Natural Resources Canada - 2021-26 Integrated Audit and Evaluation Plan Summary

Acronyms

ADM

Assistant Deputy Minister

AEB

Audit and Evaluation Branch

AFC

Atlantic Forestry Centre

CAEE

Chief Audit and Evaluation Executive

CCMEO

Canada Centre for Mapping and Earth Observation

CERRC

Clean Energy for Rural and Remote Communities

CESD

Commissioner of the Environment and Sustainable Development

CFS

Canadian Forest Service

CIOSB

Chief Information Officer and Security Branch

CMSS

Corporate Management & Services Sector

CNSC

Canadian Nuclear Safety Commission

CPS

Communications 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

EIP

Energy Innovation Program

EIS

Early Intervention Strategy

EPPB

External Policy and Parntership Branch

ERB

Electricity Resources Branch

ETS

Energy Technology Sector

EV

Electric Vehicles

EVID

Electric Vehicles Infrastructure Demonstration Program

FAA

Financial Administration Act

FCM

Federation of Canadian Municipalities

FPB

Finance and Procurement Branch

FRA

Fraud Risk Assessment

FY

Fiscal Year

G&C

Grants and Contributions

GBA+

Gender-Based Analysis

GI

Green Infrastructure

GMF

Green Municipal Fund

GoC

Government of Canada

GSC

Geological Survey of Canada

HAOB

Hazards, Adaptation and Operations Branch

HC

Health Canada

HRB

Human Resources Branch

IA

Internal Audit

IAA

Impact Assessment Agency

IAEP

Integrated Audit and Evaluation Plan

IARS

Indigenous Affairs and Reconciliation Sector

IFI

Indigenous Forestry Initiative

IIA

Institute of Internal Auditors

IM

Information Management

IMT

Information Management Technology

IPOW

Indigenous Partnerships Office - West

IT

Information Technology

LC

Laboratories Canada

LCES

Low Carbon Energy Sector

LMS

Land and Minerals Sector

M

Million

MAF

Management Accountability Framework

MPMO

Major Projects Management Office

N/A

Not Available

NBCC

National Building Code of Canada

NCR

National Research Council

NFC

Northern Forestry Centre

NRCan

Natural Resources Canada

OAG

Office of the Auditor General of Canada

OCG

Office of the Comptroller General

OCS

Office of the Chief Scientist

OEE

Office of Energy Efficiency

OERD

Office of Energy Research and Development

OGD

Other Government Departments

OPI

Office of Primary Interest

PDRB

Planning, Delivery & Results Branch

PEB

Policy and Economics Branch

PERD

Program of Energy Research and Development

PFC

Pacific Forestry Centre

PIPs

Performance Information Profiles

PMEEC

Performance Measurement, Evaluation and Experimentation Committee

PRB

Petroleum Resources Branch

PS

Public Safety Canada

PSPC

Public Services and Procurement Canada

RCMs

Responsibility Centre Managers

SBP

Strategic Policy Branch

SPI

Strategic Policy and Innovation Sector

SPPIO

Strategic Petroleum and Policy Investment Office

TB

Treasury Board of Canada

TBC

To be Confirmed

TBD

To Be Determined

TBS

Treasury Board Secretariat

TC

Transport Canada

TCEI

Terrestrial Cumulative Effects Initiative

TMX

Trans Mountain Expansion Project

TEIB

Trade, Economics and Industry Branch

ZEV

Zero Emissions Vehicle

Introduction

The Integrated Audit and Evaluation Plan (IAEP), also 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) 2021-22 to 2025-26.

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 find it necessary 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 - Text version

This figure highlights the four key phases of the selection process when developing a robust Integrated Audit and Evaluation Plan (IAEP). It covers the initial stage where the audit universe and evaluation framework (AUEF) 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 first quadrant represents the potential range of projects, which include 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 (DRF) as well as NRCan's inventory of external legislated services to ensure that the AUEF’s composition is as complete as possible. There are approximately 100 auditable entities and 31 DRF inventory programs in the AUEF.

The next quadrant describes the environmental scan performed on the priorities of NRCan and the Government of Canada, respectively, in order to identify projects. A two-pronged process follows, which involves consultations with sector planners and senior management to obtain concurrence on possible audit topics, as well as verify evaluation requirements. The final quadrant outlines the 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 both evaluations and joint projects.

Planning Results: Audit, Evaluation, and Joint Projects for 2021-26

Tables 1 through 3 summarize the internal audit projects, joint audit and evaluation projects, and evaluations planned to start during FYs 2021-22 to 2025-26.  In total, 49 AEB projects are planned for the next five years.

Table 1 – Number of New AEB Projects for both Audit and Evaluation Functions

Table 1 does not include unconfirmed OCG horizontal^{Footnote 1} audits.

Table 2 – AEB Projects Carried Forward from FY 2020-21

Table 3 – AEB Projects for Fiscal Years 2021-26

Projects are listed in the fiscal year of their initiation.

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 Performance Measurement, Evaluation, and Experimentation Committee (PMEEC) in September and March.

In each round of follow-up, management self-assesses the implementation progress for each recommendation and associated action plan. When the self-assessment is that a recommendation and action plan have been fully implemented, AEB validates it by:

• conducting interviews;
• reviewing supporting documentation; and
• performing analysis and testing based on risk.

Resources and Capacity

The AEB’s forecasted budget for FY 2021-22 is $5.1 million, of which $3.1 million is allocated to the audit function and the remaining $2 million to the evaluation function. An estimate of total resource capacity available was developed and allocated to AEB activities using metrics based on past experience. Approximately 7000 person days, equating to 38 professional positions, are required in FY 2021-22 to deliver the Plan. These resources provide AEB with the capacity to deliver 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 2021-26)

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 2021-26 is based on AEB’s current understanding.