Public Accounts

The House of Commons Standing Committee on Public Accounts met to discuss a proposed law about a debt forgiveness registry. The committee members wanted to make sure that the proposed law was clear about why some information might be kept private in the registry. They wanted to know if it was because of confidential, personal, or sensitive information. Ryan Turnbull and Kristina Tesser Derksen proposed changes to the proposed law to clarify this point. Adam Chambers agreed with the proposed changes. The committee also discussed a coordinating amendment to align the proposed law with existing legislation and avoid conflicts. Isabelle Brault confirmed that the coordinating amendment would not change the substance of the proposed law. Later, Gérard Deltell introduced a motion regarding a situation in Laval where the Canada Revenue Agency (CRA) is asking the city to pay about $1 million to a former mayor who was convicted of fraud, so he can pay taxes on the stolen funds. Deltell wants the Minister of National Revenue and the mayor of Laval to explain why the CRA is making the city pay this money. He thinks it's unfair for the city to have to pay twice for the fraud. Jean Yip asked for clarification on who Deltell wanted to invite, and Deltell confirmed he wanted the Minister of National Revenue. Sébastien Lemire suggested inviting the former mayor as well. Kristina Tesser Derksen proposed amendments to Deltell's motion. One amendment was to remove the Minister of National Revenue from the invitation list, but this was rejected. Another amendment was to invite the former mayor, but this was also rejected. A final amendment to remove the word "Liberal" when describing the government's position was accepted. Ron McKinnon asked why the city was paying the former mayor, and Deltell explained that the CRA is requiring the city to pay so the former mayor can pay his taxes on the stolen funds. The committee ultimately agreed to invite the Minister of National Revenue, officials from the CRA, and the mayor of Laval to discuss the matter. The committee voted to approve the proposed law with the changes they discussed. They also agreed to report the proposed law, as amended, to the House of Commons. The committee then moved on to discuss the motion regarding the situation in Laval. After some debate and amendments, the committee voted to invite the Minister of National Revenue, officials from the CRA, and the mayor of Laval to appear before the committee to explain the CRA's decision-making process and the government's position on the matter. The committee also briefly discussed an upcoming visit from the United Kingdom's Public Accounts Committee, who are interested in learning about Canada's experience with the Centre Block rehabilitation project. The meeting then moved into a closed session.

The House of Commons Standing Committee on Public Accounts met to discuss the Auditor General's spring reports and a proposed law about making government financial information more transparent. Auditor General Karen Hogan presented findings on three audits: the government's pay system replacement, reforms to the international student program, and RCMP recruitment efforts. Hogan expressed concerns about delays and risks in these areas, emphasizing the need for careful planning and timely action. Committee members questioned Hogan and her team about the reports, focusing on the rising costs of the new pay system, the slow processing of RCMP applications, and issues with the international student program. The committee then shifted to discussing a proposed law (Bill C-230) that would create a public registry of waived or written-off government debts. Ryan Turnbull, a Liberal member, introduced amendments to the proposed law, including raising the threshold for disclosure to $5 million. Adam Chambers, a Conservative member who initially proposed the law, suggested a compromise of $2 million. After some debate, the committee agreed to set the threshold at $2 million. They also discussed how to handle confidential or sensitive information in the registry, with members expressing concerns about potential redactions and the need for transparency. Committee members debated how to balance transparency with the protection of sensitive information. Sébastien Lemire from the Bloc Québécois raised concerns about potential political interference in decisions to redact information. Chambers suggested that if information is redacted, there should be a way for parliamentarians to know that a redaction has been made. The committee discussed whether to use the word "redact" instead of "exclude" in the proposed law to make it clear that information is still in the registry, even if it is blacked out. Due to time constraints and the need for further discussion, the committee decided to postpone the final decision on the proposed law until a later meeting.

The House of Commons Standing Committee on Public Accounts met to discuss a proposed law that would make information about large government debt write-offs more transparent. The proposed law, C-230, would require the government to create a public, searchable online database of debts of $1 million or more that have been forgiven for corporations, trusts, and partnerships. During the meeting, committee members questioned representatives from the Treasury Board Secretariat, the Department of Finance, and the Canada Revenue Agency (CRA) about the current debt deletion process and the potential impact of the proposed law. John Daley from the Treasury Board Secretariat explained the different ways debts can be deleted, including write-offs, remissions, forgiveness, and waivers. CRA representatives, including Jennifer Boudens and Charly Norris, discussed the number and value of debt write-offs, but cited taxpayer confidentiality as a reason for not disclosing the largest single write-off amount. Adam Chambers, a Conservative member, questioned this confidentiality stance, arguing that the public has a right to know about large corporate debt write-offs. Several committee members raised concerns about the cost and administrative burden of creating and maintaining the proposed online database. Ron McKinnon, a Liberal member, suggested that a regular report might be a more cost-effective way to provide the information. Despite these concerns, there was general support for the goal of increasing transparency in government debt management. The committee also voted on a motion from a previous meeting to request the government establish a public and independent inquiry into cost overruns on IT contracts, including Phoenix, ArriveCAN and Benefits Delivery Modernization, which passed with a vote of 7-0.

