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ARCHIVED - Horizontal Internal Audit of the Grants and Contributions Management Control Framework in Small Departments and Agencies

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Appendix A: Small Departments and Agencies and Their Grant and Contribution Programs Included in the Audit

Small Department or Agency	Program	Grant or Contribution Program	Spending in 2009–10 ($ millions)
a. The Federal Economic Development Agency of Southern Ontario (FedDev Ontario) administers this program on behalf of Infrastructure Canada; no funds are appropriated to FedDev Ontario. A total of $335.6 million has been committed by Infrastructure Canada, plus $205.6 million as part of the Economic Action Plan.
Canadian Environmental Assessment Agency	Participant Funding Program	Contribution	3.57
Canadian Environmental Assessment Agency	Promotional Research and Development Program	Contribution	0.30
Canadian Northern Economic Development Agency	Aboriginal Business Development Program	Contribution	2.30
Canadian Northern Economic Development Agency	Community Economic Development Program	Contribution	10.60
Canadian Polar Commission	Canadian Polar Commission Scholarship Program	Contribution	0.01
Federal Economic Development Agency for Southern Ontario	Building Canada Fund	Contribution	n/a^a
Federal Economic Development Agency for Southern Ontario	Southern Ontario Development Program	Contribution	130.00
Financial Transactions and Reports Analysis Centre of Canada	International Financial Intelligence Program	Contribution	0.80
Status of Women Canada	Women's Programs	Grant	14.75
Status of Women Canada	Women’s Partnership and Community Funds	Contribution	4.20

Appendix B: Links to Applicable Legislation, Frameworks, Policies, Directives and Guidance

Legislation, Frameworks, Policies, Directives and Guidance

Federal Accountability Act
Financial Administration Act
Framework for Identifying Risk in Grant and Contribution Programs (Office of the Auditor General of Canada, in collaboration with Industry Canada)
Policy on Transfer Payments
Directive on Transfer Payments
From Red Tape to Clear Results
The Report of the Independent Blue Ribbon Panel on Grant and Contribution Programs
The Government of Canada Action Plan to Reform the Administration of Grant and Contribution Programs (Treasury Board of Canada Secretariat)

Appendix C: Objectives and Related Criteria

The objective of this audit was to provide assurance that the governance, risk management and control processes over grant and contribution programs are being executed in compliance with the Treasury Board Policy on Transfer Payments (2008).

Sub-Objectives	Criteria
Departments and agencies have in place effective and efficient governance and control processes for the delivery of grant and contribution programs.	Roles, responsibilities, and accountabilities are clearly defined and communicated. Departments have standardized their control framework processes.
Programs are administered with due diligence and transparency in accordance with the approved terms and conditions.	Program promotion and recipient application is conducted in a manner that is fair and accessible. There are transparent control processes to ensure the consistent assessment and approval of recipients to meet the objectives of the program. Grants and contributions awarded over $25,000 to a single recipient are reported under proactive disclosure on the department's or agency's website. Recipient payments are made in compliance with the requirements of the Financial Administration Act and the Directive on Transfer Payments.
Departments and agencies exercise risk-based control, monitoring and oversight activities over grant and contribution programs.	Monitoring of individual recipients is performed proportionately to their risk level and in accordance with the terms and conditions of the program. There are monitoring and reporting processes in place to support program review and the departmental performance measurement strategy.
Departments and agencies are making initial progress in meeting the requirements of grants and contributions reform.	Collaboration exists within and across departments and agencies to harmonize grant and contribution programs. Departments and agencies have a strategy to implement service standards. Recipients are engaged in support of transparency, innovation and continuous improvement.

Appendix D: Recommendations by Department and Agency

**Legend**
Abbreviation	Small Department or Agency
CEAA	Canadian Environmental Assessment Agency
CanNor	Canadian Northern Economic Development Agency
CPC	Canadian Polar Commission
FedDev Ontario	Federal Economic Development of Southern Ontario
FINTRAC	Financial Transactions and Reports Analysis Centre of Canada
SWC	Status of Women Canada

Recommendations	SDAs with Multiple Recipients				SDAs with a Single Recipient
Recommendations	CEAA	CanNor	FedDev Ontario	SWC	CPC	FINTRAC
b. Recommendation 2 only applies to those organizations that have established recipient review committees.
1. SDAs delivering grant and contribution programs to a single recipient should ensure that the recipient is identified in the terms and conditions of the program.	Not Applicable	Not Applicable	Not Applicable	Not Applicable	Applicable	Not Applicable
2. SDAs should develop guidance for recipient review committees to ensure independence in their recommendations for recipient funding.^b	Applicable	Not Applicable	Not Applicable	Applicable	Not Applicable	Not Applicable
3. SDAs should develop checklists and other tools to support standardized processes.	Applicable	Applicable	Not Applicable	Applicable	Not Applicable	Not Applicable
4. SDAs should periodically report to management on program performance, based on established performance indicators.	Applicable	Applicable	Applicable	Applicable	Not Applicable	Not Applicable
5. SDAs should ensure that descriptions of the program assessment criteria are publicly available in order to provide greater clarity for those applying for a grant or contribution program to be able to demonstrate how they meet these criteria.	Applicable	Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
6. SDAs should assess applications from potential recipients based on pre-established assessment criteria.	Applicable	Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
7. SDAs should document their assessment of recipient applications and formal recipient approvals to provide greater transparency in the approval process.	Applicable	Applicable	Not Applicable	Not Applicable	Not Applicable	Not Applicable
8. SDAs should develop and implement recipient risk assessment strategies to enable more efficient use of resources in monitoring and reporting on recipients. SDAs should collaborate with other departments and agencies to share tools and guidance for risk assessment.	Not Applicable	Applicable	Applicable	Applicable	Not Applicable	Not Applicable

Appendix E: Risk Ranking of Recommendations

The following table presents the recommendations and assigns risk rankings of high, medium or low. The risk rankings were determined based on the relative priorities of the recommendations and the extent to which the recommendations indicate non-compliance with Treasury Board policies.

Legend

SDAs small departments and agencies

Recommendations	Priority
1. SDAs delivering grant and contribution programs to a single recipient should ensure that the recipient is identified in the terms and conditions of the program.	Medium
2. SDAs should develop guidance for recipient review committees to ensure independence in their recommendations for recipient funding.	High
3. SDAs should develop checklists and other tools to support standardized processes.	High
4. SDAs should periodically report to management on program performance based on established performance indicators.	Medium
5. SDAs should ensure that descriptions of the program assessment criteria are publicly available in order to provide greater clarity for those applying for a grant or contribution program to be able to demonstrate how they meet these criteria.	Medium
6. SDAs should assess applications from potential recipients based on pre-established assessment criteria.	High
7. SDAs should document their assessment of recipient applications and formal recipient approvals to provide greater transparency in the approval process.	High
8. SDAs should develop and implement recipient risk assessment strategies to enable more efficient use of resources in monitoring and reporting on recipients. SDAs should collaborate with other departments and agencies to share tools and guidance for risk assessment.	High

[1]. Public Accounts of Canada 2009. This figure represents a normalized year, excluding funding from the Economic Action Plan.

[2]. The Treasury Board Policy on Transfer Payments

[3] The Office of the Comptroller General has not undergone an external assessment at least once in the past five years of its internal audit activity to confirm its conformance with these standards.

[4]. The Treasury Board Policy on Transfer Payments