Audit of the Management of NRCan’s Satellite Station Facilities (AU1705)

Audit Branch
Natural Resources Canada

Presented to the Departmental Audit Committee (DAC)
June 22, 2017

Table of Contents

• Executive summary
  • Introduction
  • Strengths
  • Areas for improvement
  • Internal audit conclusion and opinion
  • Statement of conformance
  • Acknowledgements
     
• Introduction
  • Audit purpose and objectives
  • Audit considerations
  • Scope
  • Approach and methodology
  • Criteria
     
• Findings and recommendations
  • Project management
  • Management processes
  • Expansion of the Inuvik Satellite Station Facility (ISSF)
     
• Appendix A – Audit criteria

Executive summary

Introduction

With the second largest landmass on Earth and the longest coastline in the world, the Government of Canada (GoC) relies on Earth observation (EO) satellites and associated ground systems technology to monitor its land and borders. The Canada Centre for Mapping and Earth Observation (CCMEO) within the Strategic Policy and Results Sector (SPRS) of Natural Resources Canada (NRCan) provides, amongst other programs, delivery, access, processing, and dissemination services for satellite imagery.

One of the CCMEO’s goals is to provide satellite data that facilitates informed decision making for programs and services within the GoC, provincial and territorial governments, academia, and industry. EO data applications include: emergency services, such as flood mapping and critical infrastructure monitoring, to provide the imagery necessary to respond to an emergency in real-time; safe and efficient maritime operations by providing real-time information about ice in the navigable Arctic; and the provision of geological information to industry to facilitate the identification of areas with potential sources of energy and mineral resources. 

The Canadian Geospatial Data Infrastructure Division within the CCMEO provides national management of interoperable physical, policy, and governance infrastructure. It is mandated to provide pan-Canadian leadership on geospatial standards; pan-Canadian and international governance; business and partnership development; ground station capabilities; and the national civilian satellite imagery archives. The Division directly contributes to Canada’s innovation capabilities and space priorities, and is the Crown’s steward for Canada’s historic record of civilian satellite imagery. 

The Remote Sensing Space Systems Act (RSSSA) governs the operations of remote sensing space systems in Canada, including satellite stations. Only persons holding a license issued by Global Affairs Canada under the RSSSA may operate a remote sensing space system and perform controlled activities. [This information has been severed]

The Department has been managing satellite station facilities to deliver access to EO data in collaboration with the private sector since 1972, including the Prince Albert Satellite Station (PASS), the Gatineau Satellite Station (GSS), and the Inuvik Satellite Station Facility (ISSF), with the PASS acting as the central control hub for NRCan’s three satellite stations. These facilities are strategically located across Canada to ensure sufficient coverage of Canada’s landmass and waters. In addition, coverage extends into the continental United States and over the Pacific, Atlantic, and Arctic Oceans. 

In 2012, NRCan was allocated $41.6 million for a project to revitalize its satellite infrastructure, with all systems expected to be operating by early 2015. It should be noted that this project has a significant IT component and relies on the services of a federal network and data centre services provider. The upgrade was intended to enable NRCan to support existing and future satellite missions of interest to the GoC. 

The objective of the audit was to assess the project management processes for the revitalization project as well as the adequacy of the management processes and controls supporting the operations and maintenance of NRCan’s satellite station facilities. The audit focused on the physical infrastructure of ground station operations, which were renewed as part of Budget 2012 and will be key for the RADARSAT constellation mission.

Strengths

Adequate project management processes have been implemented for the revitalization of NRCan’s satellite infrastructure, through a well-defined Project Management Plan and effective monitoring of project performance, including documenting lessons learned. Management has also implemented appropriate processes and controls to support the operations and maintenance of the satellite station facilities, and the management of EO data in compliance with the RSSSA. In addition, the Department has adequately managed its agreements with third parties and engaged in outreach activities to enable the achievement of program objectives.

Areas for improvement

[This information has been severed] In addition, the CCMEO has experienced some delays in meeting operational timelines and data archiving challenges. Finally, management has not formalized a revision to the strategy to ensure the ISSF can develop to its full potential, [This information has been severed].     

Internal audit conclusion and opinion

In my opinion, adequate management processes and controls support the operations and maintenance of NRCan’s satellite station facilities. [This information has been severed]  

Statement of conformance

In my professional judgement as Chief Audit Executive, the audit conforms with the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing and the Government of Canada’s Policy on Internal Audit, as supported by the results of the Quality Assurance and Improvement Program.

Christian Asselin, CPA, CA, CMA, CFE
Chief Audit Executive
June 22, 2017

Acknowledgements

The audit team would like to thank those individuals who contributed to this project and particularly employees who provided insights and comments as part of this audit.

