Office of the Auditor General of Canada’s 2025–26 Departmental Plan

Office of the Auditor General of Canada’s 2025–26 Departmental Plan

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Message from the Auditor General of Canada

Headshot of Karen Hogan, Auditor General of Canada

Karen Hogan, Fellow Chartered Professional AccountantFCPA

Auditor General of Canada

I am pleased to present the Office of the Auditor General of Canada’s (OAG’s) 2025–26 Departmental Plan, which will cover the midpoint of my mandate. In my first message in our 2021–22 Departmental Plan, I wrote of the impact of the COVID‑19 pandemic and the uncertainty still on the horizon. Almost 5 years later, as we look to the year ahead, what remains constant is the relevance of our legislative mandate to parliamentarians, the northern legislative assemblies, and the Canadians we serve. From our homes and in hybrid workplaces, we have stayed the course in supporting government accountability through an unprecedented period in history.

Our departmental plan for 2025–26 is about where we are going as the legislative auditor of the federal government and the governments of Canada’s 3 territories. Our key priorities for the upcoming fiscal year will place greater emphasis on long-term value for money for Canada’s peoples. We will optimize our legislative auditing processes and increase the use of technology to identify the right audits and draw meaningful insights on how public services and programs can be improved. We will focus on practical recommendations that lead to better outcomes, and we will monitor the implementation of government actions. Our work will remain grounded in the adherence to professional standards.

We will fulfill our legislative audit responsibilities by issuing close to 100 financial audits, more than 50 additional financial engagements, at least 25 performance audits, and 4 special examinations of Crown corporations. In addition, we will follow up on selected audit recommendations to track and report on progress. We will also assess the value of our work among legislators, audited organizations, and other users of our audits to ensure that our work remains impactful and relevant.

As an organization, we strive to continually improve our mandate delivery and adapt to an evolving social, technological, and economic landscape to enhance the value of our work. Investing in our people, processes, and tools maximizes the quality, timeliness, and impact of our work to support elected officials. This aligns with our vision to bring together people, expertise, and technology for a better Canada, one audit at a time.

I am proud of the work of our people, and I have been inspired by their resiliency. These talented and dedicated public servants are our greatest strength as we serve Parliament, territorial legislatures, and Canadians with integrity and excellence.

[Original signed by]

Karen Hogan, Fellow Chartered Professional AccountantFCPA
Auditor General of Canada

Plans to deliver on the core responsibility

Core responsibility: Legislative auditing

Description

Our audit reports provide objective, fact‑based information and advice on government programs and activities. With our audits, we assist Parliament in its authorization and oversight of government spending and operations.

Our audits also help territorial legislatures, boards of Crown corporations, and audit committees in their oversight of the management of government activities. Those charged with governance use our audit findings to hold their respective organizations to account for the handling of public funds.

Financial audits assess whether the annual financial statements of the Government of Canada, the territories, Crown corporations, and others are presented fairly, in accordance with applicable accounting standards.

Performance audits assess whether government organizations manage programs with due regard for economy, efficiency, and environmental impact and measure their effectiveness. We have also incorporated the assessment of equity, diversity, and inclusion as a priority area for our performance audits.

Special examinations assess whether Crown corporation systems and practices provide reasonable assurance that assets are safeguarded and controlled, resources are managed economically and efficiently, and operations are managed effectively.

Quality of life impacts

As an independent agent of Parliament, the OAG indirectly contributes to the Quality of Life Framework for Canada domains, subdomains, and indicators. Our reports inform Parliament on the efficiency, effectiveness, economy, and environmental effects of government programs and financial management.

Through our legislative assurance reports, we highlight areas for improvement in government programs and services that, when acted upon, can positively affect Canadians’ quality of life.

The framework’s domain, subdomain, and indicator that relate most closely to legislative auditing are as follows:

  • Domain: Good governance
  • Subdomain: Democracy and institutions
  • Indicator: Confidence in institutions

Indicators, results, and targets

Exhibit 1 presents details on the OAG’s indicators, the actual results from the most recently reported fiscal year, and the targets and target dates approved for 2025–26 for our core responsibility, legislative auditing. In 2023–24, we set targets and began to collect data for new indicators in our departmental results framework. The 2023–24 actual results will act as a baseline for reporting in future years.

