Summary of the Assessment of Natural Resource Canada’s Polar Continental Shelf Program
About the Program
Polar Continental Shelf Program (PCSP) is a national service delivery agency providing logistical support to researchers from Canadian government agencies, northern communities, independent, and university groups conducting scientific activities in Canada’s Arctic. Services include charter air transportation, accommodation at the Resolute facility, loaning of field equipment and communications to remote sites. The Program is administered by NRCan’s Lands and Minerals Sector. The annual budget for PCSP is approximately $12M (on average) during the assessment period (2014-2020).
What the Assessment Found
Program Design
The assessment found PCSP provides safe and cost-effective logistical support to advance research in scientific knowledge and information about Canada and the Arctic. There is an opportunity to improve the logic model in order to meet current and emerging needs identified in the assessment.
Relevance
The assessment found PCSP is relevant with a continued need for logistical and equipment support for those conducting research for scientific, economic and safety reasons in the north. PCSP is aligned with federal government priorities and NRCan’s mandate. Most applications for PCSP services are accepted with declined applications denied mostly for safety and logistical reasons.
There are other Canadian entities that provide similar services, at least partially, but none provide a service at the same scope as PCSP, both from a geographical and logistical perspective. While PCSP coordinates with other providers, it was found that there were ongoing opportunities for the Program to better coordinate with some territorial and local programs and organizations.
Program Delivery
Effectiveness
The Program is effective but areas were identified for improvement.
Logistical Support, Accommodations, Equipment and Safety – There is evidence that users appreciate the extensive PCSP knowledge of the terrain, weather conditions and travel routes in the north. Users are generally satisfied with the Resolute facility and with the equipment provided although some would appreciate better training on equipment assembly and operation. An opportunity to improve advice related to licensing and permitting exists as only one-third of users were satisfied. Users are generally satisfied with the safety aspects of the Program including the response to high-risk situations.
Cost Effectiveness – The assessment found that logistical assistance and travel costs were advantageous to users when going through PCSP. This assistance is less attractive for fieldwork in the Western Arctic, where there are more suppliers and infrastructure for logistical assistance. According to evidence, most report savings when using PCSP services. About 60% use PCSP to access charter flights, and typical users report that they would pay about twice the amount if they booked it themselves. Others use equipment on loan, which for most represents a savings. Overall, savings for users are estimated to be between $16M and $20M during the 2014-2019 period.
Contribution to Northern Science – There is evidence demonstrating the significant contribution of PCSP to northern science. PCSP-supported teams undertake research in a variety of fields, including sustainable resource management, climate change, environmental integrity and conservation, cultural history, and emergency preparedness. The research was reported in over 1,700 publications during the period of the assessment. PCSP is appreciated for its ongoing capacity to support multi-year studies and research in isolated areas in the north.
Economic and Northern Opportunities – There is evidence of positive unintended economic and employment impacts in the north, resulting from the presence in Resolute, procurement of goods and services, and the travel activities of the users of the Program. PCSP provides a unique training opportunity for new/young researchers and it contributes to economic impact in the north, especially to the transportation and accommodation sectors. It creates learning opportunities for Indigenous youth in the north. PCSP provides employment opportunities, but there is a general agreement that more can be done to increase the employment impact. There is also general agreement that PCSP can further develop its partnerships with other federal departments and agencies.
Selection of Applications – While evidence supported that the selection process in itself was adequate, the analysis of the project selection results indicates that there is an opportunity to attract more proposals with higher ratings with respect to the quality of the science and/or that engages with northern communities.
Efficiency
Despite the challenges of delivering Arctic logistical services in the north, there was evidence that the Program makes efforts to ensure financial budgets are aligned with the extent and nature of demands associated with delivering the Program as well as its approved funding. Annual expenditures generally match budgets. However, areas for improvement exist:
Governance and Oversight – There is evidence that PCSP has a limited governance infrastructure (e.g. formal oversight responsibilities and mechanisms, effective reporting, etc.) related to financial management, including financial planning and efficiency. Impacts of this situation include the Program having only limited insight regarding the state of its financial efficiency as well as limited financial analysis and reporting in support of decision-making, and financial records that are prone to errors and/or delays due to reliance on manual practices.
