June 2025

Annual Report 2024/25

Accountability statement

This report reflects the performance of the Office of the Auditor General of British Columbia for the 12 months ending March 31, 2025. It was prepared in accordance with the Auditor General Act and the B.C. Reporting Principles. Fiscal assumptions and policy decisions up to June 1, 2025, have been considered in the report’s development.

I am accountable for the results and selection of performance indicators and for ensuring that the information is measured accurately and in a timely manner. Performance data in this report are reliable and verifiable, and any significant limitations in the quality of the data have been identified and explained.

We include estimates and interpretive statements reflecting management’s best judgment. The measures are consistent with our mission, goals, and objectives, and we focus on aspects essential to the understanding of our performance.

Sheila Dodds, CPA, CA, CIA
Acting Auditor General of British Columbia

A message from the auditor general

I’m honoured to present the Office of the Auditor General’s Annual Report 2024/25 and highlights of our work toward the goals, objectives, and performance measures in our service plan. It’s been a year in which we built on the momentum of our achievements and marked the retirement of former auditor general Michael A. Pickup.

Since my appointment as acting auditor general last autumn, I’ve received tremendous support from our teams in financial audit, performance audit, critical audit support, and our executive leadership. I am grateful for their professionalism and each of their contributions to the accomplishments we have shared.

Our annual report demonstrates how we have met our responsibilities under the Auditor General Act. We completed our independent audit of the Province’s Summary Financial Statements, delivered a variety of performance audit reports on government programs and services, and conducted a special examination at the request of the Legislative Assembly.

Internally, I am pleased that we have fully implemented our new compensation policy – a fair, equitable, transparent, and competitive approach to salary progression that reflects work experience and successful job performance.

This report includes the Office of the Auditor General’s annual financial statements, prepared in accordance with generally accepted accounting principles. An independent auditor has audited our financial statements and conducted a reasonable assurance review of our annual report.

I am proud of the achievements summarized here and how they represent our service to the Legislative Assembly and all British Columbians.

Sincerely,

Sheila Dodd, CPA, CA, CIA
Acting Auditor General of British Columbia
Victoria, B.C.

June 2025

Our mandate

Non-partisan and independent of government, the auditor general reports to the Legislative Assembly of B.C. and provides assurance about government’s financial reporting and program performance. The auditor general is appointed by the Lieutenant Governor, on the recommendation of the Legislative Assembly, as mandated by the Auditor General Act.

The auditor general’s financial audits, performance audits, and other reports provide accurate, objective, and trusted information that supports confidence and improvements in public sector reporting, programs, and services.

The work of the office includes auditing the government’s Summary Financial Statements, which consolidate the financial results of central government and the 138 organizations that make up the government reporting entity (GRE). Organizations in the GRE are controlled by, or accountable to, the provincial government. They include ministries, Crown corporations, universities, colleges, school districts, and health authorities. The auditor general has authority to audit the financial statements of any entity in the GRE and to conduct an audit of the efficiency, economy, and/or effectiveness of any GRE program or service.

We publish a financial audit coverage plan each year that identifies which government organizations’ financial statements will be audited by the auditor general and which organizations will be audited by accounting firms, with oversight by the auditor general.

In addition to prioritizing areas of risk and significance when selecting performance audits, the auditor general considers issues and concerns identified by Members of the Legislative Assembly (MLAs) and the people of B.C. in planning audit work.
The auditor general communicates the work of the office through public reports issued to the Legislative Assembly. Audit reports are referred to the Select Standing Committee on Public Accounts for review and follow up.

Our vision, mission, values, and guiding principles

Our goals, objectives, and key performance indicators

Our people

Our product

6 For a full list, see Appendix A.
7 Included in the seven audit, related assurance, and other reports reported in our KPI.

Our strategies

We focused on four corporate strategies in 2024/25 to work towards our objectives.

