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COM1280 Final EC RBAEP by 8le4LZ9l

VIEWS: 10 PAGES: 95

									E NVIRONMENT C ANADA ’ S


R ISK -B ASED A UDIT P LAN   FOR
2010-2013

AND

R ISK -B ASED E VALUATION P LAN
2010-2015


A PRIL , 2010




DRAFT
                                                                                                         Environment Canada
                                                                                     Risk-Based Audit & Evaluation Plan


 TA B L E O F C O N T E N T S

1   INTRODUCTION ...................................................................................................1
    1.1    Purpose.................................................................................................................. 1
    1.2    Planning Approach ................................................................................................. 1
2   THE PLANNING CONTEXT..................................................................................3
    2.1    Our Vision, Mission, Values and Mandate .............................................................. 3
    2.2    Applicable Policies and Standards ......................................................................... 4
    2.3    Our Service Lines ................................................................................................... 4
    2.4    Governance ........................................................................................................... 5
    2.5    Environmental Scan ............................................................................................... 5
    2.6    Coverage Requirements ........................................................................................ 6
    2.7    Other Activities ....................................................................................................... 9
3   PRIORITIES AND ACTIVITIES ...........................................................................10
    3.1    Strategic Priorities ................................................................................................ 10
    3.2    Audit and Evaluation Activities ............................................................................. 10
4   OUR HUMAN AND FINANCIAL RESOURCES..................................................12
    4.1    Human Resources ............................................................................................... 12
    4.2    Financial Resources ............................................................................................. 13
5   AUDIT AND EVALUATION UNIVERSE .............................................................17
6   AUDIT PLAN SUMMARY – THREE YEARS AT A GLANCE.............................32
7   THREE-YEAR INTERNAL AUDIT PLAN ...........................................................39
    7.1    2010–2011 ........................................................................................................... 39
    7.2    2011–2012 ........................................................................................................... 50
    7.3    2012–2013 ........................................................................................................... 55
8   EXTERNAL AUDITS – 2010-2011 TO 2012-2013 ..............................................57
    8.1    2010–2011 ........................................................................................................... 57
    8.2    2011–2012 ........................................................................................................... 58
    8.3    2012–2013 ........................................................................................................... 58
9 EVALUATION PLAN SUMMARY – FIVE YEARS AT A GLANCE ....................59
10 FIVE-YEAR EVALUATION PLAN ......................................................................66
    10.1   2010–2011 ........................................................................................................... 66
    10.2   2011–2012 ........................................................................................................... 75
    10.3   2012–2013 ........................................................................................................... 77
    10.4   2013–2014 ........................................................................................................... 78
    10.5   2014–2015 ........................................................................................................... 79
11 EVALUATION COVERAGE OF TRANSFER PAYMENT PROGRAMS .............81
APPENDIX A   AUDIT AND EVALUATION PLANNING METHODOLOGY .........83
APPENDIX B   KEY CHANGES TO INTERNAL AUDITS PROJECTS –
             2009-2010 TO 2010-2011 .............................................................87
APPENDIX C   KEY CHANGES TO EVALUATION PROJECTS –
             2009-2010 TO 2010-2011 .............................................................90




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                                                    Risk-Based Audit & Evaluation Plan

List of Acronyms

AEB       Audit and Evaluation Branch
CAA       Clean Air Agenda
CAE       Chief Audit Executive
CARA      Clean Air Regulatory Agenda
CEAA      Canadian Environmental Assessment Agency
CEAP      Canada’s Economic Action Plan
CESD      Commissioner of the Environment and Sustainable Development
CRP       Corporate Risk Profile
DEC       Departmental Evaluation Committee
DPR       Departmental Performance Report
EAAC      External Audit Advisory Committee
EC        Environment Canada
GHG       Greenhouse Gas
HR        Human Resources
IBP       Integrated Business Plan
IIA       Institute of Internal Auditors
IM/IT     Information Management / Information Technology
MAF       Management and Accountability Framework
NRCan     Natural Resources Canada
OAG       Office of the Auditor General
OCG       Office of the Comptroller General
OCOL      Office of the Commissioner of Official Languages
OPP       One-Pass Planning Process
PAA       Program Activity Architecture
PSC       Public Service Commission
PWGSC     Public Works and Government Services Canada
RBAEP     Risk-Based Audit and Evaluation Plan
RBAP      Risk-Based Audit Planning
RPP       Report on Plans and Priorities
SPC       Strategic Planning and Coordination
TB        Treasury Board
TBS       Treasury Board Secretariat




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    1 INTRODUCTION

1 . 1 P U RP O S E
This document presents Environment Canada’s (EC) Risk-Based Audit Plan for 2010-2013 and
EC’s Risk-Based Evaluation Plan for 2010-2015. The plans have been designed with the
objective of allocating audit and evaluation resources to those areas that represent the most
significant risks and priority to the department, and to respond to implementation requirements
from the Treasury Board (TB) 2009 Policy on Internal Audit1 and the 2009 Policy on
Evaluation2.
The External Audit Advisory Committee (EAAC) reviewed the three-year audit plan and
supporting strategic planning and coordination activities and recommended it to the Deputy
Minister for approval. The five-year evaluation plan and supporting strategic planning and
coordination activities were presented to the Departmental Evaluation Committee (DEC) for its
review and approval.


1 . 2 P L AN N I NG AP P RO AC H
EC has continued to strengthen its approach to risk-based audit and evaluation planning, in
accordance with the requirements of the TB Policy on Internal Audit and the Policy on
Evaluation.
Key enhancements to this year’s plan include:
•     A more robust risk methodology based on the Policy on Internal Audit and consistent with
      the Office of the Comptroller General’s (OCG) Risk-Based Internal Audit Planning (RBAP)
      for Departments and Agencies’ Guidance, Methodology and Tools document;
•     A two-step consultation process with senior management to validate risk findings after the
      risk assessment and to validate ranking of audit and evaluation projects;
•     A five-year evaluation plan in response to the TB Policy on Evaluation; and
•     A description of the linkages between the Plan and the Audit and Evaluation Branch (AEB)
      Human Resources (HR) Plan.

R I S K- B AS E D P L AN NI NG M E THO D
The AEB conducted its risk assessment and prioritization process on the OCG’s RBAP for
Departments and Agencies’ Guidance, Methodology and Tools document, which provides a
comprehensive and rigorous approach to risk-based planning. This document, while focussed on
audit planning, was adapted by the AEB to include evaluation planning pending further guidance
from the Centre of Excellence on this area.


1
    Treasury Board Policy on Internal Audit, July 2009.
2
    Treasury Board Policy on Evaluation, April 2009.


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According to the RBAP guide and methodology, there are four steps to developing a robust risk-
based plan:
1. Identification the Audit and Evaluation Universe – This includes the identification of the
   audit and evaluation entities based upon an analysis and grouping of EC’s programs,
   activities, functions, structures and initiatives (i.e., 2010-2011 Program Activity Architecture
   (PAA)) which contribute to the achievement of the department’s strategic objectives.
2. Preliminary Prioritization of the Audit and Evaluation Universe – This includes the
   review of business conditions and risk of each entity based on a variety of sources including
   last year’s Audit and Evaluation Risk-Assessment, Strategic Review from 2009, the 2009
   Corporate Risk Profile (CRP), the last Management and Accountability Framework (MAF)
   assessment, the Report on Plans and Priorities (RPP), the Departmental Performance Report
   (DPR), past audits and evaluations, external audits and studies. Also included is the
   development of a comprehensive list of relevant risk factors and risks, for each entity, using
   tools (risk factors and risk taxonomy) from the OCG; senior management was consulted on
   the risks to which programs and activities are exposed. Each entity was assessed in terms of
   its risk exposure and significance using a series of prioritization criterion to generate an
   aggregated priority level assigned to each entity. Results of the risk ranking exercise are
   detailed in the working papers that support the ranking.
3. Final Prioritization of the Audit and Evaluation Universe – This preliminary priority was
   reviewed from both an audit and evaluation perspective based on their unique and
   independent criteria. Consideration was given to other factors such as mandated audits like
   OCG’s horizontal audits; mandated evaluations by TB; other assurance providers (e.g., the
   Office of the Auditor General (OAG), the Commissioner of the Environment and Sustainable
   Development (CESD), the Public Service Commission (PSC), the Privacy Commissioner, the
   Office of the Commissioner of Official Languages (OCOL)); time since last audit or
   evaluation; carry-over of audits and evaluations; planned audits and evaluations; follow-up
   audits; the readiness assessment for audited financial statements; Information Management /
   Information Technology (IM/IT) Risk Assessment; internal risk mitigation strategies in
   place; and consultations with senior management. Section 5 lists each element of the PAA
   rated according to its aggregate risk ranking and audit priority. Final priority rankings, scope
   and objectives, rationale, budget estimates and timelines were confirmed by AEB directors.
   Finally, professional judgement was applied to select and finalize the list of specific audit
   and evaluation projects. Senior management was consulted on the list of potential audits and
   evaluations and prioritization of the projects.
4. Audit and Evaluation Plan Development and Approval – Plan development considered
   the coverage of the high priorities over the planning horizon. The three-year audit plan is
   being presented to the EAAC for its review, comments and recommendation for the Deputy
   Minister to approve. The five-year evaluation plan is being presented to the DEC for its
   review and approval.

See Appendix A for a more detailed description of this year’s planning methodology.




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2 TH E PL AN NING CON TEXT

2 . 1 O U R V I S I O N, M I S S I O N, V AL U E S AN D M AN D AT E
OUR VISION
      To be strategic partners in the achievement of departmental outcomes through excellence
      in audit and evaluation services.
OUR MISSION
      To enable the department to efficiently and effectively achieve its strategic objectives and
      enhance its accountability to Canadians.
OUR VALUES
      The value statements of the AEB reflect the collective principles and values and ethics of
      the Branch, guide the Branch’s operational activities and strategic direction, and
      demonstrate its commitment to fairness, respect and professionalism.
             We promote and uphold the Values and Ethics Code for the Public Service in our
              activities.
             We are committed to providing value-added services, continuous improvement
              and to the ongoing development of employee knowledge, skill sets and
              competencies.
             We uphold the highest levels of integrity, objectivity and professionalism in all
              that we do.
             We cultivate diversity and inclusivity in the workplace, promote collegiality and
              team spirit in our interactions, and encourage open and respectful exchange of
              opinions and ideas.
             We recognize that our team is our most important resource.
             We encourage and celebrate innovation, excellence and the valued contributions
              of our employees.
OUR MANDATE
      To support the continuous improvement of programs, policies and initiatives at EC and to
      contribute to the achievement of departmental objectives by providing timely and
      objective information, assurance and advice to the Deputy Minister, the Associate Deputy
      Minister, the EAAC, the DEC and departmental management.




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2 . 2 AP P L I C AB L E P O LI CI E S AN D S T AN D AR D S
The legislative and policy framework governing the roles and responsibilities of the Audit and
Evaluation Branch is based on the Financial Administration Act, the 2006 Federal
Accountability Act, the 2009 Treasury Board Policy on Internal Audit, the 2009 Treasury Board
Policy on Evaluation, the 2008 Treasury Board Policy on Transfer Payments and the Institute of
Internal Auditors Standards.


2 . 3 O U R S E RV I CE L I N E S

I N TER N AL AU D I T
The Internal Audit division provides assurance to the Deputy Minister and senior management
through objective and independent evidence-based information, assessment and advice on the
adequacy of management practices, controls and accountability mechanisms. Other activities
include conducting special investigations of possible fraud or wrongdoing in relation to such
policies as Internal Disclosure of Information Concerning Wrongdoing in the Workplace and the
Values and Ethics Code for the Public Service. Internal Audit also monitors the implementation
of audit recommendations and these follow-ups are required to provide management assurance
that previous recommendations are acted upon. The division coordinates the relationship with all
external auditors including the OAG and the CESD; it provides assessments and advice to the
Minister, Deputy Minister, senior departmental managers, the EAAC and the DEC regarding
audits and reports issued by the external auditors.

E V AL U ATI O N
The Evaluation division ensures that departmental management receives timely, strategically
focused, objective and evidence-based information on the relevance, effectiveness, efficiency
and economy of departmental policies, programs and initiatives. Other activities include:
providing expert advice and advisory services in the area of evaluation; updating internal policies
and procedures to ensure ongoing compliance with TB policies and best practices; and reviewing
TB submissions and Memoranda to Cabinet to ensure evaluation commitments are sound and
factored into annual planning and risk assessment.

S TR ATE G I C P L AN N I NG     AN D   COORDINATION
The Strategic Planning and Coordination (SPC) division is responsible for the risk-based audit
and evaluation planning, budgeting, reporting, and SPC Quality Assurance, to ensure that the
Departmental Audit and Evaluation plans, reports and activities contribute to the Department’s
and the government’s priorities for the use of audit and evaluation as keys to strengthening
public service governance, accountability and transparency. The division also provides strategic
and secretariat support to the EAAC and the DEC and assists departmental managers in
responding to environmental petitions received from the CESD. The coordination of other AEB
corporate functions such as input to the RPP, DPR, CRP, MAF and human resource planning is
also centralized in SPC.


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2 . 4 G O V E R N AN C E

E X TE R N AL AU D I T AD V I SO R Y CO MMI TTE E
The EAAC, created in 2007 as a result of the 2006 Internal Audit Policy, is advisory to the
Deputy Minister. The EAAC’s primary purpose is to provide objective advice and
recommendations to the Deputy Minister regarding the sufficiency, quality and results of
assurance on the adequacy and functioning of the department’s risk management, control and
governance frameworks and processes (including accountability and auditing systems). The
committee does this by maintaining active oversight of core areas of departmental management,
control and accountability, including financial and performance reporting.

D E P AR TM E N T AL E V AL U ATI O N CO MMI TTE E
The DEC, chaired by the Deputy Minister, provides oversight to the evaluation function. The
Committee ensures the independence and effectiveness of the evaluation function and ensures
the accountabilities of managers.


2 . 5 E NV I RO NM E N TAL S C AN

Government Priorities
In the last three years, the Government of Canada has made significant investments in preserving
Canada’s environment by cleaning the air and water, reducing greenhouse gas emissions,
combating climate change, and protecting the natural environment. It has invested, for example,
in Canada’s Clean Air Regulatory Agenda, Canada’s Chemicals Management Plan, the Eco
Energy Initiative, Canada’s EcoTrust, the Eco Transport Strategy, and Canada’s EcoAction Plan.
Canada’s Economic Action Plan Initiatives
In Budget 2009, Canada’s Economic Action Plan (CEAP) included measures to support a cleaner
and more sustainable environment. It also included several spending measures to be
implemented by departments. The economic stimulus package presented in the plan identified
several projects to ensure additional funding provided to departments reflects the principles of
sound stewardship as highlighted in the Financial Administration Act. CEAP provided funding
to EC for the following four distinct initiatives over two fiscal years:
   Canadian Environmental Sustainability Indicator ($6.2 million for fiscal year 2009-2010
    only)
   Promoting Energy Development in the North --Mackenzie Gas Pipeline Project (10.4 million
    for 2009-2010 fiscal year only)
   Modernizing Federal Laboratories ($13.7 million in total for 2009-2010 and 2010-2011)
   Accelerating Federal Contaminated Sites Action Plan ($12.7 million in total for 2009-2010
    and 2010-2011)



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The Audit and Evaluation Plan takes into consideration the implementation of the CEAP
initiatives that are extended through fiscal-year 2010-2011.

C e n t r a l Ag e n c y P r i o r i t i e s
The TB Policy on Internal Audit requires that the Department maintains an effective and
independent internal audit function. The Policy sets out specific requirements with respect to
governance and the role of internal audit, including the requirement for the Chief Audit
Executive (CAE) to provide an annual overview assurance to the Deputy Minister and the EAAC
on the adequacy and effectiveness of departmental controls, governance and risk management,
support the OCG in the conduct of horizontal audits, as well as adherence to the standards of the
Institute of Internal Auditors (IIA).
The Policy on Evaluation, which took effect on April 1, 2009, provides directives and standards
with clear and specific direction to heads of evaluation, evaluators and program managers
regarding policy implementation, evaluation quality and standards. The objectives of the new
Policy include improving the availability of credible, quality evaluation evidence for informing
expenditure management decisions. This includes expanding evaluation coverage and focusing
evaluations on the performance of programs. The policy also supports departments in achieving
policy and program improvements and enhancing their public reporting. The implementation of
the new policy requirements will impact the evaluation activities over the next four years.

Departmental Priorities
EC will continue to deliver on some important commitments to take actions to protect the health
of Canadians and their environment. Over the planning period, the department will continue to
deliver on a wide range of services, program and initiatives for Canadians. In particular, the
department will pursue three major priorities: Realize concrete progress on international
continental and domestic initiatives on climate change and clean air; enhance environmental
protection through the implementation of key national initiatives; and foster capacity of enabling
functions to support programs.


2 . 6 C O V E R AG E R E Q UI RE M E N T S
Taking into consideration these priorities, and in accordance with the requirements of the
Internal Audit and Evaluation Policies, this plan has been developed to permit coverage of the
following key aspects of the department’s operation:

Coverage of the Management and Accountability Framework
Criteria
The TBS assessment of EC’s performance against the MAF for 2008 identified the RBAP as one
area in which EC internal audit was rated “Opportunity for Improvement”. More particularly, the
RBAP should be improved by risk ranking the audit universe entities by priorities, risk ranking
audit engagements and indicating whether audit topics were selected based on highest risk. In


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                                                                  Risk-Based Audit & Evaluation Plan

addition, the follow-up strategy should be documented with periodic reporting on the follow-up
of management action plans.
The draft TBS assessment against the MAF for 2009 provides a “Strong” rating for the RBAP.
Procedures to manage and follow-up on audit recommendations were developed and presented to
the EAAC. This plan has been improved to ensure coverage to address recommendations of
TBS to meet the MAF assessment criteria.

Coverage of Risk Management, Controls and Governance
Processes
The TB Directive on Chief Audit Executives, Internal Audit Plans, and Support to the
Comptroller General requires the CAE to provide “annual overview assurance reporting to the
deputy head and audit committee on the adequacy and effectiveness of departmental risk
management, control and governance processes”.
In order to prepare for this, EC has taken the following steps:
   The risk-based audit plan describes how all the high risk areas in the department will be
    examined by internal audit or other assurance providers, such as the OAG or the
    departmental evaluation group.
   The risk-based audit plan links each audit project to the CRP, the Corporate Priorities, and
    the MAF key elements, in order to ensure coverage and to help reporting.
   All recommendations, from internal audit, evaluation and external audits have been recorded
    in a database and will be categorized against a control model, such as the MAF core controls,
    the Committee of Sponsoring Organizations Internal Control – Integrated Framework
    (COSO) or the Guidance on Control, published by the Criteria of Control Board (COCO).
    The choice of the control model will be based on guidance from the OCG.
This, with other relevant information, will support the CAE in providing an annual assurance on
the adequacy and effectiveness of departmental risk management, control and governance
processes.

Coverage of Departmental Priorities
The backbone of the plan is the audit and evaluation universe, which defines the potential scope
of audit and evaluation activity and is comprised of individual “entities” that may be subjected to
internal audit or evaluation activity. The audit and evaluation universe (see Section 5) is
comprised of some 55 entities that correspond with the redefined 2010-2011 PAA. In 2010-
2011, EC will be implementing the re-defined PAA that will clearly present programs and
results.
Within the universe, projects have been selected such that they are adequately covered and
aligned with departmental priorities and corporate risks and to support the reporting requirements
of the CAE.




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                                                                 Risk-Based Audit & Evaluation Plan

To this end, this plan provides coverage of those universe elements considered to be of the
highest priority (see Section 7) and, over the course of the three-year audit plan (summarized in
Section 6), will gain coverage of those risk management, controls and governance processes that
collectively enable the objectives of EC. Not only is this necessary to support an audit opinion
for the individual engagements, but collectively, it is necessary to support the CAE’s annual
overview assurance on the adequacy and effectiveness of departmental risk management,
controls and governance processes, as required by the TB Policy on Internal Audit.

Coverage of Corporate Risks
While the audit and evaluation planning activities are separate from the CRP exercise, it is
important to ensure effective alignment between the two initiatives by leveraging the CRP. EC’s
2009 CRP provided the foundation for AEB’s preliminary risk assessment. Throughout the
consultations conducted with departmental management, many high risk factors and events
identified and validated correlated to the top corporate risks identified in the CRP. Currently, the
six key risk areas identified and approved by EC management are:
1.   Resource Management Risk;
2.   Capital Assessment Functionality Risk;
3.   HR Skills Risk;
4.   Information for Decision-Making Risk;
5.   External Dependencies Risk; and
6.   Business Continuity Risk.
AEB is considering integrating corporate risk profiling, integrated business planning and the
risk-based audit and evaluation plan (RBAEP). The Branch will assess the key risk management
process (i.e., the corporate risk profiling processes and the risk-based audit planning processes)
and develop a way-forward to better integrate and leverage information, resources and risk
management techniques. This may allow EC to adopt a "one pass" process.

Coverage of TB Evaluation Requirements
To ensure ongoing compliance with the Financial Administration Act, the plan provides for the
evaluation coverage of all programs which receive transfer payments (as grants and
contributions) on a five-year cycle (see Section 11).
The TB Policy on Evaluation further requires that all direct program spending be evaluated on a
five-year cycle, starting in 2013-2014. In order to be in compliance with coverage requirements
of the new evaluation policy by 2013, increases in evaluation coverage will need to be made in
each of the four years of the policy’s implementation phase. The MAF Assessment will be
examining the degree to which the Evaluation Division is increasing its coverage each year
during the implementation period. As such, implementation of the new policy will add
additional pressures on evaluation resources in the context of the Audit and Evaluation Plan for
2010 to 2013. Full implementation of evaluation coverage requirements will require a doubling
of current coverage (i.e., current evaluation coverage is approximately 10 percent of direct
program spending per year) from 2009 to 2013.



