	-	(4,972)	(336)
Services provided without charge (note 9b)	-	17,158	17,652
Total government funding and transfers	149,090	149,677	153,029
Annual surplus	2,290	191	674
Accumulated deficit, beginning of year	(9,560)	(9,560)	(10,234)
Accumulated deficit, end of year	(7,270)	(9,369)	(9,560)

The accompanying notes are an integral part of these financial statements.

Office of the Auditor General of Canada
Statement of Change in Net Debt
for the year ended March 31

**(in thousands of dollars)**
	2025	2025	2024
	Planned results (note 12)	Actual	Actual
Annual surplus	2,290	191	674
Acquisition of tangible capital assets (note 7)	(2,500)	(918)	(1,792)
Amortization of tangible capital assets (notes 7 and 8)	1,010	1,251	889
Write-off of tangible capital assets	-	-	203
Subtotal	800	524	(26)
Decrease/(Increase) in prepaid expenses	-	90	(26)
Decrease/(Increase) in net debt, during the year	800	614	(52)
Net debt, beginning of year	(13,289)	(13,289)	(13,237)
Net debt, end of year	(12,489)	(12,675)	(13,289)

The accompanying notes are an integral part of these financial statements.

Office of the Auditor General of Canada
Statement of Cash Flow
for the year ended March 31

**(in thousands of dollars)**
	2025	2024
Operating transactions
Cash paid for
Employee salaries, wages, and benefits	(110,124)	(105,503)
Services, transportation, communication, and other expenses	(15,751)	(19,951)
Statutory contributions to employee benefit plans	(13,170)	(13,505)
Cash paid for operating transactions subtotal	(139,045)	(138,959)
Cash received from
Salaries and benefits recovered	1,630	992
International audits	655	1,989
Sales tax recovered	184	1,818
Other	168	394
Cash received from operating transactions subtotal	2,637	5,193
Cash used by operating transactions	(136,408)	(133,766)
Capital transactions
Cash used to acquire tangible capital assets	(1,083)	(1,947)
Cash applied to capital transactions	(1,083)	(1,947)
Net cash provided by the Government of Canada (note 3c)	(137,491)	(135,713)

The accompanying notes are an integral part of these financial statements.

Office of the Auditor General of Canada
Notes to the financial statements for the year ended 31 March 2025

1. Authority and objective

The Auditor General Act, the Financial Administration Act, and a variety of other acts and orders‑in‑council set out the duties of the Auditor General and the Commissioner of the Environment and Sustainable Development.

The core responsibility of the Office of the Auditor General of Canada (OAG) is legislative auditing and consists of performance audits of departments and agencies; the audit of the consolidated financial statements of the Government of Canada; financial audits of Crown corporations, territorial governments, and other organizations; special examinations of Crown corporations; and sustainable development monitoring activities and environmental petitions.

Pursuant to the Financial Administration Act, the OAG is a department of the Government of Canada. It is listed in Schedule I.1 of the act as a division or a branch of the federal public administration, and in Schedule V of the act as a separate agency. The OAG is not subject to income taxes under the provisions of the Income Tax Act.

2. Significant accounting policies

a) Basis of presentation

The financial statements of the OAG have been prepared by management in accordance with Canadian public sector accounting standards (PSAS).

b) Parliamentary authorities

The OAG is funded by the Government of Canada through parliamentary authorities. Financial reporting of authorities provided to the OAG does not parallel financial reporting according to PSAS, since authorities are primarily based on cash flow requirements. Consequently, items recognized in the Statement of Operations and in the Statement of Financial Position are not necessarily the same as those provided through authorities from Parliament. Note 3a provides a reconciliation between the 2 bases of reporting.

c) Revenues

Revenues are from international audits and other activities, such as audit professional services provided to members of the Canadian Council of Legislative Auditors. These revenues arise from transactions with performance obligations.

Revenues from transactions with performance obligations occur when there is an enforceable promise to transfer goods or services directly to a payer in return for promised consideration. These revenues are recognized when control of the benefits associated with the goods or services have transferred and there is no unfulfilled performance obligation.

Of those revenues, amounts that are considered to be earned on behalf of the Government of Canada are not available for discharging the OAG’s liabilities. Although the OAG is expected to maintain accounting control, it has no authority regarding the disposition of those revenues. As a result, revenues earned on behalf of the Government of Canada are presented as a reduction of the OAG’s gross revenues.

d) Net cash provided by the Government of Canada

The OAG operates within the Consolidated Revenue Fund (CRF), which is administered by the Receiver General for Canada. All cash received by the OAG is deposited to the CRF, and all cash disbursements made by the OAG are paid from the CRF. The net cash provided by the Government of Canada is the difference between all cash receipts and all cash disbursements, including transactions between departments of the Government of Canada.

e) Due from the Consolidated Revenue Fund

Amounts due from or to the CRF are the result of timing differences at year‑end between when a transaction affects authorities and when it is processed through the CRF. Amounts due from the CRF represent the net amount of cash that the OAG is entitled to draw from the CRF, without further parliamentary authorities to discharge its liabilities.

f) Accounts receivable and Accounts receivable held on behalf of the Government of Canada

Accounts receivable are stated at the lower of cost and net recoverable value. A valuation allowance is recorded for accounts receivable where recovery is considered uncertain.

Accounts receivable held on behalf of the Government of Canada are presented as a reduction to the financial assets on the Statement of Financial Position because they are not available to discharge the OAG’s liabilities.

g) Tangible capital assets

By nature, tangible capital assets are normally used to provide future services.

Tangible capital assets are recorded at historical cost less accumulated amortization. The OAG capitalizes the costs associated with the development of software used internally, such as installation costs, professional service contract costs, and salary costs of employees directly associated with these projects. The costs of software maintenance, project management and administration, data conversion, and training and development are expensed in the year incurred.

When conditions indicate that a tangible capital asset no longer contributes to the OAG’s ability to provide future services, or that the value of future economic benefits associated with the tangible capital asset is less than its net book value, the cost of the tangible capital asset is reduced to reflect the decline in the asset’s value. Any write‑downs of tangible capital assets are accounted for as expenses in the Statement of Operations and are not subsequently reversed.

