Natural Resources Canada 2022-27 Integrated Audit and Evaluation Plan Summary
Table of Contents
Acronyms
- ADM
- Assistant Deputy Minister
- AEB
- Audit and Evaluation Branch
- CAEE
- Chief Audit and Evaluation Executive
- CCG
- Canadian Coast Guard
- CER
- Canada Energy Regulator
- CESD
- Commissioner of the Environment and Sustainable Development
- CFS
- Canadian Forest Service
- CIRNAC
- Crown-Indigenous Relations and Northern Affairs Canada
- CMSS
- Corporate Management and Services Sector
- CPS
- Communications and Portfolio Sector
- CRP
- Corporate Risk Profile
- DAC
- Departmental Audit Committee
- DFO
- Fisheries and Oceans Canada
- DG
- Director General
- DM
- Deputy Minister
- DP
- Departmental Plan
- DRF
- Departmental Results Framework
- DRR
- Departmental Results Report
- ECCC
- Environment and Climate Change Canada
- EDI
- Equity, Diversity, and Inclusion
- EETS
- Energy Efficiency and Technology Sector
- ESDC
- Employment and Social Development Canada
- ESS
- Energy Systems Sector
- FAA
- Financial Administration Act
- FS
- Fuels Sector
- FY
- Fiscal Year
- G&C
- Grants and Contributions
- GBA Plus
- Gender-Based Analysis Plus
- IAAC
- Impact Assessment Agency of Canada
- IAEP
- Natural Resources Canada’s Integrated Audit and Evaluation Plan
- IIA
- Institute of Internal Auditors
- INFC
- Infrastructure Canada
- ISC
- Indigenous Services Canada
- IT
- Information Technology
- LMS
- Lands and Minerals Sector
- M
- Million
- MAF
- Management Accountability Framework
- N/A
- Not Applicable
- NRCan
- Natural Resources Canada
- OAG
- Office of the Auditor General of Canada
- OCG
- Office of the Comptroller General
- OCS
- Office of the Chief Scientist
- OGD
- Other Government Departments
- PIPs
- Performance Information Profiles
- PMEEC
- Performance Measurement, Evaluation and Experimentation Committee
- SPI
- Strategic Policy and Innovation Sector
- TB
- Treasury Board of Canada
- TBD
- To Be Determined
- TBS
- Treasury Board of Canada Secretariat
- TC
- Transport Canada
- TMX
- Trans Mountain Expansion Project
Introduction
The Integrated Audit and Evaluation Plan (IAEP), referred to as the “Plan”, is prepared by the Audit and Evaluation Branch (AEB) of Natural Resources Canada (NRCan). It contains details on the roles of internal audit, evaluation, the AEB’s planning methodology, and the planned projects for fiscal years (FY) 2022-23 to 2026-27.
The Plan provides a roadmap outlining AEB’s future activity. However, consistent with emerging innovations in the respective disciplines, we strive to remain agile in monitoring and adapting to the changing context and environment of our work. Risk assessment and engagement with clients and partners is a continual activity. As new risks are identified, AEB may need to modify the Plan in consultation with senior management.
The IAEP is developed in accordance with the requirements of the Treasury Board of Canada (TB) Policy on Internal Audit, related directives and guidelines, the Institute of Internal Auditors’ (IIA) International Standards for the Professional Practice of Internal Auditing, Section 42.1 of the Financial Administration Act (FAA), and the TB Policy on Results.
Figure 1: Four (4) Key Phases of the AEB’s Planning Update
AEB’s approach to planning audits and evaluations is similar to the approaches recommended by the Treasury Board Secretariat (TBS) and Office of the Comptroller General (OCG). Figure 1 highlights the four key phases common to both the audit planning and the evaluation planning.
Figure 1 - Text version
This figure highlights the four key phases of the selection process when developing a robust Integrated Audit and Evaluation Plan (IAEP). Each phase is shown in a separate quadrant of the diagram.
