The Canada Revenue Agency has become so dependent on outside consultants that some managers are treating them like staff, according to a critical internal audit that raises concerns about oversight, spending, and legal risk.Blacklock's Reporter says despite employing over 55,000 workers, the Agency spent $58 million last year on consultants, many of whom auditors found were integrated so closely with staff that it resembled an employer-employee relationship — a situation explicitly prohibited under government contracting rules.“A Revenue Agency procurement contract must not result in the establishment of an employer-employee relationship,” stated the audit, titled Contract Administration. While the contracting division does issue guidance to project authorities on maintaining professional boundaries, the audit found those protocols lacking in both enforcement and clarity..“There was no requirement to track long term consultants,” auditors wrote, adding that there were no clear expectations for knowledge transfer from contractors to agency employees. As a result, it was often unclear what deliverables were being purchased or whether in-house capacity was being built.Auditors also criticized the lack of documented effort to reduce consultant use, warning that poor record-keeping increases the risk of failing to show due diligence. “Misrepresentation of the relationship between the employer and the consultant could result in legal, financial or tax liabilities for the Revenue Agency or the consultant,” the report warned..While cabinet pledged in its 2023 budget to reduce consultant use as part of its Made In Canada Plan, no specific targets were set. According to the Procurement Ombudsman, federal spending on consultants averages $25 billion per year.“The exercise is extremely important,” then-Treasury Board President Anita Anand said at the time. “We are asking departments across the government to take a look at your expenditures and determine where there is a possibility to refocus that spending.”