The cost of work in progress is transferred to the applicable asset class in the year the assets are put into service.

Amortization of tangible capital assets begins when assets are put into use and is recorded using the straight‑line method over the estimated useful lives of the assets as follows:

Amortization of tangible capital assets
Tangible capital asset class	Useful life
Leasehold improvements	Lesser of the remaining term of the lease or the useful life of the improvements
Furniture and fixtures	10 to 25 years
Informatics software	5 years
Informatics hardware and infrastructure	5 years
Office equipment	4 to 10 years
Motor vehicle	5 years
Work in progress	In accordance with asset class, once in service

Cloud computing arrangements

Cloud computing arrangements are service contracts providing the OAG with the right to access a cloud provider’s resources over the term of the contract. The OAG does not generally receive an informatics asset as a result of these services, and related costs are recognized as operating expenses in the Statement of Operations when services are received.

h) Accounts payable and accrued liabilities

Accounts payable and accrued liabilities represent obligations of the OAG for salaries and wages, for material and supply purchases, and for the cost of services rendered to the OAG.

Salary‑related accrued liabilities are primarily determined using employees’ salaries at year‑end. Accounts payable and accrued liabilities are measured at cost.

i) Vacation pay

Vacation pay is accrued as the benefit is earned by the employees under their respective labour contracts and conditions of employment. The liability represents all unused vacation pay benefits accruing to employees. The employees’ salaries at year‑end determine the amount of these accrued vacation pay benefits.

j) Employee benefits

i) Pension benefits

All eligible employees participate in the Public Service Pension Plan, a plan administered by the Government of Canada. The OAG’s contributions are currently based on a multiple of an employee’s required contributions and may change over time, depending on the experience of the plan. The OAG’s contributions are expensed during the year in which the services are rendered and represent its total pension obligation. The OAG is not required to make contributions with respect to any actuarial deficiencies of the plan.

ii) Health and dental benefits

The Government of Canada sponsors employee benefit plans (health and dental) in which the OAG participates. Employees are entitled to health and dental benefits, as provided for under labour contracts and conditions of employment. The OAG’s contributions to the plans, which are provided without charge by the Treasury Board of Canada Secretariat, are recorded at cost based on a percentage of the salary expenses and charged to personnel expenses in the year incurred. They represent the OAG’s total obligation to the plans. Current legislation does not require the OAG to make contributions for any future unfunded liabilities of the plans.

iii) Sick leave benefits

Employees are eligible to accumulate sick leave benefits until the end of employment, according to their labour contracts and conditions of employment. Sick leave benefits are earned based on employee services rendered and are paid upon an illness or injury‑related absence. These are accumulating non‑vesting benefits that can be carried forward to future years but are not eligible for payment on retirement or termination nor can these be used for any other purpose. A liability is recorded for unused sick leave credits expected to be used in future years in excess of future allotments, based on an actuarial valuation using an accrued benefit method. Changes in actuarial assumptions and any variance between the expected and the actual experience of the sick leave benefit plan give rise to actuarial gains or losses. These gains or losses are amortized on a straight‑line basis over the expected average remaining service life of the employees, starting in the fiscal year following the one in which they arose.

iv) Severance benefits

The accumulation of severance benefits for employees ceased in the 2012–13 fiscal year. The accrued benefit obligation is determined using employees’ salaries at year‑end and the number of weeks earned but unpaid for employees who have elected to defer the receipt of their full or partial severance benefits payment.

v) Maternity/parental leave benefits

Employees are entitled to maternity/parental leave benefits as provided for under labour contracts and conditions of employment. The benefits earned are event‑driven, meaning that the OAG’s obligation for the cost of the entire benefit arises upon occurrence of a specific event, being the commencement of the maternity/parental leave. The accrued benefit obligation and benefit expenses are based on management’s best estimates.

k) Related party transactions

i) Inter-entity transactions

The OAG is related as a result of common ownership to all Government of Canada departments, agencies, and Crown corporations. The OAG enters into transactions with these organizations in the normal course of business. These transactions are measured as follows:

Inter‑entity transactions are measured at the exchange amount when undertaken on similar terms and conditions to those adopted if the entities were dealing at arm’s length, or where transactions are allocated costs and recoveries.
Common services provided without charge by other government departments are recorded as operating expenses by the OAG at the carrying amount of the providing department. A corresponding amount is reported as government funding in the Statement of Operations.
Other inter‑entity transactions are measured at the carrying amount of the providing department.

ii) Other related party transactions

Related parties include key management personnel who have the authority and responsibility for planning, directing, and controlling the activities of the OAG. Related parties also include the close family members of these personnel. The OAG has defined its key management personnel to be the Executive Committee members and parties related to them.

Related party transactions, other than inter‑entity transactions, are recorded at the exchange amount.

l) Allocation of expenses

All direct expenses related to the delivery of audits and professional practice projects, such as salary, professional services, travel, and other associated costs, are allocated to each audit and professional practice project. All other expenses, including services provided without charge, are treated as overhead and are allocated to audits and professional practice projects on the basis of the direct staff cost charged to them.

m) Measurement uncertainty

These financial statements are prepared in accordance with PSAS. These standards require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues, government funding and transfers, and expenses during the reporting period. The amount of services provided without charge, the assumptions underlying the liability calculation for sick leave benefits, and the estimated useful lives of tangible capital assets are the most significant items for which estimates are used. Actual results could differ significantly from the estimates. These estimates are reviewed annually, and as adjustments become necessary, they are recognized in the financial statements in the period in which they become known.

