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As a result of the new Audit Policy, the OAG annually sends the Audit Branch all the previous recommendations it has made to NRCan that are not considered completed for an update. For 2008-09, the department was asked to update and assess the status of previous recommendations. Responses were provided accordingly by the audited entities and assessed by the Audit Branch according to their responses. We however, cannot provide assurance on the responses.

The OAG audits included:

2003 � 10 CESD Chapter 1 � Managing the Safety and Accessibility of Pesticides
OAG recommended that NRCan should collaborate with other departments and agencies such as Health Canada, Environment Canada, etc. to better support pesticide regulation.

Response: As per the recommendation, NRCan continued to collaborate with agencies and departments with pesticide-related mandates. The relevant departments signed an MOU in 2008. Through this agreement, departments have identified their research and regulatory needs.

2003 � 11 OAG Chapter 10 � Other Audit Observations
OAG recommended that NRCan should improve its financial information and monitoring frameworks as such relate to managing contribution programs and scientific equipment. The objective of this recommendation is to ensure that such practices conform to Treasury Board Policy.

Response: NRCan has a Centre of Expertise which handles such issues. The Centre has added additional resources to enhance the management of contribution agreements. Secondly, improvements and new controls have been added to the financial system to safeguard the integrity of scientific equipments.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should document the competencies and capacities of its current workforce and develop a human resources plan that will enable the department to replace the large percentage of key staff eligible to retire in the next few years.

Response: NRCan has developed a departmental HR Plan. This plan sets out specific strategies and timelines for five areas of focus: workforce capacity; competencies; employment equity; official languages; and workplace well-being.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should develop plans and improve its risk analysis to deal with emergency situations particularly in areas where it has the lead federal role.

Response: As per the recommendations of the OAG, NRCan has continued to review and update the department's 11 Civil Emergency Plans. During FY 2008-09, two plans were tested through a joint exercise which engaged senior management and the National Energy Board. A third plan was validated through a major Government of Canada exercise in preparation for the 2010 Games. In addition, the department has updated its Corporate Risk Profile.

2004 � 10 CESD Chapter 4 � Assessing the Environmental Impact of Policies, Plans and Programs
It was recommended that Deputy Heads of departments and agencies ensure that their respective organizations are fully implementing the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals.

Response: NRCan has continued to use the management and accountability mechanisms and structures designed to uphold the implementation of this objective. In particular, outreach and training sessions are continuously provided to employees and managers on the requirements of this directive.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should improve its performance measurement framework and reporting in order to provide parliamentarians with better information on the results and outcomes of its programs.

Response: NRCan has completed a Strategic Framework that articulates a new vision, mission and principles for the department. The framework includes NRCan's new Strategic Outcomes and was approved by the Treasury Board. The performance measurement component and other key elements in the framework have been strengthened to enhance strategic business planning and reporting of results and outcomes.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should institute a strategic planning process across all sectors and develop a corporate strategic plan.

Response: Consistent with the OAG's recommendation, NRCan has articulated a new departmental vision and strategic direction through the Strategic Framework. Working through a DG-level task group, a corporate planning network and the Strategic Planning and Reporting Division, NRCan's Departmental Management Committee (DMC) has been consistently steering the development and implementation of corporate-level integrated strategic planning and reporting processes in the department.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should improve its governance processes especially with respect to mandates, resources, roles and responsibilities for managers of horizontal issues.

Response: NRCan has instituted a DM-led Policy and Science Management Committee which ensures effective horizontal collaboration within NRCan on departmental and government-wide initiatives. Also, the DM has set up five Horizontal Task Teams (HTT) co-chaired by ADMs. These HTTs constitute a key component for the implementation of the Strategic Framework.

2005 � 04 OAG Chapter 1 � NRCan � Governance and Strategic Management
OAG recommended that NRCan should determine and obtain the relevant industry information that it needs to support strategic decision making by producing it internally or obtaining it from outside sources.

Response: NRCan's Science and Policy Integration (SPI) sector is leading the department's corporate-level efforts to obtain, analyze and disseminate the industry information needed to support strategic decision-making. The sector has created the necessary structures and mechanisms to support that process.

