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2025–26 Audit and Evaluation Committee Annual Report

Seventeenth Annual Report

ISSN  2819-0025

Annual Plan and Annual Report

The Audit and Evaluation Committee (AEC, or the Committee) carries out its activities in accordance with an annual plan that is prepared by the Chair and approved by the Public Sector Integrity Commissioner of Canada (Commissioner). The document specifies the number of meetings planned for the coming year and the topics to be covered at the meetings. At the end of each fiscal year, the Chair of the AEC, in consultation with other external members, prepares a report (this document) for the Commissioner that describes the AEC’s activities during that year and provides an assessment of the systems, controls and other management tools that are in place at the Office of the Public Sector Integrity Commissioner of Canada (PSIC).

Membership

The Chair and members are selected by the Commissioner. The membership of the 2025–26 AEC was as follows:

Chair

  • Jacques Paquette, external

Members

  • Harriet Solloway, Commissioner
  • Danièle Besner, external

Regular non-member attendees

  • Brian Radford, Acting Deputy Commissioner and Chief Audit Executive (CAE)
  • Alexandre Roitman, Chief Financial Officer (CFO) (since August 2025)
  • Ludovic Noubissi, Deputy Chief Financial Officer
  • Heidi Bartman, Chief Results Delivery Officer
  • Christian Santarossa, Director of Operations

Meetings

The Committee met on the following dates during the 2025–26 fiscal year:

  • May 7, 2025
  • September 5, 2025
  • December 2, 2025
  • March 6, 2026

During the year, all meetings were held in person. At each AEC meeting, the external members hold an in-camera session with the Commissioner. An in-camera session was also held with representatives of the Office of the Auditor General (OAG).

Committee Support

The Committee has received information and support from management to enable it to carry out its duties and responsibilities effectively. The Commissioner has also made available to the AEC her reports to Parliament, including her annual report and her reports on cases handled.

The Chief Results Delivery Officer prepared the agendas in consultation with the Committee Chairman and the meeting minutes for the 2025-2026 fiscal year and supported the work of the AEC.

Summary of Topics Discussed at AEC Meetings for Fiscal Year 2025–26

Here are the points addressed by the AEC during the 2025–26 fiscal year:

OAG audit of financial statements

  • The OAG audits the PSIC’s annual financial statements.
  • On September 5, 2025, Riowen Abgrall, Louiselle Otis and Sarah Bergeron of the Office of the Auditor General presented the AEC with the results of their audit of the financial statements for the 2024–25 fiscal year.
  • It was noted that they were waiting for the final version of the Financial Statements, but outstanding items were minor.
  • The inherent “management override” risk was discussed and the OAG clarified that this risk is part of every audit and not specific to PSIC.
  • Two anomalies were identified and have been corrected. No significant errors remained.
  • Accordingly, following its review, the OAG did not issue a management letter to the PSIC.
  • Representatives of the OAG asked members of the AEC if they were aware of any fraud situations at the PSIC. Members replied that they were not aware of any such situation.
  • Ms. Otis thanked the PSIC’s staff for their full cooperation.
  • An in-camera session was held between external AEC members and OAG representatives.
  • The audit cycle continued on March 6, 2026, with a presentation by the OAG on the audit plan for the 2025–26 fiscal year. There were no major changes to the audit approach.
  • The OAG noted two important accounting and reporting developments coming into effect on Aril 1, 2026: a new conceptual framework and a new financial statement presentation model. CPA Canada approved a comparative financial reporting package which would be shared.

PSIC Risk-Based Audit and Evaluation Plan (RBAEP)

  • The AEC discussed the PSIC RBAEP at each of its meetings.
  • It was agreed to add a new risk to the Corporate Risk Profile; the risk of PSIC not being able to meet its mandate due to the fast-growing volume and complexity of cases well beyond current capacity.
  • Mitigation strategies were discussed at length. It was agreed that “proposed mitigation strategies” should only be listed if there is a clear implementation date within one to two years and that timeline should be indicated in the plan for tracking purposes. All mitigation strategies should be realistic and funded.

AEC 2024–25 Annual Report

  • The Audit and Evaluation Committee’s annual report for the period 2024–25 has been approved and published on the PSIC website.

AEC 2025–26 Annual Plan

  • The AEC discussed the annual plan for the current year and planned the agendas for future meetings accordingly, to ensure that all elements of the plan were covered. Certain elements of the plan have also been clarified to specify expectations and deadlines.

AEC Mandate

  • The AEC regularly reviews its terms of reference to ensure that they are both complete, precise and relevant. The terms of reference were reviewed in detail to provide greater detail and clarification. The revised terms of reference were approved at the March 6 meeting.

Audit and Evaluation Dashboard

  • The audit and evaluation dashboard was discussed at each AEC meeting. Discussions focused on the reports of completed audit as well as the progress of each audit and evaluation.
  • Specifically, were discussed the Accessibility Audit Part 1 and the Human Resources Cyclical Audit.
  • It was agreed to add an evaluation of PSIC’s operations in the next 5-year plan. This evaluation will allow for an external perspective and for targeted questions towards increased effectiveness and overall improvement opportunities.
  • A cyclical IT audit will also be included in the next planning cycle in recognition of the increasing importance of this sector and associated risks.
  • The Committee discussed artificial intelligence opportunities while recognizing the quasi-judicial nature of the organization’s decisions and its associated processes.

Business Continuity Plan

  • The Committee was informed of the latest update to the Business Continuity Plan.

