ARCHIVED - 2010-2011 DPRs - Response to Parliamentary Committees and External Audits

Standing Committee on Agriculture and Agri-Food

Competitiveness of Canadian Agriculture
The report was adopted by the Committee and presented to the House of Commons on May 6, 2010. A Government Response was requested by the Committee and presented to the House of Commons on September 20, 2010. The response was in the spirit of the report and shared the Committee's commitment to addressing the needs of the agriculture and agri-food sector to improve competitiveness while protecting and enhancing returns to farmers.

The response is available on the Parliament of Canada's website.

Young Farmers: The Future of Farming
The report was adopted by the Committee on September 28, 2010 and presented to the House of Commons on November 19, 2010. Government response was requested by the Committee and presented to the House of Commons on March 21, 2011. The response was in the spirit of the report and shared the Committee's commitment to young and beginning farmers in the agricultural sector.

The response is available on the Parliament of Canada's website.

Chapter 5 of the Auditor General's (AG) 2010 Spring Report pertained to an audit of Scientific Research at Agriculture and Agri-Food Canada (AAFC). The objective of the audit was to determine whether the Department had managed its research activities to achieve its strategic direction and priorities, including how it manages its research projects, human resources and capital assets.

The Department agreed with the six audit recommendations and prepared an action plan which is now being implemented to address all recommendations.

AAFC was also included in three chapters of the Auditor General's 2010 Fall Report. These chapters were government-wide audits: Chapter 1 - Canada's Economic Action Plan (EAP); Chapter 2 - Management and Control in Small Entities; and Chapter 4 - Managing Conflict of Interest.

The audit of Canada's EAP examined the design and delivery of EAP infrastructure programs including AAFC's Modernizing Federal Laboratories Initiative. There were no audit recommendations addressed to AAFC.

The objective of the Management and Control in Small Entities audit was to determine whether three small federal organizations had effective management control procedures in place for acquisition cards, contracting, executive travel, and hospitality and whether they had sound human resource management practices for selected areas of human resources. The Canadian Pari-Mutuel Agency (CPMA) was one of the three entities assessed. The CPMA was included in one recommendation which concerned performance agreements and appraisal forms for Executives. The Department agreed with the recommendation and has acted on it.

The Managing Conflict of Interest (COI) audit examined COI policies, controls, mechanisms, and frameworks and how thoroughly the Treasury Board Secretariat and five departments, including AAFC, had assessed the effectiveness of their COI activities. The audit found that mechanisms to address COI were in place in the five audited departments, but that follow-up was needed to ensure COI declarations were dealt with in a timely manner. The audit also noted AAFC had taken steps to address issues of COI found in the 2007 audit of Canadian Agricultural Income Stabilization program.

AAFC is included in three of the five audit recommendations. AAFC agreed with the recommendations, prepared a detailed action plan and is acting upon it.

The AG reports with the recommendations and management responses included can be found on the Auditor General's website.

Facilitating the Flow of Imported Commercial Goods:

The Office of the Auditor General's Audit Report entitled Facilitating the Flow of Imported Commercial Goods was tabled in Parliament on October 26, 2010. The Audit made the following four recommendations:

Recommendation 8.28: The Canada Border Services Agency should improve its systems and practices for monitoring the quality of electronic information that it receives during the commercial importing process – to obtain reasonable assurance that this information is accurate, complete and timely. The Agency should then use the results of its monitoring process for continuous improvement.

Recommendation 8.49: The Canada Border Services Agency should improve its measurement of service standards and should collect and publish service information to increase predictability in the commercial importing process.

Recommendation 8.59: To have better assurance that the assessments provided by importers are accurate and complete, the Canada Border Services Agency should improve its measurement and monitoring of: 

• trend information on importer compliance;
• significant changes in compliance patterns, and
• the estimated revenue impact of non-compliance with the rules for assessing duties and taxes owing on imported commercial goods.

Recommendation 8.64: The Canada Border Services Agency should ensure that the reassessment policy is applied consistently and correctly. It should then monitor importers to ensure that they comply with the required corrective actions.

The audit report and the CBSA responses to each recommendation can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_08_e_34291.html

Office of the Commissioner of Official Languages:

The Office of the Commissioner of Official Languages issues report cards to a number of federal institutions. The report cards evaluate the strengths and weaknesses of federal institutions in terms of their various obligations under the Official Languages Act. The 2009–10 Report Card for the Canada Border Services Agency (CBSA) gave the Agency an overall rating of E.

The report card for the CBSA was completed and posted in 2010-11. It can be found at:
http://www.ocol-clo.gc.ca/html/cbsa_asfc_09_10_e.php

Response to the Fourth Report of the Standing Committee on Canadian Heritage entitled: Canadian Musical Diversity Component of the Canada Music Fund.

• On December 8, 2009, the Standing Committee on Canadian Heritage tabled in the House of Commons a report entitled: “Canadian Musical Diversity Component of the Canada Music Fund”. The report contained three recommendations, mostly asking to restore the Canadian Musical Diversity Component within the Canada Music Fund and that additional funding be allocated to the Canada Council for the Arts to further support specialized music. The Government Response, signed by the Minister of Canadian Heritage and Official Languages, was tabled on April 1, 2010. It indicated that “consultations with the music industry and [the] evaluation of the program illustrated that the Canada Music Fund needed to better respond to the challenges of the digital and international markets”. The Response also mentioned that “the Canada Music Fund will continue to support a wide variety of Canadian music through a simplified structure”. Finally, the Response highlighted that with the renewal in 2009 of the Canada Music Fund, which includes $138 million in funding over five years , the Government has “delivered the stability the Canadian music sector needs and have reduced bureaucracy, while increasing the visibility of Canadian music both in Canada and abroad”.

Link to the Government Response:
http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4405226&Mode=1&Parl=40&Ses=2&Language=E

Response to the Fourth Report of the Standing Committee on Public Accounts entitled: Chapter 1, Gender-Based Analysis of the Spring 2009 Report of the Auditor General of Canada.

• On April 14, 2010, the Standing Committee on Public Accounts tabled in the House of Commons a report entitled: Chapter 1, Gender-Based Analysis of the Spring 2009 Report of the Auditor General of Canada. The report contained five recommendations, including a request that Status of Women Canada provide an interim status report to the Committee by December 1, 2010 and that central agencies provide stronger accountability, communication and reporting with respect to gender-based analysis being considered in policy development within federal departments and agencies. The report also asks the Government “to ensure that Status of Women Canada has sufficient resources to assess the implementation and effectiveness of the government’s GBA practices”. The Government Response, signed by the Minister for Status of Women, was tabled on August 18, 2010. It indicated that “the Government is confident that the Departmental Action Plan on Gender-Based Analysis’ (GBA Action Plan) aims to accelerate the integration of GBA is making progress”. Regarding accountability, the Response indicated that “GBA is a shared responsibility across the federal Government, with responsibility for performing and documenting the analysis and accounting for results resting with individual departments and agencies, with Deputy Heads being accountable for its implementation”. With respect to communication, the Response states that “SWC and central agencies are committing to taking additional steps to delivering clear messages on the technical support available (i.e. guidance, tools) for departments through existing commitments in the GBA Action Plan”. Finally, as per the commitment made in the Response, SWC provided the Committee with an interim status report on the implementation of the GBA Action Plan in December 2010. The report highlights that “SWC has been working with the federal organizations identified in the audit and others who are pro-actively fulfilling the expectations regarding the application of GBA and the creation of GBA framework elements”, and provides an update in terms of accountability, communications, reporting and resources. The report concludes that “allowing sufficient time for SWC and Central Agencies to provide adequate support and build strong capacity throughout the government and its different professional communities is also critical if the practice of GBA is to become sustainable. These insights will be used to inform the management of subsequent phases of the implementation of the GBA Action Plan”.

Link to the Government Response:
http://www.parl.gc.ca/HousePublications/Publication.aspx?Mode=1&Parl=40&Ses=3&Language=E&DocId=4649580&File=0

Link to the Interim Status Report:
http://www.parl.gc.ca/Content/HOC/Committee/403/PACP/WebDoc/WD4595936/Action_Plans/43-Status%20of%20Women%20Canada-e.htm

Response to the Second Report of the Standing Committee Foreign Affairs and International Development entitled: Canada’s Universal Periodic Review and Beyond – Upholding Canada’s International Reputation as a Global Leader in the Fields of Human Rights.

• On November 3, 2010, the Standing Committee on Foreign Affairs and International Development tabled in the House of Commons a report entitled: Canada’s Universal Periodic Review and Beyond – Upholding Canada’s International Reputation as a Global Leader in the Fields of Human Rights. The report contained twelve recommendations asking to “improve the system currently in place for monitoring, reporting, implementing and enforcing Canada’s international human rights obligations and that these reforms take place transparently”. The Report also asked that “the Government of Canada table each UPR report concerning Canada’s human rights record and any UN treaty body reports on the same subject in Parliament and that each of these reports be referred to an appropriate parliamentary committee for study”; and that ”the Government of Canada expand the mandate of the Continuing Committee of Officials on Human Rights to include ongoing consultations with civil society and aboriginal organizations”. The Government Response signed by the Minister of Canadian Heritage and Official languages was tabled in the House of Commons on February 28, 2011. It indicated that “the Government of Canada is committed to the domestic implementation of its international human rights obligations and to demonstrating its progress through effective results-based reporting”. “The Government of Canada is taking measures to ensure the effective implementation of Canada’s international human rights obligations by enhancing its own existing mechanisms and procedures. To this end, the Government of Canada is currently developing an approach to raise greater awareness of international human rights obligations in the federal public service. The Government of Canada is also in the process of identifying all existing interdepartmental and intergovernmental committees and working groups that discuss issues relating to human rights, to ensure that officials can easily make links and share appropriate information more widely and efficiently.” Finally, “the Government of Canada will strive to further increase transparency and accountability with regard to implementation and reporting, and to build on its progress to date in improving the process for ongoing civil society and Aboriginal organization consultations.”

Link to the Government Response:
http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4989669&Language=E&Mode=1&Parl=40&Ses=3

Response to the Third Report of the Standing Senate Committee on Official Languages entitled Implementation of Part VII of the Official Languages Act: We Can Still Do Better.

