PRINCE.EDWARD.ISLAND (CBC) - If a terrorist attack, massive flood or other major disaster strikes, the federal government is unprepared to lead a co-ordinated emergency response, Canada's auditor general has found.

That's largely because Public Safety Canada's federal emergency response plan has yet to be adopted and endorsed by the government and federal departments involved, according to a report released by Sheila Fraser Tuesday.

Consequently, the department doesn't have the authority to co-ordinate other federal departments, provinces and territories to prevent confusion during disasters, the report said.

"Until that [plan] is approved, it is very difficult for Public Safety Canada to fulfill the role it has been given," Fraser said at a news conference.

She believes the plan has been in the works since the department was established in late 2003 and has "no idea why" it hasn't been approved.

When asked how the findings related to the handling of the swine flu pandemic, Fraser said the audit was done prior to the latest outbreak. But she said the roles and responsibilities of Public Safety Canada would have been clearer if a federal emergency response plan were in place.

Meanwhile, the department itself "has not exercised the leadership necessary" to meet its responsibilities. In particular, the report said, it:

"These are issues that have been identified for at least five years or more," Fraser said Tuesday.

She suggested some of the problems, such as the radio compatibility issue, could have been fixed if the department provided some funding to groups like emergency responders.

Fraser's report noted that the emergency management branch of the department has left a third of its budget unspent in the past two years. That budget was $58.5 million in 2008-09. It also had a staff vacancy rate of nearly 40 per cent last year.

"In this context," the report said, "it is evident that Public Safety Canada has been unable to develop its capacity for emergency management."

Fraser's report looked at a number of other federal government areas, ranging from taxes to foreign aid to electronic health records. It found: