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He said all government spending is accounted for.

“There is no indication by the Auditor-General that any funds have gone missing, that any funds have been misappropriated or that any funds have been misspent,” Mr. Clement said.

Clement also said that some of the spending — 2001 through 2006 — came under the previous Liberal government.

The revelation, which comes just days after Parliament passed anti-terrorism legislation and the RCMP made arrests in an alleged plot to derail a Via Rail train, is bound to focus attention on the government’s capability to guard against terrorist attacks.

Ferguson’s auditors examined the Public Security and Anti- Terrorism (PSAT) Initiative, which was established in 2001 after the Sept. 11, 2001 terrorist attacks on the United States.

As part of the plan, the government promised to distribute billions of dollars to various departments and agencies to reach five objectives: keep terrorists out of Canada; deter detect, prosecute and remove terrorists; facilitate relations with the U.S.; support international initiatives; and protect Canada’s infrastructure.

Funds were directed to several key areas, including air security, emergency preparedness and military deployment, intelligence and policing, screening of entrants to Canada, border security and infrastructure.

“In this audit, we examined whether reporting of funds was accurate and whether programs were consistent with the objectives of the Initiative,” said Ferguson.