• On June 17, 2010, the Standing Senate Committee on Official Languages tabled its Third Report of the Standing Senate Committee on Official Languages entitled Implementation of Part VII of the Official Languages Act: We Can Still Do Better which included 10 recommendations. The Government Response was signed by the Minister of Canadian Heritage and Official Languages and tabled in the Senate on December 7, 2010. The report points out that real progress has been made since 2005 in fulfilling the commitment to the development of official language minority communities and the full recognition and use of both English and French in Canadian society. “However, it indicates that institutions are slow to act and that the Government must provide more guidance”. In its response, “the Government shows that its actions and commitment are fully in line with the intent of the Committee’s recommendations in its report. The Government wishes to reassure the Committee that it will continue to provide guidance and active support to all federal institutions, to assist them in honouring their obligations towards official language minority communities and the full recognition and use of both English and French in Canadian society”.

The Government Response is not available online.

Response to the Second Report of the Standing Committee on Official Languages entitled The Impact of Approval and Payment Delays on Department of Canadian Heritage Recipient Organizations.

• On December 2, 2009, the Standing Committee on Official Languages tabled its Second Report entitled The Impact of Approval and Payment Delays on Department of Canadian Heritage Recipient Organizations which included 10 recommendations. The Government Response was signed by the Minister of Canadian Heritage and Official Languages and tabled in the House of Commons on April 1, 2010. “The report acknowledges that the Department has undertaken a number of positive measures to ease the impact on client organizations, but suggests that corrective actions are still required to maintain the Department’s commitment to community development”. “The Committee also emphasized the need to reduce the administrative burden placed on client groups” when applying for funding. In its response, the Department of Canadian Heritage shows that it has developed a two-year action plan to address concerns about the impacts of approval delays. The action plan includes a number of administrative reforms to ease and simplify the process some of which have already been implemented in 2009-10. The Department “is committed to providing greater stability and certainty for its client organizations”.

Link to the Government Response:

Fall 2010 - Chapter 4—Managing Conflict of Interest
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_04_e_34287.html#appa

The objective of this audit was to find out whether the Treasury Board of Canada Secretariat and five selected departments had provided the tools public servants need to meet the federal government’s responsibilities for managing conflict of interest. Canadian Heritage (PCH) was selected, as an example of a small department focused on issuing grants and contributions. Four of the six recommendations on implementation of conflict of interest measures in selected departments were addressed to PCH. PCH agreed and responded to all recommendations by developing a management action plan.

Status Report
June 2011 - Chapter 3—Internal Audit
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201106_03_e_35371.html#appa

Casual employment: Sources and practices
http://www.psc-cfp.gc.ca/adt-vrf/rprt/2010/ce-eo/index-eng.htm

Use of Temporary Help Services in Public Service Organizations
http://www.psc-cfp.gc.ca/adt-vrf/rprt/2010/th-at/index-eng.htm

Audit of appointments from collective staffing processes
http://www.psc-cfp.gc.ca/adt-vrf/rprt/2010/cs-dc/index-eng.htm

Report 18: Chapter 8, Strengthening Aid Effectiveness - Canadian International Development Agency of the Fall 2009 Report of the Auditor General of Canada (presented to the House on September 20, 2010)

Government response: The Eighteenth Report of the Standing Committee on Public Accounts Entitled Chapter 8, Strengthening Aid Effectiveness - Canadian International Development Agency of the Fall 2009 Report of the Auditor General of Canada (Presented to the House on January 19, 2011

Report 2: Maternal and Child Health (Presented to the House on June 16, 2010)

Government Response: Second Report of the Standing Committee on the Status of Women entitled: "Maternal and Child Health" (Presented to the House on October 8, 2010)

• No recommendation was received in 2010-2011.

• No recommendation was received in 2010-2011.

• No external audits in 2010-2011.

Report 2—Best Practices in Settlement Services

The Standing Committee on Citizenship and Immigration presented the report and six recommendations to the House of Commons on March 30, 2010.

The recommendations covered a wide range of issues, including: developing a proposal for an interactive website on best practices in settlement services; judging joint proposals for settlement funding favourably; continuing support and expansion of local immigration partnerships; supporting the flexibility under the modernized approach to settlement programming with respect to business and self-employment support programs and mental health and family counselling; permitting greater flexibility in determining the length of time individuals are eligible for particular settlement services; and establishing trauma counselling and school support as eligible activities under the Resettlement Assistance Program.

The Government of Canada’s response was tabled on September 20, 2010.

Report 13—Chapter 2, Selecting Foreign Workers Under the Immigration Program of the Fall 2009 Report of the Auditor General of Canada

The Standing Committee on Public Accounts presented the report and eight recommendations to the House of Commons on May 12, 2010. The recommendations covered issues related to the Federal Skilled Worker Program, including the application backlog and the effects of the high numbers of new applicants.

The Government of Canada’s response was tabled on September 20, 2010.

Report 3—Recruitment, Intake and Integration: What Does the Future Hold for Immigration to Official Language Minority Communities?

The Standing Committee on Official Languages presented the report and 21 recommendations to the House of Commons on November 29, 2010. The recommendations covered a wide range of issues concerning the capacity of official language minority communities (OLMCs) to recruit, receive and integrate newcomers, and the federal government’s capacity to support the vitality of OLMCs through immigration initiatives, partners and funding.

Due to the dissolution of the 40th Parliament, no government response was tabled in the House of Commons.

Report 27—Chapter 3, Service Delivery, of the Fall 2010 Report of the Auditor General of Canada

The Standing Committee on Public Accounts presented the report and four recommendations to the House of Commons on March 25, 2011. The recommendations covered issues related to service delivery at Citizenship and Immigration Canada, including a large backlog and long processing times in the Citizenship Program.

Due to the dissolution of the 40th Parliament, no government response was tabled in the House of Commons.

The Department was also identified in one recommendation of the following committee report:

Report 25—Chapter 1, Aging Information Technology Systems, of the Spring 2010 Report of the Auditor General of Canada

The Standing Committee on Public Accounts presented the report to the House of Commons in February 2011. The Committee requested that Citizenship and Immigration Canada, as well as Public Works and Government Services Canada, Human Resources and Skills Development Canada, and the Royal Canadian Mounted Police, provide the Public Accounts Committee with a report by April 31, 2011, on progress in addressing the recommendations made by the Office of the Auditor General in Chapter 1 of the Spring 2010 Report.

Due to the dissolution of the 40th Parliament, no government response was tabled in the House of Commons.

In December 2008, the Office of the Auditor General tabled its report, including a chapter (7) on the Economy and Efficiency of Services - Correctional Service Canada. The Standing Committee on Public Accounts (PACP) released its 15th report in June 2009 as a result of this chapter. A government response was developed and was tabled in the House of Commons on October 19, 2009: http://www.oag-bvg.gc.ca/internet/English/parl_oag_200812_e_31776.html

PACP report: http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=3960844&Language=E&Mode=1&Parl=40&Ses=2

Government Response: http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=4144540&Language=E&Mode=1&Parl=40&Ses=2

A final status report was tabled in November 2010.

In April 2010, the Standing Committee on Public Safety and National Security (SECU) tabled its 1st report, Prison Farm Closures and Food Provisionment. A government response was developed and was tabled in the House of Commons on September 20, 2010.

SECU Report:
http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4410256&Language=E&Mode=1&Parl=40&Ses=3

Government Response: http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&Parl=40&Ses=3&DocId=4655210&File=0

In June 2010, the Standing Committee on Health (HESA) tabled its 6th report, Promoting Innovative Solutions to Health Human Resource Challenges. A government response was developed and was tabled in the House of Commons on October 6, 2010.

HESA Report:
http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4631326&Language=E&Mode=1&Parl=40&Ses=3

Government Response: http://www.parl.gc.ca/HousePublications/Publication.aspx?Language=E&Mode=1&Parl=40&Ses=3&DocId=4677841&File=0

In February 2009, the Auditor General of Canada tabled her December 2008 report in the House of Commons. As noted in the previous section, Chapter 7 related to CSC. In its response to the Auditor General’s report, CSC agreed to all five recommendations and committed to address them by March 31, 2010. All recommendations were fully implemented by the end of 2010-2011. The OAG‘s report, including CSC’s response can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_200812_e_31776.html

In addition, the December 2008 annual report of the Commissioner of the Environment and Sustainable Development (CESD) made reference to CSC, more specifically with respect to the following commitment: “Reduction of water consumption via the implementation of multiple measures to conserve potable water. By March 2010, CSC will reduce its potable water consumption by 10 percent.”

The audit observed that because of a lack of accurate monitoring and reporting by its facilities, CSC is unable to reliably track progress on its commitment. Since the time of the audit, measures have been taken to enhance our ability to track progress on our commitments and we remain on track to meet our reduction target. The CESD report can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200812_04_e_31821.html#hd3c

In November 2010, the Office of the Commissioner of Official Languages tabled in Parliament Volume II of its Annual Report for 2009-2010 including the Report Card.

CSC’s overall rating was ‘D’ or ‘poor’. CSC acknowledged the results and committed to making improvements. A result-based official languages improvement action plan aimed at addressing the weaknesses identified was developed. This plan, approved at the National Human Resource Management Committee in January 2011, is currently being implemented. It includes amongst other topics a robust monitoring of the active offer across the Department which includes:

• A monthly monitoring of in-person and by-phone active offer at all sites, with a compliance report produced and shared with the Executive Committee members on a quarterly basis.

The report card can be found at:
http://www.ocol-clo.gc.ca/html/csc_scc_09_10_e.php

• Third Report of the Standing Committee on Finance: Servant or Master? Differing Interpretations of Personal Services Business, tabled in the House of Commons on June 10, 2010

  The report recommended that the government review the Income Tax Act to ensure tax fairness for small business owners, particularly those in the information technology (IT) sector, who wish to be considered as "incorporated employees" of "personal services businesses."

  The government"s response, tabled in the House of Commons on October 7, 2010, is not available on the Parliament of Canada's website.

• Twelfth Report of the Standing Committee on Public Accounts: Chapter 3, "Income Tax Legislation" of the Fall 2009 Report of the Auditor General of Canada

  A report on the Auditor General of Canada"s audit of the activities of the Department of Finance Canada and the Canada Revenue Agency for identifying and developing legislative amendments to correct technical issues in the Income Tax Act.

  Government Response to the Twelfth Report of the Standing Committee on Public Accounts: "Chapter 3, 'Income Tax Legislation,' of the Fall 2009 Report of the Auditor General of Canada," tabled in the House of Commons on September 20, 2010

• Interim Report of the Standing Committee on Government Operations and Estimates: Implementation of the Economic Action Plan, tabled in the House of Commons on May 10, 2010

  Government Response to the Interim Report of the Standing Committee on Government Operations and Estimates, "Implementation of the Economic Action Plan," tabled in the House of Commons on September 20, 2010

• Response to Chapter 1—Audit of Canada's Economic Action Plan, of the 2010 Fall Report of the Auditor General of Canada, published in October 2010. A detailed response follows each recommendation.

• Response to Chapter 5—Regulating and Supervising Large Banks, of the 2010 Fall Report of the Auditor General of Canada, published in October 2010. A detailed response follows each recommendation.

• PUBLIC PROTECTION, PRIVACY AND THE SEARCH FOR BALANCE: A STATUTORY REVIEW OF THE DNA IDENTIFICATION ACT

  Report of the Standing Committee on Legal and Constitutional Affairs presented to the Senate on June 28, 2010

  • Government Response (December 2010)

    Response signed by both the Minister of Justice and the Minister of Public Safety

• POWER OF COMMITTEES TO ORDER THE PRODUCTION OF DOCUMENTS

  Report of the Standing Committee on Public Accounts adopted by the Committee on November 18, 2009 and presented to the House on December 3, 2009

  • Government Response (March 31, 2010)

    Response signed by both the Minister of Justice and the Leader of the Government in the House of Commons

The Department is mentioned in the Auditor Generals 2011 Spring Report, Chapter 3 – Internal Audit, an element of which assessed: whether departments were meeting the Policy requirement to have an external review of the internal audit function conducted at least once every five years; and, whether departments had made satisfactory progress in addressing Recommendation 1.92 of the 2004 November Report of the Auditor General, which recommended that departments should ensure that their internal audit groups conduct an external quality assessment by January 2007. These assessments cover the entire spectrum of internal audit work that the internal audit activity performs. The Auditor General found that few departments, including Justice Canada, have had an external quality assessment review and evaluated progress as unsatisfactory. Consequently, section 3.80 of the chapter recommends:

• Departments that have not had an external quality assessment should have an assessment conducted as required by the International Standards for the Professional Practice of Internal Auditing and the Treasury Board Policy on Internal Audit.

The Department of Justice Canada’s response: Agreed.

The Department of Justice is planning to conduct an external quality assessment during the 2011–12 fiscal year.

The Department was not the subject of an audit conducted by either the Public Service Commission of Canada or the Office of the Commissioner of Official Languages in 2010-11.

Auditor General

April 2010

Chapter 4 – Sustaining Development in the Northwest Territories: examines how Aboriginal Affairs and Northern Development Canada, Environment Canada and Human Resources and Skills Development Canada have supported land claim settlements, an environmental regulatory system and community capacity to participate in skills training and economic development opportunities, all considered key to sustainable and balanced development in the Northwest Territories.

A recommendation was made to Environment Canada in this audit and the audit and the Department’s response may be found at

http://www.oag-bvg.gc.ca/internet/English/parl_oag_201004_04_e_33717.html.

June 2011

Chapter 3 – Internal Audit: examines guidance and oversight provided to the internal audit function of departments and agencies by the Office of the Comptroller General of Canada. The audit also looks at a sample of internal audit activities to determine whether 24 of the largest departments have established independent audit committees.

A recommendation made to all departments has already been implemented by Environment Canada. This audit may be found at

http://www.oag-bvg.gc.ca/internet/English/parl_oag_201106_03_e_35371.html.

Commissioner of the Environment and Sustainable Development

December 2010

Chapter 1 – Oil Spills from Ships: examines whether Transport Canada, the Canadian Coast Guard (Fisheries and Oceans Canada), and Environment Canada have taken reasonable actions to implement legislated and other measures to prepare for and respond to pollution from ships in Canada’s marine environment.

Recommendations are made to Environment Canada in this audit and the audit and the Department’s response may be found at

http://www.oag-bvg.gc.ca/internet/English/parl_cesd_201012_01_e_34424.html.

Chapter 2 – Monitoring Water Resources: examines whether Environment Canada’s Fresh Water Quality Monitoring program and its National Hydrometric Program were well managed to adequately monitor and report on surface fresh water quality and quantity in Canada.

Recommendations are made to Environment Canada in this audit and the audit and the Department’s response may be found at

http://www.oag-bvg.gc.ca/internet/English/parl_cesd_201012_02_e_34425.html.

Chapter 3 – Adapting to Climate Impacts: examines whether selected entities have mechanisms in place to share information and manage risk to support adaptation to the impacts of a changing climate.

Recommendations are made to Environment Canada in this audit and the audit and the Department’s response may be found at

http://www.oag-bvg.gc.ca/internet/English/parl_cesd_201012_03_e_34426.html.

Commissioner of Official Languages

Audit of the Bilingual Weather and Environmental Services Provided on the Environment Canada Automated Telephone Network – Follow-up

This is a 2010 follow-up audit to a 2008 audit that was aimed at determining whether Environment Canada and, more specifically, the Meteorological Service of Canada, were in compliance with their obligations under Part IV of the Official Languages Act to deliver weather services in both official languages. The 2008 audit focused exclusively on weather services offered to the Canadian public on the Meteorological Service of Canada’s automated telephone network.

The 2010 audit reviews the progress of management actions made in response to the 2008 audit recommendations. Both audits and the Department’s response to the recommendations contained in the 2008 audit may be found at

http://www.ocol-clo.gc.ca/html/audits_verifications_e.php#BFI.

1. Financial Management and Control and Risk Management—2011 June Status Report (Chapter 1)

The Office of the Auditor General (OAG) conducted a Follow-up Audit of Financial Management and Control and Risk Management during the summer and fall of 2010.

The objective of the audit was to determine whether the Treasury Board of Canada Secretariat, the Office of the Comptroller General of Canada (OCG) within the Secretariat, and selected departments have made satisfactory progress in implementing selected recommendations and addressing relevant observations reported in the OAG 2006 May Status Report, Chapter 1, Managing Government: Financial Information, and its 2003 April Report, Chapter 1, Integrated Risk Management. This audit assessed the progress of implementing the Chief Financial Officer (CFO) model and establishing an integrated risk management framework within DFAIT. The final report was tabled on June 9, 2011.

The audit found that financial management capacity has increased across government. Departments have made efforts to recruit, train and develop financial officers and managers with the required qualifications and experience. The proportion of chief financial officers with professional accounting designations has grown from 33% in 2002 to 82% in 2010.

The OAG made several recommendations. Full details of the department’s responses can be found on the OAG website at www.oag-bvg.gc.ca/internet/English/parl_oag_201106_01_e_35369.html#appa.

2. Audit of Internal Audit—2011 June Status Report (Chapter 3)

The Follow-up Audit of Internal Audit in Large Departments and Agencies was conducted by the OAG during the summer and fall of 2010.

The audit objective was to assess the progress that the government has made in addressing the concerns raised in Chapter 1, Internal Audit in Departments and Agencies, of the OAG 2004 November Report. The Office of the Chief Audit Executive received an overall rating of “generally conforms,” the highest of three possible ratings. The final report consolidating the results of all departments and agencies included in the OAG’s audit was tabled in Parliament on June 9, 2011.

The audit also found that the 24 largest departments and agencies—which account for about 95% of the government’s total assets, liabilities, revenues and expenses—have established independent departmental audit committees that include individuals with impressive qualifications from outside government. The impacts of those committees and the strong support from senior management have contributed to strengthening internal audit in government.

DFAIT did not receive any recommendations concerning this audit. Full details of the report can be found on the OAG website at www.oag-bvg.gc.ca/internet/English/parl_oag_201106_03_e_35371.html.

3. Expenditures for the 2010 G-8 and G-20 Summits—2011 Spring Report (Chapter 1)

The audit of federal spending for the G-8 and G-20 summits was conducted during the summer and fall of 2010. This audit assessed DFAIT’s planning and budgetary management related to its role in the summits. The final report was tabled in Parliament on June 9, 2011.

DFAIT did not receive any recommendations concerning this audit.

Full details of the report can be found on the OAG website at www.oag-bvg.gc.ca/internet/English/parl_oag_201104_01_e_35220.html.

1. Study on Use of Temporary Help Services in Public Service Organizations (by the Public Service Commission)

The study included DFAIT and explored the use of temporary help services in 11 Public Service organizations; its results were published in October 2010. While the study recognized the role of temporary help services in addressing organizations’ short-term resourcing needs, the overall conclusions were that:

• Temporary help services were being improperly used to address long-term needs.
• Temporary help services provided a source of recruitment into the Public Service, as many of the study organizations’ temporary help service workers later became employed in the same organization in which they had held their contract.
• Expenditures for temporary help services increased considerably over the past decade.
• More guidance and monitoring are required to ensure that uses of temporary help services respect the values and objectives of the Public Service Employment Act.

Full details of the study report can be found on the Public Service Commission website at www.psc-cfp.gc.ca/adt-vrf/rprt/2010/th-at/index-eng.htm#toc5.

"Promoting Innovative Solutions to Health Human Resources Challenges" - Report by the Standing Committee on Health was released June 17, 2010. The Government Response was tabled October 6, 2010

The Committee's report contained twenty-nine recommendations. The Committee stated that thinking boldly and broadly about Health Human Resources is necessary to develop local and unique solutions that involve a wide range of health professionals from midwives to health information managers. The Committee concluded that on-going collaboration is needed between different levels of government, including leadership from the federal government in providing secure and sustained funding mechanisms geared towards: primary care reform, better integration of internationally educated health professionals, and increasing the number of Aboriginal health human resources. The Committee recommended that the federal government needs to be more effective in its promotion of collaborative planning in Health Human Resources with interested jurisdictions, either through existing mechanisms or the establishment of new ones.

The Government Response affirmed its commitment to addressing the Health Human Resources issues raised, and highlighted the extensive work that it has already taken in this area.

For further information, please visit:
House of Commons Committees - HESA (40-3) - Promoting Innovative Solutions to Health Human Resources Challenges

"The Way Forward: Addressing Elevated Rates of Tuberculosis Infection in On-Reserve First Nations and Inuit Communities" - Report by the Standing Committee on health Report was released June 8, 2010. The Government Response was tabled October 6, 2010.

The Committee's Report contained fourteen recommendations under the following themes: Health Canada's National TB Program, Collaboration Across Jurisdictions, Involvement of First Nations and Inuit Communities in TB prevention and Control; and Social Determinants of Health.

The Government Response reconfirmed its commitment to reducing TB rates among on-reserve First Nations and Inuit and acknowledged the complexity of TB and the need for coordinated efforts by multiple partners to reduce the burden of this disease. In addition, The Government stressed that addressing the social determinants of health for First Nations is one of the most important ways to prevent disease, including TB. The Government also stated that it is committed to collaborating with partners to reduce the incidence of TB in the Aboriginal populations of Canada.

For further information, please visit:
House of Commons Committees - HESA (40-3) - The Way Forward: Addressing the Elevated Rates of Tuberculosis Infection in on Reserve First Nations and Inuit Communities - Cover Page

2010 Fall Report of the Commissioner of the Environment and Sustainable Development

Chapter 3--Adapting to Climate Impacts

Government reports have demonstrated that climate change affects all regions of the country and a wide range of economic sectors.  These impacts and the need to adapt to them touch on virtually all federal government portfolios, with significant implications for policies and programs related to Canadians' health and the country's industry, infrastructure, and ecosystems.   Adapting to actual or expected changes in climate involves adjusting our decisions, activities, and thinking.  These adjustments are essential both to minimize adverse effects and to take advantage of new and beneficial opportunities.  The government acknowledges that climate change is inevitable and that we must adapt to its impacts in order to reduce their severity.

The OAG examined five key federal departments whose mandates are affected significantly by climate change--Environment Canada, Natural Resources Canada, Health Canada, Indian and Northern Affairs Canada, and Fisheries and Oceans Canada.  The OAG looked at whether the departments are identifying and assessing the risks posed by climate change in their areas of responsibility and whether they are taking steps to adapt to the risks by considering them in their planning and decision making. Further, they looked at four climate change adaptation programs in these departments to determine whether they have collected and disseminated information in a usable way to those who need the information.  The report made three recommendations, of which one was directed at Health Canada.

Departmental Response:
Health Canada agrees with the recommendation of the Auditor General of Canada.

For further information on this audit, please visit:
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_201012_03_e_34426.html#hd3b

October 2010 Office of the Privacy Commissioner

Audit of The Protection of Personal Information in Wireless Technology:  An Examination of Selected Federal Institutions

The entities that the Office of the Privacy Commissioner (OPC) examined deliver services and programs that Canadians depend on.  The delivery of these services and programs requires the use of sensitive personal information. These entities have an obligation to ensure that they implement technical, physical and administrative safeguards to protect the integrity and security of personal information that they transmit and store within wireless environments.

The PCO examined whether the audit entities have assessed the threats and risks of the wireless technologies and have implemented measures to mitigate these risks.  They also looked at the controls in place to protect personal information managed within a wireless environment, including the use of passwords and encryption and restrictions on the use of PIN-to-PIN messaging.  Further, they also tested surplus wireless devices (smart and cellular phones) and scanned for wireless access points within or immediately surrounding the premises occupied by the audit entities.  The Report made nine recommendations, of which seven apply to Health Canada.

Departmental Response:

Health Canada agrees with the recommendations of the Office of the Privacy Commissioner.

For further information on this audit, please visit:
http://www.priv.gc.ca/information/pub/ar-vr/ar-vr_wt_2010_e.cfm

1. Federal Poverty Reduction Plan: Working in Partnership Towards Reducing Poverty in Canada
   • Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) – Tabled in the House of Commons on November 17, 2010.
   • Government Response was tabled March 4, 2011.

   http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=5009108&Language=E&Mode=1&Parl=40&Ses=3

2. In from the Margins: A Call for Action on Poverty, Housing and Homelessness
   • Senate Standing Committee on Social Affairs, Science and Technology; adopted in the Senate on December 8, 2009.
   • Government Response was tabled in the Senate on September 24, 2010.

   http://www.parl.gc.ca/ParlBusiness/Senate/Committees/Committee_SenRep.asp?Language=E&Parl=40&Ses=3&comm_id=47

3. Pension Security for Women
   • Standing Committee on the Status of Women (FEWO) – Tabled in the House of Commons on December 10, 2009.
   • Government Response was tabled in the House of Commons on April 1, 2010.

   http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4405404&Language=E&Mode=1&Parl=40&Ses=2

Objective:
The objective of the audit was to determine whether selected entities had adequately identified and were managing the risks related to critical aging information technology (IT) systems. The audit also focused on three critical aging systems (Employment Insurance Program; Personal Income Tax; and the Standard Payment System) to determine whether the organizations using them have identified and managed those risks.

Overall, the audit found that while the Department has taken some steps to manage the risks related to their aging IT systems, much work remains to be done. Four of the chapter’s five recommendations were jointly directed at the Department and other selected audited entities. The Department accepted the chapter’s recommendations and full implementation of the associated actions is expected by March 2012.

The Department’s response can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201004_01_e_33714.html#appa

Auditor General’s 2010 Spring Report – Chapter 2
Modernizing Human Resource Management

Objective:
The objectives of the audit were to determine whether:

• the lead agencies and selected departments have implemented the new requirements of the Public Service Modernization Act (PSMA), including reporting;
• the objective and requirements for the legislative review have been established; and
• new roles and responsibilities have been carried out.

HRSDC, as well as 5 other entities, were selected for examination as part of the audit work based on the size of the organization, staffing volumes, and audit coverage. Neither of the chapter’s two recommendations were directed at the Department.

The audit report can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201004_02_e_33715.html

Auditor General’s 2010 Spring Report – Chapter 4
Sustaining Development in the Northwest Territories

Objective:
The objective of this audit was to determine whether Indian and Northern Affairs Canada, Environment Canada and HRSDC had adequately implemented key measures to prepare for sustainable and balanced development in the Northwest Territories (NWT). The sub-objectives were to determine whether:

• INAC has made constructive efforts to clarify the land, resource, and governance rights of Aboriginal claimant groups in the Northwest Territories according to the Comprehensive Land Claims Policy (1986) and the Inherent Right of Self-Government Policy (1995);
• INAC and Environment Canada have established and carried out an adequate regulatory system to manage land and water resources and protect the environment in the Northwest Territories; and
• INAC and HRSDC can show that they have adequately supported skills training and local economic development initiatives designed to build the capacity of Aboriginal peoples and residents in the Northwest Territories.

Overall, the audit found that HRSDC programs support skills training for Aboriginal peoples in the NWT and monitor short term objectives and targets. However, the Department has yet to assess the longer-term impact of its skills training programs on sustainable employment of Aboriginal peoples in the NWT. It further noted that while progress has been made, key measures remain to be adequately implemented, including the establishment of an environmental regulatory system throughout the NWT and economic development programs that address the Territory's unique needs.

One of the chapter's eight recommendations was directed at HRSDC. The Department accepted the chapter’s recommendation and full implementation of the associated actions is expected by December 2014.

The Department’s response can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201004_04_e_33717.html#appa

Auditor General’s 2010 Fall Report – Chapter 1
Canada's Economic Action Plan

Objective:
The objective of the audit was to determine whether 12 Departments and agencies have adequately managed 11 programs for Canada’s Economic Action Plan (EAP) by putting in place appropriate management practices and providing programs to eligible recipients in a timely manner. HRSDC was not one of the primary departments audited and was only referenced in relation to reliance placed on the results of an Internal Audit of Program Eligibility; and whether audit plans considered risks in implementing EAP.

While none of the chapter’s three recommendations were directed at HRSDC, the Department was indirectly impacted by two of them: Projects funded met eligibility requirements based on information in applications; and Departmental internal auditors provided advice and assurance. Details of these indirect impacts are referenced in the audit report (Paragraph 1.32 – 1.37 and 1.54 – 1.59 respectively).

The audit report can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_01_e_34284.html

Auditor General’s 2010 Fall Report – Chapter 2
Management and Control in Small Entities - Pension Appeals Board

Objective:
The audit examined three small entities: The Canadian Forces Housing Agency; The Canadian Pari-Mutuel Agency; and The Pension Appeals Board (PAB). The PAB is an administrative tribunal that is responsible for hearing appeals of Canada Pension Plan applicants that arise from decisions of the Office of the Commissioner of Review Tribunals. The PAB is an administrative part of HRSDC, and is independent of the Department in its quasi-judicial role. The objective of the audit was to determine whether the three small entities had effective management control procedures in place for acquisition cards, contracting, executive travel, hospitality, and selected areas of human resource management.

Overall, the audit found that all three entities had effective control procedures and had applied them as required for the management acquisition cards, contracting, executive travel and hospitality. It further noted that although the entities had sound human resource management practices in the areas examined, documentation for performance agreements and appraisals could be improved.

The chapter’s single recommendation is jointly directed at all three entities and was accepted. The Department accepted the chapter’s recommendation and immediatley implemented the associated action (August 2010).

The Department’s response can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_02_e_34285.html#appa

Auditor General’s 2010 Fall Report – Chapter 3
Service Delivery

Objective:
The objective of the audit was to determine whether Citizenship and Immigration Canada, Human Resources and Skills Development Canada, and the Canada Revenue Agency have adequate practices to manage the quality of service they deliver to individuals. More specifically, the audit examined the practices used by the three entities to set service standards, monitor and report on their service performance, and act on the performance information to improve service quality. These entities were selected because of the volume and importance of services they provide directly to individuals.

Overall, the audit concluded that HRSDC has developed service standards that are clearly communicated to its clients and employees, regularly monitors and reports its performance against these standards, and has acted to resolve service-related issues identified as a result of regular monitoring. More importantly, the chapter recognizes that the Department has taken action in several areas to improve its services and includes as an example, the action taken by the Department to improve service for Employment Insurance.

The chapter’s single recommendation is not directed at HRSDC.

The audit report can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_03_e_34286.html

Auditor General’s 2010 Fall Report – Chapter 4
Managing Conflict of Interest

Objective:
The objective of this audit was to find out whether the Treasury Board of Canada Secretariat and five selected departments have provided the tools public servants need to meet the federal government’s responsibilities for managing conflict of interest. More specifically, the audit examined whether the Treasury Board of Canada Secretariat provides the tools that departments need to meet federal government conflict of interest responsibilities, and whether the five selected departments have ensured that mechanisms and assistance are in place and that designated senior officials have enough knowledge to meet their responsibilities on the issue of conflict of interest. HRSDC was included in this audit as an example of a department with a high dollar value of contracts and of grants and contributions.

Overall, the audit found that while TBS plays an important role related to conflict of interest, it has not provided sustained support to departments. Two areas that have suffered are guidance and training. The audit also noted that audited departments had the required mechanisms and assistance in place for managing conflict of interest; designated officials knowledgeable about their responsibilities; and processes in place to deal with conflict of interest declarations. However, departments need to follow up on required action and ensure declarations are dealt with in a timely manner. Finally, the audit found that while departments have begun to appreciate the need to examine their entire organizations to identify risks of conflict of interest, none had done so.

Four of the chapter’s six recommendations were jointly directed at HRSDC. The Department accepted the chapter’s recommendations and full implementation of the associated actions is expected by March 2012.

The Department’s response can be found at:
http://www.oag-bvg.gc.ca/internet/English/parl_oag_201010_04_e_34287.html#appa

Privacy Commissioner of Canada
The Protection of Personal Information in wireless Environments: An Examination of Selected Federal Institutions

Objective:
The objective of the audit was to determine whether the Canada Mortgage and Housing Corporation, Correctional Service of Canada, Health Canada, HRSDC, and INAC have adequate controls – including policies, procedures and processes – to protect personal information transmitted and stored within wireless environments. The security frameworks surrounding wireless networking and the use of portable wireless devices were examined as part of the audit work.

HRSDC was selected for this audit based on the extent it used wireless technologies to transmit and store personal information, the number of wireless access points to its wireless network(s), and the number of employees issued portable wireless devices. Overall, the audit identified weaknesses in HRSDC’s security measures for temporary storage of devices waiting to be destroyed.

Five of the chapter’s nine recommendations are jointly directed at HRSDC, and one is directed solely at the Department. The Department accepted the chapter’s recommendations and full implementation of the associated actions is expected by the end of August 2011.

The Department’s response can be found at:
http://www.priv.gc.ca/information/pub/ar-vr/ar-vr_wt_2010_e.cfm

Office of the Procurement Ombudsman
Procurement Practices Review 2009-2010
Chapter 3: Bid Evaluation and Selection Methods

Objective:
Government departments have established a number of supply arrangements (SAs) to procure graphic design services (GDS). In this review, the Ombudsman focussed on three SAs, two of which were set up by PWGSC and one by Transport Canada (TC). The objective of the review was to determine whether the three SAs for graphic design services were based on adequate strategies and plans to support the development of effective and efficient bid solicitation, evaluation and selection methods and to determine whether these plans and their practical implementation: support operational needs; reflect best value considerations; and encourage competition and quality.

One of the review’s two recommendations was jointly directed at HRSDC. The Department accepted the chapter’s recommendation and implemented the associated actions in winter 2011.

A copy of the review can be found at:
http://opo-boa.gc.ca/praapp-prorev/2009-2010/chptr-3-eng.html

Canadian Human Rights Commission
Employment Equity Audit Report

Objective:
The Employment Equity Compliance Division of the Canadian Human Rights Commission (the Commission) completed the preliminary assessment of compliance of Human Resources and Skills Development Canada in December 2010. The Commission conducted a progress assessment audit of the employer from July 10, 2008 to December 10, 2009. This phase of the Commission’s audit process was to ensure the employer (HRSDC) continued to fulfill its obligations under the Employment Equity Act and the audit report presented the results.

Overall, the report recommended that the Department increase self-identification response rates and bridge all the gaps in all occupational categories within three years. HRSDC is committed to creating an inclusive workplace that reflects Canada’s diversity and plans to erase all the gaps by increasing the self-identification response rate, by implementing a new employment equity plan for the period 2010-2012, and by having a closer monitoring process on the progress of representation of designated group members.

A copy of the audit report is not publicly available at the time of preparing this report.
http://www.chrc-ccdp.ca/publications/reports_rapports-eng.aspx#1

Office of Commissioner of Official Languages
Audit of Bilingual Service Delivery at Service Canada

Objective:
The audit sought to determine whether Service Canada (SC) management was committed to implementing Part IV of the Official Languages Act in order to provide Canadians with services of equal quality in English and French, whether front-line personnel in SC bilingual service points provided active offer and whether they provided services of equal quality in both official languages to the public in person, by telephone and via computer systems. Also verified was whether SC consulted representatives of official language communities in the various regions and whether it considered the results of these consultations when planning for the provision of bilingual services. Lastly, verification of whether the organization effectively monitored the quality of service delivery in both official languages was performed.

The Report underlined SC’s considerable efforts to ensure the active offer of bilingual services was efficiently implemented, which has led to tangible results. It also emphasized the leadership and commitment shown by SC’s senior management and in particular by the ADM for Citizen Service Branch. It was noted that bilingual capacity in certain regions is sometimes lacking, particularly with regard to the number of designated bilingual positions and the language profile required for citizen service agents and team leaders, and that better governance is needed in this regard.

Seven recommendations pertaining to the requirement to improve service delivery in both official languages at designated service points were directed at Service Canada. The Department accepted the chapter’s recommendations and full implementation of the associated actions is expected by March 2013.

The Department’s response can be found at:
http://www.ocol-clo.gc.ca/html/audit_verification_122010_e.php

Families have access to social support through trained Family Peer support coordinators within the Operational Stress Injury Social Support (OSISS) program. The Mental Health & OSI Joint Speakers Bureau has developed new mental health educational curriculum that is specific to families and deployment which includes information about potential negative behaviours associated with OSI and PTSD. The Joint Personnel Support Unit (JPSU) is now fully operational and has established Integrated Personnel Support Centres in 24 locations across Canada. The JPSU has been very successful in providing focused support to ill and injured CF personnel and their families. The collaboration with multiple service partners has greatly simplified the provision of high quality, standardized administrative and personal support to those who require it. JPSU staff have acquired significant expertise and experience that enable them to provide and facilitate comprehensive support based on individual needs. Families of the deceased now also have access to a consistent point of contact with the CF, and can also benefit from the services offered through the JPSU.  

This curriculum provides consistent information to both CF personnel and their families, including stress reduction strategies, experiences that are common in the deployment cycle, and a mental health continuum that allows recognition of behaviours that help identify when assistance should be sought. Delivery of the family curriculum is being made available both through personal sessions and web-based delivery to enable access by as many families as possible. CF personnel are also encouraged to discuss the Mental Health training they receive prior to deployment with their families, and the training provided during the decompression phase is oriented to assist returning personnel with the successful reintegration into family life.

In addition to the work that has already been described, the CF Family Violence Advisory Committee (CF FVAC) was re-instituted.

Information on mental health and OSI is already included in all Basic Military Qualification Training for commissioned and non-commissioned members, as well as Primary Leadership Qualification and Advanced Leadership Qualification. However, the CF is currently reviewing the detailed descriptions of the knowledge, skills, and other attributes required for all members of the CF for both officers and non commissioned personnel. This review is expected to result in the addition of OSI information to a greater number of courses. As of 1 October 2009, there will also be a standardized mental health and OSI pre-deployment education for all CF members, including leaders at all levels. This pre-deployment education will include recognition of behaviours often associated with mental health conditions, possible interventions, as well as information about available resources.

We now have the most comprehensive, multi-faceted approach to address barriers to accessing mental health care of any employer in Canada. 

Our mental health training programs are effectively changing the targeted attitudes and beliefs. CF members are significantly less likely to report barriers to care than are personnel in the United States, United Kingdom, Australia, or New Zealand.

This is now a continuing process that is well established and successfully implemented.

Currently, in the military health care system the CF employs: 128 Dentists; 121 Health Care Administrators; 57 Health Services Operation Officers; 234 Physicians (including specialists); 197 Nurses; 35 Pharmacists; 30 Physiotherapists; 26 Social Workers; 16 Bio-engineering Technicians; 202 Dental Technicians; 20 Laboratory Technicians; 27 Radiological Technicians; 1162 Medical Technicians; and 163 Physician Assistants.

Regarding maintenance of Clinical Skills (MCSP), the majority of CF generalist and specialist medical officers, new graduate nurses, physiotherapists, pharmacists, social workers, dentists, dental technicians, and operating room, laboratory and radiology technicians are employed in clinical positions where they obtain clinical practice daily. For clinicians who are employed in staff/administrative positions, the MCSP Tracking Tool is being utilized to report when members engage in MCSP that is outside of their normal daily work routine, which we had 278 Reg F participants of combined occupations reporting MCSP in FY 2010-2011.

Reservist clinicians normally work in their clinical environment in their civilian jobs, and therefore usually only require some clinical time in a CF clinical-related environment each year to maintain military competencies, for which we had 26 participants of combined occupations reporting MCSP in FY 2010-11. 

Any applicant reporting previous injuries or medical conditions is required to provide a civilian physician's assessment of the scope of those injuries, often requiring documentation from medical specialists. DND experience indicates that the minimal realistically achievable time needed for an applicant to obtain a specialist appointment, return this information to a recruiting centre then have DND medical staff review this information is several weeks and often requires several months. Application of the principle of Universality of Service prevents DND from making enrolment offers until medical fitness has been confirmed.  

All applicants must undergo a security assessment to determine whether they could be assigned a security clearance which is essential for employment within the Canadian Forces. Although the time required for this determination varies significantly based on each applicant's individual circumstances, Deputy Provost Marshal (DPM) Secur (the organization tasked with this evaluation) has a large backlog of files and typically requires more than one month and as much as several months for this review. 

In addition to delays with medical and security screening, existing and planned reductions to the Canadian Forces Recruiting Group (CFRG) will further erode DND's ability to enrol applicants on a timely basis. These will reduce CFRG's manning by 18% and may reduce the number of Recruiting Detachments by 25%. These reductions will further delay the processing of applicants and CFRG will not be able to provide equal opportunities to all Canadians to join the Canadian Forces. Those most impacted will be citizens from Northern and rural areas. 