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The proposed five-year plan demonstrates an increase of evaluation coverage of departmental
direct program spending, reaching 20 percent coverage in 2013-2014 (see Section 9). Evaluation
projects that are not tied to a TB commitment were scheduled based on risk. The level of effort
to be devoted to evaluation projects was calibrated based on the materiality of the evaluable
entities and their level of complexity.


2 . 7 O T HE R AC T I V I T I E S
In addition to audit assurance engagements and evaluation projects, the AEB will undertake a
range of other internal assurance and performance activities each year. These are summarized
below and have been factored into the planning and resource allocation decisions that underpin
this plan.

Follow-Up on Recommendations
The AEB has developed procedures to manage and follow-up on audit recommendations which
were presented to the EAAC in February 2010. All internal audit follow-up recommendations
have been transferred to TeamMate. Evidence are analysed and documented in TeamCentral to
track progress on implementing recommendations on a more timely basis (in accordance with
management actions plans). The Branch is currently finalizing the implementation of the new
software. Progress reports on follow-ups are provided on a regular basis to the EAAC and the
Deputy Minister.
Similar procedures have been used to manage and follow-up on evaluation recommendations and
to periodically report to the DEC on the status of the management actions taken in response to
evaluation recommendations. The Evaluation Division is currently transferring its evaluation
follow-up recommendations to TeamMate.
Follow-up on recommendations are conducted on an ongoing basis to ascertain the degree to
which the action plans in response to recommendations made in previous audits and evaluations
have been implemented, and to determine outstanding gaps/risks. The internal audit and
evaluation follow-ups are outlined in the plan (see Sections 7 and 10).

Audit and Evaluation Committee Liaison and Support
The SPC division provides strategic and secretariat support to the EAAC and the DEC. For the
EAAC, the SPC is the liaison between central agencies, other federal departments, senior
management and committee members.

Comptroller General Directed Audits
Under the Policy on Internal Audit, the Comptroller General can direct departments to conduct
sectorial and horizontal audits. The internal audit group has reserved three person-months to
provide support to these audits. As of this date, the OCG has not identified the horizontal audits
for 2010-2011 or identified departments that will be included. Section 7 of the plan addresses
those horizontal audits previously planned by the OCG.


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Liaison with external auditors
A number of external audits and studies are underway or planned for EC programs/functions by
external organizations such as the OAG, the CESD, the PSC, the Access to Information
Commissioner, and the OCOL. The external audits and studies were taken into account in EC’s
planning process to ensure proper coverage and minimize duplication of efforts. Section 8 lists
the external audits and studies underway or to be carried out during the period covered by this
plan.



3 PRIORI TIES AN D AC TIV I TIES

3 . 1 S T R AT E G I C P RI O RI TI E S
For fiscal year 2010-2011, the AEB will focus its resources and efforts on a number of priority
areas:
   Providing ongoing support to the EAAC and the DEC;
   Preparing for the first CAE annual assurance to the Deputy Minister and the EAAC on
    departmental controls, governance and risk management;
   Implementing the new TBS Policy on Evaluation (effective April 2009);
   Implementing the recommendations from the external practice inspection;
   Proactively auditing activities under the economic stimulus package, in order to ensure
    adequate controls are in place before the funds are expensed;
   Piloting joint audit and evaluation projects using collaborative approaches;
   Improving accuracy of project timelines and reducing unplanned carry-overs;
   Strengthening AEB performance indicators; and
   Further developing the RBAEP to provide the department with a robust plan to maximize on
    the utilization of AEB resources in support to the department.


3 . 2 AU D I T AN D E V AL U AT I O N AC T I V I TI E S

3.2.1 KEY       CH AN G E S TO      I N TER N AL AU D I T E NG AG EME N TS
Section 7 describes the internal audit engagements planned for the next three years, including
scope and objectives, rationale and priority ratings for projects planned in the next two years;
resource requirements in person months and dollars for 2010-2011 are identified.
Of the internal audit projects that were planned for 2009-2010, eleven projects will have
activities continuing into 2010-2011 while one project was removed. Four of the 11 projects


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were tabled at the EAAC meeting in the Q4 of 2009-2010 and will simply require project closing
activities in 2010-2011. Delays in finishing six of the 11 projects plus the removal of the audit
portion of the joint project, Weather Predictions Program, were generally caused by two
unplanned projects being introduced in 2009-2010 (Review of the Employee Clearance and
Professional Contracts). The Management of Additional Funding Received through CEAP –
Year 1 continues on into 2011-2012 to cover funding received in the second year of CEAP
(under Management of Additional Funding Received through CEAP – Year 2).
Last year’s plan identified a number of projects to be conducted in 2010-2011. Due to mitigating
circumstances such as external audits occurring, strong MAF assessment ratings, internal
plans/frameworks being implemented, etc., eight projects were not transferred to the 2010-2011
RBAEP. Four other projects were postponed to subsequent years to allow time for recent
changes to be implemented. Three new audit engagements will be carried out during 2010-2011:
Services to Marine Transportation (a joint audit and evaluation project), Information Technology
(IT) Financial Controls and Risk Management. Appendix B provides the detailed list of all these
projects and the specific rationale for the changes.

3.2.2 KEY       CH AN G E S TO      E V AL U ATI O N P RO J E C TS
Section 10 describes each evaluation project for the next five years, including scope and
calibrated level of effort, rationale, direct program spending coverage and aggregate risk ranking
for projects planned in the next two years; resource requirements in person months and dollars
for 2010-2011 are identified. This section also includes interdepartmental evaluations being
carried out by other departments in which EC will be involved.
Of the 33 evaluation projects that were planned for 2009-2010, four projects have unplanned
carry-over activities continuing into 2010-2011, one project was intended to finish in Q1 of
2010-2011 and will now finish in Q2 and one project is on hold. The delays generally are due to
a variety of factors such as complexity arising from evaluating interdepartmental initiatives or as
uncovered during the design phase, external events and delays in the approval processes. The
Clean Air Community Partnerships Thematic Evaluation is on hold as the program has not yet
been implemented. One project, the Genomics Research and Design Initiatives (an
interdepartmental project led by Natural Resources Canada) was an unplanned evaluation
introduced in the fourth quarter of 2009-2010.
Last year’s plan identified a number of projects to be conducted in 2010-2011. Due to the
changes caused by the new Evaluation Policy, three previously planned projects were not
transferred to the 2010-2011 RBAEP, four projects were postponed to following years, and three
projects were renamed and their scope and level of effort were revised. Four new evaluation
projects will be carried out during 2010-2011; most are TB requirements. Appendix C provides
the detailed list of all these projects and the specific rationale for the changes.
A significant number of evaluations required for renewal of programs have resources attached in
the TB submissions which will be transferred to AEB when the projects begin.




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4 OUR HUM AN AN D FIN AN C I AL R ESOUR CES

4 . 1 H UM AN R E S O UR C E S

I n t e r n a l Au d i t R e s o u r c e s
The CAE reports directly to the Deputy Minister. The Internal Audit division consists on one
Director, six current audit managers, two senior auditors, three auditors and one administrative
assistant. This year’s plan assumes the recruitment of one financial audit manager by September
2010 and one assignment to replace the IM/IT audit manager who will be on language training
for five months in 2010-2011.

Professional Qualifications
There are now five (35.7 percent) employees of the internal audit group who have a professional
designation i.e., two Certified Internal Auditor (CIA), one Certified Internal Auditor/Certified
Government Auditing Professional (CIA/CGAP), one Certified Information Systems Auditor
(CISA) and one Certified Accountant/Certified Information Systems Auditor/Certified
Information Security Manager (CA/CISA/CISM). One employee is also currently completing a
CIA designation.

Evaluation Resources
The Evaluation division consists of one director reporting to the Director General of Evaluation,
one associate director, three evaluation managers, three senior evaluators, five evaluation officers
and one administrative assistant. This year’s plan assumes that one evaluation manager will be
on paternity leave for five months and another senior evaluator will be on maternity leave for
nine months in 2010-2011.

Strategic Planning and Coordination Resources
The SPC division consists of one director, who is a Certified Internal Auditor, with a
Certification in Control Self-Assessment (CIA, CCSA), one planning manager and one
administrative assistant with a fourth officer position currently being staffed.

I N TEG R ATE D H UM AN R ESO U RC E S P L AN N I NG
Integrated workforce planning is important for the AEB Branch as it assists in ensuring that the
organization is equipped with the HR capacity required to deliver on Branch priorities and the
RBAEP. The Branch HR plan is aligned to the departmental HR Plan priorities. It examines the
current and future HR requirements and identifies strategies and activities to help achieve Branch
HR priorities and the RBAEP. The AEB HR priorities and strategies are being implemented to
help build and sustain a skilled, knowledgeable, engaged and productive workforce.



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Professional training
The AEB ensures that staff has appropriate professional qualifications and skills, and
opportunities for sufficient training and development to maintain and develop their
competencies. Training is made available to support professional accreditation and
development. The Branch also provides coaching sessions to help employees determine their
career objectives and the steps to achieve those objectives. Each employee develops a personal
learning and development plan to acquire and maintain the knowledge, skills and competencies
related to their level and functions, departmental business priorities and career aspirations.


4 . 2 F I N AN C I AL R E S O U R CE S
For 2010-2011, Professional resources requirements to carry out audit engagements, evaluation
projects and planning and coordination are 205 person months (PM) and $ XXX. For the same
period, there are 197 person months available. There is a shortfall of 8 PM in SPC which will be
offset by utilizing professional contractors and students to assist in the delivery of work. SPC
will review its processes to identify potential alternatives to reduce the shortfall.
A breakdown of the person month allocation and professional services by service lines is shown
below in Figure 1. This figure does not include resources dedicated to management activities.

F IGU R E 1 : PE R SO N M ON TH AL LOC ATI ON                              AN D     PRO F E SSI O N AL
SERVICES
                 Service Lines                     Person Month (PM)             Professional Services
                                                       * Required                      ** ($ K)
    Audit                                                    853                           XXX
    Evaluation                                                85                           XXX4
                                  Sub-total                  170                           XXX
                 Available Staff Resources                   170
    Strategic Planning & Coordination                         35                           XXX5
                 Available Staff Resources                    27
                                   TOTAL                    205                            XXX

*     Person month description by service lines:

      -   Audit includes all resources dedicated to internal audit engagements, recommendations follow-up, and the
          coordination of external audits being carried out by the OAG, the CESD and other organizations.

      -   Evaluation projects include all resources dedicated to evaluation projects, resources required for projects
          led by other departments and agencies and recommendations follow-up.



3
  Includes 2 PM for conducting special investigations and 6 PM for conducting unplanned audits.
4
  Includes $XXXK from TB submissions for evaluation activities.
5
  Includes $XXXK for EAAC.


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                                                                          Risk-Based Audit & Evaluation Plan

    -   Strategic planning and coordination includes resources dedicated to risk-based planning and reporting,
        supporting EAAC and DEC, AEB corporate planning and reporting (e.g., MAF, RPP, DPR, Integrated
        Business Plan, and HR Plan) and environmental petitions.

** Professional services include:
    -   Resource requirements for consulting services contracts.

The number of person months required for each of the projects is based on historical data from
the Time Recording System.

DISTRIBUTION             OF   RESOURCES             BY    SERVICE LINES
The following figure provides a breakdown of all AEB activities and resources by service lines
for 2010-2011, including resources dedicated to the EAAC/DEC. This figure also includes
management activities.
Based on the planned resources shown in Figure 2, it is estimated that the AEB will have the
capacity to deliver on its plan for 2010-2011. Figure 3 provides the number of full-time
employees and the budget details by service lines.

FIGURE 2: RESOURCES                      BY SERVICE LINES




                        2010-2011 Planned Budget
                           (Total $3,6 million)
                                                         Evaluation
                                                       $1,378K (38%)
            Audit
        $1,270K (35%)



                                                            Strategic
                                                           Planning &
                       DGO                                Coordination
                   $377K (10%)         EAAC               $430K (12%)
                                     $170K (5%)




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FIGURE 3: FULL-TIME EMPLOYEES                                 AN D   D E T AI L E D B U DG E T      BY
SERVICE LINES


                                                                     ***
Service Lines                               FTEs              Salary              O&M              Total
Audit                                        12         $       1,026,083$          244,000   $   1,270,083
Evaluation                                   14         $         984,559$          393,486   $   1,378,045
DGO                                           3         $         289,211$           88,105   $     377,316
Strategic Planning & Coordination             4         $         299,266$          131,161   $     430,427
   EAAC                                                                  $          170,000   $     170,000
Total                                         33        $      2,599,120 $        1,026,751   $   3,625,871

*** Training budget is equal to 1.5% of the salary envelope

STATEMENT           OF    CO NS TR AI N TS
It is expected that AEB will achieve coverage of its highest audit and evaluation priorities over
the planning horizon. When the feasibility of conducting an audit or evaluation is in question,
owing to factors such as major changes, new priorities, lack of resources or subject matter
expertise, the CAE/DG AEB will bring this to the attention of the EAAC/DEC for formal
consideration and approval by the Deputy Minister.




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5 A U D I T A N D E V A L U AT I O N U N I V E R S E




                               Risk Ranking
                                                                     Audit Projects                                                            Evaluation Projects



                               Aggregate




                                              Priority
Audit and Evaluation




                                              Audit
Universe
                                                         2010-2011     2011-2012         2012-2013            2010-2011         2011-2012          2012-2013           2013-2014           2014-2015
(PAA Sub-Sub Activity)
Strategic Outcome 1: Canada’s natural capital is conserved and restored for present and future generations.
1.1 Biodiversity – Wildlife and Habitat
1.1.1 Biodiversity Policy                                            Biodiversity                                            Biodiversity
      and Priorities             M              H                    Policy &                                                Policy &
                                                                     Priorities                                              Priorities
1.1.2 Species at Risk           VH            VH                                                          Species at Risk    Species at Risk
1.1.3 Migratory Birds             H           VH                                                                             Migratory Birds    Migratory Birds
1.1.4 Wildlife Habitat Conservation
1.1.4.1 Habitat                                                                                           Carry-over:                                                Habitat
        Conservation                                                                                      Wildlife Habitat                                           Conservation
                                  H           VH
        Partnerships                                                                                      Canada                                                     Partnerships
                                                                                                          Foundation
1.1.4.2 Invasive Alien
                                 M             M
        Species Partnerships




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                                   Risk Ranking
                                                                              Audit Projects                                                            Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                                 2010-2011      2011-2012        2012-2013          2010-2011           2011-2012           2012-2013           2013-2014           2014-2015
(PAA Sub-Sub Activity)
                                                             6
1.1.4.3 Protected Areas                                                                        Protected Areas                       Northwest           Protected Areas
                                                                                               Management                            Territories         Management
                                                                                                                                     Protected Areas     Inuit Impact and
                                                                                                                                     Strategy            Benefits
                                      H           VH
                                                                                                                                     Inuit Impact and    Agreement
                                                                                                                                     Benefits
                                                                                                                                     Agreement
                                                                                                                                     Evaluation Plan

1.2 Water Resources
1.2.1 Water Quality and                                      Management of                                       Carry-over:                             Water
      Aquatic Ecosystems                                     CEAP – Year 2                                       Water                                   Management
      Health                       VH             VH         CESD Audit of                                       Management
                                                             Water Resource                                      Evaluation Plan
                                                             Management
1.2.2 Water Resource                                         Management of                                       Carry-over:                             Water
      Management and Use                                     CEAP – Year 2                                       Water                                   Management
                                      H           VH         CESD Audit of                                       Management
                                                             Water Resource                                      Evaluation Plan
                                                             Management




6
    Planned audit in 2012-2013 to allow time for the Program to finalize and implement the Protected Areas Strategy in response to the 2008 CESD Follow-up. On Ecosystems – Federal Protected Areas of Wildlife.



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                             Risk Ranking
                                                                        Audit Projects                                                    Evaluation Projects




                             Aggregate




                                            Priority
Audit and Evaluation




                                            Audit
Universe
                                                         2010-2011        2011-2012        2012-2013      2010-2011         2011-2012         2012-2013           2013-2014        2014-2015
(PAA Sub-Sub Activity)
1.2.3 Hydrological Service                             Post-tabling:                                    Carry-over:                        Water
      and Water Survey                                 National                                         Water                              Management
                                                       Hydrometric                                      Management
                                                       Program                                          Evaluation Plan
                                H            M
                                                       CESD Audit of
                                                       Water Resource
                                                       Management


1.3 Sustainable Ecosystems
1.3.1 Sustainability                                                    GHG Data                                                           Sustainability
      Reporting and                                                     Collection,                                                        Reporting &
                                L            M
      Indicators                                                        Management &                                                       Indicators
                                                                        Reporting
1.3.2 Ecosystem                                        CESD Audit of                     Ecosystem                                         Ecosystem
      Assessment and                                   Cumulative                        Assessment &                                      Assessment &
      Approaches               M              H        Impacts                           Approaches                                        Approaches
                                                       Assessment
                                                       under CEAA
1.3.3 Community Engagement
1.3.3.1 EcoAction                                                                                                                                               EcoAction
        Community               L            M                                                                                                                  Community
        Funding                                                                                                                                                 Funding
1.3.3.2 Environmental                                                                                                     Environmental    Environmental
                                L            M
        Damages Fund                                                                                                      Damages Fund     Damages Fund




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                                   Risk Ranking
                                                                             Audit Projects                                                        Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                                 2010-2011     2011-2012        2012-2013           2010-2011          2011-2012       2012-2013           2013-2014        2014-2015
(PAA Sub-Sub Activity)
1.3.3.3 Environmental                                                                                                                                                    Environmental
        Youth Employment              L            M                                                                                                                     Youth
                                                                                                                                                                         Employment
                                                             7
1.3.3.4 Education and
                                      L             H
        Engagement
1.3.4 Ecosystem Initiatives
1.3.4.1 Great Lakes                                                                                              Carry-over:        Freshwater                                           Ecosystem
                                                                                                                 Great Lakes        Initiatives                                          Initiatives
                                                                                                                 Action Plan
                                                                                                                 Carry-over:
                                      H             H                                                            Freshwater
                                                                                                                 Initiatives
                                                                                                                 Evaluation Plan
                                                                                                                 Freshwater
                                                                                                                 Initiatives
                                                             8
1.3.4.2 St. Lawrence                                                                                                                                                                     Ecosystem
                                      H           VH
                                                                                                                                                                                         Initiatives




7
    This Program is funded with Grants and Contributions and will be covered under Grants and Contributions Audit planned for 2011-2012.
8
    No planned audit n the next 3 years due to a recent management review of the St. Lawrence Action Plan .in 2009-2010.



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                                   Risk Ranking
                                                                              Audit Projects                                                            Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                                  2010-2011     2011-2012        2012-2013           2010-2011           2011-2012          2012-2013             2013-2014         2014-2015
(PAA Sub-Sub Activity)
1.3.4.3 Lake Simcoe                                                                                               Carry-over:         Freshwater                                                 Ecosystem
                                                                                                                  Freshwater          Initiatives                                                Initiatives
                                                                                                                  Initiatives
                                     M              H                                                             Evaluation Plan
                                                                                                                  Freshwater
                                                                                                                  Initiatives


1.3.4.4 Lake Winnipeg                                                                                             Carry-over:         Freshwater                                                 Ecosystem
                                                                                                                  Freshwater          Initiatives                                                Initiatives
                                                                                                                  Initiatives
                                     M              H                                                             Evaluation Plan
                                                                                                                  Freshwater
                                                                                                                  Initiatives
                                                             9
1.3.4.5 Community                                                                                                                                        Community
        Ecosystem                                                                                                                                        Ecosystem
        Partnerships                  H             H                                                                                                    Partnerships

                                                             10
1.4 Compliance                                                                Compliance                                                                                        Compliance
    Promotion and                                                             Promotion and                                                                                     Promotion &
    Enforcement –                     H           VH                          Enforcement                                                                                       Enforcement –
    Wildlife                                                                                                                                                                    Wildlife




9
    No planned audit specifically since the Program is funded with Grants and Contributions and will be covered under Grants and Contributions Audit planned for 2011-2012.
10
     Planned audit in 2011-2012 as Enforcement was evaluated in 2009-2010.



