Managing the acquisition of leased office space still a problem at PWGSC
Chapter 7, May 2006 Report of the Auditor General
Ottawa, 16 May 2006—In her Status Report tabled today in the House of Commons, the Auditor General of Canada, Sheila Fraser, says that despite some important achievements, Public Works and Government Services Canada (PWGSC) has made unsatisfactory progress on some of the issues identified in 2002. Those issues concern how the Department manages its leasing of office space for federal departments and agencies.
"The Department spends $3 billion a year to provide office space for federal public servants," said the Auditor General. "To make the right strategic decisions, its managers need information that is timely, accurate, and complete."
The audit found that while PWGSC has made satisfactory progress in analyzing the long-term cost of long-term options, the basic information its property managers need does not exist, is inadequate, or is difficult to get.
The audit also found that choosing the most cost-effective option is not always supported by the way government funding works. For example, PWGSC recommended that the government exercise an option to purchase a building. Because annual funding was not enough to buy the building, the Treasury Board instead approved a 15-year lease, an option that could end up costing $13 million more.
The Report notes that responsibility for deciding on the cost of accommodation is shared by PWGSC, client departments, and the Treasury Board. This sharing of responsibility sometimes makes it difficult to enforce PWGSC's office accommodation standards
"The government should ensure that the system provides the right incentives for managing well, which includes selecting the most cost-effective option," said Ms. Fraser.
The Auditor General's Status Report, first released in 2002, is one of the reports from the Office of the Auditor General tabled each year in the House of Commons. It follows up on the government's progress in addressing recommendations from previous reports. The Auditor General concludes that progress is either satisfactory or unsatisfactory, taking into account the complexity of the issue and the amount of time that has passed since the original audit.
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The chapter "Acquisition of Leased Office Space" is available on the Office of the Auditor General of Canada Web site.
Information:
Julie Hébert, Communications
Tel.: (613) 952-0213, ext. 6292
E-mail: communications@oag-bvg.gc.ca
