Code of Values, Ethics and Professional Conduct

The Office of the Auditor General of Canada’s Code of Values, Ethics and Professional Conduct sets out the principles governing the conduct of all employees: professionalism, objectivity, honesty, and integrity. It also clearly outlines employee responsibilities to Parliament, audit entities, the public, and the Office. Once a year, employees are required to certify that they comply with this code.

Introduction

The Role of the Office of the Auditor General of Canada

The Office of the Auditor General of Canada (referred to in this Code as “the Office”) is an important national institution; part of the essential framework of Canadian parliamentary democracy. Through the support the Office provides to Parliament and the government, the Office and its employees contribute in a fundamental way to good government, to democracy, and to Canadian society.

Objectives of this Code

The Code of Values, Ethics and Professional Conduct for the Office sets forth Office values and ethics to guide and support Office employees in all their professional activities. It will serve to encourage and maintain a professional work environment as well as to maintain and enhance public confidence and government confidence in the integrity of the Office. The Code will also serve to strengthen respect for, and appreciation of, the role played by the Office within Canadian democracy.

The Code sets out Office values as well as Conflict of Interest and Post-Employment Measures.

Application

This Code applies to all Office employees. References to employees should be taken to include, whenever applicable, all those who perform work for the Office including outside consultants and contractors, temporary help, and public servants (whether part of the Office or on secondment to the Office). Persons who feel that all or part of this Code should not apply to them, due to the nature of their relationship with the Office, should raise the matter with their supervisor. Any exemption from the application of this policy may only be made by the Auditor General.

This Code does not limit its consideration of professional conduct to the traditionally accepted professions, such as law, medicine, and accounting. Instead, the Office encourages all employees to view themselves as professionals in the sense that they aspire to high standards in the fulfillment of their employment duties and take pride in their accomplishments. The Office expects this professional attitude to prevail among all employees.

Employees who belong to a professional association are governed by the codes and by-laws of that body. While this Code is intended to be consistent with those of professional associations, there may be cases where it is more specific or demanding. In such cases, this Code prevails. There may be other cases where the professional association's code may prescribe a course of conduct that appears to conflict with this Code. In such a situation the matter should be brought immediately to the attention of the employee's supervisor. In making a decision in this situation, it is important to consider that the authority of the professional association to regulate its members comes from legislation and that continuing membership in the association depends on the member's adherence to the professional code.

Office manuals setting out audit standards and practices, including the Value for Money, Annual Audit, and Special Examination manuals, should be referred to in the performance of audits.

Effective date

This policy is effective as of 31 March 2004.

Definitions

Employees:

Employees include full-time, part-time, casual, seasonal, term, and indeterminate employees of the Office and also include co-op students and Fellows, and persons on secondment or executive interchange within or outside the Office.

Manager(s)

Managers include all those employees at the level of DX, PX or AAG, ASG 7, ASG 8, ASG 7a and ASG 8a.

Political activities

Political activities include political activities at the municipal, provincial, and federal levels.

Chapter 1—Statement of Office Values and Ethics

Office values

Office employees are guided in their work and their professional conduct by a balanced framework of Office values, made up of democratic, professional, ethical, and people values. These families of values are not distinct but overlap. They are perspectives from which to observe the universe of Office values.

Democratic values:

Helping the Office and Parliament, under law, to serve the public interest

• Office employees observe the letter and spirit of the Auditor General Act and other applicable legislation.
• Office employees carry out their duties honestly and impartially.
• Office employees provide advice and make all information relevant to a decision available to those responsible in the Office for making the decision.
• Office employees loyally implement lawfully taken decisions.
• Office employees support both individual and collective accountability and keep Parliament and Canadians informed of the results of their work.

Professional values:

Serving with competence, excellence, efficiency, objectivity, and impartiality

• All Office employees, whatever their occupation or expertise, have a duty to conduct themselves in a professional manner and to strive to achieve the highest standards of behaviour, competence, excellence, and integrity in their work.
• Office employees work within the laws of Canada and maintain the tradition of the political neutrality of the public service.
• Auditors, in particular, maintain and are seen to maintain independence and objectivity in order to fulfil the mandate of the Office.
• Office employees try to ensure the proper, effective, and efficient use of public money.
• Office employees recognize that how ends are achieved should be as important as the achievements themselves.
• Office employees constantly renew their commitment to serve Canadians by striving to improve the quality of service, by adapting to changing needs through innovation, and by contributing to the improvement of the economy, efficiency, and effectiveness of government programs and services offered in both official languages.
• The duty of service to the public is based on employees' expertise in areas of highly specialized knowledge or technical skill. The propriety of the use of that expertise is crucial to the maintenance of public confidence in their endeavours.
• Office employees also strive to ensure that the value of transparency in government is upheld while respecting their duties of confidentiality under the law.