The first quadrant covers the initial stage where the Audit and Evaluation Universe is defined, which consists of an array of potential NRCan programs and/or entities covering a period of up to 5 years, leading to the type of engagement that will be performed by the Audit and Evaluation Branch (AEB) - e.g. audit, evaluation, joint project. The potential range of projects includes departmental programs, processes, policies, management activities and control functions, as well as departmental and government initiatives that collectively contribute to the achievement of the Department’s core responsibilities. The AEB uses the Departmental Results Framework as well as NRCan's inventory of external legislated services to ensure that the Audit and Evaluation Universe’s composition is as complete as possible. There are approximately over 150 auditable and evaluable entities in the Universe.
The second quadrant describes the environmental scan performed on the priorities of NRCan and the Government of Canada in order to identify audit and evaluation projects.
The third quadrant shows the two-pronged process involving consultations with sector planners and senior management to obtain their views on possible audit topics, as well as to verify evaluation requirements.
The fourth quadrant outlines the project prioritization and selection process, which is based on stated audit and evaluation requirements and the potential to add value to NRCan’s strategic outcomes and operational objectives. Part of this final stage includes seeking approval from the Deputy Minister on the IAEP, which consists of a 3-year plan for audit and 5-year plan for evaluations and joint projects.
Planning Results: Audit, Evaluation, and Joint Projects for 2022-27
Tables 1 through 3 summarize the internal audit projects, joint audit and evaluation projects, and evaluations planned to start during FYs 2022-23 to 2026-27. In total, 43 projects are planned for the next five years.
Table 1 – Number of New Projects
Table 1 does not include unconfirmed OCG horizontalFootnote 1 audits.
| Project type | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Audit Projects | 4 | 3 | 4 | N/A | N/A |
| Evaluation Projects | 5 | 2 | 4 | 3 | 4 |
| Joint Audit and Evaluation Projects | 1 | 1 | 2 | 1 | 2 |
| Horizontal Evaluation Projects led by OGDs | 1 | 1 | 3 | 2 | 0 |
| TOTAL | 11 | 7 | 13 | 6 | 6 |
Table 2 – Projects Carried Forward from FY 2021-22
| Assurance Engagements (2 projects) |
|---|
| Management of Procurement Services (CMSS, All sectors) |
| Targeted Audit of Cloud Computing and Storage (CMSS, All sectors) |
| Evaluation Projects (9 projects) |
| Geoscience to Keep Canada Safe (LMS) |
| Climate Change Adaptation (LMS) |
| Clean Growth Funding Program (EETS) |
| TMX Phase IV Implementation (NRCan lead, with DFO, CCG, ECCC, and TC) (Nòkwewashk) |
| Indigenous Advisory and Monitoring Committees (NRCan lead, with CER, TC, DFO, CCG, ECCC) (Nòkwewashk) |
| Electric Vehicles Infrastructure Demonstration Program (EETS) |
| Green Construction through Wood (CFS) |
| HorizontalFootnote 1 - Oceans Protection Plan (TC lead) (EETS) |
| HorizontalFootnote 1 - Impact Assessment and Regulatory Processes (IAAC lead) (CFS, FS, LMS, SPI, Nòkwewashk, OCS) |
| Joint Audit and Evaluation Projects (2 projects) |
| Transition to the Departmental Results Framework (SPI, All Sectors) |
| Spruce Budworm Early Intervention Strategy – Phase II (CFS) |
Table 3 – AEB Projects for Fiscal Years 2022-27
Projects are listed in the fiscal year of their initiation.
