Response to Parliamentary Committees and External Audits

Response to Parliamentary Committees

House Standing Committee on Public Accounts^{Footnote 1} (Supplying the Canadian Armed Forces)

On December 10, 2020, the House Standing Committee on Public Accounts tabled its fourth report: Supplying the Canadian Armed Forces, of the 2020 Spring Reports of the Auditor General of Canada.^{Footnote i} In November 2020, the House of Commons Standing Committee on Public Accounts held a hearing on the Auditor General’s Spring 2020 report, and then tabled its own report in December 2020. The Committee’s report echoes the Auditor General’s findings, concluding that National Defence often did not deliver the materiel requested by the Canadian Armed Forces (CAF) on time and did not have sufficient controls in place to determine whether it avoided needless transportation costs. As a result, the Committee made four recommendations in its report to help National Defence improve its delivery of materiel so that the CAF is properly equipped to meet its operational requirements. The Committee’s four recommendations request that the government provide 11 progress reports and three final reports on the measures it is taking in response to the Auditor General’s report. The Government Response [PDF, 1.7KB]^{Footnote ii}. to this report was presented to the House of Commons on March 25, 2021. In its response, National Defence noted its support for all of the Committee’s recommendations and that it remains committed to ensuring materiel is forecasted, delivered and positioned in a timely manner with appropriate oversight. National Defence also noted that making sure CAF members are well-supplied is a key capability, and it will continue to do what is required to improve its ability to uphold its responsibilities. In its Government Response, National Defence also provided two progress reports that the Committee requested by April 30, 2021, specifically those related to the Committee’s third and fourth recommendations. 

House Standing Committee on Veterans Affairs (Addressing the Backlog of Disability Benefit Claims at Veterans Affairs Canada)

On December 11, 2020, the House Standing Committee on Veterans Affairs released its 4th report: Clearing the Jam: Addressing the Backlog of Disability Benefit Claims at Veterans Affairs Canada.^{Footnote iii} The Committee studied the existing problem of the backlog of disability benefit claims at Veterans Affairs Canada, with particular interest in the reasons for the backlog, the past actions taken by Veterans Affairs Canada to address the backlog, and the special considerations related to processing claims for Francophone and female veterans. As a result, the Committee made 16 recommendations to the Government of Canada, three of which implicated National Defence. The Government Response^{Footnote iv} to this report was presented to the House of Commons on March 25, 2021. In its response, the government agreed with all of the recommendations, including the promotion of improved collaboration between the Department of National Defence and Canadian Armed Forces, and Veterans Affairs Canada.

Response to External Audits

Response to audits conducted by the Office of the Auditor General of Canada (including audits conducted by the Commissioner of the Environment and Sustainable Development

Supplying the Canadian Armed Forces^{Footnote v} – Report 3 | Spring 2020 Reports of the Auditor General

The objective of this audit was to determine whether, for selected materiel, National Defence delivered in a timely manner the materiel items requested by Canadian Armed Forces (CAF) personnel while avoiding needless transportation costs. The Auditor General concluded that National Defence often did not deliver on time the materiel the CAF requested, and that it did not have the right controls in place to determine whether it avoided needless transportation costs.

The recommendations in the report involve: reviewing the materiel forecasting and positioning process to ensure that sufficient stocks are maintained at the right locations, and also to review and monitor materiel availability measures; to improve oversight of high-priority requests; and to communicate the costs of all available transportation methods and provide clear guidance on their use. To address these recommendations, the Department is conducting: a review of how defence materiel holdings are planned and positioned, and how the availability of materiel is measured; and a holistic review designed to improve and optimize the effectiveness of freight distribution services within the CAF, while maintaining control of operational costs. In addition, communications will reinforce the requirement for ordering officers to correctly use high-priority requests to curb overuse and misuse of the current system.

Departmental Progress in Implementing Sustainable Development Strategies to the Federal Sustainable Development StrategiesFootnote vi – Safe and Healthy Communities^{Footnote vii} – Report 2 | 2020 Fall Reports of the Commissioner of the Environment and Sustainable Development

The objective of this review was to determine whether departments and agencies contributed to meeting the goal of safe and healthy communities in the 2016-19 Federal Sustainable Development Strategy. The Commissioner concluded that, on the basis of the progress the departments and agencies reported in their 2018-19 departmental results reports, they contributed to meeting the goal of safe and healthy communities in the 2016-2019 Federal Sustainable Development Strategy. However, the departments and agencies did not report any actions of their own to implement 2 of the 10 federal strategy contributing actions. This finding was not applicable to National Defence. In addition, departments and agencies did not completely and often did not clearly report on how they supported the federal goal and related targets and contributing actions. The Department of National Defence was flagged in one instance where reporting was unclear and have since corrected this for future reporting.

There were no recommendations specifically made to National Defence. However, in a joint recommendation to all departments involved, the Commissioner recommended that departments and agencies responsible for helping achieve the goal of safe and healthy communities should collectively ensure that their departmental sustainable development strategies support all contributing actions in the Federal Sustainable Development Strategy. National Defence will continue to ensure that its departmental sustainable development strategy includes all contributing actions that fall within its mandate.

National Shipbuilding Strategy^{Footnote viii} – Report 2 | Spring 2021 Reports of the Auditor General of Canada

The objective of this audit was to determine whether National Defence, Fisheries and Oceans Canada, Public Services and Procurement Canada, and Innovation, Science and Economic Development Canada managed the National Shipbuilding Strategy in a manner that supported timely renewal of the federal large vessel fleet. The Auditor General concluded that National Defence, Fisheries and Oceans Canada, Public Services and Procurement Canada, and Innovation, Science and Economic Development Canada did not manage the National Shipbuilding Strategy in a manner that supported timely renewal of the federal large vessel fleet during the audit period, but they did address issues that threatened the future renewal of the federal fleet. Ships continued to be delayed, and schedule and risk management practices needed to be improved. However, the departments made key decisions during the audit period to place the strategy on a more viable path. They also took steps to help sustain operations until new ships could be delivered, but there was little room for further delay. Delaying could result in a loss of capability to deliver essential government programs.

The Auditor General made three recommendations in the report, only the first of which applied to National Defence, and is shared with Fisheries and Oceans Canada (Canadian Coast Guard), and Public Services and Procurement Canada. This recommendation addresses the need to implement mechanisms to obtain complete, current and reliable schedules. The three departments agreed that having complete, current and reliable schedules is essential for decision making and management of the shipbuilding projects. Departments will continue to work together and with shipyards to: improve delivery and accuracy of schedules; and ensure more disciplined reporting of progress towards targets. Current tools, such as the shipyard-produced Integrated Project Schedules, and approaches, including earned value management, will be further matured to ensure that schedules are properly managed and to support oversight by governance committees at all levels.

Procuring Complex Information Technology Solutions^{Footnote 9} - Report 1 | Spring 2021 Reports of the Auditor General of Canada

The objective of this audit was to determine whether selected organizations planned and carried out procurements for complex Information Technology solutions that supported the achievement of business outcomes and the government’s commitment to promote fairness, openness and transparency in the process. There were no recommendations made for the Department of National Defence, as the Department was included only as a third party contributor/client.

Response to audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages

Public Service Commission of Canada (PSC)

The PSC did not complete any audits involving National Defence during Fiscal Year 2020-21.

Office of the Commissioner of Official Languages (OCOL)

The OCOL did not complete any audits involving National Defence during Fiscal Year 2020-21.

20 August, 2021