Introduction

With the second largest landmass on Earth and the longest coastline in the world, the Government of Canada (GoC) relies on Earth observation (EO) satellites and associated ground systems technology to monitor its land and borders. The Canada Centre for Mapping and Earth Observation (CCMEO) within the Strategic Policy and Results Sector (SPRS) of Natural Resources Canada (NRCan) provides, amongst other programs, delivery, access, processing, and dissemination services for satellite imagery. Since its creation in 1971, the remote sensing side of the CCMEO (known then as the Canada Centre for Remote Sensing) has accumulated a sizeable collection of EO data.

One of the CCMEO’s goals is to provide satellite data that facilitates informed decision making for programs and services within the GoC, provincial and territorial governments, academia, and industry. EO data applications include: emergency services, such as flood mapping and critical infrastructure monitoring, to provide the imagery necessary to respond to an emergency in real-time; safe and efficient maritime operations by providing real-time information about ice in the navigable Arctic; and the provision of geological information to industry to facilitate the identification of areas with potential sources of energy and mineral resources. 

The Canadian Geospatial Data Infrastructure Division within the CCMEO provides national management of interoperable physical, policy, and governance infrastructure. It is mandated to provide pan-Canadian leadership on geospatial standards; pan-Canadian and international governance; business and partnership development; ground station capabilities; and the national civilian satellite imagery archives. The Division directly contributes to Canada’s innovation capabilities and space priorities, and is the Crown’s steward for Canada’s historic record of civilian satellite imagery.

The Remote Sensing Space Systems Act (RSSSA) governs the operations of remote sensing space systems in Canada, including satellite stations. Only persons holding a license issued by the Minister of Foreign Affairs under the RSSSA may operate a remote sensing space system and perform controlled activities. [This information has been severed]

The Department has been managing satellite station facilities to deliver access to EO data in collaboration with the private sector since 1972. These facilities are located in Prince Albert, Saskatchewan; Gatineau, Quebec; and Inuvik, Northwest Territories. They are strategically located across Canada to ensure sufficient coverage of Canada’s landmass and waters. In addition, coverage extends into the continental United States and over the Pacific, Atlantic, and Arctic Oceans. 

The Prince Albert Satellite Station (PASS) and the Gatineau Satellite Station (GSS) were respectively established in 1972 and 1986, with the former acting as the central control hub for NRCan’s three satellite station facilities. The newest facility, the Inuvik Satellite Station Facility (ISSF), was inaugurated in 2010. The CCMEO manages the ISSF and is responsible for matters related to controlled activities as defined under the RSSSA. In addition, the Department offers external organizations the opportunity to enter into lease agreements to install and operate equipment at this facility to meet EO needs. As a result, the ISSF currently hosts antennas owned by international collaborators and is in the process of expanding to become a world-renowned satellite station. 

In 2012, NRCan was allocated $41.6 million in funding for a project to revitalize its satellite infrastructure, with all systems expected to be operating by early 2015. It should be noted that this project has a significant IT component and relies on the services of a federal network and data centre services provider. The project involved the purchase and installation of four new satellite data reception antennas, at the three existing satellite station facilities, and support from a data management system providing access to EO data. Additionally, the installation of systems to control and monitor the antenna systems at the sites allow for remote access. The upgrade was intended to enable NRCan to support existing and future satellite missions of interest to the GoC such as the Canadian RADARSAT Constellation Mission (RCM), the U.S. Landsat Mission, and the European Sentinel missions.

The audit focused on the physical infrastructure of ground station operations, which were renewed as part of Budget 2012 and will be key for the RADARSAT constellation mission.

Audit purposes and objectives

An audit on NRCan’s satellite station facilities was included in the 2016-2019 Risk-Based Audit Plan, approved by the Deputy Minister on March 10, 2016.

The objective of the audit was to assess the project management processes for the revitalization project as well as the adequacy of the management processes and controls supporting the operations and maintenance of NRCan’s satellite station facilities.

Specifically, the audit assessed whether:

• Adequate project management processes were implemented for the revitalization of the satellite infrastructure, and lessons learned were documented to inform future similar projects;
• Appropriate processes and controls are being implemented to support the maintenance and operations of the satellite station facilities, and the management of EO data; and,
• Contracts and collaborative agreements with third parties (other government departments, international agencies, and industry) are being managed to enable the achievement of program objectives.