Ethical values:

Acting at all times in such a way as to uphold the public interest

• Office employees perform their duties and arrange their private affairs so that public confidence and trust in the integrity, independence, objectivity and impartiality of the Office are protected.
• Integrity is an essential quality for all employees. It is also an absolute requirement for anyone involved in providing auditing services in the Office.
• Office employees act at all times in a manner that will bear the closest public scrutiny; an obligation that is not fully discharged by simply acting within the law.
• Office employees must not use their positions to gain unfair advantage, whether pecuniary or non-pecuniary, in their personal affairs.
• Office employees must exhibit proper professional conduct at all times. Improper professional conduct reflects adversely on an employee's work and ability to perform. It also casts doubts on the honesty and competence of the Office as a whole.
• Office employees, in fulfilling their official duties and responsibilities, make decisions in the public interest.
• If a conflict should arise between the private interests and the official duties of an employee, the conflict is to be resolved in favour of the public interest.

People values:

Demonstrating respect, fairness, and courtesy in their dealings with both citizens and fellow employees

• Respect for human dignity and the value of every person inspires the exercise of authority and responsibility.
• People values reinforce the wider range of Office values. Those who are treated with fairness and civility will be motivated to display these values in their own conduct.
• Participation, openness, and communication and respect for diversity and for the official languages of Canada are fundamental people values for Office employees.
• Appointment decisions in the Office are based on merit.
• Office values play a key role in recruitment, evaluation, and promotion.

Chapter 2—Responsibilities, Authorities, and Accountabilities

Overall responsibilities of all Office employees

All Office activities should be consistent with this Code. Where questions arise about its application, employees should talk to their manager or Legal Services, as set out in Chapter 5.

In addition to the requirements outlined in this Code, Office employees are also required to observe any specific conduct and other requirements contained in the Auditor General Act, the Financial Administration Act and other statutes governing the Office and their profession, where applicable. The Auditor General Act is the enabling legislation for the Office and its activities. All Office activities must be justifiable by reference to the terms and conditions of the Act and any other legislation that confers audit responsibilities on the Auditor General. Employees are also required to observe the relevant provisions of legislation of more general application including the following:

• Access to Information Act;
• Canada Labour Code, Part II;
• Criminal Code of Canada;
• Official Languages Act and Regulations;
• Privacy Act;
• Public Service Employment Act;
• Public Service Staff Relations Act; and
• Other applicable statutes.

Office employees must also adhere to Office policies, including the Workplace Accommodation, Employment Equity, Official Languages, and Respectful Workplace policies and applicable Treasury Board policies. All individuals working for the Office shall observe the conditions of employment established within the Office.

Office employees shall also observe the confidentiality of internal documentation and communications and conduct themselves according to the affirmations made by them in their Oath of Office and Secrecy.

Employees who are members of professional associations in connection with their duties in the Office are expected to maintain themselves as members in good standing of such associations during their tenure with the Office. A professional designation is an indicator of the achievement of a level of competence or expertise in a particular field. The loss or lapse of such a designation could be significant to an employee's ability to carry out his or her duties on behalf of the Office. Employees should discuss with their supervisor any loss or lapse in membership in a professional association.

This Code forms part of the conditions of employment of all Office employees. At the time of signing their letter of offer, Office employees acknowledge that this Code is a condition of employment. All Office employees are responsible for ensuring that they comply with this Code and that they exemplify Office values in all their actions and behaviours. In particular, they have the following obligations:

• Office employees must report, within 60 days of their first appointment or any subsequent appointment, transfer or deployment, and annually thereafter, all outside activities, assets, and direct and contingent liabilities that might give rise to a conflict of interest with respect to their official duties. To this end, a Confidential Report must be filed with the Office.
• Every time a major change occurs in the personal affairs or official duties of Office employees, they must review their obligations under this Code. If a real, apparent, or potential conflict of interest exists, they must file a new Confidential Report with the Office.
• When negotiating financial arrangements with outside parties, Office employees must assure compliance with the conflict of interest and post-employment measures set out in this Code. When in doubt, Office employees must immediately report the situation to their supervisors in order to seek advice or direction on how to proceed.
• When faced with an ethical dilemma, Office employees are encouraged to discuss the matter with their supervisor or manager and to use any opportunities and mechanisms provided in the Office to raise, discuss, and resolve issues of concern related to this Code.
• Office employees who feel they are being asked to act in a way that is inconsistent with the values and ethics set out in this Code should first attempt to raise the matter using the usual reporting relationship. Further avenues for resolution are contained in Chapter 4 of this Code.