3. Parliamentary authorities

The OAG is funded through annual parliamentary authorities. Items recognized in the Statement of Operations in one year may be funded through parliamentary authorities in prior, current, or future years. Accordingly, the OAG has different net results of operations for the year on a government funding basis than on an accrual accounting basis. The differences are reconciled in the following tables.

a) Reconciliation of net cost of operations to current year authorities used

**(in thousands of dollars)**
	2025	2024
Net cost of operations before government funding and transfers	149,486	152,355
Adjustments for items recorded as part of net cost of operations but not affecting current year authorities:
Services provided without charge by other government departments	(17,158)	(17,652)
Amortization of tangible capital assets	(1,251)	(889)
Write-off of tangible capital assets	-	(203)
(Decrease)/Increase in prepaid expenses	(90)	26
Adjustment to previous year accruals	8	11
Total items recorded as part of net cost of operations but not affecting current year authorities	(18,491)	(18,707)
Adjustments for items not recorded as part of net cost of operations but affecting current year authorities:
Acquisition of tangible capital assets	918	1,792
Decrease/(Increase) in liabilities not charged to authorities	614	(52)
Recoveries from prior year’s revenues	(213)	(505)
Other	89	47
Total items not recorded as part of net cost of operations but affecting current year authorities	1,408	1,282
Current year authorities used	132,403	134,930

b) Authorities provided and used

**(in thousands of dollars)**
	2025	2024
Main Estimates
Vote 1—Program expenditures	114,689	109,132
Statutory amounts—Contributions to employee benefit plans	12,726	13,418
Total Main Estimates	127,415	122,550
Supplementary Estimates—Vote 1c—Program expenditures	-	-
Supplementary voted authorities	6,528	8,717
Authorities carried forward from previous year	2,306	4,786
Adjustment to statutory contributions to employee benefit plans	1,796	442
Statutory spending of proceeds from disposal of tangible capital assets	53	53
Current year authorities provided	138,098	136,548
Authorities available for use in subsequent years	(3)	(50)
Less: Lapsed authorities	(5,692)	(1,568)
Current year authorities used	132,403	134,930

The OAG may carry forward up to 5% of its operating budget (based on Main Estimates program expenditures) into the next fiscal year, subject to parliamentary approval.

c) Reconciliation of net cash provided by the Government of Canada to current year authorities used

**(in thousands of dollars)**
	2025	2024
Net cash provided by the Government of Canada	137,491	135,713
Change in due from the Consolidated Revenue Fund
Decrease in Accounts receivable and Accounts receivable held on behalf of the Government of Canada	296	848
Decrease in liabilities charged to authorities	(5,268)	(1,184)
Total—Change in due from the Consolidated Revenue Fund	(4,972)	(336)
Recoveries from prior year’s revenues	(213)	(505)
Adjustment to previous year accruals	8	11
Other	89	47
Current year authorities used	132,403	134,930

4. Accounts receivable

The following table presents details of the OAG’s accounts receivable:

**(in thousands of dollars)**
	2025	2024
Other government departments and agencies	1,356	167
Other	110	102
International audits and audit‑related professional services	49	287
Gross accounts receivable	1,515	556
Accounts receivable held on behalf of the Government of Canada	(1,380)	(125)
Net accounts receivable	135	431

5. Accounts payable and accrued liabilities

The following table presents details of the OAG’s accounts payable and accrued liabilities:

**(in thousands of dollars)**
	2025	2024
Accrued employee salaries	6,705	11,833
Due to others	2,635	2,638
Total	9,340	14,471

6. Employee benefits

a) Pension benefits

The OAG’s eligible employees participate in the Public Service Pension Plan, which is established and governed by the Public Service Superannuation Act and sponsored and administered by the Government of Canada. Pension benefits accrue up to a maximum period of 35 years at a rate of 2% per year of pensionable service, times the average of the best 5 consecutive years of earnings. The benefits are integrated with Canada/Québec Pension Plan benefits, and they are indexed to inflation.

Both the employees and the OAG contribute to the cost of the Public Service Pension Plan. Because of the amendment of the Public Service Superannuation Act following the implementation of provisions related to Economic Action Plan 2012, employee contributors have been divided into 2 groups: Group 1 relates to existing plan members as of 31 December 2012, and Group 2 relates to members joining the Public Service Pension Plan as of 1 January 2013. Each group has a distinct contribution rate.

The 2024–25 expense amounts to $9.3 million ($8.2 million in 2023–24). For employees, the expense represents approximately 1.0 times (1.0 times in 2023–24) the employee contributions.

The OAG’s responsibility with regard to the Public Service Pension Plan is limited to its contributions. Actuarial surpluses or deficiencies are recognized in the financial statements of the Government of Canada, as the plan’s sponsor.

b) Sick leave benefits

Employees are credited, based on service, a maximum of 15 days annually for use as paid absences due to illness or injury. The sick leave benefit obligation is unfunded and will be paid from future parliamentary authorities.

The most recent actuarial valuation of the sick leave accrued benefit obligation performed for accounting purposes was done as at 31 March 2025. Actuarial assumptions are used to determine the obligation. They are reviewed at March 31 of each year and are management’s best estimate based on an analysis of the historical data up to the reporting date. The key assumptions used are a discount rate of 2.95% (3.50% in 2023–24), which is based on an average yield of government borrowings over the expected average remaining service life of employees of 11 years (10 years in 2023–24); a rate of salary increase of 3.50% (3.75% in 2023–24); an average turnover rate of 5.4% (6% in 2023–24); an average retirement age of 59 (58 in 2023–24) for Group 1 members and 62 (61 in 2023–24) for Group 2 members; and the excess utilization and underutilization of sick leave credits, which are based on plan experience and representative of the different groups of employees covered.

