Financial Administration Act (R.S.C., 1985, c. F-11)

Marginal note:Books and systems

• 131. (1) Each parent Crown corporation shall cause

  • (a) books of account and records in relation thereto to be kept, and

  • (b) financial and management control and information systems and management practices to be maintained,

  in respect of itself and each of its wholly-owned subsidiaries, if any.

• Marginal note:Idem

  (2) The books, records, systems and practices referred to in subsection (1) shall be kept and maintained in such manner as will provide reasonable assurance that

  • (a) the assets of the corporation and each subsidiary are safeguarded and controlled;

  • (b) the transactions of the corporation and each subsidiary are in accordance with this Part, the regulations, the charter and by-laws of the corporation or subsidiary and any directive given to the corporation; and

  • (c) the financial, human and physical resources of the corporation and each subsidiary are managed economically and efficiently and the operations of the corporation and each subsidiary are carried out effectively.

• Marginal note:Internal audit

  (3) Each parent Crown corporation shall cause internal audits to be conducted, in respect of itself and each of its wholly-owned subsidiaries, if any, to assess compliance with subsections (1) and (2), unless the Governor in Council is of the opinion that the benefits to be derived from those audits do not justify their cost.

• Marginal note:Financial statements

  (4) Each parent Crown corporation shall cause financial statements to be prepared annually, in respect of itself and its wholly-owned subsidiaries, if any, in accordance with generally accepted accounting principles as supplemented or augmented by regulations made pursuant to subsection (6), if any.

• Marginal note:Form of financial statements

  (5) The financial statements of a parent Crown corporation and of a wholly-owned subsidiary shall be prepared in a form that clearly sets out information according to the major businesses or activities of the corporation or subsidiary.

• Marginal note:Regulations

  (6) The Treasury Board may, for the purposes of subsection (4), make regulations respecting financial statements either generally or in respect of any specified parent Crown corporation or any parent Crown corporation of a specified class, but such regulations shall, in respect of the preparation of financial statements, only supplement or augment generally accepted accounting principles.

Marginal note:Quarterly financial reports

• 131.1 (1) Each parent Crown corporation shall, in respect of itself and its wholly-owned subsidiaries, if any, cause to be prepared, in the form and manner provided for by the Treasury Board, a quarterly financial report for each of the first three quarters of each financial year of the parent Crown corporation.

• Marginal note:Contents

  (2) The report shall contain

  • (a) a financial statement for the quarter and for the period from the start of the financial year to the end of that quarter;

  • (b) comparative financial information for the preceding financial year; and

  • (c) a statement outlining the results, risks and significant changes in relation to operations, personnel and programs.

• Marginal note:Report to be made public

  (3) The parent Crown corporation shall cause the report to be made public within 60 days after the end of the quarter to which the report relates.

• Marginal note:Regulations

  (4) The Treasury Board may, by regulation, exempt a parent Crown corporation from the requirement set out in subsection (1) or provide that any of the content referred to in subsection (2) be excluded from its report.