April, 2010
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| Project Scope and Objectives | Rationale for Conduct | Audit Type | Audit Priority | Resources | Start Quarter | End Quarter | Links to Corporate Risks | Links to Corporate Priorities | Link to MAF | |
|---|---|---|---|---|---|---|---|---|---|---|
| PM | $’000 | |||||||||
| 21. Transportation Sector Emissions (Vehicles and Engines) This objective of this project will be to assess the economy, efficiency and effectiveness of management controls for the program. This project will address the following core management controls: Policy and Programs. |
There have been limited audit and evaluation projects for this program. There has been many recent changes in the external environment for this program (increasing number of imports from Asian markets), which puts pressure on internal resources. The program is quite complex and related to multiple federal frameworks (CARA, Regulatory Framework for Air Emissions, Turning the Corner) and a high level of interdependence with other programs of federal departments (AAFC, NRCan, TC, Industry Canada); and with US EPA standards, programs, work plans. The program is quite unique in that it includes economic, as well as environmental and health impacts and involves multiple stakeholders (OGD, industry associations. The program is also unique in that it is entirely regulatory (under CEPA) and there is high degree of compliance with regulations. Knowledge of regulations of emerging markets limited. Risks for the program have been confirmed by the 2008-2009 Evaluation of the Regulation of Smog-causing Emissions from the Transportation Sector. |
A | VH (0.66 – 1.00) Score 0.73 |
External Dependencies | Realize concrete progress on international, continental and domestic initiatives on climate change and clean air. | Governance and Strategic Directions Policy and Programs Citizen-focused Service Risk Management Accountability Results and Performance |
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| 22. Greenhouse Gas (GHG) Data Collection, Management and Reporting The objective for this audit is to assess the adequacy and effectiveness of control in place for collecting, managing and reporting on GHG data. |
The federal government is committed to drastically reducing Canada’s greenhouse gas emissions and air pollution (i.e., a national target of an absolute 20% reduction in GHG from 2006 levels by 2020). GHG data collection, management, and reporting have been identified as a very high in the 2010–11 AEB Risk Assessment and management consultations. Budget 2008 provided $66M over 2 years to set up key features of the Regulatory Framework for Air Emissions, including an electronic tracking system for units traded in the carbon market, a single-window reporting system for industry. The drafting of the GHG framework and offset system is complex and contains an aggressive timeline. The private sector is expected to play a major role in the offset system. As this Program is relatively new, some activities are at an early stage of implementation. Therefore the effectiveness of the Program has not yet been measured. The Kyoto Protocol Implementation Act requires that the Minister of the Environment prepare and implement an annual climate change plan to address sources of GHG in Canada. EC is also subject to many legislative and compliance requirements with specific international reporting obligations. |
A | VH (0.66 – 1.00) Score 0.70 (avg) |
External Dependencies | Realize concrete progress on international, continental and domestic initiatives on climate change and clean air. | Governance and Strategic Directions Policy and Programs Citizen-focused Service Risk Management Accountability Results and Performance |
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| 23. PeopleSoft The objective of this audit engagement is to provide assurance that controls are in place to ensure:
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EC is implementing a new Human Resources Management System (HRMS), PeopleSoft version 8.9, on February 22, 2010. The initial rollout will lay the foundation for future enhancements by focusing on the core modules necessary to maintain an HR system. PeopleSoft is a modern information system that stores and enables the processing of human resources information such as the classification levels of positions, appointments, employee pay and leave information. It will replace the Human Resources Management Information System (HRMIS), which has been in use for more than 18 years. |
A | VH (0.66 – 1.00) Score 0.68 (avg) |
Human Resources Skills Information for Decision-Making |
Foster capacity of enabling functions to support programs. | Learning, Innovation and Change Management Results and Performance |
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| 24. Compliance Promotion and Enforcement The objective of this project will be to audit the efficiency of controls in place for the Compliance Promotion and Enforcement program. The scope of the audit will focus on assessing the management controls in place related to the implementation of the new Environmental Enforcement Act. |
Budgets 2007 and 2008 have provided significant investment to support Enforcement capacity. The Program has recently hired and trained more than 120 compliance promotion officers and risk managers (who will all need a high degree of knowledge and skills). A new Environmental Enforcement Act received Royal Assent in 2009 and amends the fine provisions, sentencing authorities and enforcement tools of six statutes administered by EC. The law also introduces the new Environmental Violations Administrative Monetary Penalties Act, which authorizes the use of administrative monetary penalties for minor violations under several environmental laws. The regulatory function of the Enforcement Program exposes EC to compliance risks. The complexity of and high dependency on stakeholder and partner relationships adds risk to the implementation of the program. The Wildlife and Environmental Enforcement functions continue to operate somewhat independently of each other despite being part of the same Branch. There are unclear roles and responsibilities between National Headquarters and the regions for major functional areas – inspections, investigations and, in particular, intelligence. Internal partners do not have a clear understanding on divisional roles and responsibilities for understanding the enforcement program and to support strategic planning. A recent internal evaluation has highlighted several areas for improvement. Limited performance data and lack on integrated systems have an impact on information for decision making. An evaluation of Enforcement is currently underway. |