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                                  Risk Ranking
                                                                             Audit Projects                                             Evaluation Projects




                                  Aggregate




                                                 Priority
Audit and Evaluation




                                                 Audit
Universe
                                                                 2010-2011     2011-2012      2012-2013     2010-2011       2011-2012       2012-2013         2013-2014         2014-2015
(PAA Sub-Sub Activity)
Strategic Outcome 2: Canadians are equipped to make informed decisions on changing weather, water and climate conditions.
2.1 Weather and Environmental Services for Canadians
2.1.1 Weather                                               Carry-over                                    Carry-over:                                                        Weather
      Observations,                                         Management of                                 R&D,                                                               Observations,
      Forecasts and                                         CEAP – Year 1                                 Production &                                                       Forecasts &
      Warnings                                              Management of                                 Monitoring –                                                       Warnings
                                                            CEAP – Year 2                                 Weather
                                  VH               H                                                      Predictions
                                                            OCOL Follow-
                                                            up – Bilingual                                Carry-over:
                                                            Weather and                                   Meteorological
                                                            Environmental                                 Program – 2010
                                                            Services                                      Winter Games

2.1.2 Health-related                                                                                      Post-tabling:                                                      Health-related
      Meteorological                                                                                      National Air                                                       Meteorological
                                     H            M
      Information                                                                                         Quality Health                                                     Information
                                                                                                          Index
2.1.3 Climate Information,                                  CESD Audit –                                  Carry-over:                                                        Climate
      Predictions and Tools                                 Climate Change                                Improved                                                           Information,
                                     H           VH
                                                            Impacts and                                   Climate Change                                                     Predictions &
                                                            Adaptation                                    Scenarios                                                          Tools

2.2 Weather and Environmental Services for Targeted Users
                                                            11
2.2.1 Services to Aviation          M              H




11
     No planned audit as Program’s risk has been mitigated by finalization of NAV CANADA agreement.



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                              Risk Ranking
                                                                           Audit Projects                                                Evaluation Projects




                              Aggregate




                                             Priority
Audit and Evaluation




                                             Audit
Universe
                                                           2010-2011         2011-2012      2012-2013     2010-2011          2011-2012       2012-2013         2013-2014         2014-2015
(PAA Sub-Sub Activity)
2.2.2 Services to Marine                                Services to                                     Services to
      Transportation                                    Marine                                          Marine
                                M              H        Transportation –                                Transportation –
                                                        Joint Audit &                                   Joint Audit &
                                                        Evaluation                                      Evaluation
2.2.3 Services to the
      Department of              L            M
      National Defence
2.2.4 Services to Economic
                                M             M
      Sectors

Strategic Outcome 3: Threats to Canadians and their environment from pollution are minimized.
3.1 Substances and Waste Management
3.1.1 Substances                                                                                        Carry-over:
      Management                                                                                        Chemicals
                                 H           VH
                                                                                                        Management
                                                                                                        Plan
3.1.2 Waste Management
3.1.2.1 Waste Reduction                                                                                 Waste              Waste
        and Management           H             H                                                        Reduction &        Reduction &
                                                                                                        Management         Management
3.1.2.2 Marine Pollution                                CESD Audit of
                                M              H
                                                        Pollution at Sea




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                                   Risk Ranking
                                                                              Audit Projects                                                             Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                                  2010-2011     2011-2012        2012-2013           2010-2011           2011-2012            2012-2013          2013-2014           2014-2015
(PAA Sub-Sub Activity)
                                                             12
3.1.3 Environmental
                                     M              H
      Emergencies
3.1.4 Contaminated Sites                                     Management of                                                                                                     Contaminated
                                     M              H
                                                             CEAP – Year 2                                                                                                     Sites

3.2 Climate Change and Clean Air
3.2.1 Climate Change and Clean Air Regulatory Program
                                                             13
3.2.1.1 Industrial Sector                                                     GHG Data                            Carry-over:
        Emissions                                                             Collection,                         CARA Theme
                                    VH            VH
                                                                              Management &
                                                                              Reporting
3.2.1.2 Transportation                                                        Transportation                      Carry-over:         Regulation of
        Sector Emissions                                                      Sector                              CARA Theme          Renewable
                                                                              Emissions                           Pilot Project on    Fuels Content in
                                      H           VH                          (Vehicles and                       Reducing            Gasoline, Diesel
                                                                              Engines)                            Emissions from      and Home
                                                                                                                  Vehicles and        Heating Fuel
                                                                                                                  Engines
3.2.1.3 Consumer and                                                                                              Carry-over:
        Commercial                   M              H                                                             CARA Theme
        Products Sector



12
     No planned audit since an internal Program evaluation was concluded in 2008; evaluation conclusions were positive and residual risks were determined to be minimal.
13
  No planned audit for the Program as a whole since it is a large entity and some sections will be covered under the GHG Data Collection, Management and Reporting Audit (identified as a higher audit priority by
senior management).



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                                    Risk Ranking
                                                                               Audit Projects                                                          Evaluation Projects




                                    Aggregate




                                                   Priority
Audit and Evaluation




                                                   Audit
Universe
                                                                   2010-2011     2011-2012      2012-2013           2010-2011           2011-2012          2012-2013         2013-2014           2014-2015
(PAA Sub-Sub Activity)
                                                              14
3.2.1.4 Market Mechanisms                                                      GHG Data                          Carry-over:
                                                                               Collection,                       CARA Theme
                                      M            VH
                                                                               Management &
                                                                               Reporting
3.2.2 Climate Change and Clean Air Partnerships
3.2.2.1 Vehicle Scrappage                                                                                        Vehicle
                                      M              H
                                                                                                                 Scrappage15
                                                              16
3.2.2.2 Clean Air
        Community                     M              H
        Partnerships
3.2.2.3 International                                         CESD Audit –     GHG Data                          Carry-over:         Commission for
        Climate Change and                                    Kyoto Protocol   Collection,                       CAA                 Environmental
        Clean Air                                             Implementation   Management &                      International       Cooperation
        Partnerships                 VH              H        Act              Reporting                         Actions Theme       Multilateral
                                                                                                                 Clean Energy        Fund of the
                                                                                                                 Dialogue            Montreal
                                                                                                                                     Protocol
3.2.3 Environmental Technology




14
 No audit planned for the Program as a whole since and some sections will be covered under the GHG Data Collection, Management and Reporting Audit (identified as a higher audit priority by senior
management).
15
     No audit planned since the Program will be sunsetting during evaluation activities.
16
     No audit planned since the Program is funded with Grants and Contributions and will be covered under Grants and Contributions Audit planned for 2011-2012.



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                                  Risk Ranking
                                                                             Audit Projects                                         Evaluation Projects




                                  Aggregate




                                                 Priority
Audit and Evaluation




                                                 Audit
Universe
                                                                 2010-2011     2011-2012      2012-2013     2010-2011   2011-2012       2012-2013           2013-2014           2014-2015
(PAA Sub-Sub Activity)
3.2.3.1 Sustainable                                                                                                                                       Sustainable
        Development                 M             M                                                                                                       Development
        Technologies                                                                                                                                      Technologies
3.2.3.2 Environmental                                                                                     Carry-over:
        Technology                                                                                        Genomics
        Innovation                  M             M                                                       Research &
                                                                                                          Development
                                                                                                          Initiative
                                                            17
3.3 Compliance                                                               Compliance                                                                   Compliance
    Promotion and                                                            Promotion and                                                                Promotion &
                                  VH               H
    Enforcement –                                                            Enforcement                                                                  Enforcement –
    Pollution                                                                                                                                             Pollution

Strategic Outcome 4: Canadians benefit from the responsible development of the Mackenzie gas resources.
4.1 Mackenzie Gas
                                     L            M
    Project
Strategic Outcome 5: Internal Services
5.1 Internal Services
5.1.1 Governance and Management Support




17
     Audit planned in 2011-2012 as Enforcement was evaluated in 2009-2010.



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                                    Risk Ranking
                                                                               Audit Projects                                                               Evaluation Projects




                                    Aggregate




                                                   Priority
Audit and Evaluation




                                                   Audit
Universe
                                                                   2010-2011     2011-2012          2012-2013           2010-2011            2011-2012            2012-2013           2013-2014        2014-2015
(PAA Sub-Sub Activity)
5.1.1.1 Management and                                        Carry-over       Risk              Greening
        Oversight                                             Management of    Management        Initiatives /
                                                              CEAP – Year 1    Governance        Sustainability
                                                              Risk             Framework /
                                                              Management       Operational
                                     VH              H                         Planning &
                                                              CESD Study of
                                                              FSDS             Reporting
                                                              OAG Follow-up
                                                              – Audit of
                                                              Internal Audit
                                                              18
5.1.1.2 Communications                 H             H
5.1.1.3 Legal                         M              L
5.1.2 Resource Management Services




18
     No audit planned due to insufficient information to assess the Program risks. A more in-depth risk assessment will be conducted in 2010-2011 to identify a potential audit project..



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                          Risk Ranking
                                                                     Audit Projects                                              Evaluation Projects




                          Aggregate




                                         Priority
Audit and Evaluation




                                         Audit
Universe
                                                       2010-2011        2011-2012       2012-2013        2010-2011   2011-2012       2012-2013         2013-2014         2014-2015
(PAA Sub-Sub Activity)
5.1.2.1 Human Resources                             Classification   Classification
        Management                                  Process          Process
                                                    OAG Audit –
                                                    Implementation
                                                    of Public
                                                    Service
                          VH              M
                                                    Management
                                                    Act
                                                    PSC Public
                                                    Service
                                                    Employment
                                                    Act
5.1.2.2 Financial                                   Post-tabling:    Grants and       Financial Audits
        Management                                  Specified        Contributions
                                                    Purpose
                                                    Accounts
                                                    Post-tabling:
                                                    Accounts
                          VH              M         Payable at
                                                    Year-end
                                                    Post-tabling:
                                                    Costing and
                                                    Pricing
                                                    IT Financial
                                                    Controls
5.1.2.3 Information                                 Carry-over:      PeopleSoft       Change Control
        Management                                  Governance of                     & Configuration
                          VH               H
                                                    Information                       Management
                                                    Management



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                             Risk Ranking
                                                                        Audit Projects                                             Evaluation Projects




                             Aggregate




                                            Priority
Audit and Evaluation




                                            Audit
Universe
                                                         2010-2011        2011-2012         2012-2013      2010-2011   2011-2012       2012-2013         2013-2014         2014-2015
(PAA Sub-Sub Activity)
5.1.2.4 Information                                    Carry-over:      PeopleSoft       Change Control
        Technology                                     Governance of                     & Configuration
                                                       Specialized IT                    Management
                                                       Resources                         Oracle Upgrade
                                                       IT Financial
                             VH             VH
                                                       Controls
                                                       OCG IT Asset
                                                       Management
                                                       Horizontal
                                                       Audit
5.1.2.5 Travel and Other
        Administrative        n/a           n/a
        Services
5.1.3 Asset Management Services
5.1.3.1 Real Property                                  Carry-over:      Carry-over:      Greening
                                                       Physical         Life-cycle       Initiatives /
                                                       Security         Management of    Sustainability
                                H             H        Carry-over:      Assets
                                                       Life-cycle
                                                       Management of
                                                       Assets
5.1.3.2 Material                                       Carry-over:      Carry-over:      Greening
                                                       Life-cycle       Life-cycle       Initiatives /
                               M              H
                                                       Management of    Management of    Sustainability
                                                       Assets           Assets




                                                                                                                                                                                       29
                                                                                                                                                                                            Environment Canada
                                                                                                                                                                            Risk-Based Audit & Evaluation Plan




                                   Risk Ranking
                                                                             Audit Projects                                                              Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                                2010-2011      2011-2012          2012-2013            2010-2011         2011-2012           2012-2013            2013-2014        2014-2015
(PAA Sub-Sub Activity)
5.1.3.3 Acquisition                                          Carry-over:                       Greening
                                                             Professional                      Initiatives /
                                    VH             M         Contracts                         Sustainability


Horizontal Audits
                                                             Post-tabling:
                                                             Review of
                                                    H        Employee
                                                             Clearance
                                                             Process

Horizontal Evaluations
                                                                                                                     Carry-over:
                                                                                                                     CAA
                                                                                                                     Management
                                                                                                                     Accountability
                                                                                                                     Theme19
                                                                                                                     Regulatory
                                                                                                                     Improvements
                                                                                                                     for Major
                                                                                                                     Resource
                                                                                                                     Projects20




19
     This evaluation is a cross-cutting component of the CAA that covers activities of various sectors of the department and of other government departments involved in implementing the CAA.
20
     This evaluation will address a component that spans several areas of the department and will be led by NRCan.



                                                                                                                                                                                                               30
                                                                                                                                                                                           Environment Canada
                                                                                                                                                                           Risk-Based Audit & Evaluation Plan




                                   Risk Ranking
                                                                           Audit Projects                                                                Evaluation Projects




                                   Aggregate




                                                  Priority
Audit and Evaluation




                                                  Audit
Universe
                                                             2010-2011       2011-2012           2012-2013           2010-2011            2011-2012          2012-2013           2013-2014        2014-2015
(PAA Sub-Sub Activity)
                                                                                                                                                                               Policy on Green
                                                                                                                                                                               Procurement
                                                                                                                  CAA
                                                                                                                  Adaptations
                                                                                                                  Theme
                                                                                                                  Thematic
                                                                                                                  Evaluation Roll-
                                                                                                                  up21
                                                                                                                  CAA Horizontal
                                                                                                                  Roll-up22
                                                                                                                  Implementation
                                                                                                                  of Performance
                                                                                                                  Measurement
                                                                                                                  Provisions of
                                                                                                                  2009 Federal
                                                                                                                  Evaluation
                                                                                                                  Policy23




21
     This report will provide the thematic roll-up and analysis of all findings of the program evaluations conducted in 2009-2010 by EC and OGDs under the CAA Adaptations Theme.
22
     This report will provide the roll-up and analysis of all the findings of the theme and program evaluations conducted in 2009-2010 by EC and OGDs.
23
     This project is to respond to new requirements of the 2009 Federal Evaluation Policy pertaining to performance measurement which cross-cut among departmental programs.



                                                                                                                                                                                                              31
                                                                                                                                                                              Environment Canada
                                                                                                                                                                 Risk-Based Audit & Evaluation Plan


6 A U D I T P L A N S U M M A R Y – T H R E E Y E A R S AT A G L A N C E

Audit Universe                                Audit Priority          Materiality                      2010-2011                         2011-2012                            2012-2013
(PAA Sub-Sub Activity)                                                 ($’000)
 Strategic Outcome 1: Canada’s natural capital is conserved and restored for present and future generations.
1.1 Biodiversity – Wildlife and Habitat
1.1.1 Biodiversity Policy and Priorities                H                 2,380                                             Biodiversity Policy and Priorities

1.1.2 Species at Risk                               VH                    40,944
1.1.3 Migratory Birds                               VH                    18,167
1.1.4 Wildlife Habitat Conservation
1.1.4.1 Habitat Conservation Partnerships           VH                    15,297
1.1.4.2 Invasive Alien Species
                                                    M                     9,006
        Partnerships
1.1.4.3 Protected Areas                             VH                    15,654                                                                                   Protected Areas Management

1.2 Water Resources
1.2.1 Water Quality and Aquatic                                                          Management of Additional Funding
      Ecosystems Health                                                                  Received through Canada’s
                                                                                         Economic Action Plan (CEAP) –
                                                    VH                    75,747         Year 2
                                                                                         CESD Audit of Water Resource
                                                                                         Management
1.2.2 Water Resource Management and                                                      Management of Additional Funding
      Use                                                                                Received through Canada’s
                                                                                         Economic Action Plan (CEAP) –
                                                    VH                    10,685         Year 2
                                                                                         CESD Audit of Water Resource
                                                                                         Management



 Audit Score:    L (0.00 – 0.20)      M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                             32
                                                                                                                                                                            Environment Canada
                                                                                                                                                               Risk-Based Audit & Evaluation Plan

Audit Universe                               Audit Priority          Materiality                      2010-2011                         2011-2012                           2012-2013
(PAA Sub-Sub Activity)                                                ($’000)
1.2.3 Hydrological Service and Water                                                    Post-tabling: National Hydrometric
      Survey                                                                            Program
                                                   M                     16,657
                                                                                        CESD Audit of Water Resource
                                                                                        Management

1.3 Sustainable Ecosystems
1.3.1 Sustainability Reporting and                                                                                           Greenhouse Gas Data Collection,
                                                   M                     1,988
      Indicators                                                                                                             Management and Reporting
1.3.2 Ecosystem Assessment and                                                          CESD Audit of Cumulative Impacts                                         Ecosystem Assessment and
                                                       H                 18,695
      Approaches                                                                        Assessment under CEAA                                                    Approaches
1.3.3 Community Engagement
1.3.3.1 EcoAction Community Funding                M                     8,277
1.3.3.2 Environmental Damages Fund                 M                      296
1.3.3.3 Environmental Youth
                                                   M                     3,289
        Employment
1.3.3.4 Education and Engagement                       H                 5,144
1.3.4 Ecosystem Initiatives
1.3.4.1 Great Lakes                                    H                 14,319
1.3.4.2 St. Lawrence                               VH                    2,665
1.3.4.3 Lake Simcoe                                    H                 8,670
1.3.4.4 Lake Winnipeg                                  H                 1,138
1.3.4.5 Community Ecosystem
                                                       H                 3,003
        Partnerships
1.4 Compliance Promotion and                                                                                                 Compliance Promotion and
                                                   VH                    19,072
    Enforcement – Wildlife                                                                                                   Enforcement



 Audit Score:    L (0.00 – 0.20)     M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                            33
                                                                                                                                                         Environment Canada
                                                                                                                                            Risk-Based Audit & Evaluation Plan

Audit Universe                                Audit Priority          Materiality                      2010-2011                2011-2012                2012-2013
(PAA Sub-Sub Activity)                                                 ($’000)
 Strategic Outcome 2: Canadians are equipped to make informed decisions on changing weather, water and climate conditions.
2.1 Weather and Environmental Services for Canadians
2.1.1 Weather Observations, Forecasts                                                    Carry-over: Management of
      and Warnings                                                                       Additional Funding Received through
                                                                                         Canada’s Economic Action Plan
                                                                                         (CEAP) – Year 1
                                                                                         Management of Additional Funding
                                                                                         Received through Canada’s
                                                        H                140,456
                                                                                         Economic Action Plan (CEAP) –
                                                                                         Year 2
                                                                                         OCOL Follow-up – Bilingual
                                                                                         Weather and Environmental Services
                                                                                         Provided on EC’s Automated
                                                                                         Telephone Network
2.1.2 Health-related Meteorological
                                                    M                     5,067
      Information
2.1.3 Climate Information, Predictions                                                   CESD Audit of Climate Change
                                                    VH                    20,872
      and Tools                                                                          Impacts and Adaptation

2.2 Weather and Environmental Services for Targeted Users
2.2.1 Services to Aviation                              H                 3,557
2.2.2 Services to Marine Transportation                                                  Services to Marine Transportation
                                                        H                 9,233
                                                                                         (Joint Audit and Evaluation Project)
2.2.3 Services to the Department of
                                                    M                     3,067
      National Defence
2.2.4 Services to Economic Sectors
                                                    M                     6,913




 Audit Score:   L (0.00 – 0.20)       M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                        34
                                                                                                                                                                           Environment Canada
                                                                                                                                                              Risk-Based Audit & Evaluation Plan

Audit Universe                                Audit Priority          Materiality                      2010-2011                        2011-2012                          2012-2013
(PAA Sub-Sub Activity)                                                 ($’000)
 Strategic Outcome 3: Threats to Canadians and their environment from pollution are minimized.
3.1 Substances and Waste Management
3.1.1 Substances Management                         VH                    65,056
3.1.2 Waste Management
3.1.2.1 Waste Reduction and
                                                        H                 13,613
        Management
3.1.2.2 Marine Pollution                                H                 1,746          CESD Audit of Pollution at Sea
3.1.3 Environmental Emergencies                         H                 10,607
3.1.4 Contaminated Sites                                                                 Management of Additional Funding
                                                                                         Received through Canada’s
                                                        H                 29,726
                                                                                         Economic Action Plan (CEAP) –
                                                                                         Year 2

3.2 Climate Change and Clean Air
3.2.1 Climate Change and Clean Air Regulatory Program
3.2.1.1 Industrial Sector Emissions                                                                                         Greenhouse Gas Data Collection,
                                                    VH                   102,711
                                                                                                                            Management and Reporting
3.2.1.2 Transportation Sector Emissions                                                                                     Transportation Sector Emissions
                                                    VH                    22,284
                                                                                                                            (Vehicles and Engines)
3.2.1.3 Consumer and Commercial
                                                        H                 3,867
        Products Sector
3.2.1.4 Market Mechanisms                                                                                                   Greenhouse Gas Data Collection,
                                                    VH                    5,768
                                                                                                                            Management and Reporting
3.2.2 Climate Change and Clean Air Partnerships
3.2.2.1 Vehicle Scrappage                               H                 42,090




 Audit Score:    L (0.00 – 0.20)      M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                          35
                                                                                                                                                                                 Environment Canada
                                                                                                                                                                  Risk-Based Audit & Evaluation Plan

Audit Universe                              Audit Priority          Materiality                      2010-2011                          2011-2012                                2012-2013
(PAA Sub-Sub Activity)                                               ($’000)
3.2.2.2 Clean Air Community
                                                      H                 2,845
        Partnerships
3.2.2.3 International Climate Change and                                               CESD Audit of the Kyoto Protocol      Greenhouse Gas Data Collection,
                                                      H                 20,083
        Clean Air Partnerships                                                         Implementation Act                    Management and Reporting
3.2.3 Environmental Technology
3.2.3.1 Sustainable Development
                                                  M                     37,694
        Technologies
3.2.3.2 Environmental Technology
                                                  M                     2,979
        Innovation

3.3 Compliance Promotion and                                                                                                 Compliance Promotion and
                                                      H                41,129
    Enforcement – Pollution                                                                                                  Enforcement

 Strategic Outcome 4: Canadians benefit from the responsible development of the Mackenzie gas resources.
4.1 Mackenzie Gas Project                         M                      N/A

 Strategic Outcome 5: Internal Services
5.1 Internal Services
5.1.1 Governance and Management Support
5.1.1.1 Management and Oversight                                                                                   Risk Management                                  Greening Initiatives / Sustainability

                                                                                       Carry-over: Management of             Governance Framework / Operational
                                                                                       Additional Funding Received through   Planning and Reporting
                                                      H                  N/A           Canada’s Economic Action Plan
                                                                                       (CEAP) – Year 1
                                                                                       CESD Study of FSDS
                                                                                       OAG Follow-up – Audit of Internal
                                                                                       Audit
5.1.1.2 Communications                                H                  N/A



 Audit Score:   L (0.00 – 0.20)     M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                                     36
                                                                                                                                                                          Environment Canada
                                                                                                                                                            Risk-Based Audit & Evaluation Plan

