Oversight of Public Agencies, Boards and Authorities
Federal and provincial departments and ministries play significant roles in the delivery of services to Canadians. However, in the last several decades, there has been a trend in Canada to decentralize the management of many public services and to delegate the responsibilities for these services to agencies, boards and authorities (or “distributed governance organizations”). As a result, there are now hundreds of agencies, boards and authorities in provinces and at the federal level.
These organizations share several common characteristics:
- They are established by the government, but are not part of a ministry.
- They are accountable to the government.
- They were assigned or delegated authority and responsibility by the government, or otherwise have statutory authority and responsibility to perform a public function or service.
Common examples of agencies, boards and authorities include school boards, health authorities, and Crown corporations and agencies. Important public services like health care, education, energy production, and public transportation are delivered every day by agencies, boards and authorities.
These organizations are often (but not always) governed by a board of directors or governing council—an oversight body modelled after the boards of directors of publicly traded corporations. As in the private sector, the board or council is responsible for overseeing the organization’s activities.
The boards of directors and governing councils of these agencies, boards and authorities are usually independent from the management of the organization they oversee and are granted the power to exercise all or most of the oversight functions listed in the Concepts and Context part of the Practice Guide. In particular, the board often has an audit committee, which plays an important role in overseeing financial and performance reporting, compliance, and related controls.
The Audit Methodology part of the Practice Guide includes guidance for auditing the oversight of agencies, boards and authorities governed by a board or council.
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