(Fiscal year 2010-11 rates are preliminary). 

As well, an analysis to better understand new members' experiences relative to expectations showed that over half of respondents felt that service life had been worse or much worse than expected. As well, results showed that the worse a member's service life compared to what was expected, the lower the member's feeling of fit with the CF and organizational commitment, and the more these influenced the member's decision to leave. These findings highlight the importance of ensuring recruits have realistic expectations when joining the CF; building organizational commitment; and optimizing the fit between individuals and CF values.  

Analysis of data collected with the ongoing version of the survey, administered since summer 2008, is in progress. As well, the CF Retention Survey, which is administered to occupations that are "at-risk" with regards to attrition, is used to explore specific work and non-work related items and their impact on whether an individual intends to stay or leave the CF in the next five years. Descriptive results from the 2008 and 2010 administrations of the CF Retention survey have been published. Preparations for administration of the 2012 CF Retention survey have commenced. Results of the 2010 Retention survey will provide performance measures to the CF Retention Strategy.

While voluntary Regular Force attrition between 2006 and 2008 increased from 4% to 6.9%, this rate increase was manageable in that the CF had the capacity to recruit and train sufficient personnel necessary to replace those who left. However, the additional requirement to recruit and train personnel to meet Force Expansion targets strained both the recruiting and training systems.  

During fiscal year 2009 - 2010 the Strategic Intake Plan was set at a higher than traditional level and sought to enrol 7,454 personnel. Actual recruiting exceeded this target, with 7,522 personnel being brought into the Regular Force. Projected attrition was 6,250; however, with the downturn in the economy and a successful CF Retention Strategy, only 5,293 personnel left the Regular Force this past fiscal year. Consequently, with recruiting up and attrition down, the CF grew by 2,229 personnel during this timeframe. The Force Expansion requirements had been met, and as a result, the Strategic Intake Plan for fiscal year 2010-11 was reduced to 4724. The overall strength of the Regular Force as of end-March 2011 was 68,254 personnel and slightly surpassed the 2011-2012 growth target of 68,000.

The Strategic Intake Plan for the next few years has been reduced again to approximately 4,000 new recruits in FY 11/12. Recruitment is expected to be approximately 4,300 for the following few years. This reduction will alleviate the strain on the recruiting system. However, surge recruiting that occurred during the past few years created a backlog of personnel undergoing basic and initial occupational training. Efforts are being made to increase training capacity and to move these personnel from the Basic Training List to the Trained Effective Strength as quickly as possible; however, due to the length of many technical and professional training programs, it will take a few years before the Trained Effective Strength sees a substantial increase.

(Fiscal year 2010-11 rates are preliminary).

In 2010, the following moves were coordinated through the Brookfield Global Relocation Services (GRS), by quarter:  

During the reporting period the Auditor General (AG) and the Commissioner of the Environment and Sustainable Development tabled one audit report in Parliament focused specifically on National Defence-Chapter 6 of the October 2010 tabling titled "Acquisition of Military Helicopters".  

In the Chapter on "Acquisition of Military Helicopters" the AG concluded that for the Maritime Helicopter Project (MHP) CH-148 Cyclone and the Medium-to-Heavy-Lift Helicopter (MHLH) CH-147 Chinook), DND did not fully comply with key provisions of the TB Project Management Policy for Major Crown Projects, or with the Department's own guidance as contained in the Project Approval Guide (PAG). With respect to the contracting process for the Cyclone, the AG concluded that Public Works and Government Services Canada (PWGSC) and DND generally complied with the provisions of the Government Contracting Regulations and the TB Contracting Policy, but that a 2008 amendment was not consistent with the original strategy of lowest compliant price. For the Chinook, which employed an Advance Contract Award Notice (ACAN) process, the AG reported that the process did not comply with the letter or intent of the applicable contracting regulations and policies. In addition, the AG concluded that both helicopter projects have experienced cost increases and significant schedule delays.  

This Chapter, including the departmental response to the Auditor General's recommendations, can be accessed on the Auditor General's website: OAG Latest Audit Reports

Chapter 2 of the October 2010 report examined three small entities, including the Canadian Forces Housing Agency (CFHA). The AG concluded that all three entities had management controls in place that were consistent with TB requirements and that are applied in managing the use of acquisition cards, contracting, executive travel and hospitality. DND's response to the one recommendation directed at all three entities can also be found at the above link.  

In response to the annual request by the Auditor General, National Defence provided updates on the status of all OAG audit recommendations tabled in Parliament during the five-year period 2005-06 to 2009-10. This included updates with respect to the 2009 Fall Report on the "Acquisition of Military Vehicles for Use in Afghanistan"  

During FY 2010/11, the Office of the Procurement Ombudsman (OPO) completed a Procurement Practice Review titled: "Departmental Verification of Suppliers' Records to Validate Contract Payments" that included DND among other departments. This report contained one recommendation directed at all Departments and one directed at PWGSC. The executive summary of this review was included as part of this year's OPO Annual Report, which was tabled in Parliament by the Minister of PWGSC on June 15, 2010.

Audit on CF Individual Training and Education (IT&E) system  

In June 2010, the Office of the Commissioner of Official Languages (OCOL) made public the report of the audit on the CF Individual Training and Education (IT&E) system conducted in 2008. Overall, the report was well received by the department. This report, including recommendations and responses to the CF action plan, is available on the OCOL website at: http://www.ocol-clo.gc.ca/html/audits_verifications_e.php#BFI

The recommendations made by the OCOL were supported as they assist the DND/CF in directing its efforts and resources towards the long-term plan of Official Languages Act (OLA) compliance and will offer CF members the possibility of being trained in their official language of choice. Indeed, several steps have already been taken to implement these recommendations. However, efforts and resources are still required to assist the CF in achieving its long-term plan to offer all members the possibility of being trained in their OL of choice and ultimately, comply with the OLA. 

Follow-up on the audit of the Language of Work at NDHQ

In June 2010, the OCOL requested a detailed progress report identifying the corrective measures taken by the DND/CF to implement the 12 recommendations found in the report. The report produced by DND/CF highlighted that, since the audit, progress had been made with regard to senior leadership, awareness and education and second OL training. The report also specified that some weaknesses remain in areas such as maintenance of work environment conducive to the use of both OL, competencies of managers and supervisors in the second OL and provision of central and personal services in both OLs.  

In a response letter dated March 2011, the OCOL acknowledged that progress has been made, however, the OCOL also noted that a greater effort is required to create a workplace that is conductive to the use of both OLs. The OCOL recognized that the measures presented in the progress report look promising and reiterated that an effective monitoring mechanism should be put in place to assist DND/CF in reaching compliance with the OLA. This letter is available on the OCOL website at: http://www.ocol-clo.gc.ca/html/audits_verifications_e.php#BFI 

• The Senate Standing Committee on Energy, the Environment and Natural Resources tabled its interim report Attention Canada! Preparing for our Energy Future on 29 June 2010.
  • No recommendations received.
• The Senate Standing Committee on Energy, the Environment and Natural Resources tabled its report Facts Do Not Justify Banning Canada’s Current Offshore Drilling Operations: A Senate Review In the Wake of BP's Deepwater Horizon Incident on 18 August 2010.
  • The report examined the current status of Canada’s offshore oil and gas exploration and development industry, including the nature of the applicable regulatory regime(s) and Canada’s present offshore disaster response capability. The committee made six recommendations.
  • The NEB did not table a Government Response, but is addressing Recommendations 3, 5 and 6 in an Arctic context through its Arctic Offshore Drilling Review. With respect to Recommendation 4, the NEB works with other regulators and agencies on an ongoing basis to improve the prevention of and response to oil spills. Recommendations 1 and 2 do not require action from the Board at this time.

1. To the Senate Committee on Agriculture and Forestry: The Future of Canada's Forest Industry: NRC was represented by Dr. Roman Szumski (on the role of R&D) and by Pat Mortimer (on support for SMEs by NRC-IRAP)
2. To the Standing Committee of Agriculture and Agri-Food: Role of Biotechnology: NRC was represented by Mr. Jerome Konecsni (on the role of NRC's Sub Activity: Plant Biotechnology Research)

• On March 24, 2011 the Minister of Natural Resources presented to the House of Commons the Government's response to the Standing Committee on Natural Resources' report entitled "The National Research Universal Reactor Shutdown and the Future of Medical Isotope Production and Research in Canada" that was presented to the House on November 24, 2010. The response addresses each of the report's eighteen recommendations in detail.
  
  
• This response can be found online at:  http://www.parl.gc.ca/HousePublications/
  Publication.aspx?DocId=5063422&Language=E&Mode=1&Parl=40&Ses=3

2009 Spring Report of the Auditor General of Canada (2009-05 OAG) Chapter 6 - Selected Contribution Agreements—Natural Resources Canada
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/parl_oag_200905_06_e_32519.html

Recommendation 6.28
Natural Resources Canada should develop policies and guidance to identify and address conflict of interest situations noted by our audit.

Response
Natural Resources Canada has developed policies and guidance to identify and address conflict of interest situations in contribution agreements. Management’s actions to-date include: updating the transfer payment policy to address conflict of interest, forming a transfer payment review committee, creating a centre of expertise on Grants & Contributions, and updating our Values and Ethics framework. We have also updated our transfer payment training to better address conflict of interest situations.

Recommendation 6.29
Natural Resources Canada (NRCan) should ensure that the management of contribution agreements, and compliance with them by both parties to the agreement, is monitored independently from outside the program area.

Response
Financial Management Branch implemented its independent monitoring strategy in June 2010. It is currently finalizing the analysis and preparing a draft report which will be completed in April 30, 2011.

2009 Spring Report of the Auditor General of Canada (2009-05 OAG) Chapter 3 - Health and Safety in Federal Office Buildings
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/parl_oag_200905_03_e_32516.html

Recommendation 3.80
Departments should ensure that fire safety plans are prepared and administered in accordance with established federal legislation and Treasury Board policies and standards.