Information about the sick leave benefits as at March 31 is as follows:

**(in thousands of dollars)**
	2025	2024
Accrued benefit obligation, beginning of year	4,779	2,524
Current year benefit cost^{Note 1}	448	521
Interest on the accrued benefit obligation^{Note 1}	165	81
Benefits paid	(1,028)	(782)
Actuarial loss	1,420	2,435
Accrued benefit obligation, end of year	5,784	4,779
Unamortized accumulated actuarial loss, beginning of year	(2,568)	(83)
Actuarial loss for the year	(1,420)	(2,435)
Amortization of actuarial loss/(gain) recognized in the year^{Note 1}	194	(50)
Unamortized accumulated actuarial loss, end of year	(3,794)	(2,568)
Accrued benefit liability	1,990	2,211
Note 1 These components make up the net benefit expense of $807 ($552 in 2023–24) included in the “Salaries and employee benefits” and “Other” categories in note 8. Return to first note 1 referrer

Changes in assumptions can result in significantly higher or lower estimates of the accrued benefit obligation. The following table illustrates the possible impact of a change in the actuarial assumptions on the accrued benefit obligation as at March 31:

**(in thousands of dollars)**
Assumptions	Increase (decrease) in the accrued benefit obligation
	2025	2024
Discount rate
Increase by 1%	(379)	(285)
Decrease by 1%	431	322
Salary increase rate
Increase by 1%	365	269
Decrease by 1%	(328)	(243)
Retirement age
Increase by 1 year	512	441
Decrease by 1 year	(482)	(428)
Turnover rate
Increase factors by 10%	(136)	(124)
Decrease factors by 10%	143	132
Sick leave utilization rates
Increase factors by 10%	735	603
Decrease factors by 10%	(696)	(572)

c) Severance benefits

The OAG’s severance benefit obligation is unfunded and will be paid from future parliamentary authorities.

The following table presents information about severance benefits, measured as at March 31:

**(in thousands of dollars)**
	2025	2024
Accrued benefit obligation, beginning of year	1,491	1,603
Current year benefit cost	78	165
Benefits paid	(265)	(277)
Accrued benefit obligation, end of year	1,304	1,491

d) Maternity/parental leave benefits

Management determined the accrued benefit obligation and benefit expenses of maternity/parental leave benefits based on the difference between the entitled benefit under labour contracts or conditions of employment and the entitled benefit under the Employment Insurance program or the Québec Parental Insurance Plan. The maternity/parental leave benefit obligation is unfunded and will be paid from future parliamentary authorities.

The following table presents information about maternity/parental leave benefits, measured as at March 31:

**(in thousands of dollars)**
	2025	2024
Accrued benefit obligation, beginning of year	469	422
Current year benefit cost	1,402	1,089
Benefits paid	(1,245)	(1,042)
Accrued benefit obligation, end of year	626	469

7. Tangible capital assets

**(in thousands of dollars)**
	Cost					Accumulated amortization				2025 Net book value	2024 Net book value
	Opening balance	Acquisitions	Transfers	Disposals and write‑offs	Closing balance	Opening balance	Amortization	Disposals and write‑offs	Closing balance	2025 Net book value	2024 Net book value
Furniture and fixtures	3,493	155	-	(954)	2,694	2,279	121	(954)	1,446	1,248	1,214
Informatics hardware and infrastructure	2,656	626	-	(285)	2,997	2,486	126	(285)	2,327	670	170
Leasehold improvements	3,311	-	-	(597)	2,714	2,150	657	(597)	2,210	504	1,161
Informatics software	6,465	-	-	(214)	6,251	5,846	316	(214)	5,948	303	619
Office equipment	962	79	-	(90)	951	906	20	(90)	836	115	56
Motor vehicle	-	58	-	-	58	-	11	-	11	47	-
Total	16,887	918	-	(2,140)	15,665	13,667	1,251	(2,140)	12,778	2,887	3,220

8. Expenses by object

The summary of expenses by object for the year ended March 31 is as follows:

**(in thousands of dollars)**
	2025	2024
Salaries and employee benefits	126,053	126,650
Rental of equipment and accommodation	8,204	8,220
Professional and special services	7,784	9,663
Licences and subscriptions	2,707	2,778
Transportation	1,688	2,351
Amortization of tangible capital assets	1,251	889
Small equipment, repairs, and maintenance	861	929
Information, translation, and editing	728	1,271
Other	346	269
Telecommunications	319	433
Write-off of tangible capital assets	-	203
Total cost of operations	149,941	153,656

The total cost of operations includes services provided without charge by other government departments as disclosed in note 9b.

9. Related party transactions

a) Inter-entity transactions

The OAG had the following inter‑entity transactions during the year, and the following balances as at March 31:

**(in thousands of dollars)**
	2025	2024
Expenses—Other government departments and agencies	17,513	16,922
Accounts payable—Other government departments and agencies	1,939	779
Accounts receivable—Other government departments and agencies	1,355	167

Expenses disclosed in the table above exclude common services provided without charge, which are disclosed in the next table. The most significant components of the expenses are related to the statutory contributions to employee benefit plans, security and network services, information technology services, health and training services, and translation services.

b) Common services provided without charge by other government departments

During the year, the OAG received the following services without charge from certain common service organizations. The expenses related to these services have been recorded in the Statement of Operations and are disclosed in note 8.

**(in thousands of dollars)**
	2025	2024
OAG contribution to the health and dental insurance plans—Treasury Board of Canada Secretariat	8,975	9,464
Office accommodation—Public Services and Procurement Canada	8,183	8,188
Services provided without charge	17,158	17,652

The Government of Canada has centralized some of its administrative activities for efficiency, cost‑effectiveness purposes, and economic delivery of programs to the public. As a result, the government uses central agencies and common services organizations so that one department performs services for all other departments and agencies without charge. The costs of these services, such as the payroll and cheque‑issuance services provided by Public Services and Procurement Canada, are not included in the Statement of Operations, as they are not significant.

c) Common services provided without charge to other government departments

During the year, the OAG provided services without charge to federal departments and agencies, Crown corporations, and other government organizations. These services were related to the conduct of independent audits. The costs related to the provision of these services are reflected in the Statement of Operations.

10. Contractual obligations

The nature of the OAG’s activities can result in contracts and obligations whereby the OAG will be obligated to make future payments when the services/goods are received. Contractual obligations estimated as at 31 March 2025 are summarized as follows:

**(in thousands of dollars)**
	2026	2027	2028	2029	Total
Professional services	2,598	662	106	34	3,400
Goods and services	2,407	266	80	80	2,833
Operating leases	7	-	-	-	7
Total	5,012	928	186	114	6,240

Contractual obligations with related parties total $2.2 million and are included in the above table.