Internal Systems and Tools – There is evidence of a number of systems, guidelines, practices, and other controls that help to support both the efficient use of resources and compliance with legislative and policy requirements. However, operational priorities and procurement delays have contributed to longstanding gaps and weaknesses in PCSP key systems including the Arctic Logistics Database (the AL Dbase) and the Field Equipment Inventory System (FEIS) that continue to limit the Program’s ability to deliver a level of financial management capacity commensurate with its size and importance.
Financial controls – There is evidence that limited insight regarding financial efficiency and records reliant on manual practices may expose the program to risks related to business continuity and achievement of value-for-money through purchasing activities.
Risk Management –There is evidence that PCSP has not implemented formal risk identification, assessment and mitigation protocols that would serve to ensure key risks (especially those that are linked to the Program’s unique environment and objectives) are managed within an acceptable tolerance. These risks include those related to health & safety, conflict of interest, compliance (including with comprehensive lands claims agreements) and succession planning.
Gender Based Analysis+ – There is evidence that there is an unequal distribution between males and females at the Principal Investigator level of the research team. The Program has not implemented measures to encourage further female participation and does not have the means to monitor the distribution of male and female researchers using PCSP and involve more northerners at the project level and staffing level.
Planning – While there is evidence that many researchers have long-term research agendas in the north, there was no evidence that the Program has long-term planning activities. The assessment also found that the Program does not assess federal government research needs in a formal manner. As well, there is no committee structure or other formal mechanism that would allow it to understand user needs and adapt its activity schedule accordingly.
About the Assessment
The assessment covers the period from 2014-15 to 2019-20 and meets the requirements of both audit and evaluation. The objectives were to assess the relevance and performance of the PCSP, and the adequacy of the management control framework for the effective and efficient use of Program resources. The assessment responded to Government of Canada Central Agency requirements for an independent review as part of Budget 2019 funding. Chaired by a Senior Evaluation Manager, a working group comprised of a limited number of sector representatives with participation by Finance Canada and the Treasury Board Secretariat, provided program coordination of input. Specific sub-objectives, evaluation questions, methods and limitations are found in the full report. The assessment is consistent with the requirements of the Treasury Board Policy on Results (2016), Policy on Internal Audit (2017) and the Institute of Internal Auditors International Professional Practices Framework.
Recommendations and Management Action Plan
Recommendations
1. To improve efficiencies, it is recommended that:
1a) Improvements be made to the Program’s governance and oversight structure as it pertains to financial planning and performance including such items as longer term financial/cash flow planning, activity planning, compliance, and efficiency in support of reliable and timely information for decision making.
Management Response and Action Plan
Management Agrees.
A review of the program’s governance and oversight structure to improve efficiencies will be conducted, including tools and procedures related to financial planning, delegation and oversight, performance, activity planning and compliance, to ensure timely and reliable information for decision-making.
Actions include:
- An internal review with gap analysis of governance and organizational structure, financial delegation and oversight tools and procedures, activity planning and compliance, financial planning and performance.
- Results of the review will inform development of an implementation plan with milestones to address the gap analysis.
- Roles and responsibilities to implement a record keeping system for compliance documentation (i.e. CLCA tracking, vendor lists for conflict of interest analysis) and data analysis will be identified.
Position responsible: ADM LMS
Due Date: Review completed by May 31, 2022. Implementation plan developed by Sept 30, 2022.
1b) As a component of the governance structure, develop a terms of reference for committee structure, that includes reporting guidelines, with representation from other government departments and funding agencies to ensure stakeholder considerations are taken into account within decision-making.
Management agrees.
PCSP agrees to create a committee structure to ensure stakeholder considerations are taken into account for decision-making. This committee will include representation from other government departments and funding agencies. An environmental scan with representatives from key government departments and funding agencies to inform development of the committee structure and terms of reference will be conducted.
Position responsible: ADM LMS
Due Date: Decision on committee structure and terms of reference completed by April 30, 2022.
1c) PCSP implement new strategies with other federal departments and northern organizations to leverage resources, increase employment and meet current and emerging needs of its users.
Management Agrees.
PCSP will identify and implement strategies with federal departments and northern organizations to leverage resources, increase employment and meet current and emerging needs of its users.
Actions include:
- A review of current strategies with federal departments and northern organizations to identify gaps and opportunities to leverage resources.