Exhibit 1—Indicators, targets, and results for legislative auditing
Exhibit 1 provides a summary of the target and actual results for each indicator associated with the results under the OAG’s core responsibility of legislative auditing.
Departmental result indicators Actual results Target Date to achieve target
Percentage of performance audit and special examination recommendations implemented 2023–24: 84% At least 85% of the recommendations have been implemented, 3 years after tabling 31 March 2025
Percentage of financial audit recommendations implemented 2023–24: 91% At least 85% of the recommendations have been implemented, 2 years after they were issued 31 March 2025

Additional information on the detailed results and performance information for the OAG’s program inventory is available on GC InfoBase.

Plans to achieve results

The following section describes the planned results for the OAG’s core responsibility of legislative auditing in 2025–26.

Departmental result:

Government acts on recommendations to improve public sector programs, service delivery, and financial management and reporting.

The OAG conducts independent audits and studies that provide objective and timely information advice, and assurance to Parliament, territorial legislatures, boards of Crown corporations, government, and Canadians. The result the OAG seeks to achieve is that the government acts on the recommendations arising from our audit work to improve public sector programs, service delivery, and financial management and reporting.

Results we plan to achieve

Our work fuels continuous improvement in public organizations and assists elected officials in their oversight role. Our audits identify risks to the successful delivery of programs and services and provide action-oriented recommendations to address the underlying causes. This information is valuable to drive outcomes for Canada’s peoples when we deliver timely quality audits and government implements actions accordingly.

Performance audits. Our federal performance audits in 2025–26 will encompass a wide range of topics that hold significant interest for Canadians. In 2025–26, we plan to deliver at least 25 performance audit reports, including those presented to Parliament by the Commissioner of the Environment and Sustainable Development and those presented to northern legislative assemblies. Our reports will include topics such as

  • the Canada Revenue Agency’s call centres, where issues raised in the public domain have included the quality of information provided and long wait times
  • the federal government’s investments to build a Canada‑wide early learning and child care system with provinces and territories
  • terrestrial and marine protected areas, an important area of focus given Canada’s international commitment to conserve 30% of Canada’s land and water areas by 2030
  • how the National Adaptation Strategy for climate change was designed and whether early actions were implemented
  • whether the Nunavut Housing Corporation provided equitable access to suitable public housing and managed the adequacy of its public housing inventory

Financial audits and engagements. Each fiscal year, the OAG conducts financial audits and related work across multiple jurisdictions and a wide range of sizes of organizations, using multiple accounting frameworks to perform the work.

In 2025–26, we will complete 98 financial audits, including the audit of the Public Accounts of Canada; the 3 territorial governments, most Crown corporations, and many other federal organizations; and more than 50 other financial engagements, including engagements for First Nations groups in relation to tax administration agreements.

Special examinations. Special examinations are carried out in a cycle, ensuring that each parent Crown corporation undergoes at least 1 examination every 10 years. In 2025–26, the OAG will complete 4 special examinations: Atlantic Pilotage Authority Canada, VIA Rail Canada Inc., the International Development Research Centre, and Defence Construction Canada.

Follow-up on recommendations. We follow up on recommendations from selected audits to evaluate their implementation and report on the status of actions. This reporting highlights the improvements being made in public institutions as a result of our audit work, promoting greater accountability and transparency in the public sector and contributing to improved public sector performance. It is a means of assessing the impact of our work. In 2025–26, we will pilot a new approach to monitoring and reporting on the implementation of audit recommendations. We aim to introduce in 2026–27 a comprehensive annual report to Parliament on the status of all outstanding recommendations, featuring the impact of actions and outcomes for Canada’s peoples.

Quality of work. Our reputation and the trust that Canadians have in us are deeply rooted in the quality of the work that we provide to Parliament, territorial legislatures, and boards of directors of Crown corporations. We are committed to a consistent delivery of quality audits to those we serve that are relevant and focused on outcomes. In 2025–26, we will increase quality management activities and training to support an organizational common understanding of quality and to enhance adherence to auditing standards.

Key risks

The OAG proactively manages potential events that could affect its ability to achieve its planned results. In the 2025–26 fiscal year, the OAG will continue to implement a range of measures aimed at mitigating risks and supporting the delivery of audits. We continuously monitor our risk landscape, adjusting our mitigation strategies in response to changes in the business environment.

