General Information on the Appointment of Department and Agency Audit Committee (DAAC) Members

Membership

Excerpts from the Directive on Departmental Audit Committees:

"Members of an audit committee shall be selected so that their collective skills, knowledge, and experience will allow the committee to competently and efficiently undertake its duties. Members of the audit committee should be free of any real or perceived conflict of interest." (4.3.4)

"The audit committee shall have three to five members." ( 4.3.5)

Guiding Principles of the Selection Process

The guiding principles of the selection process are as follows:

• to provide for transparency in the selection of candidates;
• to enable the Comptroller General of Canada and Deputy Head to build a dynamic committee with the collective skills to meet the Competency Profile for a Departmental Audit Committee and the Departmental Needs Assessment;
• to recommend to Treasury Board for appointment DAAC members who meet the following conditions:
  • bring and are perceived to bring independence and the unencumbered capacity to objectively provide challenge, advice, and recommendations;
  • are selected based on merit - the calibre of members sought is high as trust will be placed in committees with accomplished and experienced individuals;
  • represent qualified Canadians; and
  • represent an experience blend of private sector board or audit committee and senior public sector; and
• to be cost-effective.

Key Competencies of the Committee

The key competencies of the committee are as follows:

1. financial knowledge and experience;
2. audit and investigative knowledge and experience;
3. general business and public sector knowledge and experience;
4. senior level experience in the governance of complex organizations; and
5. functional knowledge in areas such as the following:
   • enterprise risk management;
   • performance management;
   • human resources management;
   • management control frameworks;
   • financial internal controls;
   • governance (including planning, reporting and oversight); and
   • business operations.

Key Competencies of Committee Members

Each department or agency will have distinct skills and experience requirements that reflect its particular mandate or practices. These would be detailed in the Departmental Needs Assessment in consultation with the Deputy Head and the Comptroller General of Canada.

At the same time, there are areas of expertise that must be found in the competency matrix for each DAAC member to enable him or her to fulfill the requirements of the Policy on Internal Audit:

• independence and objectivity – the ability to constructively challenge and question management practices and information;
• capacity to form independent judgments;
• demonstrated leadership qualities and the ability to promote effective working relationships in complex organizations;
• demonstrated ability to communicate complex and sensitive assessments in a tactful manner;
• demonstrated management experience in large and complex organizations and environments; and
• demonstrated professional approach to the exercise of his or her duties and willingness to devote the necessary time and effort to his or her responsibilities.

Operational Requirements for Committee Members

• There must be no direct or indirect conflict of interest, real or perceived, associated with the committee member's role and responsibilities toward the organization and the Government of Canada.
• Members must consider whether there is anything in their personal history that may make their candidacy inappropriate. This is necessary to save the government, the organization, and the member from potential future embarrassment. Candidates should be prepared to agree to security checks, credit checks, and other relevant checks (e.g. criminal record checks), depending on the nature of the position.
• All members must be able to receive a security clearance at the Secret level. In some circumstances, deputy heads of specific departments may require a security clearance at the Top Secret level.
• DAAC members must agree to conflict-of-interest standards and disclosure requirements, as well as standards of ethical conduct for committee members.

Process for the Recruitment and Selection of DAAC

This process has been developed in consultation with departments and agencies. The approach was selected following consultations with representatives of the Public Appointments Commission Secretariat, who confirmed that the approach met the requirements of a fair, transparent, merit-based selection process.

Guiding Principles

The guiding principles of the recruitment and selection of DAAC members are as follows:

• retain candidates whose skills meet the requirements as outlined in the Competency Profile for a Departmental Audit Committee and the Departmental Needs Assessment;
• be open and transparent;
• make timely and cost-effective use of public funds; and
• allow the Comptroller General of Canada and the Deputy Head to build a committee whose members can work together efficiently to serve a department.

Process