Overall responsibilities of the Auditor General, deputy auditor general and assistant auditors general

The Auditor General is responsible for preserving public confidence in the integrity of management and operations within the Office and for maintaining the tradition of independence and objectivity of the Office and its continuing ability to provide professional, candid, and frank advice.

The Auditor General, deputy auditor general and assistant auditors general have a particular responsibility to exemplify, in their actions and behaviours, the values of public service set out in this Code. They have a duty to infuse these values into all aspects of the work of the Office. It is expected that they will take special care to ensure that they comply at all times with both the spirit and the specific requirements of this Code. They also have a duty to ensure that they apply the requirements of the Code to all employees in a fair, objective manner.

In particular, the Auditor General has the following obligations:

• To ensure that the letter of offer, for an initial appointment, includes the following: "You will find enclosed a copy of the Code of Values and Ethics and Professional Conduct for the Office of Canada. This Code is a key policy for the management of human resources and is part of your conditions of employment." In addition a copy of this Code is to be provided on any subsequent appointment and employees are to be reminded of the Code's requirements on an annual basis.
• To encourage and maintain an ongoing dialogue on Office values and ethics in a manner that is relevant to the specific issues and challenges encountered by the Office.
• To ensure that mechanisms and assistance are in place to help Office employees to raise, discuss, and resolve issues of concern related to this Code. This includes designating Legal Services to assist Office employees to resolve issues arising from the application of the Code.
• To determine the appropriate method for an employee to comply with the Code, as set out in chapters 2 and 3, in order to avoid conflicts of interest. The objective here is to reach a mutual agreement on the method to be used.
• To ensure that the personal information in Confidential Reports is secured in a central repository and treated in complete confidence, in accordance with the Privacy Act.

The Auditor General may delegate responsibilities and authorities for the implementation of this Code, but she may not delegate her accountability for ensuring that the Code is fully upheld and advanced within the office or for the specific matters outlined in this section.

Specific responsibilities, authorities, and accountabilities

Economy, efficiency, and effectiveness of operations

The Office's operations are funded by taxpayers in the same way as any other department or agency. Since the Office is an advocate for economy, efficiency, and effectiveness in the conduct of government operations as a whole, it too has an obligation to observe these principles. The Office should function as a model for the rest of the public service. Employees should strive to achieve cost reductions and to improve the efficiency and effectiveness of the Office.

Audit objectivity

Auditors should not prejudge an audit entity. They should conduct audits with objectivity. Auditors should not only be objective, they should be perceived to be so.

The validity of the Office's work and the confidence placed in it by audit entities and Parliament depend, in large measure, on their perception of the Office's objectivity. Therefore, objectivity is a crucial characteristic of the relationship between the auditor and the audited organization. It ensures that the auditor's findings and reports will be influenced only by evidence obtained and assembled in accordance with the audit standards and practices of the Office, as set out in professional pronouncements, Office manuals, including Value for Money, Annual Audit, and Special Examination manuals and related methodology.

It is clear that conflicts of interest involving an auditor and an audited organization must be avoided. This does not, however, necessarily eliminate an employee from participating in an audit of a department, agency, or Crown corporation where he or she was previously employed. Office policy is that at least two years should elapse before an employee takes part in an audit of a previous employer. In any situation where the nature of the previous position or its proximity in time raise questions on the part of the employee or the entity, the employee has a duty to discuss the matter with the principal in charge of the audit or his or her assistant auditor general in addition to following the steps set out in Chapter 4.

Employees obviously cannot audit their own earlier work. They also should not participate in audits that would entail examining the work of friends or close acquaintances. In addition, auditors should not actively seek employment with an audit entity that they are examining. This could easily be seen as impairing the auditor's judgment and objectivity. Also, should a staff member be approached by that audit entity about employment prospects, he or she should immediately inform the principal in charge of the audit, or a higher level authority if appropriate.

Recognizing that employees who are seconded to other departments or agencies remain Office employees, secondments will not be approved by the Office where the secondment position will, in the view of the Office, place the Office or the employee in a conflict of interest position.

Audit effectiveness

The Office's primary role is to give assurance to Parliament and other entities. The Office strives to achieve improvements in government services and operations. In this regard, auditors should perform a constructive and positive role in the formulation of their audit reports.

Although it is implicit in the auditor's role to offer the management of audited entities recommendations for improvement, care must be taken to ensure that the auditor does not assume the role of management in the provision of such advice. For example, direct participation in formulating policies or in designing systems and related controls should be avoided. In case of doubt on such matters, employees should discuss and clarify the situation with their supervisors.

Confidentiality of audit information

Employees are required by law to respect the confidentiality of information acquired from audit entities. Unauthorized disclosure of any official information or its use for personal reasons is prohibited. Information collected in the course of an audit may only be used for the purpose for which it was collected and may not be disclosed other than in an audit report.

