Integrated Risk-Based Audit and Evaluation Plan 2016 to 2017: chapter 6

Audit of the Management and Delivery of Procurement

The objectives of this audit are to:

• Determine if procurement activities and management in support of operational needs are efficient; and
• Provide assurance that procurement transactions are in compliance with GoC requirements, departmental and central agency policies and guidelines.

Risks or Considerations: Procurement challenges raised consistently through RBAEP consultations, and previously at EMC. Significant spending through procurement (20% of ECCC’s budget). Recent significant changes (service standards, e-requisition, reorganization).

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Vote Netted Revenue (VNR)

The objectives of this project are to determine whether ECCC has key elements of a management framework in place to manage VNR revenues and expenditures and determine compliance with TB and central agencies policies and guidelines.

Risks or Considerations:  Concerns raised through consultations and at EMC. Increasing complexity and importance of VNR transactions. Link to external dependencies and collaborations.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Regulation Making (World Class Regulator)
The objective of this project is to assess whether ECCC:

• has an effective regulatory management system in place to meet its regulatory obligations and;
• follows a rigorous process that complies with government policies and ECCC’s World Class Regulator criteria for choice of instrument, the development and implementation phase and the monitoring phase of the regulatory life cycle.

Risks or Considerations: World Class Regulator is a key initiative. Regulation development integral to many programs and initiative crosses many programs. Efficiency of process concerns raised through consultations. Client based request and current DM interest.

ECCC Priority:   Clean, Safe, Sustainable Environment

MAF Element:    Management of Policy and Programs

Audit of Staffing and Classification
(Audit conducted jointly with PSC)

The objectives are to ensure that the staffing and classification functions are well managed; that they are executed in an efficient manner; and that controls ensure compliance with acts, regulations and policies. Will include a follow-up on the previous PSC audit.

Risks or Considerations: Past PSC audit identified issues. Recent changes to departmental service standard, and reorganization. Concerns raised during consultations on associated workload and efficiency. MAF 2013-14 assessment identified that attention is required for staffing.

ECCC Priority:    Management Priority

MAF Element:    People   Management

Internal Review of Governance 

The objective is to review the adequacy of departmental governance (committee structure, strategic planning and operational policy processes and information, regional coordination) necessary for coordinating activities and programs, and enabling decisions.

Risks or Considerations: TB Policy audit requirement to assess the effectiveness of governance on a periodic basis. ECCC’s new governance model came into effect in 2012 and recently revised by the DM. Project previously deferred. Project subject to DM’s advice and consultation.

ECCC Priority:   Management Priority

MAF Element:    Governance and Strategic Management

Audit of Emergency and Business Continuity Planning (Participation in OCG-related horizontal audit)

This project will assess ECCC’s framework, management and information pertaining to emergency and business continuity planning.

Risks or Considerations: Revised Strategic Emergency Management Plan. Restructuring of the Environmental Emergencies Program. Business continuity planning raised through consultations. Recent security-related events.

ECCC Priorities: All priorities

MAF Elements:   Financial and Asset Management, Management of Policy and Programs

Audit of Expenditure Management and Controls

The objectives of this audit are to determine the extent to which key expenditure management processes and controls comply with TB policies and ECCC requirements, and assess the effectiveness and efficiency of expenditure controls and processes.

Risks or Considerations: Review of core controls is an OCG requirement (e.g., FAA 33 & 34). Impact of SAP and business process implementation. External reporting implications (e.g., financial statements, DPR). Various expenditure compliance requirements (e.g., travel, hospitality, events). Review and analysis of IT expenditure patterns requested by client.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Enforcement Management and Operation*

The initial objective of this project is to provide assurance on the adequacy of the processes and systems in place for the management and operations of the Enforcement function and activities.

Risks or Considerations:  New information management system and issues with integrated planning and consistent enforcement activities.  Previous CESD audit

ECCC Priority:   Management Priority

MAF Element:    Management of Policy and Programs, Governance and Strategic Management

Review of Integrated Planning/Operational Planning

The objective is to provide assurance on the processes and systems in place for operational planning, including how planning is integrated between branches and between enablers, and to identify best practices. This will include follow up on the implementation of ECCC’s science plan and how it was operationalized.

Risks or Considerations: Integrated Planning is/was PS renewal priority. Past integrated planning efforts challenging. CESD concerns on operational planning (Audit of Environmental Science). Also identified as an issue through consultations. Diverse interpretations of integrated planning.

ECCC Priority:   Management Priority

MAF Element:    Governance and Strategic Management

Control Continuous Auditing*

The objective of this project is to assess control effectiveness on an ongoing or regular basis, through both data analysis and transaction testing. The initial scope will encompass financial, procurement, and human resources related controls and transactions. The results of the current audits of Expenditure Management and Controls, Management and Delivery of Procurement, and Staffing and Classification will be used to inform the initial planning and development of the approach.

Risks or Considerations: Various concerns raised in consultations with senior management regarding control risks and effectiveness.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management, People Management

Review of the Impact of Transformation Initiatives*

The objective of this project is to assess the combined impacts of the various recent transformation agenda initiatives, and the devolution of some of the enabling services activities to other branches.  Identify related issues and best practices

Risks or Considerations: Many concerns identified through consultations regarding the cumulative impact of the different initiatives under the transformation and the loss of capacity due to excessive processes (efficiency).

ECCC Priority:   Enabling transition

MAF Element:    Governance and Strategic Management

Audit of Risk Management and Framework*
(Possible collaboration with SBDAs)

The objective of this project is to assess the efficiency and effectiveness of the Department’s risk assessment and management processes.

Risks or Considerations: Various concerns raised through consultations (meaningful risks, integration in management processes, and issues raised in previous audits). Core element of internal audit policy requirements

ECCC Priority:   Management Priority

MAF Element:    Governance and Strategic Management

Audit of Aboriginal Land Claim Agreements

The objective of this audit is to provide assurance on how ECCC is tracking and managing and complying with its various obligations related to numerous land claims agreements.

Risks or Considerations:   Issues arose through planning discussions with respect to ECCC obligations. Compliance risks have been previously been raised at EMC. Recent related OAG audit.

ECCC Priority:   Clean, Safe, Sustainable Environment

MAF Element:    Results and Accountability

Audit of the Financial Management Framework
(Possible collaboration with SBDAs)

To assess the state and effectiveness of the financial management framework and practices. The audit may include an analysis of the roles and responsibilities, the effectiveness of the budgetary and commitments processes, and financial information and reports.

Risks or Considerations: Various concerns raised in consultations (e.g., related to long-term financial planning, B-base reliance and unfunded liabilities). Impacts of new system (SAP) on financial information and management. Increased importance of financial management in face of declining of resources.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Infrastructure Renewal*

The objective of this audit is to assess the adequacy and effectiveness of controls in place over the management and procurement of the modernisation and renewal of mission-critical infrastructure within the Meteorological Service of Canada (MSC).

Risks or Considerations: MSC previously had received considerable funding to modernize mission-critical infrastructure. Some concerns over previous delays and internal capacity. In addition, previous OAG audit raised concerns over the rusting out of our infrastructure.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Human Resources Planning and Management (Planned participation in OCG-related horizontal audit)

The objective is to assess the overall effectiveness of the HR planning and management functions, including key controls and processes. The focus of the project is on examining how ECCC managers ensure effective HR capacity and succession.

Risks or Considerations: HR capacity identified as a corporate risk. Various issues related to succession planning, recruitment and retention, particularly in a science-based department. Interest of science-based departments’ audit committee members.

ECCC Priority:   Management Priority

MAF Element:    People Management

Audit of Information Management (IM)
(Possible collaboration with SBDAs)

The implementation of the GCDocs system should allow ECCC to deal with longstanding records management issues. The objective of this audit is to assess the implementation of GCDocs and its effectiveness at improving records and information management.

Risks or Considerations: IM overall identified as a risk area in the past and in recent consultations. Lack of effective records management system, and delayed implementation of GCDocs.

ECCC Priority:   Management Priority

MAF Element:    Information Management

Audit of Real Property and Accommodation
(Possible collaboration with SBDAs)

The objective of this audit is to assess the implementation of ECCC’s accommodation strategy, the effective rationalization of its properties and potential impact on departmental programs. Also to examine the effectiveness of the controls and framework over the management of accommodations.

Risks or Considerations: Current accommodations strategy with anticipated high level savings. Potential significant impacts on department-wide program delivery. High number of diverse ECCC properties, and responsibilities within ECCC. Possible impacts of SAP (EAM2) on capital asset budgeting and accounting.

ECCC Priority:   Management Priority

MAF Element:    Financial and Asset Management

Audit of Communications
(Possible collaboration with SBDAs)

The objective is to assess ECCC compliance to the TB Communications Policy, related directives, and the effectiveness and efficiency of supporting processes and controls.

Risks or Considerations: Increasing communications demand and policy requirements. Compliance review was previously requested by client. Issues discussed pertaining to the overall communications strategy and internal coordination.  New TB Policy

ECCC Priority:   Management Priority

MAF Element:    Management of Service Delivery

Audit of International Environmental Agreements (IEA)

The objective is to provide assurance on the management and compliance of a selected number of agreements (of greater risk). The project will also focus on the domestic implementation of programs and measures related to selected agreements and the results achieved.

Risks or Considerations: Two past CESD Audits on IEAs (2004 and 2008), and possible CESD re-audit. Increasing volume of agreements, and diverse responsibilities for management of agreements.

ECCC Priorities: Clean, Safe, Sustainable Environment

MAF Element:    Results and Accountability

Audit of Grants and Contributions*
(Possible collaboration with SBDAs)

The objective is to provide assurance on the adequacy and effectiveness of the management and controls over G&Cs to ensure compliance with the transfer payment policy, financial policies, and terms and conditions of funding agreements.

Risks or Considerations: The G&C process was identified as high risk during consultations with management; high degrees of reputational risks and public awareness/sensitivity; and complex inter-relationships and delivery mechanisms.  Previous internal audit

ECCC Priorities: Management Priority

MAF Elements:   Financial and Asset Management, Governance and Strategic Management

Internal Audit Follow-up

Periodically monitor the implementation of past recommendations and management action plans

Quality Assurance

Maintain the internal audit quality assurance system and update audit tools and processes