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Royal Canadian Mounted Police

Annex to the statement of management responsibility including internal control over financial reporting RCMP fiscal year 2025–2026

List of acronyms and abbreviations
IC
internal control
ICFR
internal control over financial reporting
IM
information management
IT
information technology
PSE
Public Service Employees
PSPC
Public Services and Procurement Canada
RCMP
Royal Canadian Mounted Police
TCA
tangible capital assets
VAC
Veterans Affairs Canada
List of tables

1. Introduction

This document provides summary information on the measures taken by the Royal Canadian Mounted Police (RCMP) to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.

Detailed information on the RCMP’s authority, mandate and core responsibilities can be found in the 2025-2026 Departmental Plan and the 2025-2026 Departmental Results Report.

2. RCMP’s system of internal control over financial reporting

2.1 Internal control (IC) management

The RCMP recognizes the importance of setting the tone from the top and helps ensure that staff at all levels understand their role in maintaining an effective system of ICFR and are well equipped to exercise these responsibilities effectively. The focus of the RCMP’s IC management framework is to ensure risks are managed through a responsive and risk-based control environment that enables continuous improvement and innovation.

The RCMP has a well-established governance and accountability structure to support departmental assessment efforts and oversight of its system of internal control. The RCMP’s internal control management framework includes:

  • organizational accountability structures to support sound financial management, including roles and responsibilities of senior managers for key areas of responsibility, as related to internal control management
  • values and ethics
  • ongoing communication, including training on statutory requirements, policies and procedures, for sound financial management and control
  • a centralized internal control team, supported by regional units within the Corporate Management portfolio dedicated to the documentation, design and operating effectiveness of ICFR under the Chief Financial Officer
  • periodic monitoring of, and regular updates to, internal control management, as well as the provision of related assessment results and action plans to the Commissioner and senior management through committees and, as applicable, the Departmental Audit Committee

The Departmental Audit Committee provides advice to the Commissioner on the adequacy and functioning of the RCMP’s risk management, control and governance frameworks and processes.

2.2 Service arrangements relevant to financial statements

The RCMP relies on other organizations for the processing of certain transactions that are recorded in its financial statements, as follows:

Common service arrangements

  • Public Services and Procurement Canada (PSPC) administers the following:
    • The payments of salaries and benefits under two different pay systems: Phoenix for public service employees and Member Pay System for regular and civilian members of the RCMP
    • The procurement of goods and services in accordance with the RCMP’s Delegation of Authority, and the provision of accommodation services
    • The issuance of Receiver General payments and the processing of Interdepartmental Settlements on behalf of the RCMP via the Standard Payment System
  • The Treasury Board of Canada Secretariat provides services related to public sector insurance for public service employees of the RCMP and centrally administers payment of the employer’s share of contributions toward statutory employee benefit plans (i.e. the Public Service Pension Plan, Employment Insurance Plan, Canada Pension Plan, Québec Pension Plan and Public Service Supplementary Death Benefit Plan) on behalf of the RCMP.
  • The Department of Justice Canada provides legal services to the RCMP.
  • Shared Services Canada provides information technology (IT) infrastructure services to the RCMP in the areas of data centre, network and telecommunication services.

The annexes of the above-noted departments could be reviewed to obtain a greater understanding of the systems of internal control over financial reporting related to these specific services.

Specific arrangements

  • PSPC, under a service level agreement, provides day-to-day pension administration services for members, including determining the eligibility and the calculation of pension benefits, providing call centre support, and providing information to Plan members and providing pension payroll services.
  • Veterans Affairs Canada (VAC), under a Memorandum of Understanding, administers some of the programs and services that the RCMP is responsible to provide to its members, including the disability pension and health benefit programs for a service-related injury, illness or death, pursuant to Part II of the RCMP Superannuation Act and the Pension Act. VAC also provides transition support, case management, and access to the network of Operational Stress Injury Clinics and VAC Assistance Service to eligible members.

3. Departmental assessment results during the 2025–2026 fiscal year

3.1 The following tables summarize the assessment areas where key controls were tested in 2025–2026

Table 1: Internal control over financial reporting processes
Previous fiscal year’s rotational ongoing monitoring plan for the current fiscal year Status
IT general controls under departmental management Completed
Procure to Pay Testing on-going
Sensitive Expenditures Substantially completed; recommendations being drafted
Acquisition Cards Substantially completed; recommendations with management
Priority Cheque Printing sites Process narrative being reviewed
Employee Advances Testing incorporated within Sensitive Expenditures – substantially completed
Tangible Capital Assets table 1 note 1 Testing on-going
Delegation of Financial Signing Authorities Testing on-going
Payroll and benefits – Public Service Employees (PSE) table 1 note 2 Testing on-going
Table 1 notes
Table 1 note 1

The key controls over Tangible Capital Assets (TCA) have not been tested for many years, hence this is a high-risk area. TCAs represent decentralized and complex processes which require to be assessed over a period of three years; will be finalized in 2026–2027.