Planned resources to achieve results

Exhibit 2—Planned resources to achieve results for legislative auditing
Exhibit 2 provides a summary of the planned spending and full-time equivalents required to achieve results.
Resource Planned
Spending $136,240,285
Full-time equivalents 750

Complete financial and human resources information for the OAG’s program inventory is available on GC InfoBase.

Related government priorities

Program inventory

The OAG’s core responsibility is supported by the sole program in our program inventory, legislative audit.

Additional information related to the program inventory for legislative auditing is available on the Results page on GC InfoBase.

Summary of changes to reporting framework since last year

We have made the following changes to our departmental results framework for 2025–26:

  • removal of our third departmental results indicator: “Percentage of measures examined for which progress made is assessed as ‘substantial improvement’”
  • minor edits to the text for our core responsibility and program

Planning for contracts awarded to Indigenous businesses

Government of Canada departments are to meet a target of awarding at least 5% of the total value of contracts to Indigenous businesses each year. This commitment is to be fully met by the end of 2024–25.

The OAG seeks to leverage procurement to ensure meaningful and impactful strides toward reconciliation with Indigenous people by encouraging Indigenous business development and socio-economic outcomes that support Indigenous communities. The OAG’s Indigenous Procurement Plan sets a target of a minimum of 5% of the total value of our procurements for the 2025–26 fiscal year.

The OAG aims to meet or exceed the target each year. This will be achieved by applying lessons learned from our engagements with the Indigenous business community during the phased implementation period, by creating more opportunities for Indigenous businesses through promoting Indigenous set aside, by pre‑qualifying more Indigenous suppliers for OAG‑awarded methods of supply (for example, supply arrangements for audit and related services), and by ensuring that socio-economic consideration is essential to the OAG’s business and procurement planning.

Exhibit 3—Percentage of contracts planned and awarded to Indigenous businesses
Exhibit 3 presents the 2023–24 actual result with forecasted and planned results for the total percentage of contracts the OAG awarded to Indigenous businesses.
5% reporting field 2023–24 actual result 2024–25 forecasted result 2025–26 planned result
Total percentage of contracts with Indigenous businesses 3.0% A minimum of 5.0% A minimum of 5.0%

Planned spending and human resources

This section provides an overview of the OAG’s planned spending and human resources for the next 3 fiscal years and compares planned spending for 2025–26 with actual spending from previous years.

Spending

This section presents an overview of the OAG’s planned expenditures from 2022–23 to 2027–28.

Budgetary performance summary

Exhibit 4—Three-year spending summary for core responsibility
Exhibit 4 presents how much money the OAG spent over the past 3 years to carry out its core responsibility. Amounts for the current fiscal year are forecasted based on spending to date.
Core responsibility 2022–23 actual expenditures 2023–24 actual expenditures 2024–25 forecast spending
Legislative auditing $127,855,729 $134,929,754 $134,441,436

More financial information from previous years is available on the Finances section on GC Infobase.

Exhibit 5—Planned 3-year spending on core responsibility
Exhibit 5 presents how much money the OAG plans to spend over the next 3 years to carry out its core responsibility.
Core responsibility 2025–26 planned spending 2026–27 planned spending 2027–28 planned spending
Legislative auditing $136,240,285 $134,622,488 $132,822,128

More detailed financial information on planned spending is available on the Finances section on GC Infobase.

Funding

This section provides an overview of the OAG’s voted and statutory funding for its core responsibility. For further information on funding authorities, consult the Government of Canada budgets and expenditures.

Exhibit 6—Approved funding (statutory and voted) over a 6-year period
Exhibit 6 summarizes the OAG’s approved voted and statutory funding from 2022–23 to 2027–28.
Chart for analysis of statutory and voted funding over a 6-year period. The 2025–26 and beyond amounts represent the Main Estimates and do not consider in-year adjustments (such as changes in the carry-forward from the previous year and other salary-related adjustments, including retroactive pay for approved economic salary increases). Text version below:

For further information on the OAG’s departmental appropriations, consult the 2025–26 Main Estimates.

Future-oriented condensed statement of operations

The future-oriented condensed statement of operations provides an overview of the OAG’s operations for 2024–25 to 2025–26.