Continue to improve the quality of our audits

In 2024/25, we made several improvements that enhanced the quality of our audits. Most notably, we updated our automated financial statement audit methodology to comply with the new group audit standards in the CPA Canada Handbook. Our audit of government’s annual Summary Financial Statements is an example of a large and complex group audit, so these new standards have had a significant impact on how we plan and conduct our audits. As such, this update was a priority for us, as we need to provide our auditors with the tools to support them in this work.

In addition, we automated the forms associated with the initiation and acceptance of an audit or other engagement throughout all our project templates. We have also updated the tools, policies, and procedures we use for initiating and tracking the completion of projects. Under the Canadian Standards on Quality Management, we are required to perform certain procedures prior to committing to carry out any professional activity, like an audit. We take preliminary steps to identify the risks and complexity of the proposed work, and we carry out procedures to ensure we are independent and have sufficient resources to do the work. Our new automated forms provide consistency of process and will automatically flag issues for resolution, which reduces risk and increases our efficiency.

While we have not completed the automation of the performance audit methodology, the automation of the acceptance process was the first step toward this goal. We continue to make progress and plan for further automation of our performance audit methodology, which we will balance with our responsibilities for maintaining our tools in alignment with auditing and assurance standards.

Create a comprehensive training strategy

In April 2024, the terms of reference for our training sub-committee was created. Its four goals will help us maintain an engaged and skilled workforce, through: a competency framework, a needs analysis, learning management system configuration and governance, and roles and responsibilities.

First, we hired a manager of learning and organizational development in August. Next, we created our auditor progression frameworks, which also support our new performance management processes and the analysis of our training needs.

In early 2025, 79 per cent of all staff participated in a comprehensive training needs analysis that identified training requirements and skills gaps. This information will lead to a rolling three-year training and development plan for delivering the right training to the right people at the right time.

Implement a new compensation framework

In 2024/25, considerable achievements were made with respect to developing and implementing a new compensation framework for our office.

In May 2024, we brought in our compensation framework policy to:

• establish a compensation program that is fair, equitable, and competitive;
• support and recognize the contributions and professional growth of our employees;
• promote a healthy performance-based culture;
• support our mandate, strategic goals, and objectives; and
• demonstrate responsible use of public funds.

Last year, we developed many resources, procedures, and systems to support policy implementation, including:

• auditor progression frameworks that outline the technical skills and competencies required at different levels for financial and performance auditors. These will help auditors understand their roles and responsibilities at their current level and at other levels of their careers.
• a behavioural competency framework that outlines desired competencies for all staff with respect to leadership, achieving business results, personal effectiveness, and interpersonal relationships.
• improved performance development and management systems and procedures to support employee goal setting, growth planning, performance discussions, and success.
• a fair and transparent mechanism for staff in management pay bands (MCCF) to determine potential performance-based pay increases after 1827 hours (equivalent to one year of full-time work) in a position. (Salary progression for non-MCCF staff is informed by other agreements or frameworks.)
• data analytic and reporting procedures and tools to effectively and efficiently calculate and report hours in a position since the last performance-based reviews.
• robust procedures and tools to monitor and record decisions, determine potential salary increases, and generate notification letters in a timely and efficient manner.

From December 2024 to March 2025, we piloted and provided staff training on the new resources, procedures, and systems, and made – and will continue to make – refinements based on employee experiences and feedback.

Modernize our IT infrastructure

In the 2022/2023 fiscal year, a comprehensive IT security assessment revealed several critical risks stemming from aging infrastructure and insufficient support for existing systems and applications. In response, the IT Rationalization and Migration Project (RAMP) was launched in January 2024 to address infrastructure vulnerabilities, improve operational resilience, and modernize IT services.

In 2024, the RAMP project successfully moved the in-house data centre to an off-site, professionally managed service environment.

The project also involved a review and optimization of business tools, aiming to streamline operations and improve effectiveness. Software licenses were reviewed and rationalized. New security solutions were deployed. Staff positions were realigned to reflect updated responsibilities and workflows.