Audit considerations

A risk-based approach was used in establishing the objectives, scope, and approach for this audit engagement. A summary of the key inherent risks that could impact the effective management of the satellite station facilities include:

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Scope

The scope of this audit included an examination of management practices, processes, and controls used for the revitalization of the satellite station facilities; operations and maintenance of the satellite station facilities; and management of third party contracts and collaborative agreements. The audit timeline covered the period of July 1, 2011 to March 31, 2017. This time period includes the complete revitalization project as well as the operational period for the new equipment.

The audit did not examine Earth observation data in the context of Open Data under Canada’s Open Government Initiative, since this topic will be examined in a separate, future audit.

Approach and methodology

The approach and methodology followed the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing and the Government of Canada’s Policy on Internal Audit. These standards require that the audit be planned and performed in such a way as to obtain reasonable assurance that audit objectives are achieved. The audit included tests considered necessary to provide such assurance. Internal auditors performed the audit with independence and objectivity as defined by the International Standards for the Professional Practice of Internal Auditing.

The audit approach included the following key tasks:

1. Interviews with key personnel;
2. Review of key documents, business processes, and relevant background information; and
3. Site visits to the Prince Albert Satellite Station and Gatineau Satellite Station facilities, and the archives locations in Ottawa.

Concurrence on the Terms of Reference for the audit was obtained from the ADM of the former Earth Sciences Sector (ESS); however, during the course of the audit, the Canada Centre for Mapping and Earth Observation (CCMEO) was transferred to the Strategic Policy and Results Sector (SPRS).

The conduct phase of this audit was substantially completed in March 2017.

Criteria

The criteria were developed from the key controls set out in the Treasury Board of Canada’s Core Management Controls and relevant associated policies, procedures, and directives. The criteria guided the fieldwork and formed the basis for the overall audit conclusion.

Appendix A summarizes the detailed audit criteria.

Findings and recommendations

Project management

Summary finding

Adequate project management processes were implemented for the revitalization of the satellite infrastructure, including a well-defined Project Management Plan, and effective monitoring and reporting to the Project Steering Committee. While the antenna systems upgrade was successfully delivered, the Earth Observation Data Management System (EODMS) component of the project is behind schedule.

The audit also found that lessons learned from the revitalization project have been documented, and management has advised that they plan to share them with the Department’s Project Management Office (PMO) once the project is officially finalized.       

Supporting observations

The implementation of adequate project management processes increases the likelihood of a project achieving expected outcomes. The audit sought to determine whether: a clearly defined project management plan was implemented for the revitalization of the satellite infrastructure; project performance was effectively monitored and reported to senior management; project outcomes were assessed in a timely manner against planned results; and lessons learned from the revitalization project were documented with the intention to inform future similar projects.

Project management plan

Overall, the audit found that a clearly defined Project Management Plan (the Plan) was implemented for the revitalization of the satellite infrastructure. The Plan contained a project overview, including purpose, scope, and objectives; assumptions, constraints, and risks; project technical deliverables; a schedule summary and critical path; and a budget summary. The objective of the project was separated into two components: acquisition of four new antenna systems integrated over the three satellite stations, and a new data management system to facilitate the acquisition, storage, retrieval, and disposition of satellite imagery for multiple satellite missions. The Plan also specified a formalized change management process.

Appropriate governance of the project was promoted through the Project Management Plan, by clearly defining and assigning roles, responsibilities, and accountabilities within NRCan, and through comprehensive lines of communication and reporting requirements that extended vertically as well as horizontally throughout the Department. The governance structure included a Project Steering Committee, whose core members include the Assistant Deputy Minister from the former Earth Sciences Sector (ADM ESS), NRCan’s PMO, Legal Services, and the Chief Information Officer, as well as representatives from other government departments. 

In addition, the CCMEO project team worked in collaboration with NRCan’s Project Management Office (PMO) and PSPC to complete the Project Complexity and Risk Assessment (PCRA) as required by Treasury Board. Through a Request for Information (RFI) process, the project team was also able to determine potential technological solutions, prepare reliable cost estimates to allocate the $41.6 million of funding, as well as develop a schedule summary and a critical path for the project.

Monitoring project performance

Project performance was effectively monitored through rigorous analysis of actual costs and tracking of milestones by means of a detailed spreadsheet. This close monitoring allowed the project team to quickly identify delays, and to ensure processes and tools were implemented to quickly resolve information technology (IT) issues. This ultimately resulted in a change request with NRCan’s PMO to extend the project schedule.

Throughout the project, the CCMEO’s technical team collaborated closely with the manufacturer of the antenna systems and approved the contractor’s Antenna Design Specifications, the Factory Acceptance Test, and the Onsite Acceptance Test. To ensure a smooth transition and continuity of service, both the old and upgraded system ran in parallel for several weeks. The technical team compared and analyzed the data acquired by both systems for accuracy. Once satisfactory results were obtained, the old antenna systems were decommissioned.