11. Financial instruments

The following analysis presents the OAG’s exposure to credit and liquidity risks at the reporting date.

a) Credit risk

The OAG is exposed to credit risk resulting from the possibility that parties may default on their financial obligations to pay the OAG. Management believes that the risk of loss on its accounts receivable balances is low because of the credit quality of these parties. Accounts receivable balances are managed and analyzed on an ongoing basis. Accordingly, management believes that all accounts receivable will be collected and has determined that a valuation allowance is not required.

b) Liquidity risk

Liquidity risk is the risk that the OAG will encounter difficulty in meeting its obligation associated with financial liabilities. The OAG’s objective for managing liquidity risk is to manage operations and cash expenditures within the authorities approved by Parliament. Management believes that this risk is low.

12. Planned results

The planned results amounts in the “Expenses” and “Revenues” sections of the Statement of Operations are the amounts reported in the Future‑Oriented Statement of Operations included in the 2024–25 Departmental Plan. The planned results amounts on the line “Total government funding and transfers” of the Statement of Operations and in the Statement of Change in Net Debt were prepared for internal management purposes and have not been previously published.

13. Comparative figures

Certain 2023–24 comparative figures have been reclassified to conform to the presentation adopted for the 2024–25 fiscal year.

Supplementary information tables

The following supplementary information table is available on the OAG’s website:

Gender-based analysis plus

Federal tax expenditures

The tax system can be used to achieve public policy objectives through the application of special measures, such as low tax rates, exemptions, deductions, deferrals, and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures. This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information, and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Corporate information

Organizational profile

Auditor General of Canada:

Karen Hogan, FCPA

Appropriate minister:

The Honourable François-Philippe Champagne, Privy CouncillorP.C., Member of ParliamentM.P., Minister of Finance and National Revenue^{Note *}

Enabling instruments:^{Note **}

Auditor General Act
Financial Administration Act
Canadian Net‑Zero Emissions Accountability Act
Federal Sustainable Development Act
Nunavut Act
Financial Administration Act (Nunavut)
Northwest Territories Act
Financial Administration Act (Northwest Territories)
Yukon Act
Financial Administration Act (Yukon)

Year of incorporation / commencement:

1878

Organizational contact information

Mailing address:

Office of the Auditor General of Canada
240 Sparks Street
Ottawa, Ontario K1A 0G6
CANADA

Telephone:

1-888-761-5953

telecommunications device service for the hearing impairedTTY:

613-954-8042

Fax:

613-957-0474

Email:

communications@oag-bvg.gc.ca

Website:

www.oag-bvg.gc.ca

Report on staffing

Introduction

The Auditor General exercises staffing authorities equivalent to those of the Public Service Commission of Canada through the Auditor General Act and performs related functions as outlined in the Public Service Employment Act. Considering the commission must report annually to Parliament on its activities, the OAG commits to reporting annually on its staffing to ensure transparency and accountability.

The OAG’s people management framework outlines staffing accountabilities and monitoring requirements under the OAG’s Policy on Staffing. The framework defines the indicators used to assess compliance and ensures that staffing respects the principles of merit and non‑partisanship, aligned with the values of fairness, transparency, access, and representativeness.

Delegation of staffing and support to managers

Delegation

Under the Auditor General Act, the Auditor General has the authority related to human resource management and may delegate this authority in accordance with the OAG’s Human Resources Authorities Instrument, ensuring alignment with senior management roles and responsibilities.

Knowledge and support

Managers have access to information, practical tools, and human resource advisors to guide them through staffing processes. Ongoing training and coaching for both hiring managers and human resource advisors help ensure that staffing actions are carried out effectively and in full compliance with applicable laws, policies, guidelines, and delegated authorities. Unconscious bias and diversity training are also mandatory for hiring managers, in response to the Clerk of the Privy Council and Secretary to the Cabinet’s Call to Action on Anti‑Racism, Equity, and Inclusion in the Federal Public Service.

Staffing plans and decisions

Planning

Human resource plans are developed on both strategic and operational levels to support the OAG in its journey toward achieving corporate objectives through recruiting, developing, and retaining talent using an innovative, client-focused, and people‑management‑driven approach.

Implementation

Staffing requirements (hires, promotions, and internal movements) are identified by managers during annual planning and budgeting processes and are revised periodically in collaboration with the Human Resources and Finance teams. Managers address staffing requirements in collaboration with Human Resources and in accordance with the Delegated Human Resources Authorities instrument, the applicable legislation, the terms and conditions of employment, collective agreements, and the OAG’s Policy on Staffing, Staffing Directive, and Directive on Staffing Recourse. Key risks—which include acting appointments for longer than 12 months, casual conversions to term or indeterminate status through non-advertised processes, and promotions to the executive group through non-advertised processes—are proactively managed throughout staffing processes.

Monitoring

In accordance with the OAG’s governance model, the People Management Committee supports the Executive Committee by providing oversight of people management to ensure that the organization attracts, develops, and retains the talent needed to deliver on its mandate. The committee defines internal policies and guidelines, monitors results and compliance, and identifies emerging issues and risks related to people management.
To support informed decision making, reports summarizing staffing activities, trends, and risks are presented to these committees. Additionally, hiring forecasts are shared with senior management, and monthly updates on staffing activities are provided to the bargaining agent.

Priority entitlements

The OAG establishes a priority list to effectively manage scenarios, such as discontinued functions, organizational changes, or the reintegration of employees returning from continuous leave of 12 months or more. Prior to initiating any staffing action, managers and human resource advisors are required to verify the existence of a priority list and consider employees with priority entitlements prior to other candidates. In situations where a priority list is in place, the OAG ensures communication with the bargaining agent regarding any of its members on the list and provides monthly reports in the spirit of transparency and collaborative workforce planning.
In 2024–25, no OAG employees held priority status.

