2021 to 2022 Report on key compliance attributes of the internal audit function at Environment and Climate Change Canada

From Environment and Climate Change Canada

The Treasury Board Secretariat Directive on Internal Audit requires that departments with an internal audit function publish departmental internal audit performance results in the form of key compliance attributes. The objective of publishing these results is to provide pertinent information to stakeholders, such as Canadians and parliamentarians, on the professionalism, performance and impact of the internal audit function in departments. As well, it is important that the public be aware that heads of government organizations are receiving independent assurance on the effectiveness and soundness of departmental activities.

Introduction

This report presents the state of compliance of the internal audit function at Environment and Climate Change Canada (ECCC) on attributes determined by the Office of the Comptroller General of Canada (OCG). These attributes address questions that stakeholders may have related to the sound management and the oversight of public resources.

The attributes examined in this report relate to the internal audit function in place at ECCC for fiscal year (FY) 2021 to 2022. Compliance in relation to these attributes has allowed the internal audit function to play its assurance and advisory role to the Deputy Minister and senior management. ECCC is the federal lead on environmental issues, including action on clean growth and climate change, preventing and managing pollution, conserving nature and predicting weather and environmental conditions.

Compliance attributes

The internal audit function at ECCC was assessed on the following four key compliance attributes:

• Internal audit training and team
• Conformance with international standards
• Implementation of the Risk-based Audit Plan (RBAP)
• Credibility and value-add of internal audit

Internal team and audit training

These key attributes answer the following questions that stakeholders may have about the oversight of public resources:

• Do internal auditors in departments have the training required to do the job effectively?
• Are multidisciplinary teams in place to address diverse risks?

ECCC results – April 1, 2021 to March 31, 2022

1. % of staff with an internal audit or accounting designation (Certified Internal Auditor (CIA), Chartered Professional Accountant (CPA)): 56%
2. % of staff with an internal audit or accounting designation (CIA, CPA) in progress: 25%
3. % of staff holding other designations (CGAP, CISA, etc.): 19%

Conformance with international standards

These key attributes answer the following question that stakeholders may have about the oversight of public resources:

• Is internal audit work performed in conformance with the international standards for the profession of internal audit, as required by Treasury Board policy?

ECCC results – April 1, 2021 to March 31, 2022

1. Date of last comprehensive briefing to the Departmental Audit Committee on the internal processes, tools, and information considered necessary to evaluate conformance with the Institute of Internal Auditors (IIA) Code of Ethics and the Standards and the results of the quality assurance and improvement program (QAIP): September 1, 2021
2. Date of last external assessment: March 31, 2019. The internal audit function received a rating of “generally conforms”.

Implementation of the Risk-based audit plan

These key attributes answer the following questions that stakeholders may have about the oversight of public resources:

• Are the risk-based audit plans (RBAP) submitted to audit committees and approved by deputy heads implemented as planned with resulting reports published?
• Is management acting on audit recommendations for improvements to departmental processes?

ECCC results – April 1, 2021 to March 31, 2022

Table 1: Status of internal audit engagements planned for tabling from 2021 to 2022 and status of engagements with outstanding management action plans as of December 31, 2021

Internal audit title	Audit status	Report approved date	Report published date	Original planned MAP completion date	Implementation status
Audit of the management of grants and contributions	Published – MAP not fully implemented	March 26, 2019	June 26, 2019	September 30, 2021	96%
Audit of Occupational Health and Safety	Published – MAP fully implemented	December 17, 2019	March 11, 2020	June 30, 2021	100%, completed within the FY
Joint audit and evaluation of the management of the Pan-Canadian Framework	Published – MAP not fully implemented	May 22, 2020	February 25, 2021	December 31, 2020	75%
Audit of the administration of grants and contributions for the Low Carbon Economy Fund	Published – MAP not fully implemented	March 24, 2021	May 7, 2021	July 30, 2021	96%
Audit of project management	Published – MAP fully implemented	March 29, 2021	April 22, 2022	September 30, 2021	100%, completed within the FY
Review of the ECCC’s research scientists (RES) career progression committee structure	Approved – Unpublished internal engagement	June 28, 2021	N/A	September 30, 2022	60%
Audit of the administration of the Canada Nature Fund contribution program	Published – MAP not fully implemented	September 16, 2021	April 27, 2022	March 31, 2022	26%
Advisory engagement on the design and implementation of the Enforcement Branch’s risk-based approach	Approved – Unpublished internal engagement	February 1, 2022	N/A	N/A	N/A
Audit of the classification function at ECCC	Approved – Publication pending	May 2, 2022	Scheduled: by July 31, 2022	March 3, 2024	0%
Risk assessment of the Terra Canada Cluster of Laboratories Canada	NRC and NRCan co-led Unpublished internal assessment ECCC contribution to this project is completed – No MAP required	N/A	N/A	N/A	N/A
Risk assessment of the Atlantic Science Enterprise Centre Cluster of Laboratories Canada	DFO led Unpublished internal assessment ECCC contribution to this project is completed – No MAP required	N/A	N/A	N/A	N/A

Table 2: List of internal audit engagements in progress or planned for tabling in fiscal year 2022 to 2023

Engagements in progress from Risk-based Audit Plan, fiscal year 2021 to 2022 and fiscal year 2022 to 2023

Review of progress in the implementation of the ECCC Data and Analytics Strategy (in progress)

Engagements planned for tabling in Year 1 of the 2022 to 2027 Audit and Evaluation Plan

Audit of the ECCC application and implementation of the Policy on COVID-19 Vaccination for the Core Public Administration – Leave Without Pay Audit of the ECCC application and implementation of the Policy on COVID-19 Vaccination for the Core Public Administration – Attestation process and administration of accommodation requests Joint audit and evaluation review of ECCC’s Respect Bureau Management review of Public Affairs and Communications Branch Audit of the administration of public inquiries Joint assurance products: Labs Canada

Credibility and value-add of internal audit

These key attributes answer the following question that stakeholders may have about the oversight of public resources:

• Is internal audit credible and adding value in support of the mandate and strategic objectives of the organization?

ECCC results – April 1, 2021 to March 31, 2022

Average overall usefulness rating from senior management (ADM-level or equivalent) of areas audited:

• There were 2 audit survey responses for FY 2021 to 2022. Using the OCG’s scale, the overall usefulness rating from senior management was “Good”
• Audit clients considered that the internal audit function’s assurance and advisory support is adding value to their decision-making processes