- Development of an implementation plan with federal departments and northern organizations to increase employment and meet emerging needs of its users.
- Implementing a monitoring system to track new initiatives aimed at increased employment and/or meeting emerging needs in the north.
Position responsible: ADM LMS
Due Date: Tracking system implemented by Sept 30, 2021.
2. For each of the Program’s internally developed tools and reports (e.g. Excel spreadsheets, databases and other tools):
2a) Formally document their purpose, key users, accountability for the tool/report, source(s) of information and how/if they link with other systems including Departmental systems.
2b) Identify and document instructions and training materials on the use and maintenance of these tools to support consistency, quality control, and continuity and inform requirements in recommendation 1.
Management Agrees.
PCSP will document its internally developed tools and reports including key users, accountability, sources of information and how/if they link to departmental systems. Instructions and training materials on the use and maintenance of these tools aimed at supporting consistency, quality control, and continuity will also be documented.
Actions include:
- Identify and appraise each of the Program’s internally developed tools.
- Document the purpose and objectives of each tool and how they link with Departmental systems.
- Document instructions and training materials that support consistency, quality control and continuity for each tool.
- Develop system guidelines for effective knowledge transfer including standard operating procedures or manuals.
Position responsible: ADM LMS
Due Date: Identify the purpose of the Program’s internally developed tools and how they link with other systems by Oct 31, 2021.
Document instructions and training materials for each tool by April 30, 2023.
3. Improve or replace the Program’s proprietary logistics and financial systems/tools with commercial solutions that better support integrated and reliable financial reporting, cash management, invoice management and related financial analysis.
Management agrees.
PCSP will replace its Field Equipment Inventory System and improve additional logistics tools following a review of commercial solutions to better support integrated and reliable financial management, including improvement of invoice and cash management and financial analysis.
Actions include:
- Identify improvements to financial and logistics systems/tools to better support integrated reporting, invoice and cash management and related financial analysis.
- A review of commercial IM/IT systems to enable incorporation of financial reports into logistics systems.
- Develop scope of work and requirement documents for logistic systems replacement and/or modifications.
- Procure or engage private sector services in order to implement modifications or improvements to databases and financial systems.
Position responsible: ADM LMS
Due Date: Develop work plan for improvements to logistics tools by Dec 31, 2021.
Replacement of the Field Equipment Inventory System improvements by April 30, 2022.
4. Undertake a risk identification and assessment that will support a risk profile for the Program. This would include a focus on those risks that may be particularly relevant/unique to PCSP’s environment and objectives e.g. H&S, compliance (including CLCA), succession planning, conflict of interest, etc.
Management agrees.
PCSP will conduct a risk identification assessment that will support a risk profile for the Program. This assessment will focus on risks relevant to PCSP and include health and safety, compliance, succession planning, and conflict of interest.
Actions include:
- Engagement with BSMDB and CMSS on development of a risk profile for the program that includes NRCan financial, health and safety, environmental and conflict of interest guidelines.
- Updating the program’s performance information profile and relevant corporate reports.
- Development of job-specific training plans, standard operating procedures and a framework for tracking of certifications to address occupational health and safety risks.
Position responsible: ADM LMS
Due Date: Risk assessment completed by Dec 31, 2021.
5. To improve efficiencies, the quality of the projects and promote gender equity and cultural inclusivity, it is recommended that the Program upgrade its systems and processes, including project selection systems and processes, to promote and monitor diversity of its clients.
Management agrees.
PCSP will improve efficiencies, the quality of projects and promote gender equity and cultural inclusivity by:
- modernizing its project intake form to make it easier for clients to apply to the Program
- implementing a monitoring system to track applicant gender equality and diversity
- reviewing its selection processes to identify areas to promote gender equity and cultural inclusivity.
Position responsible: ADM LMS
Due date: New equity, diversity and inclusion criteria incorporated into project selection process by Sept 30, 2021.
6. In order to facilitate planning from a resource management perspective (including NRCan and other federal partners) and users’ perspective, it is recommended that PCSP pilot a multi-year planning approach.
Management agrees.
PCSP will pilot a multi-year planning approach to better manage resources and client support. This will include development of a framework and piloting multi-year planning options for procurement, facility maintenance and logistical requests of clients.
Position responsible: ADM LMS
Timing: Implement multi-year planning pilot by May 30, 2022.
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