Key outcomes included the implementation of a modern intranet site, setting the standard for future development projects while immediately improving content quality for staff. We established business and technical documentation libraries. And we added a new help desk tool to enable the IT team to clarify processes and deliver a consistent service experience for staff.

By January 2025, the full migration of information systems and data was completed, culminating with the formal decommissioning of the old on-site data centre in March 2025. Under budget, the RAMP project delivered substantial cost savings, minimized risk exposure, and introduced significant operational efficiencies. This comprehensive transformation has positioned the organization for improved performance, scalability, and the long-term sustainability of its IT operations while establishing a new level of cybersecurity maturity.

Our finances

Management’s discussion and analysis

In this section, we discuss and analyze our business operations and financial results for the year ending March 31, 2025, as compared to our budget and prior year results. The analysis of our financial performance should be read in conjunction with our audited financial statements and the accompanying notes. Our financial statements have been prepared in accordance with Canadian public sector accounting standards.

Financial and business highlights

The Office of the Auditor General is funded by the Legislative Assembly through a voted appropriation. The vote provides separately for operating expenses and capital purchases. For 2024/25, our budget, based on an estimate of the full cost of operations, was $26.356 million for operating expenses and $263,000 for capital acquisitions.

In 2024/25, the actual cost of our operations was $24.463 million, and our capital expenditures were $255,000. The unused appropriation ($1.89 million for operating expenses and $8,000 for capital acquisitions) cannot be used in subsequent fiscal years. We used 92.8 per cent of our operating budget in 2024/25.

2024/25 financial summary and comparison to plan and prior year

The office remains committed to providing the Legislative Assembly and those we audit with timely, independent, and high-value reports. We issued 34 independent auditor’s reports on financial statements and related information, including our audit report on the province’s Summary Financial Statements. We also issued four performance audit reports, two examination reports, and a follow-up report on past performance audit recommendations. We successfully responded to a resolution by the Legislative Assembly to conduct an examination and report back within months. We realized significant progress on all four strategic priorities, improving the tools and processes supporting the delivery of our audit commitments with an engaged and inclusive workforce. We achieved these results and maintained our workplans with a transition to an acting auditor general.

Operating expenses

Salaries and benefits made up 74 per cent of our total operating expenses. This means that changes or fluctuations in staffing can shift our financial performance significantly from what was planned.

Actual spending on salaries and benefits in 2024/25 was just under $18 million, $290,000 less than planned but $1.2 million more than we spent in the prior year. Our average staffing throughout the fiscal year was 128 full-time equivalents. Turnover this year was 17 per cent for permanent staff, four percentage points higher than the previous year.

Spending on professional service contracts was $1.8 million – $1 million below budget. The underspend was due in part to lower professional services required than expected as we worked to complete significant corporate initiatives that began in the previous year. We have also reduced the proportion of our budget spent on external contractors as we continue to invest in training and retaining our qualified professional staff. In 2025/26 we plan to invest in additional professional staff to build our in-house expertise. Overall, our professional services spending was 36 per cent less than planned.

Audit-related travel continued to increase over the previous few years, indicating a return to pre-pandemic levels. In-person meetings are important to build relationships with those we audit and to enhance our understanding of their organization’s operations and risks. In addition to more travel hours, travel costs have increased because of inflation. These costs came in just under budget but the growth trend means that our travel costs were up about 61 per cent over last year.

The table below summarizes the changes in key spending categories over the past three years, as well as the 2024/25 budget amounts.

Operating expenses, actual versus planned ($000s)

Capital purchases

Capital expenditures this year were $255,000, down significantly from the year before, as most of our investments in IT infrastructure and a flexible office work environment were completed in 2023/24.

This year, we invested just over $180,000 to complete our new Data Centre setup, approximately $70,000 to refresh staff IT equipment such as laptops and other peripherals and close to $5,000 to purchase some final pieces of furniture to complete spaces that were renovated last year.