Official languages

In 2024–25, all staffing appointments at the OAG were made on an imperative basis. This reflects the OAG’s ongoing commitment to upholding the linguistic requirements of bilingual positions as a standard practice. Staffing bilingual positions on an imperative basis remains the norm at the OAG, ensuring that candidates meet the language proficiency requirements at the time of appointment, thereby supporting the institution’s commitment to a bilingual and inclusive workplace.

Complaints and corrective actions

The OAG Directive on Staffing Recourse provides the opportunity for employees to raise concerns, based on specific grounds, regarding internal staffing processes. There were no staffing investigations during the period included in this report, and no staffing complaints were received.

Continuous improvement

In the spirit of continuous improvement, the OAG maintains an ongoing dialogue with its union representatives, employees, and management.

While resourcing remains a top priority for the OAG, several broader initiatives were implemented in the 2024–25 fiscal year to support not only staffing but also diversity, inclusion, accessibility, and equitable hiring practices. These efforts contribute to building a representative, inclusive, and strong workforce:

The organization has completed the development and started the implementation of the OAG’s diversity and inclusion plan, which will connect with the 3‑year employment equity plan. An accessibility plan and ongoing awareness, learning, and training activities will contribute to a diverse workforce that is representative of the Canadian population.
As part of its human resource policy review initiative, the OAG is reviewing its staffing policy framework with a GBA Plus lens.
The OAG has transitioned to the Government of Canada’s recruitment platform (the Public Service Resourcing System). This change will streamline the application process and provide additional visibility to external candidates of job opportunities at the OAG.
Our ongoing partnership with Indigenous Works continues to strengthen our engagement with Indigenous communities by expanding our outreach networks, enhancing cultural competency in our recruitment practices, and creating more inclusive pathways for Indigenous talent to access opportunities within our organization.

Employee awareness of legal rights and responsibilities regarding political activities

The OAG informs all employees when they are hired of their rights and responsibilities regarding political activities, as specified in the OAG’s Code of Values, Ethics, and Professional Conduct. Letters of offer include a paragraph on political neutrality, which stipulates that the OAG must always remain independent and politically neutral. Reminders on their rights and responsibilities are also sent to employees in specific circumstances, such as the caretaker convention during a federal election.

List of reports

The following tables list the performance audit reports and other reporting for the 2024–25 fiscal year, including the planned and actual reporting dates.

Reports presented to Parliament

2024 Reports of the Auditor General of Canada

Report title	Reporting date	Planned for 2024–25	Reported in 2024–25	Legislative hearings^{Note 1} ^{Note 2}
Report 5—Professional Services Contracts	June 2024	Yes	Yes	House of Commons Standing Committee on Government Operations and Estimates (10 June 2024) Standing Senate Committee on National Finance (23 October 2024)
Report 6—Sustainable Development Technology Canada	June 2024	Yes	Yes	House of Commons Standing Committee on Public Accounts (13 and 20 June 2024 and 4 November 2024) Standing Senate Committee on National Finance (23 October 2024)
Report 7—Combatting Cybercrime	June 2024	Yes	Yes	Standing Senate Committee on National Finance (23 October 2024)
Report 8—Canada Emergency Business Account	December 2024	Yes	Yes	House of Commons Standing Committee on Public Accounts (4 and 9 December 2024)
Report 9—Digital Validation of Identity to Access Services	December 2024	Yes	Yes	None
Report 10—Industrial and Technological Benefits	December 2024	Yes	Yes	None
Report 11—Programs to Assist Seniors	December 2024	Yes	Yes	None
Report 12—Canada Summer Jobs—Employment and Social Development Canada	December 2024	Yes	Yes	None
Cybersecurity of Federal Government Networks and Systems	Deferred to 2025–26	Yes	No^{Note 3}	Not applicable
Delivering Canada’s Future Fighter Jet Capability	June 2025	Yes	No^{Note 4}	Not applicable
C2 Follow Up (Post‑Payment and Collection)	Deferred	Yes	No^{Note 5}	Not applicable
Registration Under the Indian Act	June 2025	Yes	No^{Note 6}	Not applicable
Recruitment at the Canadian Armed Forces and the Department of National Defence	Deferred to 2025–26	Yes	No^{Note 3}	Not applicable
Culture at the Canadian Armed Forces and the Department of National Defence	Deferred to 2026–27	Yes	No^{Note 7}	Not applicable
Note 1 In addition to hearings on individual reports, a separate briefing was held on 4 June 2024 by the House of Commons Standing Committee on Public Accounts for reports 5 to 7 following tabling of the reports. Return to note 1 referrer Note 2 In addition to hearings on individual reports, a separate briefing was held on 2 December 2024 by the House of Commons Standing Committee on Public Accounts for reports 8 to 12 following tabling of the reports. Return to note 2 referrer Note 3 We had planned to complete this report in the 2024–25 fiscal year, but it was deferred to fall 2025. It will therefore be included in the number of audits reported in the 2025–26 Departmental Results Report. Return to first note 3 referrer Note 4 This audit was previously referred to as “Protecting Canadians from Aerospace Attack.” This audit was not tabled until June 2025 because of the prorogation of Parliament in early 2025. Return to note 4 referrer Note 5 We had planned to complete this report in the 2024–25 fiscal year, but it was deferred to a future reporting period. Return to note 5 referrer Note 6 This audit was previously referred to as “Indian Registration Act.” This audit was not tabled until June 2025 because of the prorogation of Parliament in early 2025. Return to note 6 referrer Note 7 We had planned to complete this report in the 2024–25 fiscal year, but it was deferred to fall 2026. It will therefore be included in the number of audits reported in the 2026–27 Departmental Results Report. Return to note 7 referrer