The Office has developed certain practices and procedures for disclosing audit findings. These are outlined in Office manuals including the Value for Money, Annual Audit and Special Examination manuals. Disclosure of official information by employees shall be only by way of such practices or with the authorization of managers. In addition, employees must ensure the security and confidentiality of all files, whether in the Office or on the premises of the audit entity.

Audit entities have an interest and a right to know audit findings and conclusions. Out of fairness to those entities and to ensure proper verification of conclusions, it is necessary that all audit findings and conclusions be kept confidential until such time as they have been completely substantiated, processed through an authorized clearance procedure with the audit entity, and approved for release by the Auditor General. Improper or premature external disclosure of audit findings can harm the audit entity and cause embarrassment to the Office.

The principle of confidentiality also dictates that all those working for the Office must be cautious in discussing with friends, relatives, and colleagues outside the Office, work in which they are engaged as well as projects being undertaken elsewhere in the Office. It is necessary to take care not to make casual comments on the Office's work in departments, agencies, and Crown corporations.

Audit substantiation

Employees have a duty to be prepared to fully defend against challenge any and all audit findings, conclusions, and observations that they make.

Just as the Office applies criteria by which to assess the activities of audit entities, it applies a rigorous standard of proof when assessing the evidence used as the basis for audit findings and conclusions. The performance standards expected of the Office's employees are no less stringent than those which the Office expects of the employees of the entities it audits. This is fair to audited organizations and also maintains and enhances the Office's credibility.

Employees should ensure that the evidence supporting an audit report is appropriate in quality and quantity to make a convincing case for the conclusions reached.

The Office has a duty to present only findings that are soundly based on clear and current facts and that can stand up to strenuous scrutiny. While it may be necessary on occasion to present conclusions that involve interpretation, such interpretation must be based on fact and must be logically consistent and reasonable. Auditors should maintain an objective, factual perspective.

Communications and reporting

All public communications (e.g., speeches, press releases, speaking at conferences, etc.) from the Office can only be undertaken after employees have received the appropriate authorization from their supervisors.

While the Office communicates by way of statements and publications (most notably through its reports to Parliament) issued through the mass communications media to the public, it must be remembered that such information is made available to the public only after it has been presented to Parliament. The primary reporting relationship is to Parliament, through tabling of reports and through the Public Accounts Committee or to the boards of directors of Crown-owned corporations; not directly to the public. The overriding responsibility of the Office to Parliament or to the boards of directors of Crown corporations precludes the release of information to the public without proper authorization.

Respectful workplace—protection from harassment

Every person working in the Office has a right to work in an environment free of harassment. Harassment is vexatious, worrying, or persistently annoying conduct. Harassment on any of the prohibited grounds of discrimination (including sex) contained in human rights legislation is also illegal. Such conduct detrimentally affects the work environment and may lead to adverse job-related consequences for the victim of the harassment. As a result, harassment is viewed as professional misconduct and will be subject to disciplinary measures including suspension and termination.

Occupational health and safety

The Office has an obligation to ensure that the health and safety at work of Office employees are protected. The specific elements of this obligation are set out in the Canada Labour Code. Employees have a corresponding obligation to carry out the employees' duties under the Code, including

• complying with all instructions from the employer concerning the health and safety of employees;
• co-operating with the policy and work place committees or the health and safety representative;
• reporting any thing or circumstance in a work place that is likely to be hazardous to the health or safety of the employee, or that of the other employees or other persons granted access to the work place by the Office; and
• reporting every accident or other occurrence arising in the course of or in connection with the employee's work that has caused injury to the employee or to any other person.

The Office has an obligation to ensure that the locations employees work in are safe and, to the extent possible, do not create or aggravate health problems. Where employees are required to work in non-OAG workplaces, such as the off-site premises of departments and entities, employees should discuss any issues or concerns relating to health or safety with their service leader or principal who will address the matter in such a way as to ensure that the health and safety of employees are protected.

Chapter 3—Conflict of Interest Measures

Objective

The objective of these measures is to establish rules of conduct respecting conflict of interest and to minimize the possibility of conflicts arising between private interests and public service duties of Office employees. These measures serve to uphold the Office values set out in Chapter 1, as well as the post-employment measures in Chapter 3.

Measures to prevent conflict of interest

Avoiding and preventing situations that could give rise to a conflict of interest, or the appearance of a conflict of interest, is one of the primary means by which an employee maintains public confidence in the impartiality and objectivity of the Office. The Office is particularly vulnerable to allegations of conflict of interest because they call into question the Office's objectivity and competence to pass impartial judgment. These attributes are essential to the success of the Office's work. Since the Office's reputation is based upon a number of factors which include the public's perception of the Office's work, an appearance of a conflict of interest on the part of an employee can be just as damaging as an actual conflict of interest.