In terms of results reporting, the project team reported to senior management through a quarterly executive dashboard, which captured information on the overall costs incurred to date, the project’s main risks and ongoing mitigation strategies, the project schedule, and project issues. In addition, the Project Steering Committee, which convened on a monthly basis, oversaw the project and ensured that its scope remained aligned with the requirements of stakeholder groups. The reports presented to the Steering Committee provided detailed information on the status of project performance in relation to the Project Management Plan as the baseline.

Assessment of project outcomes and lessons learned

The project outcomes for the antenna systems upgrade were assessed by the CCMEO through review and approval of the results of on-site acceptance tests, performed by the manufacturer’s test and systems engineers and witnessed by the technical team. Furthermore, monthly statistical reports were prepared to assess the performance of satellite operations against key performance indicators. The CCMEO team found that the upgrade to systems that remotely control and monitor the antenna systems from a central hub resulted in a significant decrease in operating costs.

In addition, the CCMEO maintained a Lessons Learned Log that was updated during the course of the project. The issues in the Log are organized by project phase with a short description for each situation, including its impact, actions taken by the project team, and recommendations for future projects. Audit interviews confirmed that the Log has not yet been submitted to NRCan’s PMO to disseminate information to other departmental project teams; however, management has stated that they have the intention of sharing the Log with the PMO once the project is officially closed. Sharing these lessons learned with all Sectors could provide future benefits to large programs undertaking similar projects.

Management processes

Summary finding

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The audit also found that satellite station operations are being continuously monitored, and controls and processes, including external agreements, are in place to effectively manage operations and service disruptions. In addition, adequate maintenance plans are being implemented for the satellite facilities, and maintenance activities are regularly carried out in partnership with a private sector partner.

In addition, the audit team observed that the Booth Street Archive (BSA) is approaching its maximum data storage capacity; neither a replacement plan nor redundancy capability has been established. 

Supporting observations

The audit sought to determine whether: management has effectively implemented maintenance plans for the satellite stations; [This information has been severed] satellite station operations are regularly monitored and reported to senior management; and appropriate processes and controls have been implemented for the acquisition and archiving of EO data, in compliance with legislative requirements. In addition, the audit examined whether management monitors the delivery requirements stated in Memoranda of Understanding with third parties.

Monitoring safeguards

To protect the satellite ground infrastructure and ensure continuity of operations, risks should be identified, and appropriate safeguards implemented to mitigate these risks. [This information has been severed]  

Operations and maintenance

Through the revitalization of the satellite antenna systems, operations are now highly autonomous and only require human intervention in the event of abnormal situations and for preventive maintenance. The Prince Albert Satellite Station (PASS) is the master station, with the Gatineau Satellite Station (GSS) and Inuvik Satellite Station Facility (ISSF) serving as autonomous, remotely-managed stations by the PASS. NRCan currently has a contract in place with a private sector partner for the provision of antenna system operations and basic maintenance on these systems.

During the site visit at the PASS, the audit team examined the Control Centre and witnessed the private sector partner’s employees monitoring all three satellite stations through multiple screens that capture various functions of the ground segment operations. The antenna systems generate automated reports for each satellite reception that are delivered via email to key CCMEO personnel. In addition, the private sector partner submits an In Service Monthly Report to management, which includes statistics for all data reception activities for each station, a description of all abnormal events, and actions taken to resolve them. These activities allow for continuous monitoring of satellite operations and timely reporting to senior management.

The audit also found that service disruptions are effectively managed by having failover capacity built into the system, which allows operations to be redistributed from the station experiencing an outage to other facilities, or through mutual backup of operations with the Department of National Defence (DND) or the United States Geological Survey (USGS). [This information has been severed]  

CCMEO has also entered into various Memoranda of Understanding (MOU), including with the Canadian Space Agency (CSA), DND, and USGS for the ongoing operations of ground stations, the archiving of EO data, and the provision of contingency operations in the event of a service disruption. The audit found that management monitors the delivery requirements of these MOUs as part of their ongoing monitoring of ground station operations. In addition, monthly Key Performance Indicators Statistics reports are prepared, which highlight operational performance statistics. The CCMEO also communicates with stakeholders in a timely manner about data loss and/or network issues as well as corrective measures taken to ensure that program requirements are still being met.

