July 3, 2007 -- In the Public Accounts Committee, as members we spent most of Spring 2007 meetings investigating the administration of the RCMP Pension and Insurance Fund.  However, our schedule was also full examining several other areas, including how funds are allocated through Health Canada and how Public Works leases Office Space.

Pension and Administration - Royal Canadian Mounted Police

In contrast to federal government employees, regular and civilian members of the RCMP have their own separate pension plan.  They also have dedicated group life and disability benefits.  The plans are administered by the RCMP’s National Compensation Policy Centre (NCPC) in its Human Resources Branch.

In June 2005, a criminal investigation and an internal audit stemming from allegations made in 2003 discovered that the pension and insurance plans had been abused.  Instances of nepotism, wasteful spending and managerial override of controls were also detected.  The RCMP’s Chief Human Resources Officer resigned and the Director of the NCPC was suspended and subsequently resigned.

The purpose of the Auditor General’s audit was to determine whether or not the RCMP had responded adequately to the findings and recommendations of the internal audit and a criminal investigation conducted by the Ottawa Police Services.  The auditors also looked into additional allegations that came into light during their audit and at whether or not the criminal investigation was conducted in a sufficiently independent manner.

Based on the severity of the issue, the Honourable Stockwell Day, Minister of Public Safety, called for an immediate investigation which recently produced an in-depth report.  One of the key recommendations made by the chief investigator was completed on July 16th when Minister Day appointed a task force that will make recommendations to improve management and accountability within the RCMP.  The Members of the task force come from a range of experiences and backgrounds and will be independent of government.

You can be confident that this Prime Minister, and this government, is committed to ensuring that the RCMP is an effective and accountable national police force.

Allocating Funds to Regulatory Programs - Health Canada

As the Auditor General had become concerned with the way that Health Canada allocated funds to its regulatory programs, the Office of the Auditor General undertook an audit of three of Health Canada’s regulatory programs.

The Public Accounts Committee was pleased that the deputy minister provided it with an action plan to implement the Auditor General’s recommendations shortly after the Committee’s hearing on the matter and hopes that all departments will be as forthcoming.
The Committee learned that program baselines, which specify the required level of activity to meet regulatory responsibilities, are a fundamental aspect of good planning and decision-making, but they are often not prepared.  The Committee recommended that all regulatory programs have a program baseline.  The Committee was also concerned that while Health Canada had planned changes to its cost recovery regime, it was not clear how resources would be allocated amongst pre-market and post market activities, where managers had identified insufficiencies.  Consequently, the Committee recommended that Health Canada provide detailed information in its proposal to Parliament about user fees changes.

Acquisition of Leased Office Space

In Chapter 7 of her May 2006 Status Report, the Auditor General re-examined the 2002 audit of how Public Works and Government Services Canada (PWGSC) manages the acquisition of leased office space.  The 2002 audit found that improvements were needed in several areas.  The follow-up audit found that PWGSC had made unsatisfactory progress in implementing the Auditor General’s 2002 recommendations.  Overall, the Auditor General found that accommodation costs are higher than they may otherwise be due to shared responsibility, lack of management information, and inadequate risk assessment.

The Committee endorsed each of the Auditor General’s recommendations to address the identified shortcomings.  However, while these recommendations would lead to improved performance in specific areas of PWGSC’s real property operations, the Committee stated that it believes a fundamental change is required in the relationship between PWGSC and its clients for office accommodation before meaningful improvement and proper accountability can be achieved.

As a strong believer in fiscal responsibility and proper management techniques, I continue to be pleased to represent the people of Ancaster-Dundas-Flamborough-Westdale on the Public Accounts Committee.  During the Fall Session we will continue to push for accountability and integrity in how your tax dollars are spent.