These conflict of interest measures are adopted both to protect Office employees from conflict of interest allegations and to help them avoid situations of risk. Conflict of interest does not relate exclusively to matters concerning financial transactions and the transfer of economic benefit. While financial activity is important, it is not the sole source of potential conflict of interest situations.

It is impossible to prescribe a remedy for every situation that could give rise to a real, apparent, or potential conflict. When in doubt, Office employees should seek guidance from their manager, from Legal Services, or from their service leader or assistant auditor general and refer to the Office values stated in Chapter 1 as well as the following measures as benchmarks against which to gauge appropriate action.

Office employees have the following overall responsibilities:

• In carrying out their official duties, Office employees should arrange their private affairs in a manner that will prevent real, apparent, or potential conflicts of interest from arising.
• If a conflict does arise between the private interests and the official duties of an employee, the conflict should be resolved in favour of the public interest.

Office employees also have the following specific duties:

• They should not have private interests, other than those permitted pursuant to these measures, which would be affected particularly or significantly by government actions in which they participate.
• They should not solicit or accept transfers of economic benefit.
• They should not place themselves in a position where they are under an obligation to any person who might benefit from special consideration or favour on their part or seek in any way to gain special treatment from them.
• They should not step out of their official roles to assist private entities or persons in their dealings with the government where this would result in preferential treatment to the entities or persons.
• They should not knowingly take advantage of, or benefit from, information that is obtained in the course of their official duties and that is not generally available to the public.
• They should not directly or indirectly use, or allow the use of government property of any kind, including property leased to the government, for anything other than officially approved activities.

Contractual arrangements

The Office would not knowingly assign a consultant to an audit entity where the consultant (individual or firm) is, has recently been, or may be contractually engaged. In such a situation, a consultant could end up auditing his or her own work or the work of his or her firm. Therefore, the Office requires a history of the consultant's business dealings with the audit entity covering the previous two years. The Office will then decide whether the likelihood exists for a potential conflict of interest. In the same fashion, the Office needs to be informed of any bid by the consultant or the firm in relation to the audit entity.

Consultants and firms contractually engaged by the Office are required to provide a complete list, to the best of their knowledge, of current and recent contracts undertaken with an audit entity that they are examining on their own behalf or on behalf of a client who has significant involvement with the audit entity. They are also responsible for informing the responsible audit principal for the contract of any bid, within their knowledge, that they or their firms intend to make in relation to any entity they are auditing or in which they are working on behalf of the Office.

Employees involved in contract negotiations have a duty to ensure that contracts entered into by the Office are the result of well established procedures and are above suspicion with regard to the validity of the criteria used in awarding them.

The Office wishes to preserve and maintain the co-operative and mutually beneficial relationships it has with management consulting and accounting firms. At the same time, the Office must be able to demonstrate conclusively that contracts have not been subject to the influence either by a former Office employee currently with the firm in question or by a former employee of the firm currently employed by the Office. Contract procedures should ensure that the Office is protected from even the suspicion of conflict of interest.

Methods of compliance

For an employee to comply with these measures, it will usually be sufficient to submit a Confidential Report to the Office. The Confidential Report outlines the employee's ownership of assets, receipt of gifts, hospitality or other benefits, or participation in any outside employment or activities. Confidential Reports are filed on commencing employment with the Office, annually thereafter and when there is any change in an employee's situation, including the acquisition or divestment of any reported interest.

There may be instances, however, where other measures will be necessary. These include the following:

• avoiding or withdrawing from activities or situations that would place the employee in real, potential, or apparent conflict of interest with his or her official duties; and
• having an asset sold at arm's length or placed in a blind trust where continued ownership would constitute a real, apparent, or potential conflict of interest with the employee's official duties.

In such cases, the responsible assistant auditor general will make the decision and communicate it to the employee. In determining appropriate action, the assistant auditor general will try to achieve mutual agreement with the employee in question and will take into account such factors as:

• the employee's specific responsibilities;
• the value and types of assets and interests involved; and
• the actual costs to be incurred in divesting the assets and interests, as opposed to the potential that the assets and interests represent for a conflict of interest.

Assets

Employees and members of their immediate families should have no financial interest that could in any way conflict with the employees' responsibilities, call into question their motives, purpose, or concern with the matter in question, or cause the Office embarrassment or loss of credibility.

For example, a financial interest of significance in a company that has major or important dealings directly or indirectly with an audit entity might be construed as a conflict of interest. An employee in such a situation is obliged to report it to his or her principal or service leader. The employee's first duty is one of full and frank disclosure in situations where he or she suspects that a conflict of interest may exist. The Office will then determine whether a conflict of interest does exist and, if so, what appropriate remedies should be taken.