Return to table 1 note1 referrer

Table 1 note 2

The assessment is focused on S.32 and 34 of the Financial Administration Act.

Return to table 1 note2 referrer

Ongoing monitoring program

Extensive work has been performed on the above-mentioned assessments. For the most part, the key controls tested performed as expected, but some remediation is required. Most of the assessments in-progress are at the recommendations or testing phase, therefore results will be presented next fiscal year. Overall, while some high-risk observations were noted, work is underway to remediate, and no material misstatements were found. Additionally, progress has been made on the implementation of Management Action Plans from prior years.

3.2 Significantly amended key controls

The organization has commenced the development of a fraud risk assessment to better understand and manage fraud-related risks. This assessment supports a risk-based approach to fraud prevention, detection, and response, strengthens internal control practices and reinforces the organization's commitment to safeguarding public resources.

4. Departmental action plan for the next fiscal year and subsequent fiscal years

The RCMP’s rotational ongoing monitoring plan over the next five fiscal years is shown below in the table. The ongoing monitoring plan is based on:

  • an annual validation of high-risk processes and controls
  • resource availability
  • related adjustments to the ongoing monitoring plan, as required

Some business processes are assessed over two fiscal years due to their size (number of sub-processes) and complexity.

In addition to the ongoing monitoring plan, the RCMP finalized its full risk assessment during the fiscal year and is starting its annual risk assessment/environmental scan of its internal controls over financial management processes, which is expected to be completed by January 2027. Based on the results of this assessment, the financial management processes will be prioritized within the ongoing monitoring plan on a rotational basis.

The RCMP is preparing for a financial system upgrade with a targeted implementation date next fiscal year. The control environment will be impacted, and key controls will be updated accordingly via the on-going monitoring plan.

Table 2: Rotational ongoing monitoring plan
Key control area 2025–2026 2026–2027 2027–2028 2028–2029 2029–2030
1. Entity-level controls No Yes Yes Yes No
2. IT general controls table 2 note 1 Yes Yes Yes Yes Yes
3. Operating expenses and accounts payable
3.1 Procure to Pay (external vendors) Yes No No Yes No
3.2 Sensitive Expenditures Yes No No No No
3.3 Acquisition Cards Yes No No No No
3.4 Priority Cheque Printing sites Yes No No No No
3.5 Fleet Cards No Yes Yes No No
3.6 Travel No No Yes Yes No
3.7 Vendor Master File Maintenance Yes No No No No
3.8 Interdepartmental Settlements Transactions No Yes No No No
3.9 Relocation - Members No No Yes Yes No
3.10 Relocation - Public Service Employees (PSE) No No No Yes Yes
3.11 Journal Vouchers No Yes No No No
3.12 Real Property (new) No No No No Yes
4. Revenues and accounts receivable
4.1.Policing Services Revenue No Yes No No No
4.2.Firearms licence fees No No Yes No No
4.3.Other Revenues No No No No Yes
4.4.Employee Advances Yes No No No No
4.5.Receivables - External Parties No No Yes No No
5. Payroll and benefits - Members No No No Yes No
6. Payroll and benefits - PSE Yes No No No No
7. Financial reporting No No No No Yes
8. Tangible Capital Assets (TCA) Yes No No Yes Yes
9. Vote 15 Disability Benefits - Members Injured on Duty No No Yes No No
10. Vote 15 Health No No Yes No No
11. Inventory No No No No Yes
12. Pension plan liabilities No Yes No No No
13. Departmental Financial Signing Authorities Yes No No No No
14. Treasury Board Submissions and CFO Attestation No No No Yes No
15. Project Management: Real Property No No Yes No No
16. Costing No No No No Yes
17. Budgeting & Forecasting No No No No Yes
18. Investment Planning No No No Yes No
19. Project Management: IM/IT No No No No Yes
Table 2 notes
Table 2 note 1

The assessment of IT general controls under departmental management is based on a comprehensive risk-based four-year plan where high-risk areas are assessed on an annual basis and controls over medium- and low-risk elements are tested on a rotational basis.

Return to table 2 note1 referrer

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