Audit and Oversight

Moved the adoption of the report.

He said: Honourable senators, I rise this evening to speak briefly to the eleventh report of the Standing Committee on Audit and Oversight concerning funding for the Senate’s internal audit function. Presented in the Senate on October 1, this report makes a modest funding proposal to ensure the committee’s function is performed properly, as I will explain.

This had already been read at the Clerk’s table on October 6.

As senators know, the Standing Committee on Audit and Oversight is responsible for overseeing the Senate’s internal and external audits and reporting to the Senate on these activities in support of integrity, independence, transparency and meaningful resource allocation.

Your committee is of the view that, with appropriate resources, the Senate’s internal audit function will deliver on its mandate. Its work will enhance the effectiveness, efficiency and economy of Senate operations and increase public confidence. Your committee is seeking $40,000 in annual recurring funding for the Senate’s internal audit function to execute the Risk-Based Internal Audit Plan 2026–2029. This plan was approved by your committee and tabled in the Senate in April 2026 through the committee’s seventh report, which also laid out the planned rapid advisory engagements for the next three years. We found this quite intriguing. There has been some concern that the Audit and Oversight Committee independently oversees the work of the Senate’s internal audit function. The timing, selection and sequencing of the internal audit engagements are based on risk-based assessments that are prepared by the Office of the Chief Audit Executive and approved by the Audit and Oversight Committee.

Consultation with senators and Senate Administration is an important part of that process. However, the committee retains the authority to review and approve the final scope and timing of individual advisory engagements, including the rapid advisory engagements. The decision to undertake the engagement is the Audit and Oversight Committee’s alone, with the final authority resting with the Audit and Oversight Committee and its external members. The committee approved the selection of this engagement now because attendance practices present a potential reputational risk for the Senate, as well as opportunities for cost and time savings for the Senate. Based on what we have learned so far, we believe it’s an appropriate and worthwhile engagement. Moreover, this advisory engagement falls squarely within the committee’s audit and oversight rights.

We’re asking for $124,000 to come from the budget of the Audit and Oversight Committee and be moved over to the budget of the Office of the Chief Audit Executive. That amount and the $40,000 recurring funding would be enough for us to get through what we had promised we would do with the risk-based multi-year plan. We have four rapid advisory engagements. We’re completing one now, and there will be three more to come. We would have enough, if the Senate sees fit, to grant the $40,000 for the recurring periods. With the shuffle of the $124,000 from the budget of the Audit and Oversight Committee to the budget of the Office of the Chief Audit Executive, we should be able to accomplish what we promised.

I would be happy to take questions before I have to close up on my 15 minutes, if anybody has any.

Thank you very much.

Absent this funding, planned internal audit work would need to be deferred or reduced, limiting independent assurance and insights into key areas. This could leave potential reputational and emergency risks unmitigated and unmanaged, potentially costing a great deal more in the long run. Honourable senators, the question before us is not whether oversight and assurance are important, but whether we will have the resources necessary for our internal audit function to be effective. Your committee has worked to keep this request as lean as possible, including through the permanent reallocation of existing funds. The result is a measured investment that will allow the Senate’s internal audit function to focus on the areas of highest risk and greatest value in compliance with the Senate Administrative Rules and the unique and independent nature of the Audit and Oversight Committee.

The committee has worked to keep this as lean as possible. I want to let you know that the strong internal audit capacity protects this institution with proactive insight and tailored recommendations. It enhances credibility.

There are some things we need to look at, of which the current rapid advisory engagement is one. It’s a survey that all senators are involved in. We need to look at that very closely. One might ask, “Why are you looking at this now?” First, we’re looking at this now because there is no better time. Second, there are many issues that can be looked upon externally. As we know, we’re trying to protect the reputation, but there are a number of people who would also like to look at what we put up on the websites. That could lead to some questions that we may not be ready to answer as a Senate, so it’s very important that we continue with this rapid advisory engagement.

It’s a good time right now.

I move that the report be adopted.

How much time do we have?

How much time do I have to answer? Is my time over?

Yes.

The $40,000 is not for that engagement; it’s for four others that we promised in the plan we brought forward to the Senate in April; also, we brought out our multi-year risk-based plan. We gave you the first — 2026-29. There are also the rapid advisory engagements. Part of that was that we would do four rapid advisory engagements. One of them is being conducted now and should wrap up soon.

On the approach to determine the need for the $40,000 — I’m glad you asked — in spring 2026, the Audit and Oversight Committee approved the three-year internal audit plan, which identified four advisory engagements and one internal audit per year. The plan was resourced and costed by our external audit members and chief audit executive.

The advisory engagements will be conducted with in-house resources, consisting of a full-time chief audit executive and a part-time senior adviser — both on staff. The external audit will be outsourced to the private sector.

At the same time, the Audit and Oversight Committee budget was assessed, and all available resources were flagged for reallocation to the internal audit function. Based on this analysis, a shortfall of $40,000 was identified. That informed the funding request that we have before you, which is $40,000 recurring annually.

The $124,000 we are also asking for would be moved from our Audit and Oversight Committee budget over to the office of the chief audit executive. After the four rapid advisory engagements, we have what I’ll call bigger fish to fry to ensure we don’t drop the ball on that. We need to start looking at some of the more important areas. We’ll start with the tier 1s, and if we find any fissures or cracks there, we probably have more issues at the top to look at. However, with the recurring $40,000 funding and the $124,000 that we would move over, we’re good to go for the next fiscal.

That’s the one I am most familiar with. The other ones were with the audit executive’s office. He and his staff, along with the external members, have identified what the other three or four are. As a committee, we passed them. I haven’t looked at where they are with those, but I’m sure they are too busy to throw those out. There will be other ones for the benefit of the Senate, its members and its offices.