2021–22 Annual Report of the Canada Energy Regulator – Appendix E: Audits

Management System Audits

Audits evaluate how a company manages its activities. The CER expects every company it regulates to have management systems and protection programs that are effective and work well. Companies that manage their activities well can better anticipate, prevent, and mitigate issues that can affect safety, security, and the environment.

After an audit is done, a report is made public. The CER expects all companies to consider and review the findings in these reports and use them to improve their management systems.

Management System Audits Conducted in 2021–22:

All operational audit reports and related documents can be found on the CER’s website under Reports on Compliance and Enforcement.

Financial Regulatory Audits

The CER considers financial regulatory audits to be an important regulatory tool to ensure compliance with the CER Act, regulations, orders, and decisions, as well as documenting companies’ current operations, management systems, procedures and internal controls.

Objectives of financial regulatory audits are:

• To determine whether the company has complied with the CER Act, regulations, decisions, toll orders and other accounting and reporting directives.
• To verify that the financial information contained in various company applications or submissions to the CER agrees with the company’s records.
• To examine whether cross-subsidies have occurred.
• To obtain information on the company’s current operations, management systems, procedures and internal controls.

In 2021-22, one financial regulatory audit was completed and one financial regulatory audit commenced, which is presently underway. The A.L.L. audit was completed and examined the calculations for nine pipeline companies regarding their Financial Resource Requirements to confirm they have been calculated correctly in accordance with the Pipeline Financial Requirements Guidelines. The audit resulted in one finding for Trans-Northern Pipelines Inc. which is currently part of a further process before the CER.

A second focused financial regulatory audit was started at the end of December and involves companies’ practices and procedures related to abandonment and collection mechanisms such as trusts. This audit is ongoing as of the end of March.

All financial regulatory audit reports and related documents can be found on the CER’s website under Financial Regulatory Audit Reports.

A.L.L. Company Audits Conducted in 2021–22:

Date modified:

2024-02-26