1989 Report of the Auditor General of Canada

Introduction

The principal functions and responsibilities of the Auditor General of Canada are set out in the Auditor General Act . My responsibilities in respect to those Crown corporations for which I have been appointed auditor are set out in the Financial Administration Act . The Auditor General Act is included as Appendix A to this report and the relevant sections of the Financial Administration Act as Appendix B.

The financial statements of the Government of Canada for the fiscal year ended 31 March 1989, which have been prepared by the Receiver General for Canada in accordance with the provisions of section 64 of the Financial Administration Act and appear in Volume I of the Public Accounts of Canada, have been examined by me as required by section 6 of the Auditor General Act .

In compliance with section 7 of the Auditor General Act , my report for the fiscal year ended 31 March 1989 is presented herewith.

As auditor of the accounts of Canada, including those relating to the Consolidated Revenue Fund, I conducted such examinations and inquiries as I considered necessary to enable me to report as required by the Auditor General Act .

With the exception noted below -- which is further discussed in Chapter 1 and Chapter 6 -- departments, agencies, and the Privy Council Office provided my Office with the information and explanations required to date, including Cabinet documents.

The Supreme Court ruled on 10 August 1989 that in the event of a denial of access to information required by the Auditor General to fulfil his audit responsibilities, the ultimate remedy provided in the Auditor General Act is to report to the House of Commons. I am therefore again reporting that I have not received the information needed to complete the audit of the government's expenditures related to the acquisition of Petrofina Canada Inc.

In 1989-90 I planned to conduct a government-wide audit of expenses claimed by ministers for government travel and their use of Administrative Flight Services -- the VIP Fleet. Ministers are not required to submit or retain receipts for travel expenses. Such an honour system is not susceptible to audit. However, Treasury Board advised ministers that it would be prudent to keep receipts. The Government wrote to me stating that even where receipts had been kept they would not be provided to my Office. It also stated that information on the reasons for requesting the use of the VIP fleet by ministers would also be withheld. Without this information I cannot verify that claims for travel expenses were appropriate, that government aircraft were used for official business, and that the charges, which vary by purpose, were accurate. I have therefore decided not to proceed with the audit unless I get access to the necessary information. Therefore, I am reporting here to the House of Commons that I have not received the information needed to complete the audit.