Office of the Auditor General of Canada—Quarterly Financial Report for the quarter ended 31 December 2018

Office of the Auditor General of Canada Quarterly Financial Report for the quarter ended 31 December 2018

Statement outlining results, risks, and significant changes in operations, personnel, and program

Introduction

This quarterly report has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board, and it should be read in conjunction with the Main Estimates. This quarterly report has not been subject to an external audit or review.

The Office of the Auditor General of Canada has one program activity: legislative auditing. The Office conducts independent audits and studies that provide objective information, advice, and assurance to Parliament, government, and Canadians.

Mandate

The Auditor General is an Officer of Parliament, who is independent from the government and reports directly to Parliament. The duties are set out in the Auditor General Act, the Financial Administration Act, and other acts and orders-in-council. These duties relate to legislative auditing and, in certain cases, to monitoring of federal departments and agencies, Crown corporations, territorial governments, and other entities.

Basis of presentation

This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Office’s spending authorities granted by Parliament and those used by the Office consistent with the Main Estimates for the 2018–19 fiscal year. This quarterly report provides financial information on the use of spending authorities. The Office uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, the spending authorities voted by Parliament remain on an expenditure basis.

Highlights of quarterly and year-to-date results

While the authorities used remained stable, the authorities available increased as a result of additional funding received at the end of the second quarter.

Figure 1—text version

Authorities available and used as at 31 December
(in millions of dollars)

	AvailableNote *	Used
2018–19	90.7	59.3
2017–18	81.9	59.7

Figure 2—text version

Authorities used in the quarter ended 31 December
(in millions of dollars)

• 2018–19: 19.3
• 2017–18: 19.6

Risks and uncertainties

Our funding base is insufficient to address the increasing audit and service cost pressures the Office is facing. While additional ongoing funding of $7.7 million was approved at the end of the second quarter, this increase is still not sufficient to address our needs. In the near-term, we have eliminated a number of planned performance audits, continue to defer some financial audit-related work, and are deferring some necessary information technology projects. Longer-term investments in audit methodology and tools are also not being funded.

Significant changes in operations, personnel, and program

The Auditor General, Michael Ferguson, passed away on 2 February 2019. The Office has been working with the Privy Council Office to have an Interim Auditor General appointed.

To oversee the running of the Office, two Deputy Auditors General were appointed, effective 2 January 2019.

Six new Assistant Auditors General were appointed in January 2019 to address upcoming retirements.

Approved by:

Ottawa, Canada
28 February 2019

Statement of authorities (unaudited)
(in thousands of dollars)

Departmental budgetary expenditures by standard object (unaudited)
(in thousands of dollars)