Assurance projects will occupy fewer resources than normal in 2022-23, to enable an increased focus on advisory projects.
| 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | |
|---|---|---|---|---|---|
| Audits | IT Service Management (CMSS) Targeted Audit – NRCan’s Data Strategy (SPI, OCS, CMSS) Targeted Audit – NRCan’s Capital Asset Management (Real Property, Equipment) (CMSS, All sectors) Equity, Diversity, and Inclusion (EDI Office, SPI, All Sectors) TBD (OCG lead) |
Targeted Audit - Cyber Security (CMSS, All sectors) Workplace Wellness (CMSS, All sectors) Targeted Audit - NRCan’s Risk Management Practices (SPI, CMSS, All sectors) TBD (OCG lead) |
NRCan’s Security Function (CMSS) Implementation of NRCan’s Digital Strategy (CMSS, All sectors) Targeted Audit - Management of NRCan’s Cost Recovery Projects (CMSS, key sectors) Investment Planning (CMSS, All sectors) TBD (OCG lead) |
||
| Continuous Audits | Pay and Benefits (CMSS) Leave Management (CMSS) |
Pay and Benefits (CMSS) Acquisition Cards (CMSS) |
Contractor and Supplier Payments (CMSS) Overtime (CMSS) |
||
| Joint Audit / Evaluations |
Advancing Reconciliation (Nòkwewashk, All Sectors) | NRCan Contributions to Canadian Critical Minerals Strategy (LMS) | Oil Spill Recovery Technology Development Program (EETS) Disaster Risk Reduction (including wildfire, floods, and earthquakes) (CFS, LMS, SPI) |
Cyber Security and Critical Energy Infrastructure Program (ESS) | NRCan’s International Activities (SPI, All sectors) NRCan’s Contribution to the Space Strategy for Canada (SPI, LMS, CFS) |
| Evaluations | Smart Grids (EETS, ESS) and Emerging Renewable Power (ESS) Clean Energy for Rural and Remote Communities (ESS, EETS, CFS) Joint2 Green Municipal Fund (NRCan lead, with ECCC, INFC) (EETS) Zero Emissions Vehicle Infrastructure (FS) Joint2 Canadian Centre for Energy Information (NRCan lead, with Statistics Canada) (ESS) |
Energy Innovation and Clean Technology Program (DRF inventory program) (EETS) Forest Sector Competitiveness Program (DRF inventory program) (CFS) |
Energy Efficiency Program (DRF inventory program) (EETS) Greener Homes Initiative (EETS) Horizontal Natural Climate Solutions Fund (including 2 Billion Trees) (NRCan lead) (CFS) Joint2 Indigenous and Remote Communities Clean Energy Hub (NRCan lead, with CIRNAC, ISC) (ESS, EETS, CFS) |
Smart Renewables and Electrification Pathways (ESS) Clean Fuels Fund Program (FS) Geoscience for Sustainable Development of Natural Resources (DRF inventory program) (LMS) |
Geo-mapping for Energy and Minerals (LMS) Green Mining Innovation (DRF inventory program) (LMS) Wildfire Resilience Programs (CFS) Flood Hazard Identification and Mapping (SPI) |
Evaluations led by OGDs JointFootnote 2 - Trans-Mountain Pipeline Expansion – Terrestrial Cumulative Effects Initiative (ECCC lead, with NRCan, DFO) (Nòkwewashk) |
Evaluations led by OGDs Horizontal - Federal Contaminated Sites (ECCC lead, with 17 OGDs) (CMSS) |
Evaluations led by OGDs Horizontal - Youth Employment and Skills Strategy (ESDC lead, with 11 OGDs) (OCS) Horizontal - Genomics Research and Development Initiative (Shared Priority Projects) (NRC lead) (CFS) Horizontal - Marine Conservation Targets (DFO lead) (LMS, CFS, FS, EETS) |
Evaluations led by OGDs Horizontal – Adapting to Impacts of Climate Change (Roll-up) (ECCC lead) (LMS) Horizontal - Blue Economy Strategy (DFO lead) (EETS, FS) |
Follow-up on Audit and Evaluation Recommendations
AEB conducts follow-up on all audit and evaluation recommendations, from both internal and external providers. The follow-up process at NRCan consists of two rounds of follow-up each fiscal year, reporting to NRCan’s DAC and PMEEC.
In each round of follow-up, management self-assesses the implementation progress for each recommendation and associated action plan. When the self-assessment indicates that a recommendation and action plan have been fully implemented, AEB validates this by:
- conducting interviews;
- reviewing supporting documentation; and
- performing analysis and testing based on risk.
