Honourable senators, I am pleased today to speak to the Standing Senate Committee on Audit and Oversight’s annual report for the 2024-25 fiscal year.

The 2024-25 fiscal year saw our committee continue to fulfill its mandate, an important aspect of which is the oversight of internal audit. Under the committee’s direction, the Chief Audit Executive progressed in the building of an internal audit function.

Major milestones reached in this area during the 2024-25 fiscal year include the committee’s adoption of the Internal Audit Charter and the approval of the Chief Audit Executive’s multi‑year, risk-based internal audit plan — the first such plan to be initiated at the Senate.

The Internal Audit Charter, which took effect in September 2024, is a foundational document which will guide the work of the Chief Audit Executive in carrying out the internal audit plan. In adopting this charter, the committee is making sure the internal audit function at the Senate follows internationally recognized standards.

The risk-based, internal audit plan will be updated on a rolling annual basis and will continue to evolve as the Chief Audit Executive develops the internal audit function.

This plan supports an independent and value-added approach to an internal audit for the Senate. The committee oversaw external audit work during the 2024-25 fiscal year, thereby fulfilling another aspect of the committee’s mandate. The oversight of the external auditor included reviewing the 2023-24 financial statements audit plan, subsequently reviewing the audit results and evaluating the external auditor.

In keeping with its mandate, the committee also reviewed quarterly financial reports and the 2023-24 audited financial statements for information purposes.

The annual report outlines the committee’s activities in other areas within the committee’s remit, such as those related to risk management, and summarizes the activities undertaken by the intersessional authority.

I would also like to draw attention to the committee’s observations contained in the annual report. These observations reflect on upcoming priorities for the internal audit function, amongst recommendations in other areas.

Throughout the 2024-25 fiscal year, the Senate’s Audit and Oversight Committee strove to advocate for the four principles which underpin our mandate, namely, integrity, independence, transparency and accountability. Our committee will continue to do so as we all work together to ensure financial responsibility within the Senate’s operations.

The preparation and tabling of the 2024-25 annual report was delayed this year due to prorogation and dissolution. In addition, our committee had to wait for the adoption of the motion referring past work before being able to finish preparing the report.

Senator Downe, do you have a question?

Yes, would Senator Loffreda take a question?

As the speaker noted earlier, and you mentioned in your remarks as well, the two external members of your committee are here. I must say, as a former member of the Audit and Oversight Committee, we couldn’t have select better members. We have two outstanding, professional Canadians serving on that committee. It is the only committee in the history of Parliament with external members. We are very well served by them.

In your experience, has the committee — since it’s recently new — been receiving the level of cooperation it deserves from all those involved in the operation of the Senate?

I didn’t mean to put you on the spot, senator. I intended to ask the chair of the committee, but he sat down before I could stand up. Maybe some of the other speakers can address this point in their comments, as well. Thank you.

Honourable senators, I rise today to speak to a core theme in the Audit and Oversight Committee’s annual report and the importance of deliberate, structured planning as the foundation of sound audits and oversight in the Senate.

From the beginning, our committee’s work has been grounded in the principles of integrity, independence, transparency and accountability. These have been the foundation since I introduced the creation of the committee in the Senate in 2019. In fact, I was Chair of the Subcommittee on Senate Estimates and Committee Budgets when it was tasked to look at the recommendations from the Auditor General that eventually ended up becoming the committee six years later.

Principles alone don’t strengthen an institution. Rather, it is the framework we build around them, and that framework begins with a plan, which now anchors the Senate’s internal audit function. This plan is not simply an administrative requirement; it’s a best practice, aligned with global internal audit standards. It positions the Senate to identify risks early and act on them responsibly, and it helps to reinforce public trust in our governance.

Colleagues, the plan was developed by the Chief Audit Executive in close coordination with the Senate administration and your committee. Together, we assessed eight key factors that define risk and significance across the Senate’s 85 auditable units, covering all corporate, legal, legislative and human resource functions. This is a comprehensive, disciplined undertaking. It ensures that internal audit work isn’t based on assumptions but on evidence, consultation and a systematic understanding of where the institution is most exposed.

The result is a plan that identifies where internal audits can provide the greatest value, not only in terms of risk mitigation but in improving operational efficiency, strengthening internal controls and supporting sound administrative practices.

For the Audit and Oversight Committee, this plan forms the foundation of our work plan. Because we revisit it annually, the plan is dynamic. It responds to evolving risks, organizational changes and emerging issues, ensuring that internal audit work remains relevant and forward-looking.

The report also underscores a key point: Planning only succeeds when the institution commits to it. Over time, with senators, the administration and the audit function all supporting independent reviews, the Senate will benefit from a more coordinated and cost-sensitive approach to internal audit. The administration’s openness is essential to this work. Their willingness to share information, engage in dialogue and support the Chief Audit Executive strengthens our ability to deliver meaningful oversight.

The report also highlights the importance of strong coordination between the Audit and Oversight Committee and the Internal Economy, Budgets and Administration Committee, two committees with different, but complementary, mandates. The Internal Economy, Budgets and Administration Committee manages administration; the Audit and Oversight Committee provides independent oversight. Clear communication between the two is vital to maintaining an effective internal audit function.