Audit Universe                               Audit Priority          Materiality                      2010-2011                               2011-2012                   2012-2013
(PAA Sub-Sub Activity)                                                ($’000)
5.1.1.3 Legal                                          L                  N/A
5.1.2 Resource Management Services
5.1.2.1 Human Resources Management                                                                                  Classification Process
                                                                                        OAG Audit of Implementation of
                                                   M                      N/A           Public Service Modernization Act
                                                                                        (Spring 2010 tabling)
                                                                                        PSC Public Service Employment Act
5.1.2.2 Financial Management                                                            Post-tabling: Specified Purpose          Grants and Contributions     Financial Audits
                                                                                        Accounts
                                                                                        Post-tabling: Accounts Payable at
                                                                                        Year-end
                                                   M                      N/A
                                                                                        Post-tabling: Costing and Pricing
                                                                                        (Votes Netted Revenue)
                                                                                        Information Technology (IT)
                                                                                        Financial Controls
5.1.2.3 Information Management                                                          Carry-over: Governance of                PeopleSoft                   Change Control and Configuration
                                                       H                  N/A           Information Management – starting                                     Management
                                                                                        2010
5.1.2.4 Information Technology                                                          Carry-over: Governance of                PeopleSoft                   Change Control and Configuration
                                                                                        Specialized IT Resources – tabling                                    Management
                                                                                        2010                                                                  Oracle Upgrade
                                                   VH                     N/A           Information Technology (IT)
                                                                                        Financial Controls
                                                                                        OCG IT Asset Management
                                                                                        Horizontal Audit
5.1.2.5 Travel and Other Administrative
                                                   n/a                    N/A
        Services
5.1.3 Asset Management Services



 Audit Score:   L (0.00 – 0.20)      M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                          37
                                                                                                                                                                              Environment Canada
                                                                                                                                                               Risk-Based Audit & Evaluation Plan

Audit Universe                               Audit Priority          Materiality                      2010-2011                              2011-2012                        2012-2013
(PAA Sub-Sub Activity)                                                ($’000)
5.1.3.1 Real Property                                                                   Carry-over: Physical Security –                                          Greening Initiatives / Sustainability
                                                                                        tabling 2010
                                                       H                  N/A
                                                                                                  Carry-over: Life-cycle Management of Assets – started 2009

5.1.3.2 Material                                       H                  N/A                     Carry-over: Life-cycle Management of Assets – started 2009     Greening Initiatives / Sustainability
5.1.3.3 Acquisition                                                                     Carry-over: Professional Contracts –                                     Greening Initiatives / Sustainability
                                                   M                      N/A
                                                                                        started 2009

 Horizontal Audits
                                                                                        Post-tabling: Review of Employee
                                                       H                  N/A
                                                                                        Clearance Process




 Audit Score:      L (0.00 – 0.20)   M (0.21 – 0.45)          H (0.46 – 0.65)      VH (0.66 – 1.00)                                                                                                 38
                                                                                                                                                                                                   Environment Canada
                                                                                                                                                                                    Risk-Based Audit & Evaluation Plan


7 THR EE-YE AR INTERN AL AUDI T PL AN

7.1 2010–2011
Project Scope and Objectives            Rationale for Conduct                                          Audit        Audit      Resources           Start      End        Links to         Links to          Link to MAF
                                                                                                       Type         Priority                       Quarter    Quarter    Corporate        Corporate
                                                                                                                               PM          $’000                         Risks            Priorities
Post-tabling Activities
1. National Hydrometric Program         The Hydrometric Monitoring Stations Federal-Provincial            A                    0.5                    Q3         Q1      Resource         Enhance           Accountability
The objective of this project is to     Agreements Program under the WES Board is                                                                   (2008 –    (2010 –   Management       environmental
audit the various arrangements for      characterized by a high level of complexity (e.g. complex                                                     09)        11)     Capital Assets   protection
the operations and the maintenance      delivery arrangements), dependency on various national                                                                                            through the
                                        and international partners, as well as compliance                                                                                External         implementation
of hydrometric monitoring stations,                                                                                                                                      Dependencies
including the agreements with the       requirements (Canada Water Act, Boundary Water Treaty                                                                                             of key national
various provinces. The focus will       Act, International Rivers Improvement Act, etc). Thus, it is                                                                                      initiatives.
be on the following: (1) the internal   exposed to a variety of risks: risks associated with
and external governance of the          inflexible obligations and poor understanding of
Hydrometric Program; and (2) the        responsibilities and agreements, non-compliance risk, risk
Hydrometric Program delivery            that the current decision making and management
approaches.                             configuration may not be optimal, especially in light of the
                                        complexities of internal and external arrangements, etc.
                                        Tabling Date: March 2010

2. Specified Purpose Accounts           The Specified Purpose accounts have not been previously           A                    0.5                               Q1      Resource         Foster capacity   Stewardship
The objective of this project is to     audited at EC. The quality of controls in place is unknown,                                                 (2008 –    (2010 –   Management       of enabling
audit the utility, appropriateness,     and the high materiality of the area, with approximately                                                      09)        11)                      functions to
and compliance of Specified             $12 million received in 2004-2005, makes it especially                                                                                            support
Purpose Accounts.                       important to access the processes of the Specified Purpose                                                                                        programs.
                                        Accounts for utility and compliance.
                                        While the project was identified in the Financial Audit
                                        Plan as a high priority and risk area during consultations
                                        with senior management in 2008-2009, the audit was
                                        delayed because the auditor in charge has left the
                                        department.
                                        Tabling Date: March 2010

3. Accounts Payable at Year-end         The process regulating the Accounts Payable at Year-end           A                    0.5                    Q4         Q1      Resource         Foster capacity   Stewardship



 Audit Score:        L (0.00 – 0.20)        M (0.21 – 0.45)            H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                         39
                                                                                                                                                                                                    Environment Canada
                                                                                                                                                                                   Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                         Audit         Audit      Resources           Start      End        Links to         Links to          Link to MAF
                                                                                                      Type          Priority                       Quarter    Quarter    Corporate        Corporate
                                                                                                                               PM          $’000                         Risks            Priorities
The objective of this project is to     is complex, wide in scope, and non-automated. All regions                                                   (2008 –    (2010 –   Management       of enabling
audit compliance and process for        participate in the process and significant amounts and high                                                   09)        11)                      functions to
expenditures and Accounts Payable       levels of transactions are processed in a short period of                                                                                         support
at year-end including PAYE.             time, driving potential operational risks to the program                                                                                          programs.
While Accounts Payable has been         and the department.
identified as high risk in the course   In addition, the audit of Accounts Payable at Year-end is
of the Readiness Assessment, this       required by the Federal Accountability Act and TBS
audit focuses on year-end               Policy.
transactions only.                      Tabling Date: March 2010

4. Review of the Employee               Due to the potential of departmental IT assets not being         R                     0.5                    Q2         Q1      Capital Assets   Foster capacity   Policy and
Clearance Process                       returned upon the severance of employees from EC, senior                                                    (2009 –    (2010 –                    of enabling       Programs
The objective of this project is to     management requested a review of the employee clearance                                                       10)        11)                      functions to      Stewardship
determine whether policy and            process. This project is one of three assurance processes                                                                                         support
procedures exist and are being          currently underway that is looking at IT asset                                                                                                    programs.
implemented with regards to IT and      management.
Communications’ assets during the       Tabling Date: March 2010
employee separation clearance
process. The tools that exist to
support the process and their
adequacy will also be examined.
The scope is limited to employees
that had permanently separated
from the Department.

5. Costing and Pricing (Votes           The costing and pricing (Vote Netted Revenue (VNR))              A                     0.5                               Q1      Resource         Foster capacity   Stewardship
Netted Revenue)                         program is a complex, high materiality EC function with a                                                   (2008 –    (2010 –   Management       of enabling
The objective of this project is to     high volume of transactions and a total amount of $19M                                                        09)        11)                      functions to
audit costing and pricing               processed in 2006-2007. All regions participate in the                                                                                            support
mechanisms employed by the              process adding to the complexity and the scope of the                                                                                             programs.
department.                             program. Thus, while all revenues have been considered
                                        as lower risk in the course of the Readiness Assessment,
The objectives of the audit are to      VNR has a complexity that other revenues do not have.
ensure that: (1) EC’s costing
framework is up-to-date and is used     Despite this, the program was never audited; the quality of
consistently across the Department;     the controls in place is unknown. The initial audit planned
(2) the right mechanisms are used to    was delayed because the scope was significantly modified
manage revenues; and (3) the            following the detailed risk analysis.
department is properly costing its



 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                         40
                                                                                                                                                                                                        Environment Canada
                                                                                                                                                                                       Risk-Based Audit & Evaluation Plan

Project Scope and Objectives              Rationale for Conduct                                           Audit         Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                          Type          Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                                   PM          $’000                         Risks             Priorities
good and services and charging its        Tabling Date: January 2010
clients.

Carry-over from 2009-2010
6. Governance of Specialized              In a scientific department like EC, program delivery areas         A             VH      1.0                    Q2         Q2      Information for   Foster capacity   Governance and
Information Technology (IT)               often have staff performing IT functions like acquiring                                                       (2009 –    (2010 –   Decision-         of enabling       Strategic
Resources                                 hardware and developing and/or supporting IT systems.                                                           10)        11)     Making            functions to      Directions
                                          These embedded personnel often have a familiarity with                          Score                                                                support
The objective of this project is to                                                                                                                                                                              People
provide assurance that the                the subject area that is not generally available in the wider                    0.85                                                                programs.
                                          IT community. The 2006 MAF assessment found                                                                                                                            Citizen-focused
governance provided to support                                                                                                                                                                                   Service
specialized IT resources is adequate      opportunity for improvement in the level of corporate
and effective.                            engagement in IT management.                                                                                                                                           Stewardship
This audit will inventory the scope       Tabling Date: June 2010
and nature of the IT related work
being carried out in the program
areas of the department, the systems
that have been acquired or
developed as a result of the activity,
and the skill sets that are required to
carry out this activity. The audit
will assess the adequacy and
effectiveness of the IT governance
to which IT activities and resources
(people and systems) are subject.

7. IT Asset Management – OCG              The Government of Canada has spent approximately $2                A             VH      1.0                    Q2         Q2      Information for   Foster capacity   Governance and
Horizontal Audit                          billion in each of the last three years on IT and                                                             (2009 –    (2010 –   Decision-         of enabling       Strategic
The objective of this audit is to         telecommunications hardware, software and services.                                                             10)        11)     Making            functions to      Direction
                                          This represents a significant investment in infrastructure                      Score                                                                support
determine whether the information                                                                                                                                                                                Stewardship
technology (IT) asset management          designed to support government departments in their                              0.85                                                                programs.
                                          delivery of programs and services. Compliance                                                                                                                          Accountability
processes in place in large
departments and agencies (LDA)            requirements are high as the policies guiding IT asset
provide effective governance and          management require the integration of the departmental IT
control.                                  investment plan and the overall business plan, the
                                          establishment of departmental governance structures and
The scope of the audit will include a     the measurement of performance related to management
review of a sample of LDAs and the        of IT on an ongoing basis.
government wide approach to the
                                          The highest risk areas of IT asset management determined



 Audit Score:        L (0.00 – 0.20)          M (0.21 – 0.45)             H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                       41
                                                                                                                                                                                               Environment Canada
                                                                                                                                                                                Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                        Audit         Audit      Resources           Start      End        Links to      Links to          Link to MAF
                                                                                                     Type          Priority                       Quarter    Quarter    Corporate     Corporate
                                                                                                                              PM          $’000                         Risks         Priorities
management of both existing IT          during the detailed IT risk assessment were IT
assets and future acquisition,          governance, planning for IT asset acquisition and
including a review of the               monitoring.
governance processes and                Tabling Date: June 2010
structures, the planning process for
acquisition, and monitoring. The
audit will look at practices in place
at the time of the conduct of the
audit.

8. Management of Additional             CEAP includes several spending measures to be                   A             H       1.0                    Q1         Q1      Resource      Foster capacity   Governance and
Funding Received through                implemented by departments. It will be important that                                                      (2009 –    (2010 –   Management    of enabling       Strategic
Canada’s Economic Action Plan           departments, including EC, exercise sound stewardship                                                        10)        11)                   functions to      Directions
(CEAP) – Part 1                         and due diligence in delivering on those measures. In this                   Score                                                            support           Policy and
The objective of this audit is to       context, an audit of the Management of Additional                             0.56                                                            programs.         Programs
advise managers on the adequacy         Funding Received is necessary to the department.                             (avg)                                                                              Risk
and effectiveness of internal           Canadian Environmental Sustainability Indicators: CEAP                                                                                                          Management
controls, to deliver their expanded     will work to improve the Government’s annual reporting
programs, in a relevant and timely      on key environmental indicators, such as clean air, clean                                                                                                       Stewardship
fashion.                                water and greenhouse gas emissions with $10 million                                                                                                             Accountability
                                        in 2009-2010 (EC to receive $6.6 million of federal                                                                                                             Learning,
                                        funding). This program is increasingly exposed to public                                                                                                        Innovation and
                                        scrutiny, with increasing demands for environmental                                                                                                             Change
                                        information. Though the program has been involved in                                                                                                            Management
                                        several recent audits/evaluations, it presents a risk
                                                                                                                                                                                                        Results and
                                        associated with extensive stakeholder
                                                                                                                                                                                                        Performance
                                        engagement/partnership, third party dependency, and
                                        compliance.
                                        Federal Contaminated Sites Action Plan: CEAP has
                                        provided a significant investment in this program, $80.5
                                        million over the next two years, for the management and
                                        assessment of federal contaminated sites and $165 million
                                        to facilitate remediation work totalling an estimated
                                        $245.5 million. EC will receive $7.9 million for program
                                        management (for EC’s custodial contaminated sites
                                        program, as well as the FCSAP Secretariat and Expert
                                        Support to all departments); $3.2 million for assessment
                                        work; and $0.5 million to facilitate accelerated




 Audit Score:        L (0.00 – 0.20)        M (0.21 – 0.45)           H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                   42
                                                                                                                                                                                                  Environment Canada
                                                                                                                                                                                 Risk-Based Audit & Evaluation Plan

Project Scope and Objectives          Rationale for Conduct                                          Audit        Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                     Type         Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                             PM          $’000                         Risks             Priorities
                                      remediation work.
                                      A recent A&E evaluation was very positive with
                                      performance measurement being the main issue.
                                      Modernizing Federal Laboratories: CEAP has provided a
                                      significant investment in this program, $250 million over
                                      the next two years, for deferred maintenance of federal
                                      laboratories. EC submitted 16 project proposals and is
                                      competing for $22.7 million from the fund. Six of these
                                      projects (valued at $14 million) are well aligned with the
                                      budget criteria. EC projects are low dollar value, thereby
                                      contributing to our ability to complete the infrastructure
                                      projects by March 31, 2011.
                                      Arctic Research Infrastructure: CEAP has provided a
                                      significant investment in this program, $85 million over
                                      the next two years, for the maintenance and / or upgrading
                                      of key existing Arctic Research facilities. EC submitted 3
                                      project proposals valued at $6.6 million.
                                      Mackenzie Gas Project: CEAP for 2009 provides $37.6
                                      million in 2009–2010 to departments and agencies in
                                      support of environmental assessments, regulatory
                                      coordination, science, and Aboriginal consultations related
                                      to the Mackenzie Gas Project. This funding was allocated
                                      to INAC, NRCan, DFO, CEAA, and EC.
                                      According to program sources, the EA/regulatory process
                                      has now been delayed by 2 years and the project is now
                                      expected to be completed by 2010-2011. The existing
                                      MC resources expired on March 31, 2009 and EC is
                                      seeking additional funding through a new MC process.
                                      Tabling Date: June 2010

9. Governance of Information          In this information age, information management (IM) is a         A            H       6.0         XXX        Q4         Q3      Resource          Foster capacity   Governance and
Management                            critical indicator of the long term viability of an                                                         (2009 –    (2010 –   Management        of enabling       Strategic
The objective of this project is to   organization. In a scientific department, good IM is an                                                       10)        11)     Human             functions to      Directions
                                      especially key success factor. Past audits and reviews                        Score                                                                support
provide assurance that the                                                                                                                                             Resources                           Risk
Information Management                have identified gaps in our IM practices. Further, the three                   0.50                                              Skills            programs.         Management
Directorate provides governance,      most recent rounds of MAF assessment for EC have
                                      identified opportunities for improvement in the IM area,                                                                         Information for                     Stewardship
risk management and strategic                                                                                                                                          Decision-



 Audit Score:       L (0.00 – 0.20)       M (0.21 – 0.45)            H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                       43
                                                                                                                                                                                                      Environment Canada
                                                                                                                                                                                     Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                           Audit         Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                        Type          Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                                 PM          $’000                         Risks             Priorities
direction for information               such as the utility of the corporate performance                                                                                   Making
management in the department.           framework.
Particular attention will be paid to    The preliminary survey is expected to start in March 2010
conclude on whether a clearly           and the report is planned to be tabled in September 2010.
defined and adequate vision exists
for managing the information
resources of a scientific department.

10. Physical Security                   Physical Security was identified as a risk in the 2009-2010        A             H       1.0                               Q2      Resource          Foster capacity   Risk
The objective of this project will be   AE Risk Assessment. The MAF V assessment lists                                                                (2009 –    (2010 –   Management        of enabling       Management
to assess the appropriateness and       Management of Security and Business Continuity as an                                                            10)        11)     External          functions to
                                        “opportunity for improvement” for the organization (AOM                         Score                                                                support
performance of EC’s security                                                                                                                                               Dependencies
measures with an emphasis on asset      # 19).                                                                           0.50                                                                programs.
                                                                                                                                                                           Capital Assets
security including building access.     Recent incidents (laptop, document missing, etc.) and
                                        inconsistencies in security capacity across the nation have
                                        further highlighted the importance of assessing Physical
                                        Security at EC.
                                        In addition, no recent audits of security have been
                                        conducted. Some post 9/11 program changes took place;
                                        however, they were not informed by a comprehensive
                                        audit. In light of the above, the audit of Physical Security
                                        is a high priority for the department.
                                        The fieldwork in the regions is completed and analysis is
                                        currently underway; revised planned report tabling date is
                                        June 2010.

11. Life-cycle Management               Life cycle management (LCM) of assets has very high                A             H       2.0                    Q1         Q2      Resource          Foster capacity   Stewardship
(LCM) of Assets                         materiality and no previous internal audits have been                                                         (2009 –    (2011 –   Management        of enabling
The purpose of this project is to       conducted. LCM of capital assets is critical for EC's                                                           10)        12)     Human             functions to
                                        programs as there is a risk that critical assets (atmospheric                   Score                                                                support
conduct a Systems-Under-                                                                                                                                                   Resources
Development (SUD) Audit to              and hydraulic monitoring infrastructure; weather radars;                         0.50                                              Skills            programs.
support the implementation of the       super-computer; fleet) will deteriorate, adding to
                                        occupational health and safety risks and increasing the                                                                            Information for
new Oracle Assets Life Cycle                                                                                                                                               Decision-
Management (ALM) project and to:        potential for malfunction or failure. Capital assets were
                                        also recognized as a risk in the latest CRP; specifically,                                                                         Making
“To provide assurance and advice        the issues of aging/rust-out-of equipment and low re-                                                                              Capital Assets
on the adequacy and effectiveness       investment in capital assets were noted.
of the management framework and
controls to "life-cycle" manage all     The 2008-2009 Financial Readiness Assessment identified



 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)             H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                          44
                                                                                                                                                                                                    Environment Canada
                                                                                                                                                                                   Risk-Based Audit & Evaluation Plan

Project Scope and Objectives           Rationale for Conduct                                         Audit          Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                     Type           Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                               PM          $’000                         Risks             Priorities
significant departmental assets”.      challenges associated with EC’s asset accounting and
                                       inventory processes. Inventory issues such as a lack of
                                       inventory substantiation (count and valuation) and a lack
                                       of clear segregation between capital assets, inventory or
                                       expenses have been identified.
                                       Recent improvements include a new Integrated Investment
                                       Planning Process (IIPP). In addition, a new Oracle Assets
                                       Life Cycle Management (ALM) Project is now ongoing
                                       with the purpose of developing and implementing a
                                       comprehensive life management of assets program for all
                                       departmental capital assets.
                                       The OCG is now conducting an audit IT Assets
                                       Management (reporting Feb/10) and plans to conduct in
                                       2009-2010 an audit of LCM Real Property (status
                                       unknown).
                                       Final audit plan approved January 2010; planned tabling
                                       date is July 2011.

12. Professional Contracts             In March 2009, the Office of the Procurement                      A             M       1.0                    Q4         Q2      External          Foster capacity   Public Service
The project’s objective is to review   Ombudsman (OPO) advised the Department that a                                                                (2009 –    (2010 –   Dependencies      of enabling       Values
the procurement process specific to    practice review would look at the procurement practices at                                                     10)        11)     Information for   functions to      Stewardship
                                       EC specifically to determine whether systemic problems                         Score                                                                support
“Management Consulting and Other                                                                                                                                         Decision-                           Results and
Professional Services” to confirm      exist. The OPO and EC agreed that the review will be                            0.40                                              Making            programs.
                                       carried out using a collaborative approach with an external                                                                                                           Performance
compliance with TB policy and to
confirm that the procurement           firm commissioned by the Internal Audit Branch.
business function is based on sound    The fieldwork has been completed and draft audit findings
contracting management practices.      are to be shared with the entity in February 2010; planned
The audit will also include an         tabling date is June 2010.
assessment of whether allegations
to favouritism are founded.
The scope will include all phases of
the procurement process specific to
“Management Consulting and Other
Professional Services”.