Resources and Capacity
The AEB’s forecasted budget for FY 2022-23 is $6.2 million, of which $2.6 million is allocated to the audit function and $2.7 million to the evaluation function. The remaining $1 million resources support other AEB activities. Approximately 6350 person days, equating to 31 professional positions, are available in FY 2022-23 to deliver the Plan. The Plan comprises a range of projects and activities including not only direct assurance engagements, evaluations, and advisory services, but also other activities such as strategic and risk-based planning, follow-up on the implementation of recommendations, special studies, performance reporting, professional practices, and external audit liaison work.
Appendix 1: Five Year Evaluation Schedule (FYs 2022-27)
This table is based on the planned year of approval of the evaluation.
The schedule, scope, and objectives of horizontal evaluations depend on the decisions of the lead department or agency. Information in this IAEP for 2022-27 is based on AEB’s current understanding.
| Departmental Results Framework (DRF) Inventory Program | Evaluations to be approved in 2022-23 to 2026-27 | Planned year of approval | Estimated program spending in 2022-23 covered by evaluation1 | Total planned program spending in 2022-23 | Primary evaluation driver |
|---|---|---|---|---|---|
| Canadian Geodetic Survey: Spatially Enabling Canada | None1 | N/A | $0 | $6,589,650 | N/A |
| Geological Knowledge for Canada’s Onshore and Offshore Land | None1 | N/A | $0 | $24,448,289 | N/A |
| Core Geospatial Data | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $5,000,000 | $48,383,771 | TB commitment |
| Joint Audit and Evaluation of Disaster Risk Reduction | 2025-26 | $15,500,000 | Departmental priority | ||
| Canada-US International Boundary Treaty | None1 | N/A | $0 | $1,981,638 | N/A |
| Canada Lands Survey System | None1 | N/A | $0 | $14,870,357 | N/A |
| Geoscience for Sustainable Development of Natural Resources | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $680,268 | $41,947,382 | TB commitment |
| Horizontal Evaluation of Marine Conservation Targets (DFO lead) | 2025-26 | $2,000,000 | FAA requirement | ||
| Evaluation of Geoscience for Sustainable Development of Natural Resources | 2026-27 | $39,267,114 | Departmental priority | ||
| Pest Risk Management | Joint audit and evaluation of Spruce Budworm Early Intervention Strategy - Phase II | 2022-23 | $656,199 | $50,913,450 | FAA requirement |
| Horizontal evaluation of Genomics Research and Development Initiative (Shared Priority Projects) (NRC lead) | 2025-26 | $1,600,000 | Departmental priority | ||
| Forest Climate Change | Horizontal Evaluation of Natural Climate Solutions Fund (NRCan lead) | 2025-26 | $207,200,656 | $218,596,022 | FAA requirement |
| Climate Change Adaptation | Evaluation of Climate Change Adaptation | 2022-23 | $3,611,113 | $3,611,113 | TB commitment |
| Horizontal Evaluation of Adapting to Impacts of Climate Change (Roll-up) (ECCC lead) | 2026-27 | TB commitment | |||
| Explosives Safety and Security | None1 | N/A | $0 | $7,062,537 | N/A |
| Geoscience to Keep Canada Safe | Evaluation of Geoscience to Keep Canada Safe | 2022-23 | $14,546,821 | $25,750,303 | Departmental priority |
| Evaluation of Climate Change Adaptation | 2022-23 | $2,315,023 | TB commitment | ||
| Horizontal Evaluation of Adapting to Impacts of Climate Change (Roll-up) (ECCC lead) | 2026-27 | TB commitment | |||
| Joint Audit and Evaluation of Disaster Risk Reduction | 2025-26 | $8,888,459 | Departmental priority | ||
| Wildfire Risk Management | Joint Audit and Evaluation of Disaster Risk Reduction | 2025-26 | $14,491,846 | $14,491,846 | Departmental Priority |