Where applicable, the Office will defray the costs incurred in establishing, maintaining, administering, and discharging a trust created to avoid a conflict of interest situation.

The types of assets and interests that should be included in a Confidential Report, those that need not be declared, as well as procedures for divesting assets are all set out in Appendix A.

It is to be noted that an employee may not sell or transfer assets to family members, friends, or close associates for purposes of circumventing the compliance measures.

Outside employment or activities

Employees' primary professional responsibility is to the Office. This responsibility takes precedence over any other working relationships.

Therefore, while Office employees may engage in employment outside the Office and take part in outside activities, they may not do so where the employment or activities are likely to give rise to a conflict of interest or in any way undermine the Office's neutrality. However, as a general rule, secondary employment relating to government activities or officials, either directly or on behalf of an external third party is considered to give rise to a conflict of interest, unless the contrary can be established by the employee.

In addition, any unauthorized outside work during office hours is improper and constitutes grounds for dismissal. Furthermore, even if outside work is authorized to be performed during office hours (e.g., work for a professional association or teaching) no employee is entitled to receive double remuneration for services rendered. Moreover, any secondary employment that interferes with an employee's duties to the Office should be avoided. Any outside work endeavours should be undertaken only if they leave the employee fully fit and capable of discharging his or her duties at the Office. Information gained through one's association with the Office should not be used in secondary employment.

Where outside employment or activities might subject Office employees to demands incompatible with their official duties, or cast doubt on their ability to perform their duties in a completely objective manner, they shall submit a Confidential Report to the Office. The Assistant Auditor General most directly affected may require that the outside activities be curtailed, modified, or terminated if it is determined that real, apparent, or potential conflict of interest exists.

Gifts, hospitality, and other benefits

The provisions of this part are designed to ensure that this Code is consistent with paragraph 121(1)(c) of the Criminal Code of Canada, which states the following:

... every one commits an offence who, being an official or employee of the government, demands, accepts, or offers or agrees to accept, from a person who has dealings with the government, a commission, reward, advantage or benefit of any kind directly or indirectly, by himself or through a member of his family or through any one for his benefit, unless he has the consent in writing of the head of the branch of government that employs him or of which he is an official, the proof of which lies on him.

The provisions of this Code in relation to the acceptance of gifts, hospitality, and other benefits are intended to constitute consent in writing by the Auditor General within the meaning of s. 121(1)(c) of the Criminal Code or successor provisions to the same effect. If an employee has complied with these provisions he or she is entitled to rely on the consent by the Auditor General. Because of the potential legal implications involved in the acceptance of gifts and hospitality, all offers of gifts and hospitality should be discussed with Legal Services prior to accepting.

Office employees are called upon to use their best judgment to avoid situations of real or perceived conflict. In doing so, Office employees should consider the following limits on the acceptance of gifts, hospitality, and other benefits, keeping in mind the full context of this Code.

Office employees shall not accept or solicit any gifts, hospitality, or other benefits if

• the gifts might have a real or apparent influence on their objectivity in carrying out their official duties, or
• the gifts might place them under obligation to the donor.

This may include free or discounted admission to sporting and cultural events arising out of an actual or potential business relationship directly related to the employee's official duties. The offer may come from an audit entity or a consultant or contractor.

The acceptance of gifts, hospitality, and other benefits is permissible if the gifts

• are infrequent and of minimal value (low-cost promotional objects, simple meals, souvenirs with no cash value);
• arise from activities or events related to the official duties of the employee concerned;
• are within the normal standards of courtesy, hospitality, or protocol; and
• do not compromise or appear to compromise in any way the integrity of the employee concerned or of the Office.

Persistent offers of gifts or offers of sizeable gifts should be reported to the employee's principal or service leader or to a higher level, if appropriate.

Where it is impossible to decline gifts, hospitality, and other benefits that do not meet the principles set out above, or where it is believed that there is sufficient benefit to the Office to warrant acceptance of certain types of gift or hospitality, an employee shall seek specific written direction from his or her assistant auditor general. The assistant auditor general will then notify the employee in writing whether the gifts, hospitality, and other benefits are to be declined or retained by the Office, donated to charity, disposed of, or retained by the employee concerned.

Solicitation

At no time should employees solicit gifts, hospitality, other benefits, or transfers of economic value from a person, group, or organization in the private sector who has dealings with the government.

In the case of fundraising for charitable organizations, employees should ensure that they have prior authorization from their assistant auditor general to solicit donations, prizes, or contributions in kind from external organizations or individuals. The assistant auditor general may require that the activities be curtailed, modified, or terminated where it is determined that there is a real or apparent conflict of interest or an obligation to the donor.