 Audit Score:      L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                        45
                                                                                                                                                                                                     Environment Canada
                                                                                                                                                                                    Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                          Audit         Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                       Type          Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                                PM          $’000                         Risks             Priorities
Planned for 2010-2011
13. Services to Marine                  Recently, the Program has needed to adapt to changes to           A             H       10.0                   Q1         Q4      Resource          Enhance           Policy and
Transportation                          the PAA which are to help improve communication and                                                          (2010 –    (2010 –   Management        environmental     Programs
The objective of this project will be   coordination amongst existing sea-ice research program                                                         11)        11)     Human             protection
                                        activities within EC, other federal departments,                               Score                                                                through the
to assess the adequacy and                                                                                                                                                Resources
effectiveness or the management         international partners and academia. Also, a new                                0.63                                                                implementation
                                        agreement was negotiated with the Coast Guard in 2009-                                                                            Information for   of key national
control framework of the ice                                                                                                                                              Decision-
services.                               2010. The Program also has never been audited or                                                                                                    initiatives.
                                        evaluated.                                                                                                                        Making
This is a joint audit and evaluation                                                                                                                                      Business
project.                                There is a high degree of complexity in terms of the
                                        multiple stakeholder relationships. The Program also                                                                              Continuity
                                        supports international commitments to the United Nations
                                        Convention on Safety of Lives at Sea and the North
                                        American Ice Service. Canada recently received
                                        international designation as an issuing Authority in
                                        specific northern areas and will assume responsibility for
                                        meteorological services in those areas.
                                        The risk of possible failures on the part of third parties
                                        exists as the Program is highly dependent on data
                                        collected by the Weather Observations, Forecasts and
                                        Warnings Program (2.1.1), infrastructure support from
                                        CIOB and international data exchange through WMO.
                                        Limited performance data exists and the need to invest in
                                        development of comprehensive national performance
                                        measures was identified.
                                        A high degree of specific meteorological/scientific
                                        knowledge is necessary and capacity/resource shortages
                                        have occurred, particularly as result of increased demand
                                        for products and services due to recent climate change
                                        impacts, with depletion of Arctic ice cover and
                                        lengthening of shipping season.

14. Information Technology (IT)         Information Technology (IT) controls are key to ensuring          A             H       12.0        XXX        Q1         Q4      Resource          Foster capacity   Stewardship
Financial Controls                      the accuracy over financial reporting and to ensuring an                                                     (2010 –    (2010 –   Management        of enabling
The objective of this project is to     efficient external audit. The use of IT poses specific risks                                                   11)        11)     Human             functions to
                                        to the effectiveness of the organizations’ internal controls                   Score                                                                support
assess the adequacy and                                                                                                                                                   Resources
effectiveness of the IT controls and    as reliance may be placed on systems or programs that are                       0.63                                                                programs.
                                                                                                                                                                          Information for



 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)             H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                          46
                                                                                                                                                                                                   Environment Canada
                                                                                                                                                                                    Risk-Based Audit & Evaluation Plan

Project Scope and Objectives          Rationale for Conduct                                          Audit         Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                     Type          Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                              PM          $’000                         Risks             Priorities
related business processes for        inaccurately processing data.                                                  (avg)                                              Decision-
financial systems.                    Additional risks include the failure to make necessary                                                                            Making
The scope of the audit will be to     changes to systems or programs and the possibility of IT
provide assurance that the IT         personnel gaining access privileges breaking down
controls have been taken into         segregation of duties. Unauthorized access can result in
consideration for audited financial   data destruction, improper changes to data, and
statement readiness.                  unauthorized changes to data in master files, inappropriate
                                      manual intervention and potential loss of data or access to
                                      data.
                                      The IT controls were identified as a high-level risk in
                                      phase 1 and 2 of the EC Audit Readiness Assessment
                                      Report – August 2008.

15. Management of Additional          CEAP includes several spending measures to be                     A             H       2.0                    Q1         Q4      Resource          Foster capacity   Governance and
Funding Received through              implemented by departments. It will be important that                                                        (2010 –    (2010 –   Management        of enabling       Strategic
Canada’s Economic Action Plan         departments, including EC, exercise sound stewardship                                                          11)        11)                       functions to      Directions
(CEAP) – Part 2                       and due diligence in delivering on those measures. In this                     Score                                                                support           Policy and
The objective of this audit is to     context, an audit of the Management of Additional                               0.56                                                                programs.         Programs
advise managers on the adequacy       Funding Received is necessary to the department.                               (avg)                                                                                  Risk
and effectiveness of internal         Federal Contaminated Sites Action Plan: CEAP has                                                                                                                      Management
controls, to deliver their expanded   provided a significant investment in this program, $80.5
programs, in a relevant and timely    million over two years, for the management and                                                                                                                        Stewardship
fashion.                              assessment of federal contaminated sites and $165 million                                                                                                             Accountability
                                      to facilitate remediation work totalling an estimated                                                                                                                 Learning,
                                      $245.5 million. EC received $7.9 million for program                                                                                                                  Innovation and
                                      management (for EC’s custodial contaminated sites                                                                                                                     Change
                                      program, as well as the FCSAP Secretariat and Expert                                                                                                                  Management
                                      Support to all departments); $3.2 million for assessment
                                                                                                                                                                                                            Results and
                                      work; and $0.5 million to facilitate accelerated
                                                                                                                                                                                                            Performance
                                      remediation work.
                                      This is a highly complex horizontal initiative that is being
                                      delivered by fifteen federal custodians. EC co-leads
                                      administration of this program with the Treasury Board
                                      Secretariat. This initiative exposes EC to risks associated
                                      with both business processes due to its complexity and
                                      third party dependency, and in particular a dependency on
                                      federal financial assistance programs, that provide funding
                                      for activities related to federal contaminated sites.



 Audit Score:       L (0.00 – 0.20)       M (0.21 – 0.45)            H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                       47
                                                                                                                                                                                                     Environment Canada
                                                                                                                                                                                      Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                          Audit         Audit      Resources           Start      End        Links to          Links to          Link to MAF
                                                                                                       Type          Priority                       Quarter    Quarter    Corporate         Corporate
                                                                                                                                PM          $’000                         Risks             Priorities
                                        The interdepartmental evaluation of the FSCAP conducted
                                        in 2008-09 was very positive with performance
                                        measurement being the main issue.
                                        Modernizing Federal Laboratories: CEAP has provided a
                                        significant investment in this program, $250 million over
                                        the next two years, for deferred maintenance of federal
                                        laboratories. EC has 6 projects totally $7.3 million in
                                        2010-2011.

16. Risk Management                     In accordance with the 2009 Policy on Internal Audit and          A             H       8.0                    Q3         Q2      Information for   Foster capacity   Risk
The objective of this project will be   the related Directive on Departmental Audit Committees,                                                      (2010 –    (2011 –   Decision-         of enabling       Management
to provide assurance on the state of    risk management is one of the key responsibilities                                                             11)        12)     Making            functions to      Results and
                                        delegated to departmental audit committees where the                           Score                                                                support
risk management in the department.                                                                                                                                                                            Performance
                                        latter “shall review at least annually, the corporate risk                      0.50                                                                programs.
                                        profile and departmental risk management
                                        arrangements.” As well, the policy requires that Chief
                                        Audit Executives “provide annual assurance to deputy
                                        heads and audit committees on the effectiveness and
                                        adequacy of risk management, control, and governance
                                        processes in their departments, as well as reporting on
                                        individual risk-based audits.”
                                        EC completed an update to its Corporate Risk Profile in
                                        2009 and initiated the development of a common
                                        Integrated Risk Management approach.

17. Classification Process              Classification was identified as a risk by management in          A             M       6.0         XXX        Q2         Q1      Human             Foster capacity   People
The objective of this project is to     2008-2009 and has not been recently audited; the project                                                     (2010 –    (2011 –   Resources         of enabling
provide assurance on the adequacy       was postponed from 2008-2009 to 2010-2011 because a                                                            11)        12)     Skills            functions to
                                        new approach to classification was recently developed.                         Score                                                                support
of internal controls in place to
support an effective and efficient      The MAF assessment rating of EC’s Classification                                0.40                                                                programs.
classification process.                 Program has improved from “Opportunity for
The audit scope will cover the          Improvement” in Round V to “Acceptable” in Round VI.
entire classification process in EC,    It was noted that EC is undertaking action to improve the
including the linkages between the      classification program in accordance with its level of risk.
respective roles of the Human
Resources Branch (HRB) and
departmental managers. The audit
will also emphasize compliance to



 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)             H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                      48
                                                                                                                                                                                               Environment Canada
                                                                                                                                                                                 Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                          Audit          Audit      Resources           Start     End       Links to      Links to        Link to MAF
                                                                                                       Type           Priority                       Quarter   Quarter   Corporate     Corporate
                                                                                                                                 PM          $’000                       Risks         Priorities
policies, as well as to assess
consistency across the department.

18. OCG led Horizontal Audit            Under the Policy on Internal Audit, the Comptroller                                      3.0
                                        General can direct departments to conduct sectorial and
                                        horizontal audits. The internal audit group must reserved
                                        person-months to provide support to these audits. As of
                                        this date, the OCG has not identified the horizontal audits
                                        for 2010-11 or identified departments that will be
                                        included.

19. Special Investigations              To conduct special reviews/audit on matter related to the                                2.0
The objective of this project will be   implementation of policies, such as Internal Disclosure of
to audit areas/programs requiring       Information Concerning Wrongdoing in the workplace.
special investigation.

20. Internal Audit Follow-ups           Internal audit follow-ups are required to provide                                        4.0
The objective of this project will be   management assurance that previous audit
to monitor the implementation of        recommendations are acted upon. To this end, internal
past recommendations.                   audit will monitor the implementation of past
                                        recommendations for the following audits :
                                        •    Audit of Occupational Health and Safety
                                             Management Framework
                                        •    Audit of Accounts Receivable
                                        •    Audit of the Efficiency of Staffing Operations
                                        •    Audit of the Efficiency of Contracting Processes
                                        •    Liabilities & Contingent Liabilities Audit Strategy
                                        •    Audit of Occupational Safety and Health at
                                             Environmental Protection Service (EPS) Research
                                             Centres




 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)             VH (0.66 – 1.00)                                                                                              49
                                                                                                                                                                                                 Environment Canada
                                                                                                                                                                                  Risk-Based Audit & Evaluation Plan



7.2 2011–2012
Project Scope and Objectives             Rationale for Conduct                                         Audit          Audit      Resources           Start     End       Links to       Links to           Link to MAF
                                                                                                       Type           Priority                       Quarter   Quarter   Corporate      Corporate
                                                                                                                                 PM          $’000                       Risks          Priorities
21. Transportation Sector                There have been limited audit and evaluation projects for         A             VH                                              External       Realize concrete   Governance and
Emissions (Vehicles and Engines)         this program.                                                                                                                   Dependencies   progress on        Strategic
This objective of this project will be   There has been many recent changes in the external                                                                                             international,     Directions
                                                                                                                        Score                                                           continental and
to assess the economy, efficiency        environment for this program (increasing number of                                                                                                                Policy and
and effectiveness of management          imports from Asian markets), which puts pressure on                             0.73                                                           domestic           Programs
controls for the program.                internal resources. The program is quite complex and                                                                                           initiatives on
                                                                                                                                                                                        climate change     Citizen-focused
This project will address the            related to multiple federal frameworks (CARA,                                                                                                                     Service
                                         Regulatory Framework for Air Emissions, Turning the                                                                                            and clean air.
following core management                                                                                                                                                                                  Risk
controls: Policy and Programs.           Corner) and a high level of interdependence with other
                                         programs of federal departments (AAFC, NRCan, TC,                                                                                                                 Management
                                         Industry Canada); and with US EPA standards, programs,                                                                                                            Accountability
                                         work plans.                                                                                                                                                       Results and
                                         The program is quite unique in that it includes economic,                                                                                                         Performance
                                         as well as environmental and health impacts and involves
                                         multiple stakeholders (OGD, industry associations. The
                                         program is also unique in that it is entirely regulatory
                                         (under CEPA) and there is high degree of compliance with
                                         regulations.
                                         Knowledge of regulations of emerging markets limited.
                                         Risks for the program have been confirmed by the 2008-
                                         2009 Evaluation of the Regulation of Smog-causing
                                         Emissions from the Transportation Sector.

22. Greenhouse Gas (GHG) Data            The federal government is committed to drastically                A             VH                                              External       Realize concrete   Governance and
Collection, Management and               reducing Canada's greenhouse gas emissions and air                                                                              Dependencies   progress on        Strategic
Reporting                                pollution (i.e., a national target of an absolute 20%                                                                                          international,     Directions
                                         reduction in GHG from 2006 levels by 2020). GHG data                           Score                                                           continental and
The objective for this audit is to                                                                                                                                                                         Policy and
assess the adequacy and                  collection, management, and reporting have been                                 0.70                                                           domestic           Programs
effectiveness of control in place for    identified as a very high in the 2010-11 AEB Risk                              (avg)                                                           initiatives on
                                         Assessment and management consultations.                                                                                                       climate change     Citizen-focused
collecting, managing and reporting                                                                                                                                                                         Service
on GHG data.                             Budget 2008 provided $66M over 2 years to set up key                                                                                           and clean air.
                                         features of the Regulatory Framework for Air Emissions,                                                                                                           Risk
                                         including an electronic tracking system for units traded in                                                                                                       Management
                                         the carbon market, a single-window reporting system for



 Audit Score:       L (0.00 – 0.20)          M (0.21 – 0.45)            H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                   50
                                                                                                                                                                                                      Environment Canada
                                                                                                                                                                                     Risk-Based Audit & Evaluation Plan

Project Scope and Objectives               Rationale for Conduct                                           Audit        Audit      Resources           Start     End       Links to          Links to          Link to MAF
                                                                                                           Type         Priority                       Quarter   Quarter   Corporate         Corporate
                                                                                                                                   PM          $’000                       Risks             Priorities
                                           industry. The drafting of the GHG framework and offset                                                                                                              Accountability
                                           system is complex and contains an aggressive timeline.                                                                                                              Results and
                                           The private sector is expected to play a major role in the                                                                                                          Performance
                                           offset system. As this Program is relatively new, some
                                           activities are at an early stage of implementation.
                                           Therefore the effectiveness of the Program has not yet
                                           been measured.
                                           The Kyoto Protocol Implementation Act requires that the
                                           Minister of the Environment prepare and implement an
                                           annual climate change plan to address sources of GHG in
                                           Canada. EC is also subject to many legislative and
                                           compliance requirements with specific international
                                           reporting obligations.

23. PeopleSoft                             EC is implementing a new Human Resources                           A            VH                                              Human             Foster capacity   Learning,
The objective of this audit                Management System (HRMS), PeopleSoft version 8.9, on                                                                            Resources         of enabling       Innovation and
engagement is to provide assurance         February 22, 2010. The initial rollout will lay the                                                                             Skills            functions to      Change
                                           foundation for future enhancements by focusing on the                          Score                                                              support           Management
that controls are in place to ensure:                                                                                                                                      Information for
                                           core modules necessary to maintain an HR system.                                0.68                                            Decision-         programs.         Results and
      data integrity;
                                           PeopleSoft is a modern information system that stores and                      (avg)                                            Making                              Performance
      compliance with policies and        enables the processing of human resources information
       procedures;                         such as the classification levels of positions, appointments,
      proper support to business          employee pay and leave information. It will replace the
       processes.                          Human Resources Management Information System
                                           (HRMIS), which has been in use for more than 18 years.

24. Compliance Promotion and               Budgets 2007 and 2008 have provided significant                    A            VH                                              Human             Enhance           Policy and
Enforcement                                investment to support Enforcement capacity. The                                                                                 Resources         environmental     Programs
The objective of this project will be      Program has recently hired and trained more than 120                                                                            Information for   protection
                                           compliance promotion officers and risk managers (who                           Score                                                              through the
to audit the efficiency of controls in                                                                                                                                     Decision-
place for the Compliance Promotion         will all need a high degree of knowledge and skills).                           0.60                                            Making            implementation
and Enforcement program                    A new Environmental Enforcement Act received Royal                             (avg)                                                              of key national
                                                                                                                                                                           External          initiatives.
The scope of the audit will focus on       Assent in 2009 and amends the fine provisions, sentencing                                                                       Dependencies
assessing the management controls          authorities and enforcement tools of six statutes
in place related to the                    administered by EC. The law also introduces the new
implementation of the new                  Environmental Violations Administrative Monetary
Environmental Enforcement Act.             Penalties Act, which authorizes the use of administrative
                                           monetary penalties for minor violations under several



    Audit Score:         L (0.00 – 0.20)       M (0.21 – 0.45)             H (0.46 – 0.65)           VH (0.66 – 1.00)                                                                                                       51
                                                                                                                                                                                                Environment Canada
                                                                                                                                                                                 Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                          Audit         Audit      Resources           Start     End       Links to       Links to          Link to MAF
                                                                                                       Type          Priority                       Quarter   Quarter   Corporate      Corporate
                                                                                                                                PM          $’000                       Risks          Priorities
                                        environmental laws. The regulatory function of the
                                        Enforcement Program exposes EC to compliance risks.
                                        The complexity of and high dependency on stakeholder
                                        and partner relationships adds risk to the implementation
                                        of the program.
                                        The Wildlife and Environmental Enforcement functions
                                        continue to operate somewhat independently of each other
                                        despite being part of the same Branch. There are unclear
                                        roles and responsibilities between National Headquarters
                                        and the regions for major functional areas – inspections,
                                        investigations and, in particular, intelligence. Internal
                                        partners do not have a clear understanding on divisional
                                        roles and responsibilities for understanding the
                                        enforcement program and to support strategic planning.
                                        A recent internal evaluation has highlighted several areas
                                        for improvement. Limited performance data and lack on
                                        integrated systems have an impact on information for
                                        decision making. An evaluation of Enforcement is
                                        currently underway.




25. Biodiversity Policy and             Past CESD audits identified ongoing problems such as the          A             H                                               Human          Enhance           Policy and
Priorities                              decreasing resources for increasing responsibilities, a lack                                                                    Resources      environmental     Programs
The objective of this project will be   of a performance measurement framework and a lack of                                                                            External       protection
                                        clear governance. However, considerable progress has                           Score                                                           through the
to audit the adequacy and                                                                                                                                               Dependencies
effectiveness of risk management,       made in responding to recommendations. Management                               0.63                                                           implementation
controls and governance processes       actions are currently being implemented but have not yet                                                                                       of key national
for the program.                        been evaluated or audited.                                                                                                                     initiatives.
The scope of the audit will focus on    Recent organizational changes have included the staffing
assessing the management controls       of over 100 new positions. These positions require a high
in place related to the program.        degree of scientific knowledge, training and coaching
                                        without which there is a risk that the skill sets of new and
                                        existing personnel will be inappropriate and inadequate.
                                        New international biodiversity targets will be developed
                                        after the 10th Conference of Parties to the Convention of
                                        Biological Diversity in October 2010. Also, EC in
                                        cooperation with its partners, will advance a domestic



 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                    52
                                                                                                                                                                                                    Environment Canada
                                                                                                                                                                                   Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                          Audit          Audit      Resources           Start     End       Links to          Links to          Link to MAF
                                                                                                       Type           Priority                       Quarter   Quarter   Corporate         Corporate
                                                                                                                                 PM          $’000                       Risks             Priorities
                                        "Access and Benefit-sharing" (ABS) framework and
                                        participate in negotiations for an international ABS
                                        regime. There is a high degree of dependencies on
                                        provinces and territories for data, on partnerships with
                                        OGDs, NGOs, Aboriginal and private organizations and
                                        on external stakeholder involvement.

26. Governance Framework/               EC’s Governance Framework and Operational Planning                 A             H                                               Human             Foster capacity   Governance and
Operational Planning and                and Reporting processes were identified as areas of risk in                                                                      Resources         of enabling       Strategic
Reporting                               the 2008-2009, 2009-2010 and 2010-2011 AEB Risk                                                                                  Skills            functions to      Directions
                                        Assessments and management consultations. While the                             Score                                                              support
The objective of this project will be                                                                                                                                    Information for                     Risk
to assess the controls in place to      complexity between the Results Management Structure                              0.50                                            Decision-         programs.         Management
support effective governance and        and the Organizational Structure has been improved, the                                                                          Making                              Stewardship
operational planning and reporting.     Round VI MAF assessment recommended that the
                                                                                                                                                                                                             Accountability
An emphasis will be placed on           Department further clarify this relationship, in order to
providing assurance in relation to      more effectively report on results. The only other audit or
roles, responsibilities and             evaluation within Governance recently was the evaluation
accountabilities for the new            of the Clean Air Agenda – Management and
governance structure and planning       Accountability, started in 2009.
framework (PAA) and to assess the       A number of measures have been recently implemented.
effectiveness of the changes to the     A Performance Measurement Framework (PMF) was
PAA planning framework.                 developed and used in 2009–2010 RPP. A readiness
                                        assessment on the performance indicators in the 2010-
                                        2011 PMF is underway. An integrated planning process
                                        was developed; a draft Integrated Risk Management
                                        framework is underway. The risk assessment update will
                                        be integrated with the 2010-2011 operational planning
                                        process. With these changes comes the risk that the new
                                        integrated planning and risk management processes will
                                        not mature in a timely fashion due to resistance to change
                                        and current ingrained business practices. The lack of
                                        maturity of IP and risk management practices may have a
                                        negative impact on decision-making, including resource
                                        allocation, due to a lack of timely and accurate
                                        information related to planning, budgeting and risk.