Response
The OAG audit only examined one NRCan building, 580 Booth Street, and it revealed a weakness regarding the preparation and administration of the fire plan for this facility. The 580 Booth Building Emergency Organization Fire Evacuation Plan has since been updated and is administered in accordance with established federal legislation and Treasury Board policies and standards. 
With regard to other NRCan facilities, all senior officers have prepared and administered a fire safety plan in accordance with established federal legislation and Treasury Board policies and standards.

Recommendation 3.88
Departments should ensure that all evacuation drills are held as required by federal legislation and Treasury Board policies and standards.

Response
The audit only examined one NRCan building, 580 Booth Street, and revealed a weakness regarding the holding of evacuation drills for this facility.  At 580 Booth Street, evacuation drills, are now being held as required by federal legislation and Treasury Board policies and standards. For all other facilities, a review has indicated that out of 41 facilities where drills must be conducted, only two facilities did not comply with the requirement to conduct fire drills.  Appropriate steps are being taken to ensure compliance.

Recommendation 3.93
Departments should ensure that building fire emergency organizations are established and administered as required by federal legislation and Treasury Board policies and standards.

Response
Fire emergency organizations are established and administered in all NRCan facilities, as required by federal legislation and Treasury Board policies and standards.

2005 April Report of the Auditor General of Canada (2005-04 OAG) Chapter 1 - Natural Resources Canada - Governance and Strategic Management
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/parl_oag_200504_01_e_14932.html

Recommendation 1.111
Natural Resources Canada should improve its performance measurement framework and reporting to provide parliamentarians with better information on the results and outcomes of its programs. In particular, it should -develop a systematic process for linking performance targets at the corporate level with business plans; and improve its performance reports by including an analysis of its legislated mandate, linking the Department's priorities to government priorities and rationalizing its assessment of its performance against various frameworks.

Response (Update 2011)
In 2010-11, the Department has continued its efforts in improving its Program Activity Architecture (PAA) along with making further refinements to its supporting performance measurement framework (PMF), which includes the ability of the Department to “tell a comprehensive performance story”.

2006 September Report of the Commissioner of the Environment and Sustainable Development (2006-09 CESD) Chapter 1 - Managing the Federal Approach to Climate Change
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/att_c20060901aa_e_14562.html

Recommendation 1.44 Natural Resources Canada 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 verification are reported publicly.

Response (Update 2011)
A report was released in the 2009/10 fiscal year. A contract with a firm for independent verification was put into place in July 2010.  The contractor has completed and submitted the work.

2006 September Report of the Commissioner of the Environment and Sustainable Development (2006-09 CESD) Chapter 2 - Adapting to the Impacts of Climate Change
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200609_02_e_14984.html

Recommendation 2.56  
Working with other federal departments and agencies producing or using information needed for adaptation efforts and with other levels of government and stakeholders, Environment Canada and Natural Resources Canada should identify and fill gaps in the needed information, including results of impacts and adaptation research and results from climate science; and identify the demand for initiatives that provide decision makers with access to information and technical expertise on adaptation tailored to their needs. Based on that work, they should strengthen existing initiatives and establish others, as required.

Response (Update 2011)
As of August 2010 - On Regional Adaptation Collaboratives (RACs): Adaptation project development in the 5 southern Canada regions is now well underway. Public announcements were made for agreements in BC, the Prairies and the Atlantic. Quebec and Ontario RACs are expected to be publicly announced by fall 2010. Work is still underway for the Northern RAC and arrangements should be finalized this fall. Longer than expected discussions with parties and the summer season explain the additional delay (no real consequences).

On Tools: Seven contribution agreements have been put into place to develop decision-support tools in three theme areas: risk management guides for communities (in partnership with ICLEI); Local Governments for Sustainability; tools for  professional planners (in partnership with Canadian Institute of Planners); and an upgraded protocol for assessing infrastructure vulnerability (in partnership with Engineers Canada). Also, NRCan has conducted a national benchmark survey of business and government decision-makers to assess their level of awareness and action on climate change adaptation.

Finally, an NRCan-led federal-provincial-territorial working group tasked the Pembina Institute and EcoRessources Consultants to prepare a report that identified enablers and barriers, sector requirements and government activities in adaptation for the Canadian electricity sector. The report was completed earlier this year and shared with other jurisdictions and sector stakeholders.

In November 2010, management provided further documentation regarding a paper published on climate change.  This paper has been prepared in collaboration with other federal departments, provincial, territorial and municipal jurisdictions, as well as other stakeholders and academics who participated on this initiative.

2006 September Report of the Commissioner of the Environment and Sustainable Development (2006-09 CESD) Chapter 3 - Reducing Greenhouse Gases Emitted During Energy Production and Consumption
For more information on this audit, go to
http://www.oag-bvg.gc.ca/internet/English/parl_cesd_200609_03_e_14985.html

Recommendation 3.32   Natural Resources Canada should complete the evaluation of the Wind Power Production Incentive that it committed to in 2002. It should also complete a thorough economic analysis to clarify the extent to which the economics of wind power are changing across Canada and whether there are implications for this program.

Response (Update 2011)

NRCan has developed a comprehensive financial model to assess levelized unit cost of wind energy, the impacts of the ecoENERGY for Renewable power program incentive and federal tax measures on the economics of wind power. The model and its results have been the subject of consultations with other Departments and the Wind Energy Industry.  The evaluation of the WPPI Program started in 2009 and was completed in August 2010.  The evaluations of other renewable energy programs were completed at the same time.

On September 29, 2010, the Chief Electoral Officer appeared before the Standing Senate Committee on Legal and Constitutional Affairs to seek formal approval for Elections Canada to test an assistive voting device (AVD), to help electors with disabilities during the November 29, 2010, by-election in the electoral district of Winnipeg North. On October 21, 2010, the Committee tabled its Report on the Use of Assistive Voting Device for Persons with Disabilities. The report approved the request to test the AVD and made a number of recommendations, one being that the Chief Electoral Officer should report back to the Committee by March 1, 2011, with the results of the pilot project.

On October 7, 2010, the Chief Electoral Officer appeared before the Standing Committee on Procedure and House Affairs, seeking formal approval for the AVD pilot project.

On March 1, 2011, the Chief Electoral Officer submitted to both committees a report on the AVD pilot project, which included Elections Canada's response to the recommendations of the Senate and House committees. The report can be found at www.elections.ca/content.aspx?section=res&dir=rep/oth/avd&document=index&lang=e.

No recommendations were received during fiscal year 2010–2011.

No external audits were conducted during fiscal year 2010–2011.

Standing Committee on Public Accounts: Report 2 - Chapter 2, The Governor in Council Appointment Process of the 2009 Status Report of the Auditor General of Canada

The report was adopted by the Standing Committee on Public Accounts (the committee) on March 16, 2010, and presented to the House of Commons on March 29, 2010.

A Government Response, as requested by the committee, was presented to the House of Commons on September 20, 2010. It included a response to each of the six recommendations of the report.

2010 Fall Report of the Auditor General of Canada
Chapter 2 – Modernizing Human Resource Management

This chapter examined whether the Treasury Board Secretariat (TBS), including the new Office of the Chief Human Resources Officer, has implemented the legislative requirements of the Public Service Modernization Act; in particular, the introduction of more flexible hiring processes and clearer roles and accountability for human resource management.

Although the Privy Council Office (PCO) was reviewed in this chapter of the report, no recommendations were addressed to PCO.

http://www.oag-bvg.gc.ca/internet/English/parl_oag_201004_02_e_33715.html

2010 Fall Report of the Auditor General of Canada
Chapter 1 – Canada’s Economic Action Plan

This chapter examined whether selected federal entities adequately managed selected programs for Canada’s Economic Action Plan (EAP), putting in place appropriate management practices and providing programs to eligible recipients in a timely manner. The findings generally were that the selected EAP programs examined in the audit adequately managed implementation, had appropriate management practices and were delivered to eligible recipients in a timely manner.

Recommendation 1.69 stated that the Department of Finance (Finance) and PCO should prepare a summary report to Parliament at the conclusion of the EAP that includes a detailed account of the EAP’s impact on the economy. The departments generally agreed, and stated that they are committed to supporting the government in its reporting on the delivery and economic impact of the EAP, building upon the five reports to Canadians that have been provided to date.

PCO, TBS and Finance agreed with Recommendation 1.74 that the practices introduced for the EAP should be assessed to determine which of them could be implemented, where applicable, to provide more timely and efficient processes for the design and delivery of current and future programs and initiatives.

Five recommendations were directed at the various federal organizations. Public Works and Government Services Canada was involved in three recommendations.

1.49 Citizenship and Immigration Canada, Human Resources and Skills Development Canada, and Public Works and Government Services Canada should use a department-wide portfolio management approach to ensure that they focus on current and planned IT investments that best contribute to meeting their business objectives, with an acceptable degree of risk and at a reasonable cost.

1.50 Citizenship and Immigration Canada, Human Resources and Skills Development Canada, and Public Works and Government Services Canada should develop a multi-year IT investment plan that presents a balanced mix of mandatory, sustaining, and discretionary investments that they require to both sustain existing systems and to improve service delivery.

1.59 Human Resources and Skills Development Canada, Public Works and Government Services Canada, Citizenship and Immigration Canada, and the Royal Canadian Mounted Police should develop an action plan for each significant aging IT risk. The plans should include specific strategies, key activities, deliverables, and timelines to manage these risks. These entities should report progress regularly to senior management.

One recommendation was directed at Public Works and Government Services Canada.

3.56 The Minister of Public Works and Government Services Canada, in cooperation with and with the support of the speakers of the Senate and the House of Commons—and in concert with the Senate Standing Committee on Internal Economy, Budgets and Administration, and the Board of Internal Economy—should develop and propose mechanisms to ensure that responsibility and accountability for the Parliament buildings rest with the Senate and the House of Commons.

Chapter 1 – Canada’s Economic Action Plan
The audit objective was to determine whether selected federal entities have adequately managed selected programs for Canada’s Economic Action Plan by putting in place appropriate management practices and providing programs to eligible recipients in a timely manner.

Public Works and Government Services Canada was one of ten departments selected for this audit.

Chapter 4 – Managing Conflict of Interest
The objectives of the audit were to determine whether:

• the Treasury Board of Canada Secretariat provides the tools that departments need to meet federal government conflict of interest responsibilities, and
• the five selected departments have ensured that mechanisms and assistance are in place and that designated senior officials have enough knowledge to meet their responsibilities on the issue of conflict of interest.