One of the recurring themes in the report is the importance of regular internal audits. Institutions entrusted with public funds must examine their systems constantly, not only in response to concerns but as a normal part of responsible management. Regular audits catch issues early, promote continuous improvement and ensure that risks are managed proactively rather than reactively.

As the internal audit function continues to develop, the Senate will increasingly benefit from independent assurance that programs, systems and decision-making processes are working as they should.

Colleagues, the multi‑year internal audit plan is more than a technical document; it is a blueprint for better governance. It provides clarity on risks, direction on priorities and structure for oversight. It ensures that our decisions are informed by evidence, that our vulnerabilities are understood and that our operations continue improving over time.

This is about being proactive rather than reactive; it is about accountability, not just in principle but in practice; and it is about reinforcing the trust that we want Canadians to place in this institution.

Colleagues, at this time, I welcome Senator Saint-Germain to our committee. Her guidance and wisdom will be a great help to us. Finally, I want to recognize Mr. Robert Plamondon and Ms. Hélène Fortin in our gallery. It’s a pleasure to serve with these people as they continue to serve our Senate.

Thank you.

Will Senator Wells take a question?

Certainly, Senator Downe.

First, I want to congratulate Senator Wells for his long service on this committee. As the former chair, he understands, as we all do, the incredible importance of this committee, although the topic can be boring and tedious; as a former member, I know that first-hand. However, it is critically important work.

Senator Wells, I’m wondering if you could inform the Senate: What is the biggest problem currently facing the committee?

Thank you for your question, which is a really good one.

We often run into issues — I won’t call them problems — that we have to discuss. There are a few of them. A key one that comes to mind is the clear division between the Internal Economy, Budgets and Administration Committee and the Audit and Oversight Committee. We have different tasks, but we must work together. Sometimes, even after five years of audit and oversight, we’re still feeling our way along on some issues that we haven’t met before and for which there is no real precedent. We’re creating those precedents as we go.

The other thing that I would say — and, again, I wouldn’t call it a problem, but it is something we do have to continue to tackle and eventually overcome — is that the Audit and Oversight Committee is here to help the Senate. It’s not your typical perception of an audit committee where the CRA will send in an auditor and you tighten up immediately. We are there to be proactive and to help the systems that run our institution become better and more efficient and obviously to respect the money that Canadians entrust to us.

Honourable senators, thank you to the hardy souls who have stayed until the bitter end. I’m the speech you’ve been waiting for — the last one of the afternoon — so pay attention. This is worth it.

Honourable senators, I am honoured to be a member of the Audit and Oversight Committee, along with Senators Klyne, Loffreda and David Wells. I’m grateful to benefit from the experience and insight of our two incredible external members, Hélène Fortin and Bob Plamondon. I learn from them every meeting. It’s so great to have their external benchmarks. The experience they bring ensures that what we do in the Senate lives up to the expectations in the private, public and not-for-profit sectors.

Currently, there is very limited awareness of our committee across the Senate as to the committee’s role and benefits. That’s primarily because it has been a long journey to get this internal audit function up and running. I commend Senator David Wells, as has already been said, and former members for persevering through those early days. This annual report marks the moment when the Senate’s internal audit function has matured to the point where we can start to reap the benefits of that work.

Colleagues, I liken the internal audit function to that of a navigator on a ship — the Senate ship. While the captain — in this case, senators — determines the destination and steers the ship, and the crew — the Senate administration — maintains the ship’s key systems, the navigator’s role is to provide the objective data, map our path and progress and look ahead to possible risks in an effort to ensure that our ship reaches the chosen destination safely and efficiently.

As a former tech entrepreneur, I can be known to question the pace of progress in the Senate. That’s also been true during my time in the Audit and Oversight Committee.

However, I am immensely grateful for the solid foundation that has been created. That’s because the internal audit is central to ensuring the Senate’s 85 operational units operate effectively and cost-efficiently, with measurable benefits and outcomes and reliable risk management.

So far this fiscal year, the committee has approved the final report of a contracting data analytics review. This is the examination of five years of data associated with the Senate procurement activities. We also considered the preliminary results of a high-level report on the Senate’s expenditure trends compared to those of other parliamentary bodies. Looking ahead, we intend to focus an upcoming audit on how risk management, internal controls and governance contribute to the effectiveness of Senate operations.

Additionally, we intend to review — and you need to pay attention here because this is an important one — the governance, administration and approval framework for senators’ expenses, including the use of Unit4. There is also a planned review of the Senate’s governance framework; however, the timing of each of these projects is subject to decisions around resourcing, and I think that gets to one of the questions that Senator Downe was asking.

Like a good navigator, we’re set up independently to read the map and assess progress. We’re ready to spot hazards and other risks. Our job is to identify existing and emerging risks so they can be managed before there is an emergency. Risk management beats crisis management every time.

As a committee, we embrace our responsibilities and look forward to presenting you with all of the value that our Audit and Oversight Committee can deliver. I want to thank you, and I hope you join our committee in adopting this report. Congratulations; we’re at the end of the afternoon. Thank you, colleagues.

Honourable senators, if no other senator wishes to speak, this order is considered debated.