| Evaluation of Wildfire Resilience Programs | 2026-27 | FAA requirement | |||
| Polar Continental Shelf Program | None1 | N/A | $0 | $16,820,008 | N/A |
| Energy Innovation and Clean Technology | Evaluation of Clean Growth Funding Program | 2022-23 | $0 | $225,492,241 | FAA requirement |
| Evaluation of Electric Vehicles Infrastructure Demonstration Program | 2022-23 | $8,092,709 | FAA requirement | ||
| Horizontal Evaluation of Oceans Protection Plan (TC lead) | 2022-23 | $0 | TB submission | ||
| Evaluation of Smart Grids Program and Emerging Renewable Power Program | 2022-23 | $2,525,474 | FAA requirement | ||
| Evaluation of Clean Energy for Rural and Remote Communities Program | 2023-24 | $10,101,957 | FAA requirement | ||
| Evaluation of Energy Innovation and Clean Technology Program | 2024-25 | $188,120,637 | FAA requirement | ||
| Joint Audit and Evaluation of Oil Spill Recovery Technology Development Program | 2025-26 | $2,000,000 | Departmental priority | ||
| Joint Evaluation of Indigenous and Remote Communities Clean Energy Hub (NRCan lead with ISC, CIRNAC) | 2025-26 | $14,651,464 | Departmental priority | ||
| Green Mining Innovation | Joint Audit and Evaluation of NRCan's Contributions to Canadian Critical Minerals Strategy | 2024-25 | $19,560,010 | $34,700,498 | Departmental priority |
| Fibre Solutions | Evaluation of Forest Sector Competitiveness Program | 2024-25 | $5,000,000 | $12,726,908 | FAA requirement |
| Sustainable Forest Management | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $2,077,750 | $18,298,188 | TB commitment |
| Joint Audit and Evaluation of Disaster Risk Reduction | 2025-26 | $2,000,000 | Departmental priority | ||
| Cumulative Effects | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $964,082 | $8,306,461 | TB commitment |
| Horizontal Evaluation of Marine Conservation Targets (DFO lead) | 2025-26 | $335,826 | FAA requirement | ||
| Lower Carbon Transportation | Evaluation of Zero Emissions Vehicle Infrastructure Program | 2023-24 | $100,000,000 | $848,056,811 | FAA requirement |
| Evaluation of Clean Fuels Fund | 2025-26 | $354,000,000 | FAA requirement | ||
| Electricity Resources | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $500,000 | $392,614,957 | TB commitment |
| Evaluation of Smart Grids Program and Emerging Renewable Power Program | 2022-23 | $24,425,965 | FAA requirement | ||
| Evaluation of Clean Energy for Rural and Remote Communities Program | 2023-24 | $19,971,086 | FAA requirement | ||
| Joint Evaluation of Indigenous and Remote Communities Clean Energy Hub (NRCan lead with ISC, CIRNAC) | 2025-26 | $17,145,392 | Departmental priority | ||
| Evaluation of Smart Renewables and Electrification Pathways | 2025-26 | $292,369,228 | FAA requirement | ||
| Energy Efficiency | Joint Evaluation of Green Municipal Fund | 2022-23 | $0 | $608,956,331 | FAA requirement |
| Evaluation of Greener Homes Initiative | 2025-26 | $550,000,000 | FAA requirement | ||
| Evaluation of Energy Efficiency Program | 2025-26 | $58,956,331 | FAA requirement | ||
| Energy and Climate Change Policy | Joint Evaluation of Canadian Centre for Energy Information | 2023-24 | $0 | $10,594,668 | TB commitment |
| Innovative Geospatial Solutions | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $1,500,000 | $18,587,637 | TB commitment |
| Forest Sector Competitiveness | Evaluation of Green Construction through Wood | 2022-23 | $15,000,000 | $188,126,993 | FAA requirement |
| Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $149,825 | TB commitment | ||
| Evaluation of Clean Energy for Rural and Remote Communities Program | 2023-24 | $6,917,559 | FAA requirement | ||
| Evaluation of Forest Sector Competitiveness Program | 2024-25 | $154,639,697 | FAA requirement | ||