Six recommendations were directed at the various federal organizations Public Works and Government Services Canada was involved in three recommendations.

4.64 Agriculture and Agri-Food Canada, Canadian Heritage, Human Resources and Skills Development Canada, Natural Resources Canada, and Public Works and Government Services Canada should develop an approach to risk assessment that includes identification and prioritization of risks, assessment and mitigation strategies, and residual risk assessment, in the key areas where major conflicts of interest could arise.

4.65 Once they have identified high-risk areas through an appropriate risk assessment process, Agriculture and Agri-Food Canada, Canadian Heritage, Human Resources and Skills Development Canada, Natural Resources Canada, and Public Works and Government Services Canada should require public servants in identified high-risk areas to report regularly, whether or not they have a conflict of interest.

4.72 Canadian Heritage, Human Resources and Skills Development Canada, Natural Resources Canada, and Public Works and Government Services Canada should ensure that their training is based on the conflict of interest risks that staff in specific areas face as they carry out their duties; the training should include case studies and scenarios in these areas.

Chapter 6 – Acquisition of Military Helicopters
The overall objective of the audit was to determine whether National Defence and Public Works and Government Services Canada managed the acquisition of selected military helicopters in compliance with key provisions of government contracting and major capital project legislation, regulations, policies, and guidelines and to determine whether the Treasury Board of Canada Secretariat performed its related challenge function.

Two of six recommendations were directed at Public Works and Government Services Canada.

6.65 Public Works and Government Services Canada should review and apply the lessons learned with these helicopter acquisitions to ensure that, for future major capital equipment acquisitions, the degree of modifications and/or development involved is fully reflected in approval documents and in the assessment of risk, and that procurement strategies and contracts are tailored to the complexity of the equipment being acquired.

6.76 Public Works and Government Services Canada should undertake a review of lessons learned in the use of long-term in-service support contracts before amending the contract in 2013 with Boeing, in order to ensure that risks are appropriately identified and managed, costs are properly determined, and alternative service delivery options are considered.

Chapter 4 - Environmental Petitions
The objective of this chapter was to inform Parliament and Canadians about the use of the petitions process. It describes the number, nature, and status of petitions received received between July 1, 2009 and June 30, 2010, and the timeliness of responses from ministers.

While Public Works and Government Services Canada was late responding to the only petition it was responsible for this year, it missed the deadline by only one day.

Personal Information Disposal Practices in Selected Federal Institutions The audit objective was to determine whether selected government institutions have developed and implemented adequate controls – including policies and procedures – to ensure personal information is disposed of in a secure manner. The audit included Library and Archives Canada, Public Works and Government Services Canada (Crown Assets Distribution) and Industry Canada (Computers for Schools program).

Horizontal Internal Audit of Information Technology Asset Management in Small Departments and Agencies (SDAs)

The objective of the audit was to determine whether the management and control structures in place in SDAs provide an effective framework for managing IT assets.

Public Works and Government Services Canada was involved in this audit in its role as Common Service Provider.

Horizontal Internal Audit of Information Technology Asset Management in Large Departments and Agencies (LDAs)

The objective of the audit was to determine whether the management and control structures in place in central agencies and in LDAs provide an effective framework for making IT-related decisions at the government-wide and departmental levels, respectively.

Public Works and Government Services Canada was involved in this audit in its role as Common Service Provider.

Statistics Canada contributed to the Agriculture and Agri-Food Canada-led government response to a report of the House Standing Committee on Agriculture and Agri-Food. The committee's seventh report, Young Farmers: The Future of Agriculture, was tabled in the House on November 19, 2010. The Government Response to the Report was tabled on March 21, 2011. The report can be accessed at http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4755476&Language=E&Mode=1&Parl=40&Ses=3

The government response can be accessed at http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=5051365&Language=E&Mode=1&Parl=40&Ses=3

The department has not received any recommendation from the reports that were tabled by the Standing Committee on Transport, Infrastructure and Communities. Therefore, the department has not provided any response to this Parliamentary Committee.

In March 2010, the Standing Committee on Public Accounts issued its Third Report – Chapter 7, Special Examination of Crown Corporations — 2008 of the Spring 2009 Report of the Auditor General of Canada. The report had three recommendations that address the Great Lakes Pilotage Authority’s regulations and financial sustainability. It also has four recommendations for via Rail asking for a progress report on what actions the corporation has taken to implement the Auditor General’s recommendations, on the measures to mitigate risks and threats to its information technology system, on the status of spending for improving stations on the Windsor-Quebec corridor, and the status of its plans for increased ridership and revenue.

The Government Response was tabled in the House on September 20, 2010.

On September 20, 2010, Agriculture and Agri-Food Canada tabled its Government Response to the Third Report of the Standing Committee on Agriculture and Agri-Food: Competitiveness of Canadian Agriculture (adopted by the Committee on May 6, 2010), in which Transport Canada provided input for Recommendation 4.9 that the government follow promptly on the conclusions of the study Transport Canada was then conducting on levels of service in rail transport of grain. Following the government response, the department released its Rail Freight Service Review — Final Report in January 2011.

The Government Response was tabled in the House on September 20, 2010.

Chapter 1 of the Auditor General’s fall 2010 report concerned the delivery of selected Economic Action Plan programs of 12 departments. Transport Canada was covered by the Modernizing Federal Laboratories line of inquiry. There was no recommendation to Transport Canada. The audit report is available on the Office of the Auditor General's website.

Chapter 1 of the Commissioner of Environment and Sustainable Development’s fall 2010 report was an audit of oil spills from ships. It examined how Transport Canada, Fisheries and Oceans Canada (Canadian Coast Guard) and Environment Canada had managed spills of oil and chemicals from ships in Canada’s Arctic, Pacific, and Atlantic Ocean waters, and the Gulf of St. Lawrence. Three recommendations were addressed. Transport Canada accepted the recommendations and provided a management response that has been included in the report. The report and management action plan are available on the Office of the Auditor General's website.

Standing Committee on Transportation, Infrastructure and Communities (October 28, 2010) - RE: Government of Canada's deadline of March 31, 2011, for completion of Projects under the Infrastructure Stimulus Fund and the Recreational Infrastructure Canada Program.  No recommendations were received.

Standing Committee on Government Operations and Estimates (OGGO) (June 2, 2010) - RE:  Study on Renewable Energy Projects Funded by the Government.  No recommendations were received.

Standing Senate Committee on Industry, Science and Technology (INDU) (May 13, 2010) – RE: Main Estimates 2010-2011: Votes 1 and 5.  No recommendations were received.  As a follow-up to WD’s appearance before the committee, one member posed the following questions:

Question:  What timeframe can a company expect when submitting a proposal for a contribution to an RDA?

Answer:  Western Economic Diversification Canada (WD) does not currently provide direct assistance to private companies.  WD provides contributions to non-profit organizations, research organizations and post-secondary institutions.  Projects that are not eligible are often identified quickly.  The time required for due diligence on other projects can vary substantially from a few weeks to months depending on the complexity of the case.  Where the review process requires a longer timeframe, ongoing communications are maintained with proponent as issues are addressed.

Question:  Who has the delegation of authority for projects in each RDA?

Answer:  The Deputy Minister and Regional Assistant Deputy Ministers are responsible for conducting due diligence on project proposals and informing applicants when their proposals do not meet the established criteria.  Authority to approve Grants and Contributions projects lies with the Minister of State (Western Economic Diversification).  The Deputy Minister and Regional Assistant Deputy Ministers have the authority to make payments and various amendments to approved contribution agreements.

Senate National Finance Committee (FINA) (April 14, 2010) – RE: To discuss the Community Futures Program, examinations of the Main Estimates, interest in the Community Futures funding to RDAs. No recommendations were received. As a follow-up to WD’s appearance before the Committee, the Committee requested additional information on the following requests:

Information Request #1:  Additional information on specific measures for monitoring and assessing performance

Response:
The national Results-Based Management Accountability Framework (RMAF) is used by all of the Regional Development Agencies (RDA).  The RMAF contains a logic model and strategies for ongoing performance measurement, evaluation and reporting.  The performance measurement strategy identifies indicators for the outputs and outcomes in the logic model and describes how these indicators will be collected, how often and at what cost.  The evaluation strategy includes evaluation issues and questions, and associated data collection requirements.  The reporting strategy outlines the systematic reporting of evaluation and performance results.

WD like other RDAs, has a departmental Risk-Based Audit Framework (RBAF) which provides an explanation of the roles and responsibilities of management and Internal Audit; an assessment of key risks of the program; the approaches for program monitoring, Community Futures Organization (CFO) audits and Department Audits; and reporting strategies.

Information Request #2:  Information on some success stories

Response:
A sample of success stories related to the Community Futures Program from WD’s “Access West” and “Working with the West” publications.

Information Request #3:  The link to departmental financial statements

Response:
Link: http://www.wd-deo.gc.ca/eng/11656.asp

Information Request #4:  Information on the loan criteria used to guide the CFOs, including how criteria are determined, common deliverables, common terms and conditions.

Response:
The Community Futures Program Terms and Conditions are used by all RDAs and Section 2.1 outlines the conditions for administration of the Investment Funds.

Within this framework, in Western Canada, each CFO establishes their own policies to govern their internal operations and investment fund administration.

Information Request #5:  Examples of types of loans made in different regions and communities

Response:
Terms and Conditions and the Contribution Agreements allow CFO to provide the following types of investments:

• Loans - CFOs can lend up to $150,000 and interest rates will not normally be less than the prime rate plus two percent.  In 2009, the average value of all loans provided by CFOs in Western Canada was $51,000.
• Loan Guarantees - CFOs provide a guarantee on Small and Medium Enterprises (SME) loans issued by commercial financial institutions.
• Equity Investments - equity investment mechanism provided to incorporate SMEs in return for share capital.  The assistance provided must be the subject of formal agreements and the CFO must also have an investment exit strategy.  This option is not widely utilized.

As part of the evaluation of the Community Futures Program completed in 2008, WD conducted case studies of ten CFOs across western Canada.  Examples were cited which illustrate the size and diversity of businesses supported by CFOs across Western Canada.