Operations

  • An update on operations was presented to the Committee, focusing on sustained growth in file intake and increasing complexity well above the Office’s present capacity. The Committee discussed the implication of this situation and was informed of the solutions being put in place to mitigate as much as possible this challenge.

Organizational Values and Ethics

  • The new PSIC representative for Values and Ethics was introduced to the Committee at its March meeting. The annual completion of the PSIC Declaration Form was planned for June 2026 and an interactive session on values and ethics for all staff is scheduled for March 12, 2026.

Budget

  • The AEC examined the quarterly financial reports prepared by the PSIC. At each meeting, members received a full CFO report and analysis on expenditures and forecasts. The unreliability of financial forecasts was raised as a factor that can increase the difficulty for senior management to make informed decisions at a time when resources are scarce. The fluctuations from one quarter to the other are quite significant and add to the first risk of the organization. This issue was discussed in detail at the March meeting as well as how to improve the presentation of financial information to facilitate these discussions.

Human Resources

  • On a regular basis, the Committee was informed of various human resources matters, including staffing, employee turnover and planning. The Committee was also kept informed of the PSIC’s workload.

PSIC Reports

  • The Committee provided advice, where necessary, on the PSIC’s Departmental Plan, the Departmental Results Report and the PSIC’s Annual Report.

Changes Affecting Audit and Evaluation Staff

  • During the period covered by this report, no change took place.

Self-Assessment

  • Every two years, the Committee conducts a self-assessment through a comprehensive questionnaire completed anonymously. It was agreed that the next survey will be conducted in 2026–27.

Competency Profile of Members of the Committee

  • The Committee reviewed the competency profile for its members, and no significant issue was raised. It was noted that the mandate of the current Chair would end in the fall of 2026 and a new member would need to be identified and appointed by the Commissioner by then.

Orientation and Learning Activities

Departmental Audit Committees (DACs) Chairs Meeting

  • On November 26, Jacques Paquette took part in the DAC Chairs meeting and shared with the Committee the main issues discussed. The Annual DAC symposium is scheduled for May 5, 2026.

Agenda for Upcoming Committee Meetings

A number of AEC activities take place every year, including:

  • Provide advice and recommendations to the Commissioner on service delivery issues, including performance measurement and communication with stakeholders;
  • Assess risks and appropriate follow-up, including mitigation strategies;
  • Review audit and evaluation reports;
  • Follow up on management action plans, including recommendations made in reports from other parliamentary officers;
  • Collaborate with the OAG and Office of the Comptroller General, if necessary, given the PSIC’s status as an agent of Parliament;
  • As a committee, deepen our understanding of PSIC administration and activities through briefings by knowledgeable staff on operations so that Committee members are better able to advise on risks;
  • Review quarterly financial reports and provide comments as appropriate on the Report on Plans and Priorities, the Departmental Results Report and the Commissioner’s Annual Report to Parliament;
  • Participate, as needed, in learning activities offered to all auditors to exchange with audit committee members from other departments and agencies.

Evaluation of PSIC’s Internal Control, Risk Management and Governance Mechanisms

The AEC meets as a committee with PSIC staff three to five times a year. As a result, it can be difficult for the AEC to properly fulfill its role of providing conclusive advice to the Commissioner on the functioning of internal control, risk management and governance mechanisms.

In order to fulfill its role, steps have been taken to increase the reliability of the advice provided by the AEC to the Commissioner during the reporting period and in this report:

  • At each AEC meeting, external members hold a closed session with the Commissioner;
  • During the reporting period, the Chair maintained regular contact with the CAE and the CFO;
  • External members reviewed the PSIC’s quarterly financial statements and, at each AEC meeting, questions of a financial nature were put to the CFO;
  • Assessments of the various internal financial controls to be carried out by an external firm are incorporated into the audit and evaluation plan to complement the other audit mechanisms already in place;
  • External members held an in-camera meeting on September 5, 2025, with OAG representatives responsible for auditing the PSIC’s 2024–25 financial statements. The audit did not identify any material misstatements or concerns that should be brought to the attention of the AEC, CFO, CAE or Commissioner. An in-camera meeting with OAG representatives was also held on March 6, 2026, and no concern was raised.

Following the implementation of these measures, the view of the external members of the AEC is that PSIC’s system of internal controls, risk management and governance processes are from our perspective and, to the best of our knowledge, sound. Concerns, however, were raised regarding the reliability of financial forecasts.

Assessment of the Capacity and Performance of the Internal Audit and Evaluation Functions

The Committee noted the following:

  • The AEC meets regularly and has an external Chair. Its membership is reviewed annually and renewed when required.
  • There is an OAG audit every year, and OAG staff have expressed appreciation for the cooperation of the PSIC representatives with whom they worked in carrying out the audits and for the cooperation of Canadian Human Rights Commission representatives, PSIC’s financial service providers.
  • An RBAEP was developed and reviewed by the AEC and approved by the Commissioner; it is revised as necessary. The Audit and Evaluation Dashboard is prepared by the CAE and is reviewed at least once every fiscal year by the AEC.
  • PSIC brings in external consultants who provide professional services in the areas of risk assessment, audit and evaluation, and audit and evaluation planning. The AEC will continue to monitor the results of these services.
  • Sufficient funds are available to carry out the approved RBAEP.

The AEC will continue to review the capacity and performance of PSIC’s internal audit and evaluation functions.

(Original signed by)

Jacques Paquette, Chair
On behalf of the PSIC Audit and Evaluation Committee

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