Tax refunds, employment insurance and pension cheques could be at stake as government computer systems get old, the auditor general warns.

Auditor General Sheila Fraser holds a news conference after the release of her report Tuesday. (Fred Chartrand/Canadian Press)

Despite the risk of failure in computers at major agencies, including the Canada Revenue Agency and the EI program, there's no overall plan in place to solve what is a multibillion-dollar problem.

Auditor General Sheila Fraser's latest report says computer systems are still working, but as they age, many can't be updated and they get more expensive to operate.

"The most damaging risk is that an aging critical system could break down and prevent the government from delivering key services to the public — such as issuing income tax refunds and employment insurance and pension cheques," said the report, released Tuesday.

The government has known about the risks of aging systems for a decade, but still isn't putting enough money into up-to-date equipment and software, the report said.

And it's not just obsolescent equipment and programs. There are fewer technicians who know how to deal with old systems. The companies that made the equipment may also be long out of business, so that spare parts are scarce and tech support is gone.

At the Canada Revenue Agency, some key systems are housed in a 40-year-old building that was never designed to house a data centre.

The agency also said it was worried about keeping its aging systems going.

Lower productivity

Human Resources Development Canada said growing demand for EI during the recession, and systems that are reaching the end of their service life, mean "a high risk" that it might not be able to get cheques out to the jobless.

Public Works has problems with old computers that cost it time and money and lower productivity.

Citizenship and Immigration said one of its critical systems is a problem because the language of its programs is no longer taught and the technicians who can handle it are retiring.

Fraser recommended the government take a long look at its systems, decide which are obsolete or obsolescent and develop plans to replace them with more flexible technology.

Her report also warned that urgently needed repairs and renovations to the Parliament Buildings are slowed down by divided responsibilities.

She said a "total failure" of the heating, cooling and electrical systems in the West Block could occur within three years.

That would throw off the whole program of renovations, because there's a domino effect. To fix the Centre Block, the House of Commons chamber itself has to move into the West Block. To fix the latter, MPs offices have to be moved somewhere else.

Too many cooks

The multibillion-dollar renovations have been continuing by fits and starts for more than 20 years, but Fraser said there are too many cooks stirring the pot.

Public Works has to handle the work — and find the cash. Treasury Board controls the money, but the House of Commons and the Senate have a say in everything else.

The Treasury Board, which holds the purse, can't override the two legislatures, but Public Works answers to the board, not the House and Senate.

"In this context, making decisions takes time and ultimately results in project delays and inefficient use of resources," the report said.

MPs and senators want the work done with the least disruption and want to keep their offices and meeting rooms as close together as possible. But Public Works says that may have to change, temporarily.

Public Works has been doing a fairly good job, but has too many masters, Fraser said, adding the huge project won't get done unless the Commons and Senate take charge.

"The current governance framework is inadequate," she said.

Other problems cited in the report include:

• A slap for Agriculture Canada's research programs. Fraser said some projects are poorly managed and more than 70 per cent of the department's lab and farm equipment is past the expiry date.
• A mixed report on changes in the way the government manages its people. Legislation dating back to 2003 made sweeping changes in human resource management policies "but there is limited information on whether they have produced the expected results."
• A warning that the feds aren't doing what's needed to provide sustainable development in the Northwest Territories.
• The national eHealth initiative will miss a key target this year.
• Marine Atlantic's aging ferries and docks are badly in need of replacement and repair.