Auditor General Act (Canada)

Auditor General Act (Canada)
Title	Auditor General Act
Jurisdiction	Canada
Enacted by	Parliament of Canada
Date enacted	1985
Status	in force

Auditor General Act (Canada) The Auditor General Act is federal legislation that defines the mandate, powers, and organizational framework for the Office of the Auditor General of Canada. It establishes the Auditor General’s relationship with the Parliament of Canada, sets out appointment and reporting procedures, and provides the statutory authority for performance audits, financial audits, and attest services across federal institutions. The Act interfaces with statutes such as the Financial Administration Act and informs interactions with entities including the Privy Council Office, the Treasury Board of Canada Secretariat, and departments such as Global Affairs Canada and Health Canada.

Overview

The Act creates an independent officer of the House of Commons known as the Auditor General, reporting to Parliament through the Standing Committee on Public Accounts and the Public Accounts Committee process. It outlines audit powers over central institutions like the Canada Revenue Agency, Employment and Social Development Canada, and Crown corporations such as the Canada Post Corporation and Bank of Canada. The legislation codifies access to records held by bodies including the Royal Canadian Mounted Police and agencies like the Canada Border Services Agency and specifies procedures for tabling reports in the Senate of Canada and the House of Commons of Canada.

History and Legislative Development

Origins trace to officeholders and inquiries from the era of the Dominion of Canada and reforms following reviews by commissions like the Gomery Commission and policy shifts after events such as the Pacific Scandal and debates under prime ministers including Lester B. Pearson and Pierre Trudeau. The modern Act, passed during the tenure of the 34th Canadian Parliament and reflecting administrative law precedents from cases like decisions of the Supreme Court of Canada, succeeded earlier statutes and parliamentary practices. Subsequent amendments responded to recommendations from bodies including the Auditor General of Canada and reviews by the Treasury Board and committees such as the Standing Committee on Government Operations and Estimates.

Mandate and Powers

The Act grants authority to conduct financial statement audits of consolidated financial statements of the Government of Canada and performance audits assessing efficiency and effectiveness in departments such as Indigenous Services Canada, Public Services and Procurement Canada, and Fisheries and Oceans Canada. It empowers special examinations of Crown corporations like Via Rail and Canadian National Railway where statutory requirements apply, and authorizes examinations involving entities like the Canadian Security Intelligence Service subject to safeguards. The Act provides rights to access records held by officials including the Minister of Finance and the Clerk of the Privy Council and prescribes rules for protection of classified information overseen by bodies such as the Communications Security Establishment.

Office of the Auditor General: Structure and Appointment

Under the Act the Auditor General is appointed by the Governor General of Canada on the advice of the Prime Minister of Canada and with approval of both houses of the Parliament of Canada, following processes involving committees such as the Standing Committee on Procedure and House Affairs. The Office comprises deputy auditors, principal auditors, and staff organized into branches aligned to sectors like National Defence, Immigration, Refugees and Citizenship Canada, and Natural Resources Canada. Employment and security clearances align with frameworks used by entities like the Public Service Commission of Canada and collective agreements negotiated with unions such as the Public Service Alliance of Canada.

Audit Functions and Reporting

The Act delineates reporting cycles and tabling obligations requiring the Auditor General to present reports to Parliament, enabling scrutiny analogous to inquiries by the Royal Commission on Government Organization and oversight exercised by committees including the Standing Committee on Public Accounts. Reports often examine programs administered by departments such as Health Canada, Environment and Climate Change Canada, and agencies like the Canadian Food Inspection Agency, and may prompt administrative responses from ministers including the Minister of Public Services and Procurement (Canada) and the Minister of Finance (Canada). The Act permits special studies and follow-up audits influencing policy in areas overseen by bodies like the Office of the Superintendent of Financial Institutions.

Relationship with Parliament and Government Departments

The statutory independence guaranteed by the Act positions the Auditor General as an officer of Parliament interacting with MPs, senators, and committees such as the Joint Committee of the Library of Parliament. The Office provides evidence used in hearings involving departments like Transport Canada and Crown corporations including Air Canada and is a partner in accountability ecosystems alongside institutions like the Office of the Information Commissioner of Canada and the Auditor General of Ontario at provincial levels. The Act constrains executive interference, paralleling protections enjoyed by officers in statutes such as the Access to Information Act and the Official Languages Act.

Notable Audits and Impact

High-profile audits under the Act have included examinations of programs administered by Employment and Social Development Canada (including the Canada Student Loans Program), pandemic-related spending involving the Public Health Agency of Canada and emergency programs relaunched during the tenure of prime ministers such as Justin Trudeau and predecessors like Stephen Harper, and reviews of procurement practices involving the Department of National Defence and contractors like SNC-Lavalin. Audits have catalyzed reforms affecting institutions such as the Canada Mortgage and Housing Corporation and led to parliamentary debates in forums like the House of Commons Standing Committee on Procedure and House Affairs, influencing subsequent legislative changes and administrative reforms enacted by the Treasury Board of Canada Secretariat and recommendations from the Privy Council Office.

Category:Canadian federal legislation