2006 � 09 CESD Chapter 1 � Managing the Federal Approach to Climate Change
It was recommended that NRCan should ensure that the model, data and results from the 2005 memorandum of understanding with the automotive industry are independently verified and that the results of the publication are reported publicly.

Response: NRCan is in the process of finalizing a request for proposals to select an independent third party to perform verification of the accounting model used to measure the auto industry's progress against the first interim target established in the memorandum of understanding. It may also be noted that government and industry have jointly released three progress updates. Public workshops were offered to stakeholders after each of the three progress updates.

2006 � 09 CESD Chapter 1 � Managing the Federal Approach to Climate Change
It was recommended that in any future voluntary agreements, NRCan should establish requirements similar to those found in Environment Canada's 2001 Policy Framework for Environmental Performance Agreements.

Response: No voluntary agreements have been established since the release of the CESD reports.

2006 � 09 CESD Chapter 2 � Adapting to the Impacts of Climate Change
It was recommended that NRCan and Environment Canada should collaborate with other pertinent federal departments and stakeholders to strengthen and develop initiatives relating to climate change and adaptation.

Response: NRCan continues to collaborate with Environment Canada and other pertinent stakeholders to advance the Government's climate change and adaptation plans.

2006 � 09 CESD Chapter 3 � Reducing Greenhouse Gases
It was recommended that NRCan should lead the development of a wind power strategy for Canada. This would be done in collaboration with the provinces and wind industry.

Response: NRCan developed a discussion paper titled, "Towards an Enabling Wind Energy Policy Framework in Canada" which served as the basis for consultations with industry, utilities, environmental groups and provinces in Ottawa and Montreal over the course of 2008. The department is also developing a Wind Technology Roadmap, an industry-led report that will identify key issues for wind energy development in Canada. Through the development of these two frameworks, NRCan is continuing to support the vision for wind power in Canada.

2006 � 09 CESD Chapter 3 � Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should complete the evaluation of the Wind Power Production Incentive (WPPI) that it committed to in 2002.

Response: An evaluation of renewable energies including the WPPI is underway.

2006 � 09 CESD Chapter 3 � Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan, on behalf of the Government of Canada should make clear to Parliament by the end of 2006 how and to what degree the country would reduce greenhouse gas emissions in the oil and gas sector.

Response: The Government has committed to reducing Canada's GHG emissions by 20 per cent from 2006 levels by 2020. Environment Canada (EC) is the lead department for the implementation of that plan. NRCan has been fully engaged in the development of the regulatory framework for industrial gas emissions and will continue to work closely with EC officials on issues relating to greenhouse gas emissions in the oil and gas sector.

2006 � 09 CESD Chapter 3 � Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should ensure that clear and concrete greenhouse gas reduction targets are established for each of its programs funded for this purpose.

Response: All programs under the Clean Air Agenda (CAA) annually report on their costs and performance including GHG emissions reductions through the CAA Horizontal Performance Report which is submitted to Parliament through Environment Canada.

2006 � 09 CESD Chapter 3 � Reducing Greenhouse Gases Emitted During Energy Production and Consumption
It was recommended that NRCan should establish consistent practices for financial management and reporting of authorized funding and spending at the program level.

Response: To ensure effective interdepartmental management of clean air initiatives, NRCan is participating with 8 federal departments in the Horizontal Management Accountability and Reporting Framework (HMARF) for the Clean Air Agenda. The HMARF (approved by the Treasury Board on April 3, 2008) establishes consistent practices for the management and reporting of financial information at the program level.

2006 � 11 OAG Chapter 12� Role of Federally Appointed Board Members � Sustainable Development Technology Canada
NRCan and Environment Canada should consult the Treasury Board Secretariat and the Privy Council Office to clarify the necessity of restricting the participation of federal government appointees to the Board of Directors of Sustainable Development Technology Canada (STDC) in the decision-making process.

Response: The issue under consideration was covered under clause 15.20 in STDC Funding Agreement Three. That clause was withdrawn by the President of the Treasury Board in a letter to the STDC in February 2007. Subsequently, the agreement was formally revised and that clause was amended accordingly.

For further information, please contact NRCan's Internal Audit Branch.