Political activities

The Supreme Court of Canada has ruled that a total prohibition against public servants working for or against a political party is a violation of the right to freedom of expression as set out in the Charter of Rights and Freedoms. However, the Court also recognized the importance of maintaining the political neutrality of the Public Service. In the absence of specific legislation on this matter, it is important for employees of the Office to consider the impact of the type of political activity that they may wish to undertake on their ability to carry out, and be seen to carry out, the duties of their employment in an impartial manner.

The crucial element in determining the appropriateness of political activities of a public servant is whether the employment duties contain the scope for the exercise of any discretion that could be, or appear to be, tainted by political considerations. The more senior the level of the employee, the greater the need for care and prudence with regard to political activities.

Leave to participate as a candidate in federal or provincial elections is subject to the specific approval of the Auditor General. Such leave will be granted only where it is considered that the usefulness to the Office of the employee in the position the employee then occupies would not be impaired by the candidacy or where the employee does not occupy a position that the Office considers to be sensitive to political activity. Generally, the more senior and visible the employee's position, the greater the degree of restraint on political activities permitted. As a general rule, however, every employee has the right to engage in activity in support of political candidates and parties, as long as such activity does not call into question the employee's ability to perform effectively and in an impartial manner.

Avoidance of preferential treatment

When participating in any decision making related to a staffing process, employees shall ensure that they do not grant preferential treatment or assistance to family or friends.

When making decisions that will result in a financial award to an external party, employees shall not grant preferential treatment or assistance to family or friends.

Employees should not offer any assistance to entities or persons that have dealings with the government, where this assistance is not part of their official duties, without obtaining prior authorization from their designated superior and complying with the conditions for that authorization.

Providing information that is easily accessible to the public to relatives or friends or to entities in which employees or their family members or friends have interests is not considered preferential treatment.

Chapter 4—Post-employment Measures

Objective

The objective of these measures is to establish rules of conduct respecting post-employment. Certain duties may apply to all employees; others to managers. These measures complement the Office values set out in Chapter 1, as well as the conflict of interest measures in Chapter 3.

Overall responsibility

Without unduly restricting their ability to seek other employment, former employees should undertake to minimize the possibility of real, apparent, or potential conflicts of interest between their new employment and their most recent responsibilities within the Office. Employees should not allow themselves to be influenced in their official functions by plans or offers of outside employment. If an offer of employment might give rise to a conflict-of-interest situation, employees should disclose their intentions regarding job offers or future employment before leaving employment. They should discuss the potential conflicts with their principal or service leader, or where appropriate, their assistant auditor general.

Employees who leave employment with the Office are reminded that they have sworn oaths of confidentiality and that they remain bound by those oaths in relation to information acquired in the course of their employment with the Office.

Application

The overall responsibility cited above applies to all employees covered by the Code. The measures that follow apply specifically to managers. The Auditor General may designate other positions as being subject to these measures (where the position involves official duties that raise post-employment concerns), or exclude positions from the application of the post-employment measures (when the official duties of these positions do not raise concerns for post-employment).

Before leaving the Office

Managers must disclose, in a Confidential Report to their supervisor or assistant auditor general, all firm offers of employment that could place them in a real, apparent, or potential conflict of interest situation. They must also disclose immediately the acceptance of any such offer.

Limitation period

Former managers shall not, within a period of one year after leaving office

• make representations for, or on behalf of, persons to any department or organization with which they personally, or through their subordinates, had significant official dealings during the period of one year immediately prior to the termination of their service; or
• give advice to their clients using information that is not available to the public concerning the programs or policies of the departments or organizations with which they were employed or with which they had a direct and substantial relationship.

Reduction of limitation period

The Auditor General has the authority to reduce or waive the limitation period of employment for an employee or former employee. Such a decision should take into consideration the following:

• the circumstances under which the termination of service occurred;
• the general employment prospects of the employee or former employee;
• the significance to the government of information possessed by the employee or former employee by virtue of that individual's position in the Office;
• the desirability of a rapid transfer of the employee's or former employee's knowledge and skills from the government to private, other governmental or non-governmental sectors;
• the degree to which the new employer might gain unfair commercial or private advantage by hiring the employee or former employee; and
• the authority and influence possessed while in the Office and the disposition of other cases.

A decision by the Auditor General to waive or reduce the limitation period will be recorded in writing.

Exit arrangements

The Auditor General must ensure that employees who are intending to leave the Office are aware of these post-employment measures.

Reconsideration

An employee or former employee may apply to the Auditor General for reconsideration of any determination respecting his or her compliance with the post-employment measures.

Chapter 5—Avenues of Resolution or Recourse

Office values and ethics

Any employee who wants to raise, discuss, and clarify issues related to this Code should first talk with his or her manager or contact Legal Services.

