2020 to 2021 Report on key compliance attributes of the internal audit function at 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) 2020 to 2021. 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

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

ECCC results – April 1, 2020 to March 31, 2021

(a)  - % of staff with an internal audit or accounting designation (Certified Internal Auditor (CIA), Chartered Professional Accountant (CPA)): 42%

(b) - % of staff with an internal audit or accounting designation (CIA, CPA) in progress: 33%

(c) - % of staff holding other designations (CGAP, CISA, etc.):  42%

Conformance with international standards

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

ECCC results – April 1, 2020 to March 31, 2021

(a) - 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): June 18, 2020

(b) 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:

ECCC results – April 1, 2020 to March 31, 2021

Table 1: status of internal audit engagements planned for tabling from 2020 to 2021 and status of engagements with outstanding management action plans as of March 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 92%
Assessment of pay-related controls Unpublished internal assessment – MAP fully implemented July 18, 2019 N/A March 31, 2020
100%
Audit of infrastructure renewal within the Meteorological Service of Canada Published – MAP fully implemented October 17, 2019 January 14, 2020 January 31, 2021 100%
Audit of Occupational Health and Safety Published – MAP not fully implemented December 17, 2019 March 11, 2020 June 30, 2021
67%
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 50%
Preliminary assessment of ECCC’s Business Continuity Management Planning

Unpublished internal assessment

– No MAP required

September 2, 2020 N/A N/A N/A  
Audit of the administration of grants and contributions for the Low Carbon Economy Fund Approved – Not yet published March 24, 2021 Scheduled July 5, 2021 July 30, 2021 70%  
Audit of project management
Approved – Not yet published March 29, 2021 Scheduled July 16, 2021 September 30, 2021 60%
Review of the ECCC’s research scientists (RES) career progression committee structure 

Unpublished internal review

DAC recommended for DM approval

Scheduled in FY 2021 to 2022 N/A September 30, 2022 20%
Risk assessment of the TerraCanada 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 2021 to 2022

Engagements in progress from Risk-based Audit Plan, fiscal year 2020 to 2021
• Audit of the administration of grants and contributions for the Canada Nature Fund
• Review of the management of sensitive information (cancelled)
Engagements planned for tabling in Year 1 of the Risk-based Audit Plan, fiscal year 2021 to 2022 to fiscal year 2022 to 2023
• Review of the progress in the implementation of the ECCC Data and Analytics Strategy
• Advisory engagement on the design and implementation of the Enforcement Branch’s risk-based approach
• Audit of the classification function at ECCC

Credibility and value-add of internal audit

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

ECCC results – April 1, 2020 to March 31, 2021

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

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