2024 Reports of the Commissioner of the Environment and Sustainable Development

Report title	Reporting date	Planned for 2024–25	Reported in 2024–25	Legislative hearings^{Note 1} ^{Note 2}
Report 1—Contaminated Sites in the North	April 2024	Yes	Yes	Standing Senate Committee on Energy, Environment, and Natural Resources (10 and 22 October 2024)
Report 2—Greening of Building Materials in Public Infrastructure	April 2024	Yes	Yes	Standing Senate Committee on Energy, Environment, and Natural Resources (10 October 2024)
Report 3—Zero Plastic Waste	April 2024	Yes	Yes	Standing Senate Committee on Energy, Environment, and Natural Resources (10 October 2024)
Report 4—Strategic Innovation Fund’s Net Zero Accelerator Initiative—Innovation, Science and Economic Development Canada	April 2024	Yes	Yes	House of Commons Standing Committee on Government Operations and Estimates (8 October 2024) Standing Senate Committee on Energy, Environment, and Natural Resources (10 October 2024) House of Commons Standing Committee on Environment and Sustainable Development (4 and 9 December 2024)
Report 5—Agriculture and Climate Change Mitigation—Agriculture and Agri‑Food Canada	April 2024	Yes	Yes	Standing Senate Committee on Energy, Environment, and Natural Resources (10 October 2024)
Report 6—The Canadian Critical Minerals Strategy	November 2024	Yes	Yes	None
Report 7—Canadian Net‑Zero Emissions Accountability Act—2024 Report	November 2024	Yes	Yes	Standing Committee on Environment and Sustainable Development (9 December 2024)
Report 8—Departmental Progress in Implementing Sustainable Development Strategies—Clean Energy	November 2024	Yes	Yes	None
Report 9—Supporting Species at Risk Assessment and Reassessment—Environment and Climate Change Canada	November 2024	Yes	Yes	None
Report 10—Environmental Petitions Annual Report	November 2024	Yes	Yes	None
Note 1 In addition to hearings on individual reports, a separate briefing was held on 2 May 2024 by the House of Commons Standing Committee on Environment and Sustainable Development for reports 1 to 5 following tabling of the reports. Return to note 1 referrer Note 2 In addition to hearings on individual reports, a separate briefing was held on 20 November 2024 by the House of Commons Standing Committee on Environment and Sustainable Development for reports 6 to 10 following tabling of the reports. Return to note 2 referrer

Reports of the Auditor General of Canada to the northern legislative assemblies

Report title	Reporting date	Planned for 2024–25	Reported in 2024–25	Legislative hearings
Stanton Territorial Hospital Renewal Project—Northwest Territories	October 2024	Yes	Yes	Standing Committee on Public Accounts of the Northwest Territories Legislative Assembly (15 January 2025)
Procurement and Contracting—Government of Yukon	November 2024	Yes	Yes	Standing Committee on Public Accounts of the Yukon Legislative Assembly (16 January 2025)
2025 Follow‑up on Child and Family Services in Nunavut	March 2025	Yes	Yes	Standing Committee on Oversight of Government Operations and Public Accounts of the Legislative Assembly of Nunavut (29 and 30 April 2025)

Special examination reports transmitted to Crown corporations

Crown corporation	Planned for 2024–25	Statutory deadline^{Note 1}	Transmittal date	Legislative hearings
Pacific Pilotage Authority Canada	Yes	22 March 2026	25 July 2024	None
Canadian Air Transport Security Authority	Yes	1 June 2025	27 Jan 2025	None
Canadian Tourism Commission	Yes	20 Feb 2025	3 Dec 2024	None
Note 1 The Financial Administration Act requires a special examination of each Crown corporation to be carried out at least once every 10 years. The statutory deadline is based on this requirement. Return to note 1 referrer

Other reporting

Report title	Reporting date	Planned for 2024–25	Reported in 2024–25	Legislative hearings
Commentary on the 2023–2024 Financial Audits	December 2024	Yes	Yes	House of Commons Standing Committee on Public Accounts (18 December 2024)
Update on Past Audits searchable tool (new web release)	Deferred to 2025–26	Yes	No^{Note 1}	Not applicable
Note 1 We had planned to publish a new web release of the tool in the 2024–25 fiscal year, but the release was published in July 2025. It will therefore be included in the 2025–26 Departmental Results Report. Return to note 1 referrer