Proper maintenance activities performed in accordance with maintenance plans not only helps maximize the lifespan of the antennas, but it also prevents unplanned downtime. The audit found that maintenance requirements are clearly defined in the Operational and Maintenance Manual provided by the manufacturers of the antenna systems. The requirements include monthly inspection procedures and specific maintenance procedures for each part of the antenna systems. In addition, the manufacturers conduct annual inspections and preventive maintenance, and provide NRCan with an annual report on the conditions of the antenna systems.

The audit also found that the private sector partner conducts monthly antenna inspections and preventive maintenance procedures in accordance with the requirements stated in the manufacturer’s Operations and Maintenance Manual. The private sector partner maintains, and makes accessible to CCMEO employees, a maintenance log and an action request system with details on both the type and timing of the maintenance performed. In addition, on a monthly basis, the private sector partner submits an In Service Report that includes all hardware and software maintenance and repairs performed at the PASS, GSS, and ISSF, as well as any usage of spare parts, including adequate justifications.

Management of Earth observation data

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Risk and impact

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Recommendations

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Management response and action plan

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Expansion of the Inuvik Satellite Station Facility (ISSF)

Summary finding

Since June 2015, the Department has contracted with a private sector partner for the expansion of the Inuvik Satellite Station Facility (ISSF), while still performing its own outreach activities with international partners. As a result, NRCan has established System Participant Agreements with international organizations for hosting their antennas at the ISSF. [This information has been severed]     

Supporting observations

To develop the ISSF into a world-renowned satellite station, the Department needs to collaborate with Provinces/Territories, Canadian and international organizations, and industry. The audit found that since the ISSF’s inauguration in 2010, NRCan has collaborated with international space organizations to host antennas with supporting infrastructure.     

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Risk and impact

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Recommendation

4. It is recommended that the Assistant Deputy Minister Strategic Policy and Results Sector (ADM SPRS) revise the plan to continue to develop the Inuvik Satellite Station Facility (ISSF), to meet program objectives.

Management response and action plan

Management agrees. In response to Recommendation #4:

SPRS will be engaging with academia, research organizations, and international governments to further develop this niche which is unique to the ISSF, combining public good objectives with commercial development opportunities. A strengths, weaknesses, opportunities, and threats (SWOT) analysis will inform on potential collaborations with space agencies and universities as key opportunities.

The SWOT analysis will take into account the impact of the neighbouring and independent satellite station in Inuvik, and inform Canada Centre for Mapping and Earth Observation (CCMEO) for the revision and update to its development plan for the ISSF.

Position responsible: Director, Canadian Geospatial Data Infrastructure

Timing: December 2017

Appendix A – Audit criteria

The criteria were developed from the key controls set out in the Treasury Board of Canada’s Core Management Controls and relevant associated policies, procedures, and directives. The criteria guided the fieldwork and formed the basis for the overall audit conclusion.

The objective of the audit was to assess the project management processes for the revitalization project as well as the adequacy of the management processes and controls supporting the operations and maintenance of NRCan’s satellite station facilities.

The following audit criteria were used to conduct the audit:

Audit Sub-Objectives	Audit Criteria
Audit Sub-Objective 1: Adequate project management processes were implemented for the revitalization of the satellite infrastructure, and lessons learned were documented to inform future similar projects.	1.1 It is expected that a clearly defined project plan was implemented for the revitalization of the satellite infrastructure.
	1.2 It is expected that project performance was effectively monitored and reported to senior management to support decision making.
	1.3 It is expected that project outcomes were assessed in a timely manner against planned results.
	1.4 It is expected that lessons learned from the satellite infrastructure revitalization project were documented with the intention to inform future similar projects.
Audit Sub-Objective 2: Appropriate processes and controls are being implemented to support the maintenance and operations of the satellite station facilities, and the management of EO data.	2.1 It is expected that management has effectively implemented maintenance plans for the satellite station facilities, and followed up if corrective actions were needed.
	2.2 It is expected that management monitors whether adequate safeguard measures are in place to protect the satellite facilities and operations.
	2.3 It is expected that management regularly monitors facility operations and reports results to senior management in a timely manner.
	2.4 It is expected that appropriate processes and controls have been implemented for the acquisition, archiving, and management of EO data, in compliance with relevant policies and legislative requirements.
Audit Sub-Objective 3: Contracts and collaborative agreements with third parties (other government departments, international agencies, and industry) are being managed to enable the achievement of program objectives.	3.1 It is expected that management monitors the delivery requirements in contracts and Memoranda of Understanding with third parties in an adequate and timely manner, and corrective measures are taken when necessary.
	3.2 It is expected that the Department has collaborated and established agreements, where appropriate, with Provinces/Territories, Canadian and international organizations, and industry for the expansion of the Inuvik Satellite Station Facility (ISSF).