Any employee who witnesses or has knowledge of wrongdoing in the workplace may refer the matter in confidence and without fear of reprisal to Legal Services.

Furthermore, any employee who believes that he or she is being asked to act in a way that is inconsistent with the values and ethics set out in Chapter 1 of this Code can report the matter in confidence and without fear of reprisal to the Legal Advisor.

If the matter is not appropriately addressed at this level, or the employee has reason to believe it could not be disclosed in confidence within the Office, it may then be referred according to the disclosure process in place for the broader public service.

It is hoped that most matters arising from the application of this Code will be able to be resolved through discussion and, where necessary, consultation with Legal Services.

Measures on conflict of interest and post-employment

With respect to the appropriate arrangements necessary to prevent conflict of interest or to comply with the post-employment measures described in chapters 3 and 4 of this Code, it is expected that most situations will be addressed by discussing the matter with the employee, identifying avenues of resolution and taking appropriate action. When an employee and the supervisor or assistant auditor general disagree on the appropriate arrangements to prevent conflict of interest or to comply with the post-employment measures in this Code, the disagreement shall be resolved through a referral to the next level of supervisor or manager with the final level of referral being the Auditor General.

Failure to comply

An employee who does not comply with the requirements of this Code is subject to appropriate disciplinary action, up to and including termination of employment.

Enquiries

Enquiries about this Code should be referred to the responsible supervisor or manager who, in turn, may direct questions regarding policy interpretation to Legal Services.

Appendix A—Assets, Liabilities, and Trusts

Assets and liabilities subject to a confidential report

Employees must carefully evaluate on a regular basis whether their assets and liabilities may give rise to any conflict of interest with their responsibilities or call into question their judgment or objectivity. In doing so, they must take into consideration the nature of their official duties and the characteristics of their assets and liabilities. If there is any real, apparent, or potential conflict between the carrying out of their official duties and their assets and liabilities, it must be so stated in a Confidential Report. Employees will be prompted annually to provide a Confidential Report to the Office, but should also be aware that a Confidential Report is required when there is any change in an employee's situation, including the acquisition or divestment of any reported interest.

The list of assets and liabilities that must be reported in a Confidential Report includes the following:

• publicly traded securities of corporations and foreign governments and self-administered Registered Retirement Savings Plans (RRSPs) and self-administered Registered Education Savings Plans (RESPs) that are composed of these securities, where these securities are held directly and not through units in mutual funds;
• interests in partnerships, proprietorships, joint ventures, private companies and family businesses; in particular those that own or control shares of public companies or that do business with the government;
• commercially operated farm businesses;
• real property that is not for the private use of employees or their family members;
• commodities, futures, and foreign currencies held or traded for speculative purposes;
• assets placed in trust or resulting from an estate of which the employee is a beneficiary;
• secured or unsecured loans granted to persons other than to members of the employee's immediate family;
• any other assets or liabilities that could give rise to a real, apparent, or potential conflict of interest due to the particular nature of the employee's official duties; and
• direct and contingent liabilities in respect of any of the assets described in this section.

This list is not exhaustive.

Assets not requiring a confidential report

Assets and interests for the private use of employees and for their family members, as well as non-commercial assets, are not subject to the compliance measures.

Such assets include the following:

• residences, recreational properties, and farms used or intended for use by employees or their families;
• household goods and personal effects;
• works of art, antiques, and collectibles;
• automobiles and other personal means of transportation;
• cash and deposits;
• Canada Saving Bonds and other similar investments in securities of fixed value issued or guaranteed by any level of government in Canada or agencies of those governments;
• Registered Retirement Savings Plans and Registered Education Saving Plans that are not self-administered;
• investments in open-ended mutual funds;
• guaranteed investment certificates and similar financial instruments;
• annuities and life insurance policies;
• pension rights;
• money owed by a previous employer, client, or partnership; and
• personal loans receivable from members of Office employees' immediate families and small personal loans receivable from other persons where employees have loaned the monies receivable.

Divestment of assets

Employees must divest assets where the Auditor General determines that such assets constitute a real, apparent, or potential conflict of interest in relation to their duties and responsibilities. Divestment, where required, must take place within 120 days of appointment, transfer, or deployment. Divestment of assets is usually achieved by selling them through an arm's-length transaction or by making them subject to a blind trust arrangement.

Where divestment is by means of sale, confirmation of the sale, such as a broker's sales receipt, shall be provided to the Office.

Where divestment is by means of a blind trust, the Auditor General may request the assistance of the Office of the Ethics Counsellor to set up a blind trust, to determine whether a specific blind trust meets the requirements of the conflict of interest measures and to make recommendations on the reimbursement of certain trust costs to the employee by the Office.