| Joint Evaluation of Indigenous and Remote Communities Clean Energy Hub (joint; NRCan lead with ISC, CIRNAC) | 2025-26 | $11,419,912 | Departmental priority | ||
| Provision of Federal Leadership in the Minerals and Metals Sector | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $466,882 | $18,023,011 | TB commitment |
| Joint Audit and Evaluation of NRCan's Contributions to the Canadian Critical Minerals Strategy | 2024-25 | $2,500,000 | Departmental priority | ||
| Horizontal Evaluation of Marine Conservation Targets (DFO lead) | 2025-26 | $400,000 | FAA requirement | ||
| Energy Safety and Security, and Petroleum Resources | Horizontal Evaluation of Impact Assessment and Regulatory Processes (IAAC lead) | 2022-23 | $458,101 | $12,493,757 | TB commitment |
| Horizontal Evaluation of Marine Conservation Targets (DFO lead) | 2025-26 | $1,000,000 | FAA requirement | ||
| Joint Audit and Evaluation of the Cyber Security and Critical Energy Infrastructure Program | 2026-27 | $1,714,083 | Departmental priority | ||
| Statutory Offshore Payments | N/A | N/A | N/A | [$540,679,970] | Exempt from evaluation due to statutory status of payments |
| Natural Resources Canada's Indigenous Partnerships Office - West | Horizontal Evaluation of Indigenous Advisory and Monitoring Committees | 2022-23 | $0 | $248,513 | FAA requirement |
| The Resource Partnerships Sector | Evaluation of TMX Phase IV Implementation | 2022-23 | $0 | $9,179,140 | TB commitment |
| Joint Evaluation of Trans-Mountain Pipeline Expansion - Terrestrial Cumulative Effects Initiative (ECCC lead) | 2023-24 | $6,949,361 | TB commitment | ||
| Youth Employment and Skills Strategy - Science & Technology Internship Program (Green Jobs) | Horizontal Evaluation of Youth Employment and Skills Strategy | 2024-25 | $9,642,964 | $9,642,964 | FAA requirement |
| INTERNAL SERVICES | |||||
| Management and Oversight | Joint Audit and Evaluation of Transition to the Departmental Results Framework | 2022-23 | N/A2 | $46,300,958 | Departmental priority |
| Joint Audit and Evaluation of Advancing Reconciliation | 2024-25 | N/A2 | Departmental priority | ||
| Communications | None | N/A | N/A2 | $13,246,730 | N/A |
| Legal Services | None | N/A | N/A2 | $6,703,917 | N/A |
| Human Resources | None | N/A | N/A2 | $21,625,169 | N/A |
| Financial Management | None | N/A | N/A2 | $17,743,594 | N/A |
| Information Management | None | N/A | N/A2 | $7,219,939 | N/A |
| Information Technology | None | N/A | N/A2 | $32,184,232 | N/A |
| Real Property (Domestic) | Horizontal Evaluation of Federal Contaminated Sites (ECCC lead) | 2023-24 | $200,000 | $27,262,843 | TB commitment |
| Materiel Management | None | N/A | N/A2 | $1,092,290 | N/A |
| Acquisition Management | None | N/A | N/A2 | $3,778,050 | N/A |
| TOTAL: | $2,201,513,794 1 | $3,068,673,1673 | |||
| Percentage of FY 2022-23 planned spending covered by five-year IAEP: | 72%3 | ||||
|
Notes: (1) Spending not covered by planned evaluations is excluded on a risk basis. This means the spending is either recently evaluated; scheduled for an evaluation to be completed in 2027-28 (after the 5-year horizon of the analysis); or deemed to be lower risk and lower priority at this time. Over time and consistent with the TB Policy on Results, AEB intends to cover all departmental spending in its evaluation activity. (2) For Internal Services programs, in general AEB does not currently track spending coverage information for the program. (3) Calculation of total coverage excludes DRF Program 3.05 Statutory Payments (exempt from evaluation). If internal services are also excluded, then the percentage is 76%. |
|||||
Page details
- Date modified: