Integrated Risk-Based Audit and Evaluation Plan 2016 to 2017: chapter 5

4. Integrated plan

As reflected in the previous section, the proposed audit and evaluation plan strives to seek a balance between a number of competing requirements and considerations, and does so in the context of AEB's resources (sub-section 4.5 and appendix C). In addition to the requirements and priorities outlined previously, the audit and evaluation plans cover important aspects of ECCC's programs and operations, as detailed in this section.

An integrated summary of the multi-year audit and evaluation plans is presented in section 4.6, and the more detailed plans are presented in appendices A and B.

4.1 Internal audit plan

A. Plan highlights

The internal audit plan presented in appendix A includes a total of 21 projects to be completed over the next three years, of which 7 projects were in progress at the end of 2015-16. The plan is based on expected available resources consistent with the Branch’s planned budget for 2016-17 (appendix C), reflects a total staff complement of 8 Full Time Equivalents (excludes external audit liaison), and relies partially on external professional services.

• Of the 21 projects planned or in progress, the majority were carried forward from last year's audit plan, while six projects were added based on key risks or senior management's recommendations. Four projects were removed due to changing circumstances, or were merged with other projects.^Footnote6
• Seven (7) out of the 21 projects were in progress (underway) at the end of 2015-16, and two of these were since completed. One project underway was based in part on central agency guidance^Footnote7 (Governance Review) which recommends the periodic conduct of audits of risk management and governance.
• Two projects presented in the plan are conducted in collaboration with the OCG: audit of Emergency and Business Continuity Planning (currently underway) and the audit of Human Resources Planning and Management (to start in 2017-18). Also, an audit of Staffing and Classification is currently being conducted in collaboration with the PSC.
• A Control Continuous Auditing project is also planned to start in 2016-17, to review and assess on a periodic (regular) basis key controls in major functional areas such as Finance, Procurement and Human Resources. The results of current audits^Footnote8 in these areas will serve to inform the planning of the Control Continuous Audit project. The added focus on key controls is based on a request from senior management.

B. Internal audit core areas

Internal Audit is intended to provide an independent assessment of the effectiveness of the Department's risk management, control and governance processes (core internal audit areas). AEB has considered in its multi-year plan the necessary coverage of the following topics:

• As part of individual audit project plans, key management and control processes and MAF core controls related to the respective audit areas, are considered;
• All audit projects generally consider related risk management issues to some extent, while some focus more specifically on key aspects of risk management (e.g. Emergency and Business Continuity Planning).
• A review of ECCC’s governance is also underway.

C. Departmental risks, priorities and MAF

The three-year internal audit plan takes into consideration the alignment with key risks and considerations, departmental priorities and the key elements of the MAF. Specifically, the detailed audit plan (appendix A) indicates, for each audit project, the link with the key risks identified through AEB's risk assessment exercise, the link to ECCC's key priorities and the link to key elements of the MAF.

4.2 Evaluation plan

A. Plan highlights

The detailed evaluation plan presented in appendix B includes a total of 27 evaluation projects conducted during the next two years, of which 13 projects were in progress at the end of 2015-16 and will be completed in 2016-17, while 5 are planned to be completed in 2017-18 and the remainder in 2018-19.The plan is based on available resources as identified in the Branch’s budget (appendix C) and on a staff complement of 10 FTEs. The evaluation plan was developed on the following key considerations:

• The overriding planning priority is to ensure the statutory requirements of the FAA (section 42.1) and the evaluation commitments specified in TB submissions, are fulfilled. Accordingly, the 2-year plan supports the required coverage of G&C programs (FAA) over 5 years, and existing TB evaluation commitments over the planning period.
• The current plan includes a total of 27 evaluation projects, of which there are:
  • 7 evaluations of programs with Gs&Cs (as per the FAA),
  • 7 evaluation commitments linked to TB submissions,
  • 8 evaluations of programs with both G&C and TB evaluation commitments, and
  • 5 other evaluations, primarily risk-based (not driven by a TB commitment or a G&C).

The plan reflects that resources required to evaluate individual programs depend primarily on the program’s nature (e.g. complexity, program cohesiveness, horizontality), rather than its materiality. As such, there is considerable variability in estimated average annual DPS coverage, despite similar annual resource investments. In addition, the number of evaluations and planned coverage may vary significantly depending on future commitments related to new or renewed programming.

Appendix B presents the estimated annual planned evaluation coverage for each of the plan’s two years, as well as estimated resource requirements in person-days and dollars, and the estimated G&C and spending evaluation coverage. Notwithstanding the limitations identified above, the evaluation component of this RBAEP essentially meets all applicable requirements of the new Policy, where practical and in the context of this transition year.

4.3 External audit liaison

AEB is responsible for liaison with external assurance providers or auditors such as the OAG, the CESD, the PSC, and others. As such, the Branch coordinates any external audits or assessments by these organizations, and fosters ongoing professional relationships, liaison and communication. The coordination also includes providing advice and assistance to the DMs and senior managers throughout the external audit process. The external audit liaison function also assists with coordinating and responding to environmental petitions received from the CESD.

A number of external audits and studies are underway or planned by external assurance providers. These external audits and studies were taken into account in the plan to ensure proper coverage and minimize possible duplication of efforts based on external assurance organizations’ work plans available to date. The integrated plan summary (section 4.6) includes known external audits and studies to be carried out during the period covered by this plan.

4.4 Branch planning and coordination

AEB's Strategic Planning and Coordination Directorate is responsible for a variety of important support functions and activities that contribute to AEB's priorities, including:

• Coordinating risk-based audit and evaluation plans and annual reports, as well as the regular (semi-annual) monitoring exercises on the status of outstanding management actions resulting from prior audit and evaluation report recommendations.
• Supporting AEB’s professional practices and maintaining project and quality management frameworks and tools. Particularly, this will include a review of our professional practices in order to adapt to revised TB policies related to both audit and evaluation stemming from TBS’s Policy Reset initiative. Also, resources permitting, conduct a pre-assessment in anticipation of the next required practice inspection (internal audit) and neutral assessment (evaluation) of AEB professional practices.
• Providing secretariat and logistical support and coordination for EAAC and DEC.
• Coordinating the Branch’s management and administrative functions, such as pertaining to procurement, financial and human resources. As well, coordinating AEB’s participation in various ECCC and government initiatives and exercises.

4.5 Planned resources

This RBAEP is based on AEB's planned capacity, professional staff and financial resources for 2016-17. Branch resources are comprised of an estimated total of 29 FTEs and a total planned budget of $3,471K (appendix C). For multi-year planning purposes, the audit and evaluation plans are based on the assumption that financial and project resources available in future years would be similar to the 2016-17 resources.

Based on the planned resources presented herein, AEB's management team expects to be able to deliver its 2016-17 audit and evaluation plans and projects, as reflected in this RBAEP document. Should the feasibility of delivering on the RBAEP be constrained by available resources or other factors, the CAEE will bring this to the attention of the EAAC and/or DEC for consideration, and will recommend any necessary changes to the DM.

4.6 Integrated plan summary

The table on the subsequent pages summarizes in a comparative format all internal audit and evaluation projects planned to be conducted over the next three years and two years respectively, and presents an integrated view which also includes known external audits such as those pertaining to the CESD.

The table is organized according to both key MAF elements and Strategic Outcomes, and presents projects by year of their planned completion. This presentation is somewhat of an oversimplification as projects may begin and end in different periods and fiscal years. The external audits presented in the table are those known with reasonable certainty at the time of the preparation of this RBAEP, and therefore may not necessarily include all the audits that will be undertaken by external assurance providers. The detailed audit and evaluation plans attached (appendices A and B) provide more comprehensive information on the planned projects.

Table 1 - Audit and evaluation plan summary

The following table summarizes planned projects according to key MAF elements and by year of completion (Refer to legend on last page)

Legend and notes:

*: Projects in progress (started prior to 2016-17)