Looking ahead

Looking ahead, we will continue to build on our successes and improvement efforts.

Strategies will include an enhanced focus on the quality and efficiency of our audits and related support functions and increasing capacity to examine areas of growing importance to MLAs and to people in B.C.

Building on considerable work to date, we will fully implement growth-based employee performance development and management processes that align with the strategic needs of the office. To further support employee growth and success, we will also continue to prioritize and implement elements of our employee training and development framework.

Our fiscal 2025/26 operating budget is consistent with the three-year plan approved by the Finance and Government Services Select Standing Committee in October 2023.

Financial statements 2024/25

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Statement of management responsibility

The accompanying financial statements of the Office of the Auditor General (the office) are the responsibility of management.

The financial statements have been prepared by management in accordance with Canadian public sector accounting standards. Financial statements are not precise, since they include certain amounts based on estimates and judgments. When alternative accounting methods exist, management has chosen those it considers most appropriate in the circumstances to ensure that the financial statements are presented fairly in all material respects.

We have developed and maintain systems of internal control that give reasonable assurance that the office has:

• operated within its authorized limits,
• safeguarded assets, and
• kept complete and accurate financial records.

The Select Standing Committee on Finance and Government Services of the Legislative Assembly appointed BDO Canada LLP, Chartered Professional Accountants to audit the accounts of the office for the year ended March 31, 2025.

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Sheila Dodds, CPA, CA CIA
Acting Auditor General

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Nathaniel Morbey, CPA, CA
Chief Financial Officer

External auditor’s opinion on the financial statements

Independent Auditor’s Report

To the Acting Auditor General of British Columbia

Opinion

We have audited the accompanying financial statements of the Office of the Auditor General (the “Office”), which comprise the Statement of Financial Position as at March 31, 2025 and the Statements of Operations, Changes in Net Debt and Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Office as at March 31, 2025 and the results of its operations, changes in net debt, and cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Office in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Office’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Office or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Office’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Office’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Office’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Entity to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Chartered Professional Accountants
Vancouver, British Columbia

June 20, 2025

Statement of financial position

As at March 31, 2025 (in $000s)	Note	2024	2023
Financial assets
Petty cash		2	2
Due from the consolidated revenue fund	3	1,109	2,106
Total financial assets		1,111	2,108
Liabilities
Accounts payable and accrued liabilities		1,509	2,566
Asset retirement obligation	4	143	138
Total liabilities		1,652	2,704
Net debt		(541)	(596)
Non-financial assets
Tangible capital assets	5	3,224	3,618
Prepaid expenses	6	398	458
Total non-financial assets		3,622	4,076
Accumulated surplus	7	3,081	3,480

Approved by:

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Sheila Dodds, CPA, CA CIA
Acting Auditor General

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Nathaniel Morbey, CPA, CA
Chief Financial Officer

The accompanying notes are an integral part of these financial statements.

Appendix A

Summary of work issued in 2024/25

Independent auditor’s reports for financial statement audits and other assurance engagements

Public Accounts

1. Summary Financial Statements, Province of British Columbia
2. Summary of Public Debt, Key Indicators of Provincial Debt and Summary of Performance Measures

School districts

3. School District No. 63 (Saanich)
4. School District No. 74 (Gold Trail)

Universities, colleges, and institutes

5. University of British Columbia
6. Okanagan College

Other post-secondary institution reports

7. University of British Columbia Foundation – Independent Auditor’s Report on the Consolidated Financial Statements
8. University of British Columbia – FTE Enrolment Report
9. University of British Columbia – Independent Auditor’s Report on the Consolidated Financial Statements Accompanied by Financial Responsibility Supplemental Schedule
10. University of British Columbia – Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
11. University of British Columbia – Independent Auditor’s Report on Compliance for the Direct Loan Program Required by the Guide for Financial Statement Audits and Compliance Attestation Engagements of Foreign Schools
12. University of British Columbia – Independent Auditor’s Report on the Consolidated Financial Statements presented in accordance with Canadian generally accepted accounting principles
13. University of British Columbia – Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
14. University of British Columbia – Independent Auditor’s Report on Compliance for the Research and Development Cluster of Expenditures; Report on Internal Control over Compliance and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance

Health authorities

15. Provincial Health Services Authority

Other health authority reports

16. British Columbia Emergency Health Services
17. British Columbia Mental Health Foundation
18. Forensic Psychiatric Services Commission
19. BC Cancer, part of Provincial Health Services Authority – Independent Auditor’s Report on the Consolidated Financial Statements presented in accordance with Canadian generally accepted accounting principles
20. BC Cancer, part of Provincial Health Services Authority – Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
21. BC Cancer, part of Provincial Health Services Authority – Independent Auditor’s Report on Compliance for the Research and Development Cluster of Expenditures; Report on Internal Control over Compliance and Report on the Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
22. BC Centre for Disease Control, part of Provincial Health Services Authority – Independent Auditor’s Report on the Statement of Eligible Expenditures

Crown corporations

23. BC Transportation Financing Authority
24. InBC
25. British Columbia Energy Regulator
26. Royal BC Museum Corporation

Other Crown corporation reports

27. Transportation Investment Corporation

Other organizations

28. Legislative Assembly
29. Provincial Employees Community Services Fund

Federal government funding agreements

30. Canada–British Columbia Building Canada Fund Contribution Agreement
31. Canada–British Columbia New Building Canada Fund Contribution Agreement
32. Canada–British Columbia Workforce Development Agreement
33. British Columbia’s Disaster Financial Assistance Arrangement – 2017 Wildfires Claim
34. British Columbia’s Disaster Financial Assistance Arrangement – 2018 Wildfires Claim

Performance audit, related assurance, and other reports

1. Annual Follow-up Report: Performance Audit Recommendations (2019 – 2022)
   • 24 independent reviews of government’s progress in completing 130 audit recommendations
2. Examination of MNP’s Administration of the Advanced Research and Commercialization Grant Program
   • Interim Report
   • Final Report
3. B.C. Public Sector Boards: Oversight of the Appointment Process
4. Child Care Licensing Capacity
   • Audit of Ministry of Education and Child Care on whether it had worked with health partners to implement the commitment to add capacity in regional health authorities to license, monitor, and investigate child care facilities
   • Audit of Vancouver Coastal Health on whether it assessed if it had the capacity to license new spaces, investigate complaints and monitor child care facilities.
5. Ministry of Forests: Calculating Carbon Projections

Other publications

1. Annual Report and Financial Statements 2023/24
2. Service Plan 2025/26–2027/28
3. Financial Audit Coverage Plan for fiscal years ending in 2026, 2027, and 2028

Appendix B

Public Interest Disclosure Act

The Public Interest Disclosure Act (PIDA) is legislation that creates a way for B.C. government employees to report specific kinds of serious wrongdoing without fear of reprisal. The act applies to B.C. government ministry employees, employees of independent offices and the Legislative Assembly, and former public servants. PIDA came into force on Dec. 1, 2019.

• Current and former staff of the Office of the Auditor General can make a disclosure to the office’s designated officer or to the Office of the Ombudsperson.
• Current and former staff of the Office of the Ombudsperson can make a disclosure about the Office of the Ombudsperson to the Office of the Auditor General.
• The Office of the Ombudsperson can refer a matter to the Office of the Auditor General if the latter is in a better position to investigate it.

Under PIDA, we must annually report the number of disclosures of wrongdoing made by our staff or disclosures referred to our office by the Office of the Ombudsperson. We must also report on whether those disclosures were investigated, as well as the results of those investigations.

As of March 31, 2025, our designated officer for the Office of the Auditor General did not receive any notification of any disclosures made to the Office of the Ombudsperson, nor did we receive any PIDA disclosures from current or former employees of the Office of the Ombudsperson.