The House of Commons Standing Committee on Public Accounts met to discuss the Public Accounts of Canada from 2024 and 2025, but the discussion focused on housing affordability and infrastructure. Committee members questioned witnesses from the Department of Housing, Infrastructure and Communities about the government's plans to address the rising cost of housing and the lack of infrastructure to support new housing developments. Paul Halucha, Deputy Minister, was the key witness. He explained the government's approach, including the Canada Housing Infrastructure Fund and the new Build Canada Homes program, aimed at increasing housing supply and reducing construction costs. He noted the importance of working with provinces and municipalities to ensure that infrastructure is in place to support new housing. He also acknowledged that there have been challenges in the past with the Canada Mortgage and Housing Corporation (CMHC) and that Build Canada Homes is intended to address some of those issues. Several committee members raised concerns about the effectiveness of the government's programs, particularly in rural areas and in Quebec. They argued that the programs are not reaching the people who need them most and that there are too many delays and bureaucratic hurdles. Halucha responded that the government is committed to working with all provinces and territories to ensure that the programs are successful. He also noted that the government is taking steps to address the specific challenges faced by rural areas and Quebec. A motion was introduced by a Conservative member regarding the Canada Revenue Agency and the City of Laval, but it was not discussed in detail. A Bloc Québécois member introduced a motion to request an independent inquiry into cost overruns on IT contracts, including Phoenix, ArriveCAN, and Benefit Delivery Modernization. There was discussion and an amendment proposed, but the committee adjourned before voting on the motion. The committee agreed to continue the discussion at the next meeting. Overall, the meeting highlighted the challenges facing Canada's housing market and the need for the government to take action to address those challenges. Committee members expressed a range of views on the government's approach, but there was a general consensus that more needs to be done to make housing more affordable and accessible for all Canadians. The committee requested the department provide additional information in writing, including a breakdown of Canada Infrastructure Bank investments by province and Quebec administrative region, and details on the split of federal housing program funding between rural and urban areas.

The Public Accounts Committee met to discuss issues at the Canada Revenue Agency (CRA) and a proposed law about debt forgiveness. The CRA discussion focused on improvements made after a 100-day service plan. Minister of Finance François-Philippe Champagne and CRA Assistant Commissioner Melanie Serjak explained how they increased call center staff and used technology to answer more calls and process requests faster. They emphasized the importance of helping Canadians navigate the tax system and ensuring accurate information. Committee members questioned the effectiveness and timeline of these changes. Some members felt the improvements were too late, while others praised the efforts made. There was debate about the accuracy of the Auditor General's findings versus the CRA's internal metrics. The committee also discussed the balance between serving taxpayers and collecting debts, especially for large corporations versus individual citizens. The committee then heard from MP Adam Chambers about his proposed law to create a public registry of corporations with significant debt write-offs. Chambers argued this would increase transparency and accountability, potentially leading to better debt collection. Committee members raised questions about the threshold for inclusion in the registry, privacy concerns, and the potential impact on businesses. Chambers expressed openness to amendments that would protect personal information without undermining the bill's intent.

The House of Commons Standing Committee on Public Accounts met to discuss the Government of Canada's financial statements for 2023-2024 and 2024-2025. Karen Hogan, the Auditor General of Canada, presented her office's audit findings, giving the financial statements a "clean opinion," meaning they are reliable and accurate. However, she highlighted ongoing issues with the public service pay system, IT system security, and the Department of National Defence's accounting practices. Annie Boudreau, the Comptroller General of Canada, also spoke, emphasizing the government's commitment to transparency and accountability and noting the Auditor General's clean audit opinion for the 27th consecutive year.

