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Attributes of an Effective PAC

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  • The Essential Role of PACs

The Essential Role of Public Accounts Committees

The Public Accounts Committee (PAC) is an essential component of the Westminster system of parliamentary oversight. Every legislature in Canada – federal, provincial and territorial – has such a committee, although the committee name differs in Quebec, the Northwest Territories and Nunavut.

Public Accounts Committees play a unique role within the legislature. Unlike most committees, they are not involved in the legislative process and do not consider legislative bills. They are supposed to focus on the administration of government programs, not on criticizing the government’s policy direction. They are therefore unique creatures, often possessing their own political culture distinct from that of legislative committees. The culture of the committee is influenced by many things including: the chair, vice-chair, the individual members, political realities and different interpretations of the terms of reference and the mandates of the committee.

Legislatures in the Westminster system are involved in scrutinizing the budget in two ways: they consider and approve the budgetary estimates, and they are the main vehicle for legislatures to scrutinize expenditures by government after the fact (ex post facto).

The PAC:

  • Examines the financial statements or public accounts;
  • Examines whether the government has spent funds for the purposes intended by the legislature;
  • Examines whether the government has spent funds with due regard to economy and efficiency (and in some cases, whether the government has the means to measure its own effectiveness).

In most instances, the PAC relies on the legislative auditor to provide it with independently verified information in the form of audit reports. These reports can highlight the extent to which:

  • The financial statements or public accounts are accurate;
  • Government expenditures have been directed for the purposes intended by the legislature;
  • Departments and agencies have spent funds with due regard to economy and efficiency. Some legislative auditors also indicate whether departments and agencies have the means to measure their own effectiveness.

The legislative auditor only has the power to report the office’s findings to the legislature. Legislative auditors do not have sanctioning power – they cannot force departments or agencies to correct any deficiencies or address the auditor’s findings.

The Public Accounts Committee, therefore, plays an essential role. As the audit committee of the legislature, the PAC can apply pressure on departments and agencies by:

  • Calling witnesses to account for what has occurred and what action they are taking to fix the problem;
  • Endorsing the legislative auditor’s findings and making recommendations that departments and agencies bring about corrective action;
  • Compelling a response by departments and agencies to the legislative auditor’s and PAC’s recommendations;
  • Following up with departments and agencies to ensure recommendations have been implemented.

This guide will assist PACs as they strive to regularly orient committee members about effective working practices. This is particularly important following elections, turnover on the committee and substitution of members.