A | VH (0.66 – 1.00) Score 0.60 (avg) |
Human Resources Information for Decision-Making External Dependencies |
Enhance environmental protection through the implementation of key national initiatives. | Policy and Programs | ||||
| 25. Biodiversity Policy and Priorities The objective of this project will be to audit the adequacy and effectiveness of risk management, controls and governance processes for the program. The scope of the audit will focus on assessing the management controls in place related to the program. |
Past CESD audits identified ongoing problems such as the decreasing resources for increasing responsibilities, a lack of a performance measurement framework and a lack of clear governance. However, considerable progress has made in responding to recommendations. Management actions are currently being implemented but have not yet been evaluated or audited. Recent organizational changes have included the staffing of over 100 new positions. These positions require a high degree of scientific knowledge, training and coaching without which there is a risk that the skill sets of new and existing personnel will be inappropriate and inadequate. New international biodiversity targets will be developed after the 10th Conference of Parties to the Convention of Biological Diversity in October 2010. Also, EC in cooperation with its partners, will advance a domestic "Access and Benefit-sharing" (ABS) framework and participate in negotiations for an international ABS regime. There is a high degree of dependencies on provinces and territories for data, on partnerships with OGDs, NGOs, Aboriginal and private organizations and on external stakeholder involvement. |
A | H (0.46 – 0.65) Score 0.63 |
Human Resources External Dependencies |
Enhance environmental protection through the implementation of key national initiatives. | Policy and Programs | ||||
| 26. Governance Framework/ Operational Planning and Reporting The objective of this project will be to assess the controls in place to support effective governance and operational planning and reporting. An emphasis will be placed on providing assurance in relation to roles, responsibilities and accountabilities for the new governance structure and planning framework (PAA) and to assess the effectiveness of the changes to the PAA planning framework. |
EC’s Governance Framework and Operational Planning and Reporting processes were identified as areas of risk in the 2008-2009, 2009-2010 and 2010-2011 AEB Risk Assessments and management consultations. While the complexity between the Results Management Structure and the Organizational Structure has been improved, the Round VI MAF assessment recommended that the Department further clarify this relationship, in order to more effectively report on results. The only other audit or evaluation within Governance recently was the evaluation of the Clean Air Agenda – Management and Accountability, started in 2009. A number of measures have been recently implemented. A Performance Measurement Framework (PMF) was developed and used in 2009-2010 RPP. A readiness assessment on the performance indicators in the 2010-2011 PMF is underway. An integrated planning process was developed; a draft Integrated Risk Management framework is underway. The risk assessment update will be integrated with the 2010-2011 operational planning process. With these changes comes the risk that the new integrated planning and risk management processes will not mature in a timely fashion due to resistance to change and current ingrained business practices. The lack of maturity of IP and risk management practices may have a negative impact on decision-making, including resource allocation, due to a lack of timely and accurate information related to planning, budgeting and risk. |
A | H (0.46 – 0.65) Score 0.50 |
Human Resources Skills Information for Decision-Making |
Foster capacity of enabling functions to support programs. | Governance and Strategic Directions Risk Management Stewardship Accountability |
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| 27. Grants and Contributions Processes The objective of this audit engagement is to provide assurance with respect to the adequacy and effectiveness of the management controls framework (more particularly the financial controls) related to the implementation of the G&C Reform. A number of G&C programs will be selected for a horizontal audit. |
The Government of Canada Transfer Payment Policy that took effect in October 2008 with the objective to reduce the administrative and reporting burden on funding recipients. Under this policy, department are required to have in place by April 2010, a process to engage applicants and recipients; a risk management approach that ensures administrative requirements on recipients are proportional to risk level; and service standards. EC (led by Corporate Finance) has prepared a prepared a Three-Year Plan for Transfer Payment Programs for the OCG. EC has developed an Action Plan for the implementation of G&C Reform. The Grants and Contributions process was identified as a high risk area during consultations with management on the 2010-2011 AEB Risk Assessment, with high degrees of reputational and public awareness sensitivity and complex inter-relationships and delivery mechanisms. |
A | M (0.21 – 0.45) Score 0.40 |
Resource Management Information for Decision-Making |
Foster capacity of enabling functions to support programs. | Governance and Strategic Directions Risk Management Stewardship |
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| 28. OCG led Horizontal Audit | Under the Policy on Internal Audit, the Comptroller General can direct departments to conduct sectorial and horizontal audits. The internal audit group must reserved person-months to provide support to these audits. As of this date, the OCG has not identified the horizontal audits for 2011–12 or identified departments that will be included. | |||||||||
| 29. Special Investigations The objective of this project will be to audit areas/programs requiring special investigation. |
To conduct special reviews/audit on matter related to the implementation of policies, such as Internal Disclosure of Information Concerning Wrongdoing in the workplace. | |||||||||
| 30. Internal Audit Follow-ups The objective of this project will be to monitor the implementation of past recommendations. |
Internal audit follow-ups are required to provide management assurance that previous audit recommendations are acted upon. To this end, internal audit will monitor the implementation of past recommendations for the following audits :
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