The Public Accounts Committee met to discuss problems with the Benefits Delivery Modernization program, a project to update how the government delivers benefits like old age security. Committee members are concerned about delays, cost increases, and the risk that seniors won't get their benefits on time. Sébastien Lemire raised concerns that the committee hadn't received documents from the government that were due at the end of January, which he sees as a lack of respect for the committee. Gérard Deltell agreed with Mr. Lemire, emphasizing the importance of seniors receiving their benefits and criticizing the government's management of the program. He drew comparisons to the Phoenix pay system fiasco, where a government IT project led to widespread problems. Jean Yip suggested sending a letter to the department to request the missing information quickly. The committee chair agreed to send a letter requesting the documents and said that if the information isn't received by the end of the week, the committee will consider reporting a breach of parliamentary privilege. Mr. Lemire also asked about the lack of response to a previous request for information, but the chair said the deadline for that response hadn't passed yet. The committee agreed to address the issue again if the response is not received.

The House of Commons Standing Committee on Public Accounts met to discuss the cybersecurity of Canadian government networks and systems, based on a report from the Auditor General. The Auditor General's report found gaps in the government's cybersecurity defenses, monitoring, and response to attacks. Key issues included inconsistent use of cybersecurity services across federal organizations and slow coordination among the Treasury Board Secretariat, Communications Security Establishment, and Shared Services Canada during cyber-attacks. The committee wanted to understand how the government is addressing these gaps to protect Canadians' data and services. Witnesses included Andrew Hayes from the Office of the Auditor General, Dominic Rochon from the Treasury Board Secretariat, Scott Jones from Shared Services Canada, and Caroline Xavier from the Communications Security Establishment. Hayes emphasized the need for vigilance and consistent use of cybersecurity services. Rochon highlighted the government's commitment to reducing cybersecurity risks and welcomed the Auditor General's recommendations. Jones discussed Shared Services Canada's role in blocking cyber-threats and improving coordination. Xavier spoke about the Communications Security Establishment's role in providing intelligence and defending against cyber activity. Committee members raised concerns about potential cyber-attacks from countries like China and Russia, especially in light of new trade agreements and the increasing use of AI. They questioned the witnesses about measures to protect sensitive data and ensure the security of government contracts. Witnesses described efforts to improve coordination, conduct simulation exercises, and implement new technologies to enhance cybersecurity. They also acknowledged the challenges of ensuring consistent security practices across all federal organizations, including Crown corporations. The committee discussed the importance of having a comprehensive inventory of all government IT devices and the progress of the endpoint visibility, awareness, and security (EVAS) project. Members also inquired about the status of the security incident and event management (SIEM) system procurement. Witnesses assured the committee that the government is working to address these issues and improve its cybersecurity posture. The committee is expected to produce a report with recommendations, potentially including stronger requirements for Crown corporations to follow cybersecurity directions. The committee also discussed the challenges of balancing economic trade with cybersecurity risks, particularly in relation to electric vehicles and foreign interference. Members emphasized the need for security guarantees and measures to authenticate individuals accessing sensitive data. Witnesses highlighted the importance of supply chain security and the need to adapt cybersecurity strategies to address evolving threats.

The House of Commons Standing Committee on Public Accounts met to discuss a report by the Auditor General on professional service contracts. The committee heard from several witnesses, including Erin O'Gorman from the Canada Border Services Agency (CBSA), Paul Thompson from Employment and Social Development Canada (ESDC), Philip Jennings from Innovation, Science and Economic Development Canada (ISED), and Alexandre Roy from the Public Sector Pension Investment Board (PSP Investments). They discussed their organizations' use of professional service contracts and how they are addressing issues raised in the Auditor General's report. The Auditor General's office was also present to answer questions. Witnesses explained how their departments are working to improve procurement processes, ensure proper documentation, and avoid conflicts of interest. Ms. O'Gorman discussed contracts awarded to McKinsey & Company and how the CBSA has implemented recommendations from audits. Mr. Thompson talked about the benefits delivery modernization program at ESDC and the role of contractors in that project. Mr. Jennings outlined steps ISED has taken to strengthen procurement guidance and oversight. Mr. Roy discussed conflict of interest measures at PSP Investments. Committee members questioned the witnesses on various aspects of their contracting practices. Questions covered topics such as non-competitive contracts, cost increases in IT projects, and potential conflicts of interest. The Auditor General's office clarified their findings and emphasized the importance of proper documentation and following procurement policies. Several committee members raised concerns about the potential appointment of Mark Wiseman as ambassador to the U.S. due to his ties to McKinsey. Several committee members thanked the witnesses and support staff and wished everyone happy holidays. Committee members agreed on deadlines for submitting supplementary opinions and witness lists for future studies. The committee agreed to adjourn the meeting.

The House of Commons Standing Committee on Public Accounts met to discuss issues with the Canada Revenue Agency (CRA), focusing on a recent Auditor General's report about problems with CRA contact centers. Wayne Long, the Secretary of State for the CRA, spoke about a 100-day plan to improve service, including answering more calls, expanding online services, fixing problems that cause people to call, and modernizing the CRA's technology. He mentioned reallocating resources to address long wait times and improving the problem resolution service for Members of Parliament. Committee members questioned Secretary Long about the CRA's past performance and the accuracy of information provided by its call centers. Some members expressed concern that the CRA's service quality had declined over the past decade, while others highlighted improvements made under the 100-day plan. There was debate about the validity of the Auditor General's findings, with Secretary Long arguing that a small sample size of calls might not accurately represent the overall quality of CRA services. He emphasized the importance of focusing on future improvements and holding the CRA accountable for meeting service standards. Secretary Long defended the work of CRA employees, emphasizing their dedication and the challenges they faced during the COVID-19 pandemic. He also discussed plans to modernize the CRA's technology, including transitioning to a new system with AI capabilities. Committee members raised concerns about training for call center agents and ensuring that performance evaluations prioritize accuracy. The committee discussed the importance of long-term planning and maintaining staffing levels to provide quality service to Canadians. The committee agreed to continue examining the CRA's performance and explore ways to improve its services.

The House of Commons Standing Committee on Public Accounts met to discuss a report by the Auditor General on professional services contracts awarded by the government. The committee examined contracts with McKinsey & Company at Immigration, Refugees and Citizenship Canada (IRCC), the Business Development Bank of Canada (BDC), and Canada Post. Committee members questioned witnesses about the value for money, transparency, and potential conflicts of interest in these contracts. At IRCC, Deputy Minister Harpreet Kochhar explained that contracts with McKinsey were for digital transformation and improving client experience, not for setting immigration targets. He acknowledged some administrative issues, like consultants accessing the network before security clearances were finalized, and said they have since strengthened documentation and verification processes. Committee members expressed concerns about the department's reliance on consultants and the potential exposure of sensitive data. Christian Settano, CFO of BDC, discussed contracts with McKinsey related to corporate strategy and reaching more entrepreneurs. He said the contracts helped BDC serve more clients and develop a new strategy. The Auditor General recommended better documentation of decisions, which BDC has since addressed. Maya Walker from Canada Post discussed how they are working to improve their procurement processes and reduce their reliance on consultants, in light of financial challenges and a changing market. Committee members questioned the witnesses on the rationale for awarding contracts, the involvement of McKinsey in policy decisions, and the steps being taken to ensure value for money and prevent conflicts of interest. Several committee members requested additional information and documents from the departments, including lists of stakeholders consulted on immigration policies and definitions of rural and urban regions for Canada Post.

The House of Commons Standing Committee on Public Accounts met to discuss a report from the Auditor General about the Canada-wide early learning and child care system. The report looked at whether Employment and Social Development Canada (ESDC) was doing a good job supporting early learning and child care across the country, since the government has promised billions of dollars to make child care more affordable and create more spaces. Key people at the meeting were Karen Hogan, the Auditor General, and Paul Thompson, the Deputy Minister from ESDC. Hogan presented the audit's findings, noting that while child care costs have gone down for parents and new spaces have been created, there's a risk that the goal of creating 250,000 new spaces by 2026 won't be met. She also said that ESDC needs to do a better job of tracking whether the money is helping diverse and vulnerable children and families, including Indigenous communities. Thompson agreed with the Auditor General's recommendations and said his department is working to fix the problems. He also pointed out that creating new child care spaces takes time and involves complex projects. Committee members asked questions about how the government is counting new child care spaces, whether the spaces are actually meeting the needs of families, and how the program is helping families in rural areas and those with special needs. Some members were concerned that the federal government was interfering in areas that should be managed by the provinces. Others worried about whether the program will be sustainable in the long term. The committee discussed the importance of collecting better data to track the program's progress and make sure it's meeting its goals. Overall, the committee members agreed that the program has had some success in making child care more affordable, but they also recognized that there are still many challenges to overcome. The committee emphasized the need for better data collection and reporting to ensure that the program is meeting the needs of families across the country and that it is financially sustainable in the long term. The committee will meet again to discuss professional services contracts.

