ARCHIVED - Management Response and Action Plan (MRAP) - Audit of Financial Reporting Controls

Recommendation No. 1

It is recommended that the Chief Financial Officer revise the "Financial Management Roles and Responsibilities at Health Canada" to ensure that activity requirements related to Internal Control Over Financial Reporting are clearly outlined.

Management agrees with this recommendation.

CFOB will clarify and communicate the roles and responsibilities of process owners and other key contributors related to the following ICOFR activities:

• Maintenance and validation of key financial processes and controls;
• Sharing of information related to the identification and evaluation of financial risks, and:
• Development and follow-up of action plan.

Revised Financial Management R&R document shared with the various stakeholders.

March 31, 2011

CFOB-Internal Control Division

Recommendation No. 2

It is recommended that the Chief Financial Officer ensure that the process for updating the key business processes descriptions is formalised.

Management agrees with this recommendation.

The process owners' roles and responsibilities (R&R), which are aimed at informing the Internal Control Division (ICD) of revisions and updates in their respective processes, and providing an annual validation, will be formalised and documented as part of the update and enhancement to the "Financial Management Roles and Responsibilities at Health Canada" document referred to in recommendation 1.

CFOB will clarify and communicate the roles and responsibilities of process owners and other key contributors related to the maintenance and validation of key financial processes and controls.

Revised Financial Management R&R document shared with the various stakeholders.

March 31, 2011

CFOB-Internal Control Division

CFOB will use its three year risk based monitoring plan as a phase-in strategy towards the implementation of the annual process owners' validation.

CFOB will, as part of its three year risk based monitoring plan:

• Enhance communication with the various stakeholders with regards to the shared accountability for the maintenance and validation of key financial processes and controls;
• Validate key processes and controls;
• Develop and maintain a list of various process owners;
• Implement the phase-in strategy towards the implementation of the annual process owners' validation.

Completion of the first three year risk based monitoring plan including the implementation of the annual process owners' validation.

March 31, 2012

CFOB-Internal Control Division