 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)             VH (0.66 – 1.00)                                                                                                     53
                                                                                                                                                                                                   Environment Canada
                                                                                                                                                                                  Risk-Based Audit & Evaluation Plan

Project Scope and Objectives            Rationale for Conduct                                         Audit          Audit      Resources           Start     End       Links to          Links to          Link to MAF
                                                                                                      Type           Priority                       Quarter   Quarter   Corporate         Corporate
                                                                                                                                PM          $’000                       Risks             Priorities
27. Grants and Contributions            The Government of Canada Transfer Payment Policy that             A             M                                               Resource          Foster capacity   Governance and
Processes                               took effect in October 2008 with the objective to reduce                                                                        Management        of enabling       Strategic
The objective of this audit             the administrative and reporting burden on funding                                                                              Information for   functions to      Directions
                                        recipients. Under this policy, department are required to                      Score                                                              support
engagement is to provide assurance                                                                                                                                      Decision-                           Risk
with respect to the adequacy and        have in place by April 2010, a process to engage                                0.40                                            Making            programs.         Management
effectiveness of the management         applicants and recipients; a risk management approach
                                        that ensures administrative requirements on recipients are                                                                                                          Stewardship
controls framework (more
particularly the financial controls)    proportional to risk level; and service standards. EC (led
related to the implementation of the    by Corporate Finance) has prepared a prepared a Three-
G&C Reform. A number of G&C             Year Plan for Transfer Payment Programs for the OCG.
programs will be selected for a         EC has developed an Action Plan for the implementation
horizontal audit.                       of G&C Reform.
                                        The Grants and Contributions process was identified as a
                                        high risk area during consultations with management on
                                        the 2010-2011 AEB Risk Assessment, with high degrees
                                        of reputational and public awareness sensitivity and
                                        complex inter-relationships and delivery mechanisms.

28. OCG led Horizontal Audit            Under the Policy on Internal Audit, the Comptroller
                                        General can direct departments to conduct sectorial and
                                        horizontal audits. The internal audit group must reserved
                                        person-months to provide support to these audits. As of
                                        this date, the OCG has not identified the horizontal audits
                                        for 2011-12 or identified departments that will be
                                        included.

29. Special Investigations              To conduct special reviews/audit on matter related to the
The objective of this project will be   implementation of policies, such as Internal Disclosure of
to audit areas/programs requiring       Information Concerning Wrongdoing in the workplace.
special investigation.

30. Internal Audit Follow-ups           Internal audit follow-ups are required to provide
The objective of this project will be   management assurance that previous audit
to monitor the implementation of        recommendations are acted upon. To this end, internal
past recommendations.                   audit will monitor the implementation of past
                                        recommendations for the following audits :
                                        •    (TBD)




 Audit Score:       L (0.00 – 0.20)         M (0.21 – 0.45)            H (0.46 – 0.65)            VH (0.66 – 1.00)                                                                                                     54
                                                                                                                                                                                Environment Canada
                                                                                                                                                               Risk-Based Audit & Evaluation Plan

7.3 2012–2013
Project Name                         Rationale for Conduct                         Audit          Audit      Resources           Start     End       Links to          Links to          Link to MAF
                                                                                   Type           Priority                       Quarter   Quarter   Corporate         Corporate
                                                                                                             PM          $’000                       Risks             Priorities
31. Oracle Upgrade                                                                     A             VH                                              Information for   Foster capacity   Stewardship
                                                                                                                                                     Decision-         of enabling       Results and
                                                                                                                                                     Making            functions to      Performance
                                                                                                    Score                                                              support
                                                                                                     0.85                                                              programs.

32. Protected Areas Management                                                         A             VH                                              Resource          Enhance           Policy and
                                                                                                                                                     Management        environmental     Programs
                                                                                                                                                     Human             protection
                                                                                                    Score                                                              through the
                                                                                                                                                     Resources
                                                                                                     0.75                                            Skills            implementation
                                                                                                                                                                       of key national
                                                                                                                                                     External          initiatives.
                                                                                                                                                     Dependencies

33. Change Control and                                                                 A             VH                                              Information for   Foster capacity   People
Configuration Management –                                                                                                                           Decision-         of enabling       Risk
IM/IT Project                                                                                                                                        Making            functions to      Management
                                                                                                    Score                                                              support
                                                                                                     0.68                                                              programs.         Learning,
                                                                                                                                                                                         Innovation and
                                                                                                    (avg)                                                                                Change
                                                                                                                                                                                         Management

34. Ecosystem Assessment and                                                           A             H                                               Resource          Enhance           Policy and
Approaches                                                                                                                                           Management        environmental     Programs
                                                                                                                                                     Human             protection
                                                                                                    Score                                                              through the
                                                                                                                                                     Resources
                                                                                                     0.55                                                              implementation
                                                                                                                                                     Information for   of key national
                                                                                                                                                     Decision-         initiatives.
                                                                                                                                                     Making
                                                                                                                                                     External
                                                                                                                                                     Dependencies

35. Greening Initiatives /                                                             A             H                                               Results and       Enhance           Governance and
Sustainability                                                                                                                                       Performance       environmental     Strategic
                                                                                                                                                                       protection        Directions



 Audit Score:      L (0.00 – 0.20)      M (0.21 – 0.45)      H (0.46 – 0.65)   VH (0.66 – 1.00)                                                                                                        55
                                                                                                                                                                                Environment Canada
                                                                                                                                                               Risk-Based Audit & Evaluation Plan

Project Name                         Rationale for Conduct                         Audit          Audit      Resources           Start     End       Links to          Links to          Link to MAF
                                                                                   Type           Priority                       Quarter   Quarter   Corporate         Corporate
                                                                                                             PM          $’000                       Risks             Priorities
                                                                                                    Score                                                              through the       Accountability
                                                                                                     0.51                                                              implementation    Risk
                                                                                                                                                                       of key national   Management
                                                                                                    (avg)                                                              initiatives.

36. Financial Audits                                                                   A             M                                               Resource          Foster capacity   Stewardship
                                                                                                                                                     Management        of enabling
                                                                                                                                                     Human             functions to
                                                                                                    Score                                                              support
                                                                                                                                                     Resources
                                                                                                     0.40                                            Skills            programs.
                                                                                                                                                     Information for
                                                                                                                                                     Decision-
                                                                                                                                                     Making

37. OCG led Horizontal Audit

38. Special Investigations

39. Internal Audit Follow-ups




 Audit Score:      L (0.00 – 0.20)      M (0.21 – 0.45)      H (0.46 – 0.65)   VH (0.66 – 1.00)                                                                                                        56
                                                                                                                                                                                                Environment Canada
                                                                                                                                                                              Risk-Based Audit & Evaluation Plan


8 E X T E R N AL A U D I T S – 2 0 1 0 - 2 0 11 TO 2 0 1 2 - 2 0 1 3

8.1 2010–2011

Project Name                                                                                            Status

Commissioner of the Environment and Sustainable Development (CESD)
1. Study of Analytical Methods for Integrated Decision Making                                           Draft report provided for comment; to be tabled March 2010

2. Study of Federal Sustainability Development Strategy                                                 Study will be prepared after the release of the Federal Sustainability Development Strategy; to be tabled Fall 2010

3. Audit of Climate Change Impacts and Adaptation                                                       In examination phase; to be tabled December 2010

4. Audit of Pollution at Sea (formerly – Managing Marine Pollution)                                     In planning phase; to be tabled December 2010

5. Audit of Water Resource Management                                                                   In planning phase; to be tabled December 2010

6. Audit of Cumulative Impacts Assessment under CEAA                                                    In planning phase; to be tabled December 2010

Office of the Auditor General (OAG)
7. Audit of Implementation of Public Service Modernization Act                                          In reporting phase; to be tabled April 2010

8. Audit of Sustainable Northern Development                                                            In reporting phase; to be tabled April 2010

9. Audit of Financial Statements for Public Accounts                                                    Interviews and information gathering is taking place.

Office of the Commissioner for Official Languages (OCOL)
10. Bilingual Weather and Environmental Services Provided on Environment Canada’s Automated Telephone   In planning phase; to be tabled Fall 2010
Network (Follow-Up)

11. Department Report Card                                                                              In planning phase; to be tabled Fall 2010

Public Service Commission (PSC)
12. Public Service Employment Act                                                                       In planning phase




                                                                                                                                                                                                                        57
                                                                                                                                Environment Canada
                                                                                                                   Risk-Based Audit & Evaluation Plan

8.2 2011–2012

Project Name                                                         Status

Commissioner of the Environment and Sustainable Development (CESD)
13. Audit of Kyoto Protocol Implementation Act                       In planning phase; to be tabled Spring 2011

Office of the Auditor General (OAG)
14. Audit of Internal Audit (Follow-Up)                              In planning phase; to be tabled Spring 2011



8.3 2012–2013

Project Name                                                         Status

No projects - Awaiting results of One-Pass Planning




                                                                                                                                                   58
                                                                                                                                                                                Environment Canada
                                                                                                                                                                   Risk-Based Audit & Evaluation Plan


9 E V A L U AT I O N P L A N S U M M A R Y – F I V E Y E A R S AT A G L A N C E




                                                                      % of Direct
                                                        Materiality
                                         Aggregate
                                                                                                                                           Evaluation Year




                                                                      Spending
                                                                       Program
                                          Ranking




                                                         ($’000)
                                           Risk
Evaluation Universe
                                                                                        2010-2011                  2011-2012                  2012-2013         2013-2014              2014-2015
(PAA Sub-sub-Activity)
 Strategic Outcome 1: Canada’s natural environment is conserved and restored for present and future generations.
1.1 Biodiversity – Wildlife and Habitat
1.1.1 Biodiversity Policy and
                                            M           2,380            0.27                                         0.27%
      Priorities
1.1.2 Species at Risk                      VH           40,944           4.64                              4.64%
1.1.3 Migratory Birds                       H           18,167           2.06                                                      2.06%
1.1.4 Wildlife Habitat Conservation
1.1.4.1 Habitat Conservation                                                        Carry-over: Wildlife
        Partnerships                        H           15,297           1.73         Habitat Canada                                                              1.73%
                                                                                     Foundation 0.40%
1.1.4.2 Invasive Alien Species
                                            M           9,006            1.02
        Partnerships
1.1.4.3 Protected Areas                                                                                        Northwest Territories
                                                                                                                 Protected Areas                 1.57%
                                                                                                                  Strategy 0.2%
                                            H           15,654           1.77
                                                                                                                 Inuit Impact and
                                                                                                                                            Inuit Impact and
                                                                                                               Benefits Agreement
                                                                                                                                           Benefits Agreement
                                                                                                                 Evaluation Plan
1.2 Water Resources
1.2.1 Water Quality and Aquatic                                                      Carry-over: Water
      Ecosystems Health                    VH           75,747           8.58          Management                                                8.58%
                                                                                      Evaluation Plan



 Legend:   TB Commitment         Risk-Based Selection                                                                                                                                       59
                                                                                                                                                            Environment Canada
                                                                                                                                               Risk-Based Audit & Evaluation Plan




                                                                    % of Direct
                                                      Materiality
                                       Aggregate
                                                                                                                          Evaluation Year




                                                                    Spending
                                                                     Program
                                        Ranking




                                                       ($’000)
                                         Risk
Evaluation Universe
                                                                                    2010-2011         2011-2012             2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
1.2.2 Water Resource
                                          H           10,685           1.21       Carry-over: Water
      Management and Use
                                                                                    Management                                 3.10%
1.2.3 Hydrological Service and                                                     Evaluation Plan
                                          H           16,657           1.89
      Water Survey

1.3 Sustainable Ecosystems
1.3.1 Sustainability Reporting and
                                          L           1,988            0.23                                                    0.23%
      Indicators
1.3.2 Ecosystem Assessment and
                                          M           18,695           2.12                                                    2.12%
      Approaches
1.3.3 Community Engagement
1.3.3.1 EcoAction Community
                                          L           8,277            0.94                                                                   0.94%
        Funding
1.3.3.2 Environmental Damages
                                          L             296            0.03                                       0.03%
        Fund
1.3.3.3 Environmental Youth
                                          L           3,289            0.37                                                                   0.37%
        Employment
1.3.3.4 Education and
                                          L           5,144            0.58
        Engagement
1.3.4 Ecosystems Initiatives




 Legend:   TB Commitment       Risk-Based Selection                                                                                                                     60
                                                                                                                                                                   Environment Canada
                                                                                                                                                      Risk-Based Audit & Evaluation Plan




                                                                    % of Direct
                                                      Materiality
                                       Aggregate
                                                                                                                                 Evaluation Year




                                                                    Spending
                                                                     Program
                                        Ranking




                                                       ($’000)
                                         Risk
Evaluation Universe
                                                                                        2010-2011                 2011-2012        2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
1.3.4.1 Great Lakes                                                                  Carry-over: Great
                                                                                     Lakes Action Plan
                                                                                            0.25%
                                          H           14,319           1.62       Carry-over: Freshwater                                                                    1.62%
                                                                                   Initiatives Evaluation
                                                                                             Plan

                                                                                             Freshwater Initiatives 2.68%

1.3.4.2 St. Lawrence                      H            2,665           0.30
1.3.4.3 Lake Simcoe                       M            8,670           0.98        Carry-over:
                                                                                   Freshwater                                                                               1.41%
1.3.4.4 Lake Winnipeg                                                               Initiatives         Freshwater Initiatives
                                          M            1,138           0.13        Evaluation
                                                                                       Plan
1.3.4.5 Community Ecosystem
                                          H            3,003           0.34                                                           0.34%
        Partnerships
1.4 Compliance Promotion and
    Enforcement – Wildlife                H           19,072           2.16                                                                          2.16%


 Strategic Outcome 2: Canadians are equipped to make informed decisions on changing weather, water and climate conditions.
2.1 Weather and Environmental Services for Canadians
2.1.1 Weather Observations,                                                       Carry-over: Research &
      Forecasts and Warnings                                                           Development,
                                                                                      Production and
                                         VH           140,456         15.92                                                                                                15.92%
                                                                                   Monitoring in Support
                                                                                  of Weather Predictions
                                                                                          4.00%




 Legend:   TB Commitment       Risk-Based Selection                                                                                                                            61
                                                                                                                                                        Environment Canada
                                                                                                                                           Risk-Based Audit & Evaluation Plan




                                                                   % of Direct
                                                     Materiality
                                      Aggregate
                                                                                                                      Evaluation Year




                                                                   Spending
                                                                    Program
                                       Ranking




                                                      ($’000)
                                        Risk
Evaluation Universe
                                                                                       2010-2011          2011-2012     2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
                                                                                      Carry-over:
                                                                                     Meteorological
                                                                                  Program for the 2010
                                                                                  Winter Games (PCH
                                                                                      lead) 0.20%
2.1.2 Health-related                                                             Post-tabling: National
      Meteorological Information         H           5,067            0.57        Air Quality Health                                                             0.57%
                                                                                         Index
2.1.3 Climate Information,                                                       Carry-over: Improved
      Predictions and Tools              H           20,872           2.37         Climate Change                                                                2.37%
                                                                                   Scenarios 0.47%
2.2 Weather and Environmental Services for Targeted Users
2.2.1 Services to Aviation               M           3,557            0.40
2.2.2 Services to Marine                                                           1.05% (Joint Audit
                                         M           9,233            1.05
      Transportation                                                                 and Evaluation)
2.2.3 Services to the Department
                                         L           3,067            0.35
      of National Defence
2.2.4 Services to Economic
                                         M           6,913            0.78
      Sectors

 Strategic Outcome 3: Threats to Canadians and their environment from pollution are minimized.
3.1 Substances and Waste Management
3.1.1 Substances Management                                                      Carry-over: Chemicals
                                         H           65,056           7.37
                                                                                 Management Plan 4.2%
3.1.2 Waste Management




 Legend:   TB Commitment      Risk-Based Selection                                                                                                                  62
                                                                                                                                                                     Environment Canada
                                                                                                                                                        Risk-Based Audit & Evaluation Plan




                                                                     % of Direct
                                                       Materiality
                                        Aggregate
                                                                                                                                   Evaluation Year




                                                                     Spending
                                                                      Program
                                         Ranking




                                                        ($’000)
                                          Risk
Evaluation Universe
                                                                                       2010-2011                2011-2012            2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
3.1.2.1 Waste Reduction and
                                           H           13,613           1.54                            1.54%
        Management
3.1.2.2 Marine Pollution                   M            1,746           0.20
3.1.3 Environmental Emergencies            M           10,607           1.20
3.1.4 Contaminated Sites                   M           29,726           3.37                                                                           3.37%

3.2 Climate Change and Clean Air
3.2.1 Climate Change and Clean Air Regulatory Program
3.2.1.1 Industrial Sector
                                          VH           102,711         11.64
        Emissions
3.2.1.2 Transportation Sector                                                                     Pilot
        Emissions                                                                              Project on
                                                                                   Carry-
                                                                                               Reducing       Regulation of
                                                                                    over:
                                                                                               Emissions     Renewable Fuels
                                                                                    CARA
                                           H           22,284           2.53                      from      Content in Gasoline,
                                                                                   Theme
                                                                                                Vehicles     Diesel and Home
                                                                                   14.91%
                                                                                                   and      Heating Fuel 0.30%
                                                                                                Engines
                                                                                                 0.05%
3.2.1.3 Consumer and
        Commercial Products                M            3,867           0.44
        Sector
3.2.1.4 Market Mechanisms                  M            5,768           0.65
3.2.2 Climate Change and Clean Air Partnerships
3.2.2.1 Vehicle Scrappage                  M           42,090           4.77                4.77%




 Legend:   TB Commitment        Risk-Based Selection                                                                                                                             63
                                                                                                                                                                     Environment Canada
                                                                                                                                                        Risk-Based Audit & Evaluation Plan




                                                                     % of Direct
                                                       Materiality
                                        Aggregate
                                                                                                                                   Evaluation Year




                                                                     Spending
                                                                      Program
                                         Ranking




                                                        ($’000)
                                          Risk
Evaluation Universe
                                                                                        2010-2011               2011-2012            2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
3.2.2.2 Clean Air Community
                                           M            2,845           0.32
        Partnerships
3.2.2.3 International Climate                                                        Carry-over: CAA          Commission for
        Change and Clean Air                                                       International Actions      Environmental
        Partnerships                                                                   Theme 1.00%           Cooperation 0.2%
                                          VH           20,083           2.28
                                                                                                            Multilateral Fund of
                                                                                   Clean Energy Dialogue
                                                                                                            Montreal Protocol
                                                                                          0.40%
                                                                                                                   0.36%

3.2.3 Environmental Technology
3.2.3.1 Sustainable Development
                                           M           37,694           4.27                                                                           4.27%
        Technologies
3.2.3.2 Environmental                                                              Carry-over: Genomics
        Technology Innovation                                                          Research and
                                           M            2,979           0.34
                                                                                   Development Initiative
                                                                                    (NRC lead) 0.11%
3.3 Compliance Promotion and
                                          VH           41,129          4.66                                                                           4.66%
    Enforcement – Pollution
 Strategic Outcome 4: Canadians benefit from the responsible development of the Mackenzie gas resources.
4.1 Mackenzie Gas Project                  L            N/A             N/A

Horizontal Evaluation Projects
Carry-over: CAA Management
                                          N/A           N/A             N/A                  X
Accountability Theme
Regulatory Improvements for
Major Resource Projects (NRCan            N/A           N/A             N/A                  X
lead)



 Legend:   TB Commitment        Risk-Based Selection                                                                                                                             64
                                                                                                                                           Environment Canada
                                                                                                                              Risk-Based Audit & Evaluation Plan




                                                                   % of Direct
                                                     Materiality
                                      Aggregate
                                                                                                         Evaluation Year




                                                                   Spending
                                                                    Program
                                       Ranking




                                                      ($’000)
                                        Risk
Evaluation Universe
                                                                                 2010-2011   2011-2012     2012-2013       2013-2014              2014-2015
(PAA Sub-sub-Activity)
Policy on Green Procurement
                                        N/A           N/A             N/A                                                     X
(PWGSC lead)
CAA Adaptations Theme
                                        N/A           N/A             N/A            X
Thematic Evaluation Roll-up
Clean Air Agenda Horizontal Roll-
                                        N/A           N/A             N/A            X
up
Implementation of Performance
Measurement Provisions of 2009          N/A           N/A             N/A            X
Federal Evaluation Policy

                              Total Coverage:        882,458        100.00         31.81%     10.19%         18.03%         17.50%                 21.89%

                                       Targets:                                     10%         13%            16%           20%                     20%




 Legend:   TB Commitment      Risk-Based Selection                                                                                                     65
                                                                                                                                                                                        Environment Canada

                                                                                                                                                                        Risk-Based Audit & Evaluation Plan


10        F I V E - Y E A R E V A L U AT I O N P L A N

10.1 2010–2011
Project Scope and Calibrated Level of Effort24             PAA Program                  Rationale for Conduct                  Coverage –       Aggregate   Resources                 Start         End
                                                                                                                               Direct Program   Risk                                  Quarter       Quarter
                                                                                                                               Spending         Ranking     PM           $’000

Post Tabling Activities
1. National Air Quality Health Index (NAQHI)               Health-related               This evaluation is a Treasury Board        0.57%            H       1.00         0            Q1            Q4
This evaluation covers the National Air Quality Health     Meteorological Information   requirement and will address a large                                                          (2009-10)     (2009-10)
Index, a large component of the Health-related             (2.1.2)                      component of a high risk program
Meteorological Information Program. The evaluation                                      area.
level of effort was calibrated taking into account the
small size and low complexity of this component.

Carry-over from 2009-2010
2. Wildlife Habitat Canada Foundation                      Habitat Conservation         This evaluation is a Treasury Board        0.40%            H       1.75         XXX*         Q3            Q2
This evaluation covers the Wildlife Habitat Canada         Partnerships (1.1.4.1)       requirement and will address a small                                                          (2009-10)     (2010-11)
Foundation Conservation Stamp component of the                                          component of a high risk program
Habitat Conservation Partnerships Program. It covers                                    area.
issues of relevance and performance, with a focus on
management oversight, clarity of mandate and
examination of alternative delivery approaches, as these
were flagged as areas requiring improvements in the
2005 evaluation. The evaluation requires moderate
dollar value and person months and the use of standard
methods given the relatively small size ($2.4M
annually) of this component. The evaluation level of
effort was calibrated taking into account the small size




24
  Effort calibration was calculated based on the size of the evaluated component, its level of complexity in terms of number of distinct programs encompassed in a single evaluation, whether it includes a
simple or horizontal governance structure, whether the evaluation is being primarily conducted in-house or by consultants, and whether the evaluation is being led by another department.