The House of Commons Standing Committee on Public Accounts met to discuss professional service contracts, focusing on a contract awarded to McKinsey by the Trans Mountain Corporation. Todd Stack, CFO of Trans Mountain, and Andrew Hayes, Deputy Auditor General, were key witnesses. The committee examined the process by which Trans Mountain awarded a $33 million non-competitive contract to McKinsey for cost and productivity improvements. Committee members questioned whether the contract followed proper procurement policies and if it provided value for money. Mr. Stack defended the contract, stating that McKinsey brought unique skills and delivered value exceeding the contract's cost. He also addressed concerns about potential conflicts of interest, highlighting new measures implemented by Trans Mountain. Committee members raised concerns about the rising costs of the Trans Mountain project and the role of Dawn Farrell, former CEO, in awarding the McKinsey contract. Some members questioned the transparency and justification for the non-competitive contract, while others focused on the benefits Trans Mountain brings to Canada. Mr. Hayes emphasized the importance of following procurement rules and proactively addressing conflicts of interest. He noted that the Auditor General's report found a general disregard for procurement rules across government, not specifically at Trans Mountain. Committee members discussed whether Crown corporations should be held to the same procurement standards as government departments. Mr. Stack committed to providing additional information requested by the committee within three weeks. The committee also discussed the importance of having accounting officers appear before the committee to answer questions related to audit reports. The Chair emphasized the committee's power to summon witnesses and the expectation that invitations to appear are taken seriously. The committee agreed to review draft reports at the next meeting.

The House of Commons Standing Committee on Public Accounts met to discuss the Auditor General's report on the Canada Revenue Agency's (CRA) communication centres. The committee wanted to understand how the CRA and Shared Services Canada (SSC) manage contracts and ensure Canadians receive accurate information and good service. Key witnesses included Scott Jones (SSC), Hugo Pagé (CRA), and Andrew Hayes (Auditor General). The discussion focused on a specific telephony contract managed by SSC for the CRA's call centres. The original contract was for \$50 million over 10 years, but grew to \$190 million due to increased usage and added features. Committee members questioned the contract's oversight, accountability, and whether Canadians were getting value for their money. Scott Jones from Shared Services Canada explained that the \$50 million was the minimum revenue needed for the vendor to recoup their initial investment in building data centres. He clarified that the \$190 million was the projected cost based on usage, and the contract was within its approved budget of \$300 million. Jones also highlighted lessons learned from the contract, including the need for standard commercial terms and conditions to hold vendors accountable. Hugo Pagé from the CRA emphasized the agency's commitment to strengthening governance and clarifying accountabilities in partnership with SSC. He mentioned that the CRA will assume a more active role in the new contract, including technical authority and direct receipt of detailed invoices. Committee members raised concerns about the accuracy of information provided by CRA call centre agents and the long wait times. Melanie Serjak from the CRA outlined measures to improve agent training and utilize technology to assist agents in providing accurate responses. The Auditor General, Andrew Hayes, emphasized the importance of verifying invoices and ensuring that public funds are spent appropriately. He noted that the upcoming audit of the telephony contract will provide further insights into the contract's management and performance. The committee discussed a recent incident where the CRA issued a \$4.9 million refund to a company, raising questions about the agency's internal controls and review processes. Committee members pressed CRA officials on the threshold for automated versus manual review of refunds, but officials declined to provide specific details, citing security concerns. Several committee members requested additional documentation and information from SSC and the CRA, including lists of contracts with IBM and details on the digital platform modernization project at Immigration, Refugees and Citizenship Canada. The committee identified the need for improved transparency, accountability, and service delivery in the CRA's communication centres.

The House of Commons Standing Committee on Public Accounts met to discuss a report on the Canada Revenue Agency's (CRA) contact centers. The report found that Canadians are waiting too long for answers to their tax questions and often receive inaccurate information. Key speakers included Karen Hogan, the Auditor General of Canada, and Bob Hamilton, the Commissioner of Revenue and Chief Executive Officer of the CRA. Hogan presented the audit's findings, highlighting that in 2024-25, only 18% of callers reached an agent within the CRA's service standard of 15 minutes, with an average wait time of 31 minutes. She also noted that agents provided accurate answers to general tax questions only 17% of the time. Hogan expressed concern that the CRA prioritized adherence to schedules over the accuracy of information provided. Hamilton acknowledged the issues and outlined the CRA's 100-day service improvement plan, which focuses on increasing the ability to answer calls, expanding online self-service options, addressing the root causes of service issues, and accelerating service modernization. He emphasized that the CRA is working to improve the accuracy of responses and has already seen progress in answering more calls. Committee members questioned Hogan and Hamilton about the report's findings and the CRA's plans to address the issues. They raised concerns about the impact on vulnerable Canadians, the accuracy of information provided, and the culture within the CRA. A motion was passed to invite the Minister of Finance and National Revenue and the Secretary of State for the CRA and Financial Institutions to appear before the committee to provide an update on the progress of the 100-day plan. The committee will continue to study the report and monitor the CRA's progress in improving its contact centers.