Definitions

List of terms

appropriation (crédit): Any authority of Parliament to pay money out of the Consolidated Revenue Fund.
budgetary expenditures (dépenses budgétaires): Operating and capital expenditures; transfer payments to other levels of government, departments or individuals; and payments to Crown corporations.
core responsibility (responsabilité essentielle): An enduring function or role of a department. The departmental results listed for a core responsibility reflect the outcomes that the department seeks to influence or achieve.
Departmental Plan (plan ministériel): A report that outlines the anticipated activities and expected performance of an appropriated department over a 3‑year period. Departmental Plans are usually tabled in Parliament in spring.
departmental priority (priorité): A plan, project or activity that a department focuses and reports on during a specific planning period. Priorities represent the most important things to be done or those to be addressed first to help achieve the desired departmental results.
departmental result (résultat ministériel): A high-level outcome related to the core responsibilities of a department.
departmental result indicator (indicateur de résultat ministériel): A quantitative or qualitative measure that assesses progress toward a departmental result.
departmental results framework (cadre ministériel des résultats): A framework that connects the department’s core responsibilities to its departmental results and departmental result indicators.
Departmental Results Report (rapport sur les résultats ministériels): A report outlining a department’s accomplishments against the plans, priorities and expected results set out in the corresponding Departmental Plan.
financial audit (audit d’états financiers): An audit that provides assurance that financial statements are presented fairly, in accordance with the applicable financial reporting framework.
Full-time equivalent (équivalent temps plein): Measures the person years in a departmental budget. An employee’s scheduled hours per week divided by the employer’s hours for a full‑time workweek calculates a full‑time equivalent. For example, an employee who works 20 hours in a 40‑hour standard workweek represents a 0.5 full‑time equivalent.
Gender-based Analysis Plus (GBA Plus)(analyse comparative entre les sexes plus [ACS Plus]): An analytical tool that helps to understand the ways diverse individuals experience policies, programs and other initiatives. Applying GBA Plus to policies, programs and other initiatives helps to identify the different needs of the people affected, the ways to be more responsive and inclusive, and the methods to anticipate and mitigate potential barriers to accessing or benefitting from the initiative. GBA Plus goes beyond biological (sex) and socio‑cultural (gender) differences to consider other factors, such as age, disability, education, ethnicity, economic status, geography (including rurality), language, race, religion, and sexual orientation.
government priorities (priorités pangouvernementales): For the purpose of the 2024–25 Departmental Results Report, government priorities are the high‑level themes outlining the government’s agenda as announced in the 2021 Speech from the Throne.
Indigenous business (entreprise autochtones): For the purposes of a Departmental Result Report, this includes any entity that meets the Indigenous Services Canada’s criteria of being owned and operated by Elders, band and tribal councils, registered in the Indigenous Business Directory or registered on a modern treaty beneficiary business list.
non‑budgetary expenditures (dépenses non budgétaires): Net outlays and receipts related to loans, investments and advances, which change the composition of the financial assets of the Government of Canada.
performance (rendement): What a department did with its resources to achieve its results, how well those results compare to what the department intended to achieve, and how well lessons learned have been identified.
performance audit (audit de performance): An independent, objective, and systematic assessment of how well the government is managing its activities, responsibilities, and resources.
performance indicator (indicateur de rendement): A qualitative or quantitative measure that assesses progress toward a departmental level or program level result, or the expected outputs or outcomes of a program, policy or initiative.
plan (plan): The articulation of strategic choices, which provides information on how a department intends to achieve its priorities and associated results. Generally, a plan will explain the logic behind the strategies chosen and tend to focus on actions that lead to the expected result.
planned spending (dépenses prévues): For Departmental Plans and Departmental Results Reports, planned spending refers to the amounts presented in Main Estimates. Departments must determine their planned spending and be able to defend the financial numbers presented in their Departmental Plans and Departmental Results Reports.
program (programme): An individual, group, or combination of services and activities managed together within a department and focused on a specific set of outputs, outcomes or service levels.
program inventory (répertoire des programmes): A listing that identifies all the department’s programs and the resources that contribute to delivering on the department’s core responsibilities and achieving its results.
result (résultat): An outcome or output related to the activities of a department, policy, program or initiative.
special examination (examen spécial): A form of performance audit that is conducted within Crown corporations. The scope of special examinations is set out in the Financial Administration Act. A special examination considers whether a Crown corporation’s systems and practices provide reasonable assurance that its assets are safeguarded and controlled, its resources are managed economically and efficiently, and its operations are carried out effectively.
statutory expenditures (dépenses législatives): Spending approved through legislation passed in Parliament, other than appropriation acts. The legislation sets out the purpose and the terms and conditions of the expenditures.
target (cible): A quantitative or qualitative, measurable goal that a department, program or initiative plans to achieve within a specified time period.
voted expenditures (dépenses votées): Spending approved annually through an appropriation act passed in Parliament. The vote also outlines the conditions that govern the spending.

Page details

2026-02-13

Office of the Auditor General of Canada’s 2024–25 Departmental results report

On this page

At a glance

Key priorities

Highlights for the OAG in 2024–25

Summary of Results

Message from the Auditor General of Canada

Results—What we achieved

Core responsibility: Legislative auditing

Description

Quality of life impacts

Progress on results

Exhibit 1—Targets and results for legislative auditing

Details on results

Our current results: Audit operations

Corporate initiatives

Key risks

Resources required to achieve results

Exhibit 2—Snapshot of resources required for legislative auditing

Related government priorities

Exhibit 3—The number of United Nations’ Sustainable Development Goal references in the OAG’s direct engagements for the 2024–25 fiscal year

Program inventory

Contracts awarded to Indigenous businesses

Exhibit 4—Total value of contracts awarded to Indigenous businessesFootnote 1

Spending and human resources

Spending

Refocusing government spending

Budgetary performance summary

Exhibit 5—Actual 3‑year spending on core responsibility (dollars)

Exhibit 6—Planned 3‑year spending on core responsibility (dollars)

Funding

Exhibit 7—Approved funding (statutory and voted) over a 6-year period

Human resources

Exhibit 8—Actual human resources for core responsibility

Exhibit 9—Human resources planning summary for core responsibility

Financial statements

Statement of Management Responsibility Including Internal Control Over Financial Reporting

Independent Auditor’s Report

Report on the Audit of the Financial Statements

Opinion

Basis for Opinion

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

Report on Compliance with Specified Authorities

Opinion

Responsibilities of Management for Compliance with Specified Authorities

Auditor’s Responsibilities for the Audit of Compliance with Specified Authorities

Office of the Auditor General of Canada Statement of Financial Position as at March 31

Office of the Auditor General of Canada Statement of Operations for the year ended March 31

Office of the Auditor General of Canada Statement of Change in Net Debt for the year ended March 31

Office of the Auditor General of Canada Statement of Cash Flow for the year ended March 31

Office of the Auditor General of Canada Notes to the financial statements for the year ended 31 March 2025

Supplementary information tables

Federal tax expenditures

Corporate information

Auditor General of Canada:

Appropriate minister:

Enabling instruments:Note **

Year of incorporation / commencement:

Mailing address:

Telephone:

telecommunications device service for the hearing impairedTTY:

Fax:

Email:

Website:

Report on staffing

Introduction

Delegation of staffing and support to managers

Delegation

Knowledge and support

Staffing plans and decisions

Planning

Implementation

Monitoring

Priority entitlements

Official languages

Complaints and corrective actions

Continuous improvement

Employee awareness of legal rights and responsibilities regarding political activities

List of reports

Exhibit 4—Total value of contracts awarded to Indigenous businesses^{Footnote 1}

Office of the Auditor General of Canada
Statement of Financial Position
as at March 31

Office of the Auditor General of Canada
Statement of Operations
for the year ended March 31

Office of the Auditor General of Canada
Statement of Change in Net Debt
for the year ended March 31

Office of the Auditor General of Canada
Statement of Cash Flow
for the year ended March 31

Office of the Auditor General of Canada
Notes to the financial statements for the year ended 31 March 2025

Enabling instruments:^{Note **}