Ottawa, 28 November 2006—In her sixth annual Report tabled today in the House of Commons, the Auditor General of Canada, Sheila Fraser, calls Parliament's attention to the importance of an effective system to allocate funds and manage spending. She also highlights the need for visible sustained commitment by senior management to ethics and values at all levels of government departments and agencies.
The Report notes that the Expenditure Management System (EMS) is at the heart of the operation of government.
"Demands on government are unlimited, but the resources available to meet them are not," said Ms. Fraser. "That's why the government needs an effective system to decide how much it can afford to spend, what to spend it on, and how to get the best results for the money."
She notes that her audits have determined that the government's system for allocating funds and overseeing spending requires more rigour. She encourages the government to pay attention to three key areas in its review of the EMS: the challenge function, particularly of ongoing programs; the alignment of funding with program needs; and the increased use by departments of Supplementary Estimates instead of the Main Estimates.
"However, good systems in themselves are not enough. They must be applied correctly and ethically," said Ms. Fraser.
She notes that her audits found some cases of abuse and failure to respect requirements for financial control. While she believes that the vast majority of public servants do adhere to high standards expected of them, senior management in each organization must support the reporting of misconduct by assuring confidentiality and taking any action warranted.
"Public servants must act as guardians of public trust, and from my experience, I believe that most of them do," said Ms. Fraser. "But the issue needs continued attention."
The Auditor General thanks the government for the recent resolution of a serious problem obtaining information needed to audit certain aspects of government operations in two audits included in the current Report. The issue was resolved with an order-in-council on 6 November, after completion of the audits.
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The chapter "Matters of Special Importance" is available on the Office of the Auditor General of Canada Web site.
Information:
Margot Booth or Isabelle Serrurier
Tel.: (613) 952-0213, ext. 6292
E-mail: communication@oag-bvg.gc.ca
