Opening Statement before the Standing Committee on Public Accounts

ArriveCAN

(Report 1—2024 Reports of the Auditor General of Canada)

21 February 2024

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

Mr. Chair, thank you for again inviting us to discuss our report on ArriveCAN, which we released last week, on February 12th 2024. I would like to acknowledge that this hearing is taking place on the traditional unceded territory of the Algonquin Anishinaabe people. Joining me today are Andrew Hayes, Deputy Auditor General, and Sami Hannoush and Lucie Després, who were responsible for the audit.

This audit examined whether the Canada Border Services Agency, the Public Health Agency of Canada, and Public Services and Procurement Canada managed all aspects of the ArriveCAN application in a way that delivered value for money. I will focus my remarks today on the role played by Public Services and Procurement Canada.

The department was responsible for issuing and administering contracts on behalf of the Canada Border Services Agency and the Public Health Agency of Canada when a contract’s value exceeded the agencies’ delegated authority to procure.

We found that Public Services and Procurement Canada challenged the Canada Border Services Agency’s use of non‑competitive processes to award ArriveCAN work. It recommended alternatives, such as shortening the duration of non-competitive contracts or running competitive processes with a shortened bidding period. Despite this advice, the Agency moved forward with non‑competitive approaches.

Last week, I also reported that the Canada Border Services Agency’s overall management of the contracts was very poor. Essential information was missing from awarded contracts and other documents, such as clear deliverables and the qualifications required of workers.

We found that contrary to Public Services and Procurement Canada’s supply manual, the department co‑signed several task authorizations drafted by the Canada Border Services Agency that did not detail task descriptions and deliverables. Without this information, it is difficult to assess whether the work was delivered as required and completed on time while providing value for money.

Public Services and Procurement Canada also co-signed many of the Agency’s amendments to task authorizations. Some amendments increased the estimated level of effort or extended the time period without adding new tasks or deliverables. This drove up the contract’s value without producing additional benefits.

To deliver value for dollars spent and support accountability for the use of public funds, the Canada Border Services Agency and Public Services and Procurement Canada should ensure that tasks and deliverables are clearly defined in contracts and related task authorizations.

Mr. Chair, this concludes my opening statement. We would be pleased to answer any questions the committee may have. Thank you.