Exhibit 7—Future-oriented condensed statement of operations for the year ended 31 March 2026 (dollars)

Exhibit 7 summarizes the expenses and revenues, which net to the cost of operations before government funding and transfers for 2024–25 to 2025–26. The forecast and planned amounts in this statement of operations were prepared on an accrual basis. The forecast and planned amounts presented in other sections of the Departmental Plan were prepared on an expenditure basis. Amounts may therefore differ.
Financial information 2024–25 forecast results 2025–26 planned results
Financial audits of Crown corporations, territorial governments, and other organizations, and of the summary financial statements of the Government of Canada 74,800,000 76,000,000
Performance audits 56,500,000 59,900,000
Special examinations of Crown corporations 5,600,000 5,400,000
Sustainable development monitoring activities and environmental petitions 2,600,000 2,800,000
Professional practices 13,300,000 12,600,000
Total cost of operations 152,800,000 156,700,000
Total revenues (700,000) (100,000)
Net cost of operations before government funding and transfers 152,100,000 156,600,000
Exhibit 8—Reconciliation of net costs of operations to authorities forecast (dollars)
Exhibit 8—Reconciliation of net costs of operations to authorities forecast (dollars)
Financial information 2024–25 forecast results 2025–26 planned results
Net cost of operations before government funding and transfers 152,100,000 156,600,000
Adjustments for items recorded as part of net cost of operations but not affecting current year authorities:
Services provided without charge by other government departments (18,166,000) (18,081,000)
Amortization of tangible capital assets (1,250,000) (970,000)
Total items recorded as part of net cost of operations but not affecting current year authorities (19,416,000) (19,051,000)
Adjustments for items not recorded as part of net cost of operations but affecting current year authorities:
Acquisition of tangible capital assets 1,500,000 900,000
Decrease in liabilities not previously charged to authorities 257,000 400,000
Total items not recorded as part of net cost of operations but affecting current year authorities 1,757,000 1,300,000
Forecast spending (authorities forecast to be used) 134,441,000 138,849,000
Add: Forecast lapse (authorities forecast to be lapsed) 1,507,000 506,000
Authorities forecast (authorities forecast to be requested) 135,948,000 139,355,000
Main Estimates
Vote 1: Program expenditures 114,667,000 121,233,000
Statutory amounts: Contributions to employee benefit plans 12,726,000 15,007,000
Total Main Estimates 127,393,000 136,240,000
Supplemental operating authorities 6,249,000 1,608,000
Authorities carried forward from previous yearFootnote 1 2,306,000 1,507,000
Authorities forecast (authorities forecast to be requested) 135,948,000 139,355,000

Human resources

This section presents an overview of the OAG’s actual and planned human resources from 2022–23 to 2027–28.

Exhibit 9—Actual human resources for core responsibility

Exhibit 9 shows a summary of human resources, in full-time equivalents, for the OAG’s core responsibility for the previous 3 fiscal years. Human resources for the current fiscal year are forecasted based on year to date.
Core responsibility 2022–23 actual full-time equivalents 2023–24 actual full-time equivalents 2024–25 forecasted full-time equivalents
Legislative auditing 732 780 761

Exhibit 10—Human resources planning summary for core responsibility

Exhibit 10 shows information on human resources, in full‑time equivalents, for the OAG’s core responsibility planned for the next 3 years.
Core responsibility 2025–26 planned full-time equivalents 2026–27 planned full-time equivalents 2027–28 planned full-time equivalents
Legislative auditing 750 740 740

Corporate information

Supplementary information tables

The following supplementary information table is available on the OAG’s website:

Information on the OAG’s departmental sustainable development strategy can be found on the OAG’s website.

Federal tax expenditures

The OAG’s Departmental Plan does not include information on tax expenditures.

The tax system can be used to achieve public policy objectives through the application of special measures, such as low tax rates, exemptions, deductions, deferrals, and credits. The Department of Finance Canada publishes cost estimates and projections for these measures each year in the Report on Federal Tax Expenditures.

This report also provides detailed background information on tax expenditures, including descriptions, objectives, historical information, and references to related federal spending programs as well as evaluations and GBA Plus of tax expenditures.

Planned reports

A list of our upcoming reports can be found on the OAG’s website.

Definitions