* Cost recovered from Program                                                                                                                                                                                 66
                                                                                                                                                                                          Environment Canada

                                                                                                                                                                             Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24              PAA Program                   Rationale for Conduct                     Coverage –       Aggregate   Resources               Start       End
                                                                                                                                    Direct Program   Risk                                Quarter     Quarter
                                                                                                                                    Spending         Ranking     PM          $’000
and low complexity of this component.

3. Water Management Evaluation Plan                         Water Quality and Aquatic                                                    N/A            VH       3.00        0           Q1          Q1
This project consists of conducting an evaluability         Ecosystems Health (1.2.1);                                                                                                   (2009-10)   (2010-11)
assessment of the Department's water management.            Water Resource
                                                            Management and Use
                                                            (1.2.2); Hydrological
                                                            Service and Water Survey
                                                            (1.2.3)

4. Great Lakes Action Plan                                  Great Lakes (1.3.4.1)         This evaluation is a Treasury Board           0.25%            H       1.00        0           Q1          Q1
This evaluation addresses the activities of the 2005-                                     requirement and will address a high                                                            (2009-10)   (2010-11)
2010 Great Lakes Action Plan for Areas of Concern                                         risk program area.
(GLAP IV), which is a component of the Great Lakes
Program. The evaluation covers issues of relevance and
performance. Given the high risk ranking and
complexity of this component, it uses a wide range of
data collection methods. The evaluation level of effort
was calibrated taking into account the small size but
high complexity of this component.

5. Freshwater Initiatives Evaluation Plan                   Great Lakes (1.3.4.1); Lake   This plan is to prepare for the                N/A             H       0.25        0           Q4          Q1
This project consists of developing the evaluation plan     Simcoe (1.3.4.3); Lake        Treasury Board requirement in 2010-                                                            (2009-10)   (2010-11)
for the 2010-11 evaluation of the Freshwater Initiatives.   Winnipeg (1.3.4.4)            11.

6. Research and Development, Production and                 Weather Observations,         This evaluation is being conducted at         4.00%           VH       7.50        XXX         Q3          Q2
Monitoring in Support of Weather Predictions                Forecasts and Warnings        the request of EC senior management                                                            (2009-10)   (2010-11)
This evaluation examines the relevance and                  (2.1.1)                       in light of the very high risk posed by
performance of research and development, production                                       this component of weather
and monitoring in support of weather predictions, a                                       predictions.
component of the Weather Observations Forecasts and
Warnings Program. The evaluation level of effort was
calibrated taking into account the large size and high
complexity.

7. Meteorological Program for the 2010 Winter               Weather Observations,         This evaluation is a Treasury Board           0.20%           VH       1.00        0           Q1          Q4
Games (Interdepartmental led by Department of               Forecasts and Warnings        requirement and will address a small                                                           (2009-10)   (2010-11)
Canadian Heritage)                                          (2.1.1)                       component of a very high risk




* Cost recovered from Program                                                                                                                                                                              67
                                                                                                                                                                                  Environment Canada

                                                                                                                                                                     Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24               PAA Program             Rationale for Conduct                  Coverage –       Aggregate   Resources               Start       End
                                                                                                                            Direct Program   Risk                                Quarter     Quarter
                                                                                                                            Spending         Ranking     PM          $’000
This evaluation covers the Meteorological Program for                                program area.
the 2010 Winter Games, a component of the Weather
Observations, Forecasts and Warnings Program. This
small evaluation is being led by Canadian Heritage and
covers issues of relevance and performance. In light of
the small size of the program, the evaluation scope is
small, using basic data collection methods and requiring
limited EC time and resource investments. The
evaluation level of effort was also calibrated taking into
account the fact that this evaluation is being managed by
another department and does not require EC to conduct
data collection.

8. Improved Climate Change Scenarios                         Climate Information,    This evaluation is a Treasury Board        0.47%            H       1.00        0           Q1          Q1
This evaluation addresses the Improved Climate Change        Predictions and Tools   requirement and will address a small                                                        (2009-10)   (2010-11)
Scenarios component of the Climate Information,              (2.1.3)                 component of a high risk program
Predictions and Tools Program. This component is one                                 area. The results of the evaluation
of two programs under the Adaptations Theme of the                                   will inform future climate change
Clean Air Agenda (CAA) in which EC is involved. The                                  initiatives, form part of the CAA
evaluation addresses issues of relevance and                                         Adaptation Thematic Roll-up in
performance. In light of the small size and low                                      2010-2011, and feed into a CAA-
complexity of this component, the evaluation level of                                level rollup of evaluation findings
effort is moderate.                                                                  from across the eight theme areas in
                                                                                     2010-2011.

9. Chemicals Management Plan                                 Substances Management   This evaluation is a Treasury Board        4.20%            H       5.00        0           Q3          Q4
This evaluation is being conducted jointly with Health       (3.1.1)                 requirement and will address a high                                                         (2009-10)   (2010-11)
Canada, with Health Canada managing the contract with                                risk program area.
a consultant, and addresses the Chemicals Management
Plan (CMP), a component representing approximately
half of the total resources for the Substances
Management Program. The evaluation addresses issues
of relevance and performance. In light of the
components' high complexity and materiality and the
high risk posed to human health and the environment if
toxic and other harmful substances are not assessed and
managed effectively, this evaluation relies on the use of
complex methods and a high level of effort.




* Cost recovered from Program                                                                                                                                                                      68
                                                                                                                                                                                     Environment Canada

                                                                                                                                                                        Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24            PAA Program                   Rationale for Conduct                  Coverage –       Aggregate   Resources               Start       End
                                                                                                                               Direct Program   Risk                                Quarter     Quarter
                                                                                                                               Spending         Ranking     PM          $’000

10. Clean Air Regulatory Agenda (CARA) Theme              Industrial Sector Emissions   This evaluation is a Treasury Board        14.91%            H      3.00        XXX         Q3          Q1
This evaluation will address the CARA theme, which is     (3.2.1.1); Transportation     requirement and will address very                          (avg)                            (2009-10)   (2010-11)
one of eight themes under the government's Clean Air      Sector Emissions (3.2.1.2);   high to moderate risk program areas.
Agenda (CAA). The CARA evaluation will cover four         Consumer and Commercial       The results of the evaluation will
EC Programs: Industrial Sector Emissions,                 Products Sector (3.2.1.3);    inform future regulatory initiatives
Transportation Sector Emissions, Consumer and             Market Mechanisms             and feed into a CAA level roll-up of
Commercial Products Sector, and Market Mechanisms.        (3.2.1.4)                     evaluation findings from across the
The evaluation will address issues of relevance and                                     eight theme areas in 2010-2011.
performance. Limited resources, time and range of
methods are expected to be required for this evaluation
given CARA activities' recent implementation and the
limited availability of performance information. The
evaluation level of effort was calibrated taking into
account the large size and high complexity of this
component.

11. Clean Air Agenda (CAA) International Actions          International Climate         This evaluation is a Treasury Board        1.00%           VH       2.25        XXX         Q1          Q1
Theme                                                     Change and Clean Air          requirement and will address a very                                                         (2009-10)   (2010-11)
This evaluation will examine the International Actions    Partnerships (3.2.2.3)        high risk program area.
Theme, which is one of eight themes under the
government's CAA. The International Actions Theme
evaluation will cover a component representing slightly
less than half of the International Climate Change and
Clean Air Partnerships Program. The evaluation will
address issues of relevance and performance. Moderate
resources, time and range of methods are expected to be
used for this evaluation given this component' recent
implementation. The evaluation level of effort was
calibrated taking into account the small size but high
complexity of this component.

12. Genomics Research and Design Initiatives              Environmental Technology      This evaluation is a Treasury Board        0.11%            M       2.00        0           Q4          Q3
(Interdepartmental led by Natural Resources               Innovation (3.2.3.2)          requirement and will address a                                                              (2009-10)   (2010-11)
Canada)                                                                                 moderate risk program area.
The evaluation covers the Genomics Research and
Design Initiatives, a small component of the
Environmental Technology Innovation Program. The
evaluation is led by Natural Resources Canada and



* Cost recovered from Program                                                                                                                                                                         69
                                                                                                                                                                                        Environment Canada

                                                                                                                                                                           Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24               PAA Program               Rationale for Conduct                   Coverage –          Aggregate   Resources               Start       End
                                                                                                                               Direct Program      Risk                                Quarter     Quarter
                                                                                                                               Spending            Ranking     PM          $’000
addresses issues of relevance and performance. Given
the small size of this initiative, its moderate risk level
and the secondary role played by EC, the Department is
devoting limited resources and time to this evaluation.
The evaluation level of effort was also calibrated taking
into account the fact that this evaluation is being
managed by another department and that two separate
contracts will be issued for the planning and the
conducting phase.

13. Clean Air Agenda (CAA) Management and                    N/A                       This evaluation is a Treasury Board           N/A              N/A      1.00        0           Q2          Q1
Accountability Theme                                                                   requirement. The results of the                                                                 (2009-10)   (2010-11)
This evaluation covers the Management and                                              evaluation will feed into a CAA level
Accountability Theme of the CAA, which is a cross-                                     roll-up of evaluation findings from
cutting component that does not sit in any of the                                      across the eight theme areas in 2010-
Department's main programs. Rather, it encompasses                                     2011.
all the management and accountability activities of the
various sectors of the Department and of other
government departments involved in implementing the
CAA. It is functionally located in the Corporate Branch
of the Department. The evaluation addresses issues of
relevance and performance. Limited resources, time and
range of methods are being used for this evaluation
given CAA activities' recent implementation. The
evaluation level of effort was also calibrated taking into
account the small size and low complexity of this
component.

Planned for 2010-2011
14. Species at Risk                                          Species at Risk (1.1.2)   This evaluation is a Treasury Board     (4.64% - Carried-      VH       6.75        XXX*        Q1          Q1
This evaluation will cover the entire PAA Program                                      requirement and will address a very     over to following                                       (2010-11)   (2011-12)
Species at Risk. EC will lead this interdepartmental                                   high risk program area.                       year.)
evaluation, in collaboration with Fisheries and Oceans
Canada and Parks Canada. The evaluation will address
issues of relevance and performance. In light of the
high risk and complexity of the program, a high level of
effort was planned for this evaluation.




* Cost recovered from Program                                                                                                                                                                            70
                                                                                                                                                                                            Environment Canada

                                                                                                                                                                               Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24             PAA Program                   Rationale for Conduct                     Coverage –          Aggregate   Resources               Start       End
                                                                                                                                   Direct Program      Risk                                Quarter     Quarter
                                                                                                                                   Spending            Ranking     PM          $’000

15. Freshwater Initiatives (Action Plan on Clean           Great Lakes (1.3.4.1); Lake   This evaluation is a Treasury Board       (2.68% - Carried-        M      2.75        XXX*        Q2          Q2
Water – Lake Simcoe, Lake Winnipeg, Great Lakes            Simcoe (1.3.4.3); Lake        requirement and will address high to      over to following      (avg)                            (2010-11)   (2011-12)
sediment remediation)                                      Winnipeg (1.3.4.4)            moderate risk program areas.                    year.)
The objective of this project is to evaluate jointly the
Lake Simcoe (2010-2011), Lake Winnipeg (2010-2011),
and Great Lakes (2015-2016) Freshwater Initiatives
under the Action Plan on Clean Water. The evaluation
will address issues of relevance and performance. The
evaluation level of effort was calibrated taking into
account the large size and high complexity of this
component. Additional time was also allocated to
mitigate the fact that this will be one of the first
evaluations covering several PAA Programs at once.
This additional time will enable the evaluation managers
to adjust the evaluation approach as needed.

16. Services to Marine Transportation (Joint               Services to Marine            Although focusing on a medium risk             1.05%              M       8.50        XXX         Q1          Q4
Evaluation and Audit)                                      Transportation (2.2.2)        program area, this evaluation                                                                     (2010-11)   (2010-11)
This project will be conducted as a joint evaluation and                                 presents an opportunity for testing
audit of the Services to Marine Transportation Program.                                  the conduct of a joint evaluation and
The evaluation will address issues of relevance and                                      audit. Joint projects are intended to
performance. The calibration of effort for this                                          reduce the burden on the evaluated
evaluation was established taking into account the small                                 and audited programs. This test will
size and low complexity of this program.                                                 inform possible future adjustments to
                                                                                         this first five-year plan.

17. Waste Reduction and Management                         Waste Reduction and           This evaluation will address a high       (1.54% - Carried-       H       7.50        XXX         Q2          Q2
This evaluation will cover the entire Waste Reduction      Management (3.1.2.1)          risk program area and presents an         over to following                                       (2010-11)   (2011-12)
and Management Program. The evaluation will address                                      opportunity for testing the feasibility         year.)
issues of relevance and performance. The evaluation                                      of evaluating an entire PAA program.
level of effort was calibrated taking into account the                                   This test will inform possible future
large size and high complexity of this component.                                        adjustments to this first five-year
                                                                                         plan.




* Cost recovered from Program                                                                                                                                                                                71
                                                                                                                                                                                         Environment Canada

                                                                                                                                                                            Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24               PAA Program                   Rationale for Conduct                   Coverage –       Aggregate   Resources               Start       End
                                                                                                                                   Direct Program   Risk                                Quarter     Quarter
                                                                                                                                   Spending         Ranking     PM          $’000

18. Pilot Project on Reducing Emissions from                 Transportation Sector         This evaluation is a Treasury Board         0.05%            H       2.25        0           Q3          Q4
Vehicles and Engines (Security and Prosperity                Emissions (3.2.1.2)           requirement and will address a small                                                         (2010-11)   (2010-11)
Partnership of North America Grants and                                                    component of a high risk program
Contributions Program)                                                                     area.
This evaluation will address the Pilot Project on
Reducing Emissions from Vehicles and Engines, a very
small component of the Transportation Sector
Emissions Program. The evaluation will address issues
of relevance and performance. Program managers will
manage the evaluation contract, with Evaluation
Division oversight. The evaluation level of effort was
calibrated taking into account the small size and low
complexity of this component, as well as the fact that
this evaluation will be managed by program managers.

19. Vehicle Scrappage                                        Vehicle Scrappage (3.2.2.1)   This evaluation is a Treasury Board         4.77%            M       4.25        XXX*        Q2          Q4
This evaluation will cover the entire Vehicle Scrappage                                    requirement and will address a                                                               (2010-11)   (2010-11)
Program from its inception to its sunsetting at the end of                                 moderate risk program area.
the current fiscal year. The evaluation will address
issues of relevance and performance but will focus on
lessons learned in light of the decision not to renew this
program. The evaluation level of effort was calibrated
taking into account the large size but low complexity of
this component.

20. Clean Energy Dialogue                                    International Climate         This evaluation is a Treasury Board         0.40%           VH       4.00        XXX*        Q1          Q2
This evaluation will examine the Clean Energy                Change and Clean Air          requirement and will address a very                                              XXX         (2010-11)   (2010-11)
Dialogue, which is a component of the International          Partnerships (3.2.2.3)        high risk program area. Results from
Climate Change and Clean Air Partnerships. The                                             this evaluation will feed into a CAA-
evaluation will address issues of relevance and                                            level roll-up of evaluation findings
performance. Limited resources, time and range of                                          from across the eight theme areas in
methods are expected to be used for this evaluation                                        2010-2011.
given this component's recent implementation. The
evaluation level of effort was also calibrated taking into
account the small size and low complexity of this
component as well as the fact that it will involve other
departments.




* Cost recovered from Program                                                                                                                                                                             72
                                                                                                                                                                          Environment Canada

                                                                                                                                                             Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24                PAA Program   Rationale for Conduct                   Coverage –       Aggregate   Resources               Start       End
                                                                                                                    Direct Program   Risk                                Quarter     Quarter
                                                                                                                    Spending         Ranking     PM          $’000

21. Regulatory Improvements for Major Resource                N/A           This evaluation is a Treasury Board          N/A            N/A      2.75        0           TBD         TBD
Projects (Natural Resources Canada lead)                                    requirement.                                                                                 (2010-11)
This evaluation will address a component that spans
several areas of the department involved with major
resource projects. The evaluation will be led by NRCan
and will address issues of relevance and performance,
with a focus on regulatory processes and the service
delivery of the processes, including associated
Aboriginal consultation responsibilities. The evaluation
level of effort was calibrated taking into account the fact
that this evaluation is being managed by another
department but will require that EC conduct some data
collection.

22. Clean Air Agenda (CAA) Adaptations Theme                  N/A           This report is a Treasury Board              N/A            N/A      5.25        0           Q1          Q2
Thematic Evaluation Roll-Up                                                 requirement. The results of the                                                              (2010-11)   (2010-11)
This report will provide a thematic roll-up and analysis                    evaluation will inform future climate
of all the findings of the program level evaluations                        change initiatives and feed into a
conducted in 2009-10 by EC and other departments of                         CAA-level rollup of evaluation
individual programs under the CAA Adaptations                               findings from across the eight theme
Theme. This roll-up will address issues of relevance                        areas in 2010-2011.
and performance. The evaluation level of effort was
calibrated taking into account the small size but very
high complexity of this component.

23. CAA Horizontal Roll-Up                                    N/A           This report is a Treasury Board              N/A            N/A      5.25        XXX         Q2          Q3
This report will provide a roll-up and analysis of all the                  requirement. The results of the                                                              (2010-11)   (2010-11)
findings of the theme and program evaluations                               evaluation will inform future climate
conducted in 2009-10 by EC and other departments.                           change initiatives.
This roll-up will address issues of relevance and
performance. The evaluation level of effort was
calibrated taking into account the small size but very
high complexity of this component.




* Cost recovered from Program                                                                                                                                                              73
                                                                                                                                                                       Environment Canada

                                                                                                                                                          Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort24            PAA Program   Rationale for Conduct                    Coverage –       Aggregate   Resources               Start       End
                                                                                                                 Direct Program   Risk                                Quarter     Quarter
                                                                                                                 Spending         Ranking     PM          $’000

24. Implementation of Performance Measurement             N/A           This project is part of the Evaluation        N/A            N/A      5.50        XXX         Q1          Q4
Provisions of 2009 Federal Evaluation Policy                            Division strategy for implementing                                                            (2010-11)   (2010-11)
This project will consist of: 1) delivering information                 the new requirements of the 2009
sessions to departmental managers, 2) developing a                      Federal Evaluation Policy pertaining
baseline assessment of all existing performance                         to performance measurement.
measures and frameworks within the department, 3)
participating in three pilot projects led by Corporate
Management Directorate to develop program
performance measurement strategies; and 4) monitoring
the status and quality of performance measurement for
programs as they are identified for future evaluations.

25. Evaluation Follow-ups                                 N/A           Evaluation follow-ups are required to         N/A            N/A                              Q1          Q4
The objective of this project will be to monitor the                    provide management assurance that                                                             (2010-11)   (2010-11)
implementation of past recommendations for the                          previous evaluation
following evaluations:                                                  recommendations are acted upon.
    Regulation of Smog-Causing Emissions from the
     Transportation Sector
    Enhanced Security for the Transboundary
     Movement of Hazardous Waste (PSAT)
    Meteorological Service of Canada (MSC)
     Transition Project
    Federal Contaminated Sites Action Plan (FCSAP)
    Aboriginal Consultations on Wastewater
    Canadian Regulatory System for Biotechnology
     (CRSB)
    Environmental Emergencies Program (EEP)
    Canadian Environmental Sustainability Indicators
     (CESI)
    EcoAction Community Funding Program
    Class Grants and Contributions
    Invasive Alien Species (IAS)
    Habitat Stewardship Program (HSP)
    Enforcement Program
    Air Quality Health Index (AQHI).




* Cost recovered from Program                                                                                                                                                           74
                                                                                                                                                                                           Environment Canada

                                                                                                                                                                              Risk-Based Audit & Evaluation Plan

10.2 2011–2012
Project Scope and Calibrated Level of Effort25                PAA Program                 Rationale for Conduct                   Coverage –          Aggregate   Resources               Start       End
                                                                                                                                  Direct Program      Risk                                Quarter     Quarter
                                                                                                                                  Spending            Ranking     PM          $’000

26. Biodiversity Policy and Priorities                        Biodiversity Policy and     Although focusing on a medium risk            0.27              M
This evaluation will cover the Biodiversity Policy and        Priorities (1.1.1)          program area, this evaluation will
Priorities Program. The evaluation will address issues                                    cover an area of the department that
of relevance and performance, with a focus on the                                         was never evaluated and will address
department's coordination of efforts by EC and other                                      a request by program managers to
government jurisdictions in the implementation of the                                     examine the effectiveness of EC
Canadian Biodiversity Strategy. The evaluation level of                                   federal/provincial coordination
effort will be calibrated taking into account the small                                   mechanisms.
size and low complexity of this program.

14. Species at Risk                                           Species at Risk (1.1.2)     This evaluation is a Treasury Board          4.64%             VH
This evaluation was carried over from 2010-11.                                            requirement and will address a very
                                                                                          high risk program area.

27. Migratory Birds                                           Migratory Birds (1.1.3)     This evaluation will address a high     (2.06% - Carried-       H
This evaluation will cover the Migratory Birds Program.                                   risk program area and program           over to following
The evaluation will address issues of relevance and                                       managers' request for evaluation              year.)
performance. The evaluation level of effort will be                                       evidence to guide needed revisions to
calibrated taking into account the large size and high                                    the program's design.
complexity of this program.

28. Northwest Territories Protected Areas Strategy            Protected Areas (1.1.4.3)   This evaluation is a Treasury Board          0.20%              H
This evaluation will cover the Northwest Territories                                      requirement and will address a small
Protected Areas Strategy, a small component of the                                        component of a high risk program
Protected Areas Program. The interdepartmental                                            area.
evaluation will be led by INAC and will address issues
of relevance and performance. The evaluation level of
effort will be calibrated taking into account the fact that
this evaluation will be managed by another department.




25
  Effort calibration was calculated based on the size of the evaluated component, its level of complexity in terms of number of distinct programs encompassed in a single evaluation, whether it includes a
simple or horizontal governance structure, whether the evaluation is being primarily conducted in-house or by consultants, and whether the evaluation is being led by another department.



* Cost recovered from Program                                                                                                                                                                                 75
                                                                                                                                                                                            Environment Canada

                                                                                                                                                                               Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort25             PAA Program                   Rationale for Conduct                     Coverage –          Aggregate   Resources               Start       End
                                                                                                                                   Direct Program      Risk                                Quarter     Quarter
                                                                                                                                   Spending            Ranking     PM          $’000

29. Inuit Impact and Benefits Agreement Evaluation         Protected Areas (1.1.4.3)     This evaluation plan is a Treasury              N/A               H
Plan                                                                                     Board requirement.
This project will consist of developing a plan for the
evaluation of the Inuit Impact and Benefits Agreement.
This project will be led by Environment Canada but
consideration will be given to evaluating this agreement
in concert with other departments evaluating similar
agreements.

30. Environmental Damages Fund                             Environmental Damages         This evaluation is a Treasury Board       (0.03% - Carried-       L
This evaluation will cover the Environmental Damages       Fund (1.3.3.2)                requirement.                              over to following
Fund Program. It will address issues of relevance and                                                                                    year.)
performance. The evaluation level of effort will be
calibrated taking into account the small size, low
complexity and low risk of this program.

15. Freshwater Initiatives (Action Plan on Clean           Great Lakes (1.3.4.1); Lake   This evaluation is a Treasury Board            2.68%              M
Water – Lake Simcoe, Lake Winnipeg, Great Lakes            Simcoe (1.3.4.3); Lake        requirement and will address high to                            (avg.)
sediment remediation)                                      Winnipeg (1.3.4.4)            moderate risk program areas.
This evaluation was carried over from 2010-11.

17. Waste Reduction and Management                         Waste Reduction and           This evaluation will address a high            1.54%              H
This evaluation was carried over from 2010-11.             Management (3.1.2.1)          risk program area and presents an
                                                                                         opportunity for testing the feasibility
                                                                                         of evaluating an entire PAA program.
                                                                                         This test will inform possible future
                                                                                         adjustments to this first five-year
                                                                                         plan.

31. Regulation of Renewable Fuels Content in               Transportation Sector         This evaluation is a Treasury Board            0.30%              H
Gasoline, Diesel and Home Heating Fuel                     Emissions (3.2.1.2)           requirement and will address a small
This evaluation will cover the Regulation of Renewal                                     component of a high risk program
Fuels Content in Gasoline Diesel and Home Heating                                        area.
Fuel, a small component of the Transportation Sector
Emissions Program. It will address issues of relevance
and performance. The evaluation level of effort will be
calibrated taking into account the small size and low




* Cost recovered from Program                                                                                                                                                                               76
                                                                                                                                                                                     Environment Canada

                                                                                                                                                                        Risk-Based Audit & Evaluation Plan

Project Scope and Calibrated Level of Effort25              PAA Program                 Rationale for Conduct                  Coverage –       Aggregate   Resources               Start       End
                                                                                                                               Direct Program   Risk                                Quarter     Quarter
                                                                                                                               Spending         Ranking     PM          $’000
complexity of this program.

32. Commission for Environmental Cooperation                International Climate       This evaluation is a Treasury Board        0.20%           VH
This evaluation will cover the Commission for               Change and Clean Air        requirement and will address a small
Environmental Cooperation, a small component of the         Partnerships (3.2.2.3)      component of a very high risk
International Climate Change and Clean Ari                                              program area.
Partnerships Program. It will address issues of relevance
and performance. The evaluation level of effort will be
calibrated taking into account the small size and high
complexity of this program.

33. Multilateral Fund of the Montreal Protocol              International Climate       This evaluation is a Treasury Board        0.36%           VH
This evaluation will cover the Multilateral Fund of the     Change and Clean Air        requirement and will address a small
Montreal Protocol, a small component of the                 Partnerships (3.2.2.3)      component of a very high risk
International Climate Change and Clean Ari                                              program area.
Partnerships Program. It will address issues of relevance
and performance. The evaluation level of effort will be
calibrated taking into account the small size and low
complexity of this program.



10.3 2012–2013
Project Name                                                PAA Program                 Rationale for Conduct                  Coverage –       Aggregate   Resources               Start       End
                                                                                                                               Direct Program   Risk                                Quarter     Quarter
                                                                                                                               Spending         Ranking     PM          $’000

27. Migratory Birds                                         Migratory Birds (1.1.3)                                                2.06%            H
This evaluation was carried over from 2011-12.

34. Protected Areas                                         Protected Areas (1.1.4.3)                                              1.57%            H

35. Inuit Impact and Benefits Agreement                     Protected Areas (1.1.4.3)                                               N/A             H

36. Water Management                                        Water Quality and Aquatic                                              11.68%           H
                                                            Ecosystems Health (1.2.1)                                                             (avg.)




* Cost recovered from Program                                                                                                                                                                        77
                                                                                                                                                              Environment Canada

                                                                                                                                                 Risk-Based Audit & Evaluation Plan

Project Name                                     PAA Program                    Rationale for Conduct   Coverage –       Aggregate   Resources               Start       End
                                                                                                        Direct Program   Risk                                Quarter     Quarter
                                                                                                        Spending         Ranking     PM          $’000

37. Sustainability and Reporting Indicators      Sustainability and Reporting                               0.23%            L
                                                 Indicators (1.3.1)

38. Ecosystem Assessment and Approaches          Ecosystem Assessment and                                   2.12%            M
                                                 Approaches (1.3.2)

30. Environmental Damages Fund                   Environmental Damages                                      0.03%            L
This evaluation was carried over from 2011-12.   Fund (1.3.3.2)

39. Community Ecosystem Partnerships             Community Ecosystem                                        0.34%            H
                                                 Partnerships (1.3.4.5)



10.4 2013–2014
Project Name                                     PAA Program                    Rationale for Conduct   Coverage –       Aggregate   Resources               Start       End
                                                                                                        Direct Program   Risk                                Quarter     Quarter
                                                                                                        Spending         Ranking     PM          $’000

40. Habitat Conservation Partnerships            Habitat Conservation                                        1.73            H
                                                 Partnerships (1.1.4.1)

41. EcoAction Community Funding                  EcoAction Community                                        0.94%            L
                                                 Funding (1.3.3.1)

42. Environmental Youth Employment (Human        Environmental Youth                                        0.37%            L
Resources and Skills Development Canada Lead)    Employment (1.3.3.3)

43. Compliance Promotion and Enforcement -       Compliance Promotion and                                   2.16%            H
Wildlife                                         Enforcement - Wildlife (1.4)

44. Contaminated Sites                           Contaminated Sites (3.1.4)                                 3.37%            M

45. Sustainable Development Technologies         Sustainable Development                                    4.27%            M
                                                 Technologies (3.2.3.1)

46. Compliance Promotion and Enforcement -       Compliance Promotion and                                   4.66%           VH




* Cost recovered from Program                                                                                                                                                 78
                                                                                                                                                               Environment Canada

                                                                                                                                                  Risk-Based Audit & Evaluation Plan

Project Name                                        PAA Program                  Rationale for Conduct   Coverage –       Aggregate   Resources               Start       End
                                                                                                         Direct Program   Risk                                Quarter     Quarter
                                                                                                         Spending         Ranking     PM          $’000
Pollution                                           Enforcement - Pollution
                                                    (3.3)

47. Policy on Green Procurement (Public Works and   N/A                                                       N/A            N/A
Government Services Canada lead)



10.5 2014–2015
Project Name                                        PAA Program                  Rationale for Conduct   Coverage –       Aggregate   Resources               Start       End
                                                                                                         Direct Program   Risk                                Quarter     Quarter
                                                                                                         Spending         Ranking     PM          $’000

48. Ecosystems Initiatives                          Great Lakes (1.3.4.1); St.                               3.03%            M
                                                    Lawrence (1.3.4.2); Lake                                                (avg.)
                                                    Simcoe (1.3.4.3); Lake
                                                    Winnipeg (1.3.4.4)

49. Weather Observations, Forecasts and Warnings    Weather Observations,                                    15.92%          VH
                                                    Forecasts and Warnings
                                                    (2.1.1)

50. Health-related Meteorological Information       Health-related                                           0.57%            H
                                                    Meteorological Information
                                                    (2.1.2)

51. Climate Information, Predictions and Tools      Climate Information,                                     2.37%            H
                                                    Predictions and Tools
                                                    (2.1.3)




* Cost recovered from Program                                                                                                                                                  79
                                             Environment Canada

                                Risk-Based Audit & Evaluation Plan




* Cost recovered from Program                                80
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11        E V A L U AT I O N C O V E R A G E O F T R A N S F E R
          P AY M E N T P R O G R A M S

           G&C Program                                PAA Program                      Last Evaluated       Next
                                                                                                          Evaluation

Action Plan on Clean Water,                Great Lakes (1.3.4.1); Lake Simcoe
                                                                                            N/A            2010/2011
Freshwater Programs                        (1.3.4.3); Lake Winnipeg (1.3.4.4)

Canada Foundation for Sustainable          Sustainable Development Technologies
                                                                                         2009/2010         2013/2014
Development Technology                     (3.2.3.1)

Commission for Environmental Co-           International Climate Change and
                                                                                         2006/2007         2011/2012
operation (CEC)                            Clean Air Partnerships (3.2.2.3)

Contributions for the Science Horizons     Environmental Youth Employment
Internship and the International           (1.3.3.3) (HRSDC Lead)                        2007/2008         2013/2014
Environmental Youth Corp Programs

EcoAction 2000 - Community Funding         EcoAction Community Funding
                                                                                         2009/2010         2013/2014
Initiative                                 (1.3.3.1)

Habitat Stewardship Contribution           Habitat Conservation Partnerships
                                                                                         2009/2010         2013/2014
Program                                    (1.1.4.1)

Inuit Impact and Benefit Agreement         Protected Areas (1.1.4.3)                        N/A            2012/2013

Mackenzie Gas Project                      Mackenzie Gas Project (4.1)                      N/A              TBD

Montreal Protocol                          International Climate Change and
                                                                                         2006/2007         2011/2012
                                           Clean Air Partnerships (3.2.2.3)

National Vehicle Scrappage Program         Vehicle Scrappage (3.2.2.1)                      N/A            2010/2011

Wildlife Habitat Canada Foundation         Habitat Conservation Partnerships
                                                                                         2005/2006         2010/2011
                                           (1.1.4.1)

Class 1) Contributions to Support Environmental Research and
                                                                                         2009/2010        See Note 1
Development
Clean Air Regulatory Agenda                Industrial Sector Emissions (3.2.1.1);
                                           Transportation Sector Emissions
                                           (3.2.1.2); Consumer and Commercial               N/A            2010/2011
                                           Products Sector (3.2.1.3); Market
                                           Mechanisms (3.2.1.4)

International Actions - Contributions to   International Climate Change and
support Environmental Research and         Clean Air Partnerships (3.2.2.3)
Development                                                                              2009/2010         2013/2014


International Polar Year                   Climate Information, Predictions and
                                                                                         2009/2010         2013/2014
                                           Tools (2.1.3)

Renewable Fuels                            Transportation Sector Emissions
                                                                                            N/A            2011/2012
                                           (3.2.1.2)




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           G&C Program                                PAA Program                    Last Evaluated           Next
                                                                                                            Evaluation

Class 2) Contributions to Support Environmental and Sustainable
                                                                                       2009/2010
Development Initiatives
Aboriginal Funds for Species at Risk       Species at Risk (1.1.2)
                                                                                           N/A               2010/2011
(AFSAR)

Action Plan on Clean Water                 Lake Winnipeg (1.3.4.4)
(Freshwater) - Lake Winnipeg -                                                             N/A               2010/2011
Research, Information and Monitoring

Adaptation - Contributions                 Climate Information, Predictions and
                                                                                           N/A               2010/2011
                                           Tools (2.1.3)

Canadian Biosphere Reserves                Ecosystem Assessment and
                                                                                           N/A               2012/2013
Association                                Approaches (1.3.2)

Chemicals Management Plan -                Substances Management (3.1.1)
                                                                                           N/A               2009/2010
Contributions

Ecosystem Initiatives (Great Lakes         Great Lakes (1.3.4.1)
                                                                                           N/A               2010/2011
Sustainability Funds)

Effective Environmental Law                Compliance Promotion and
                                                                                           N/A               2013/2014
Enforcement                                Enforcement - Pollution (3.3)

Invasive Alien Species Partnership         Invasive Alien Species Partnerships
                                                                                        2009/2010               TBD
Program (IASPP)                            (1.1.4.2)

Partnerships - Clean Air Community         Clean Air Community Partnerships
                                                                                           N/A                  TBD
Partnerships                               (3.2.2.2)

Powley (Métis)                             Protected Areas (1.1.4.3)                       N/A               2012/2013

Security and Prosperity Partnership of     Transportation Sector Emissions
                                                                                           N/A               2010/2011
North America (SPP)                        (3.2.1.2)

National Vehicle Scrappage Program         Vehicle Scrappage (3.2.2.1)
(portion using Environmental and                                                           N/A               2010/2011
Sustainable Development Initiatives )

Class 3) Contributions to Support Canada's International
                                                                                       2009/2010
Commitments
International Actions - Contributions to   International Climate Change and
support Canada's International             Clean Air Partnerships (3.2.2.3)                N/A               2010/2011
Commitments

Class 4) Grants to Support Environmental Research & Development                        2009/2010

Note 1: Class Grants and Contributions are being replaced by six PAA Program level authorities and the contribution
agreements supported through these authorities will be evaluated in the context of the sub-activities they support.




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APPENDIX A                     A U D I T A N D E V A L U AT I O N
                               PL AN NING METHODOLOG Y

This year EC has strengthened its approach to risk-based audit and evaluation planning, in
accordance with the requirements of the TBS Policy on Internal Audit and Evaluation Policy.
To conduct its planning, the AEB based its process on the Office of the Comptroller General’s
Risk-Based Internal Audit Planning for Departments and Agencies’ Guidance, Methodology
and Tools document, which provides a comprehensive and rigorous approach to risk-based
annual planning. This document, while focused on audit planning, was adapted by the AEB
to include evaluation planning pending further guidance from the Centre of Excellence in
Evaluation on this area.
This year’s risk assessment and prioritization process was conducted through using the new
OCG RBAP guide. The process used a more comprehensive and rigorous approach to risk-
based annual planning.
According to the RBAP guide and methodology, there are four steps to developing a modern
risk-based audit and evaluation plan:
1.   Identification of the Audit/Evaluation Universe
2.   Preliminary Prioritization of the Audit/Evaluation Universe
3.   Final Prioritization of the Audit/Evaluation Universe
4.   Audit/Evaluation Plan Development and Approval

STEP ONE: IDENTIFICATION                    OF THE      AU D I T   AN D   EVALU ATION
UNIVERSE
As in the previous year, the risk universe is based on the PAA. The new PAA introduced in
2009 attempts to better streamline program activities undertaken in support of higher level
strategic outcomes, and to reflect other Management, Resources and Results Structure
(MRRS) principles such as separating Internal Services from program activities. Not every
project activity is however described in the PAA. Some activities may be shared between
different organizational units. Similarly a particular organizational unit, for example
Enforcement, may contribute to more than one strategic outcome.
Given that this is a transitional year for the PAA, the AEB has worked closely with
management to ensure complete coverage of the risk universe. These entities generally
include a range of programs, activities, functions, structures and initiatives that collectively
contribute to the achievement of the department’s strategic objectives.
To ensure adequate coverage of the audit and evaluation universe, the annual audit and
evaluation plan was mapped against the 2010-2011 PAA. The risk assessment was conducted
by conducting a comprehensive mapping to over 55 entities.




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To demonstrate further alignment of the audit and evaluation activities with the objectives of
the organization, each of the entities was also mapped to the organization’s strategic
objectives. The entities were also mapped to the relevant aspects of the MAF, as these ten
elements represent important government-wide objectives. Finally the entities were mapped
to the CRP, to ensure corporate risks were sufficiently covered by the plan.

S TE P TWO : P R ELI MI N AR Y          PRI O RI TI Z ATI O N O F TH E AU D I T AN D
E V AL U ATI O N UNI V E R SE

P r e l i m i n a r y A n a l ys i s
For each entity, the AEB reviewed the business conditions and risks based on a wide variety
of sources including the 2009 CRP, past audit and evaluation results, mandatory
requirements/funding renewal commitments, DPR, last year’s AEB risk assessment that took
into consideration the RPP and the 2009 strategic review documents. Using this information,
the AEB team developed a comprehensive list of relevant risk factors and risks using the tools
(risk factors and risk taxonomy) from the OCG.

Business Consultation
A key step to the risk assessment exercise is the requirement to consult with management of
the organizational PAA. Two rounds of consultations were conducted.
First, Departmental Assistant Deputy Ministers were consulted on their Branch's principal
objectives and key risks/challenges, as part of the One-Pass Planning Process (OPP) for the
CESD, which is part of the OAG. The AEB participated in the OPP exercise.
Building on the information gathered during the preliminary analysis and OPP consultations,
a second series of consultations with the business areas was conducted to confirm the AEB’s
preliminary work. In total, the AEB held 12 consultations with senior management. During
the consultations, senior management validated the preliminary risk factors and risks
identified for each entity, modified or identified other risks, discussed the potential scope and
rationale, and identified depth and timing for projects. Other key areas of concerns and
priority were also discussed.

Assigning Preliminary Priority
A workshop was conducted to assign a risk priority ranking associated with each of the
entities. The exercise was divided in two passes (preliminary and final).
The preliminary pass was a risk-based exercise where the AEB workshop participants
(management and auditor and evaluation managers) ranked each entity based on two criteria
using a four-point scale. First, each entity was assessed in terms of its risk exposure. Risk
exposure is defined as the level of risk to which each entity is exposed and considers the
following:



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 the entity’s current and anticipated business conditions and the presence of risk factors,
 the number and nature of potential risk events to which the auditable entity is exposed as a
   result of its business conditions/risk factors,
 the severity of consequences if the risks to which the entity is exposed materialized, and
 the overall state of control in place within a given entity.

The above-noted elements are considered to derive a global rating on the entity’s risk
exposure.
The second criterion used to prioritize the entity is significance. Significance is defined as the
intrinsic value or importance of the entity, in the context of the department’s overall
objectives. Significance considers, but is not restricted to the materiality of the entity, but
also its intrinsic importance to the department. Other considerations include the expected
impact of the entity on the department and its stakeholders. Considering these factors, an
aggregate risk rating of each entity’s significance to the department was assessed.
Giving an equal weight to risk exposure and significance, a composite preliminary risk
priority score ranging from 0 to 1 was derived. The entities were now prioritized based on
risk.

STEP THREE: FINAL PRIORITIZATION                        OF THE      AU D I T   AN D
E V AL U ATI O N U NI V E R SE
The second pass allowed reconsidering this new risk priority list from both an audit and
evaluation perspective based on their unique and independent criteria.
From the audit perspective, the preliminary priority was reviewed considering other
stakeholders’ priorities like OCG, OAG/CESD, other assurance providers, as well as the
department and the AEB itself. Other factors such as last year’s audit plan, time since the last
audit/evaluation, IM/IT risk assessment, planned evaluations, the CRP, recent audits, progress
on departmental initiatives, and feedback from the business consultation process were also
considered. The outcome of the consideration of these other factors was a final audit
priority raking, assigned to each entity.
From an evaluation perspective, the aggregated risk ranking, mandatory evaluation
commitments for grants and contributions and program funding renewal helped inform the
coverage and timing of the proposed evaluation projects for each entity.
The above two rankings (i.e., final audit priority ranking and the aggregated risk ranking for
evaluation) were used to develop the preliminary list of internal engagements and evaluation
projects including a detailed rationale, scope and objectives, timelines and resource estimates.

Management consultations
AEB consulted the Executive Management Committee on the potential list of audit
engagements and evaluation projects to obtain their view on projects priority, scope and




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objectives and timelines. Information from this consultation was used to improve the list of
potential projects, including priority rankings.

S TEP FOUR : AU DI T          AN D   EV AL U ATI O N P L AN D E V ELO PME N T           AN D
AP P R O V AL
The next step in the planning process required the AEB to take these results and develop the
audit and evaluation plan including a detailed description of each projects scope and
objective, rationale and resource requirements.
The audit plan focuses on those areas that represent the highest risks and ensure coverage of
risk management, control and governance. The evaluation plan ensures that each evaluation
covers two core issues: relevance (contribution to government priorities while addressing an
actual need) and performance (effectiveness, efficiency, and economy).
The final steps for completing and approving the annual audit and evaluation plan were:
 CAE review and approval of the plan
 Audit/Evaluation Committee review of the plan
 Audit Committee recommendation of the audit component of the plan for approval by the
  Deputy Head (Deputy Minister)
 Evaluation Committee approval of the evaluation portion of the plan.
 Deputy Head (Deputy Minister) review and approval the plan
 CAE/Director General AEB providing the OCG and OAG with a copy of the approved
  plan




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APPENDIX B                        KEY CH AN G ES TO IN TER N AL
                                  AUDITS PROJECTS – 2009-2010
                                  T O 2 0 1 0 - 2 0 11


Previous Project                  Key Change          Rationale

2009-2010
1. National Hydrometric Program   Post-tabling in     Audit report with management response has been completed
                                  2010-2011           and tabled March 2010.

2. Specific Purpose Accounts      Post-tabling in     Audit report with management response has been completed
                                  2010-2011           and tabled March 2010.

3. Accounts Payable at Year-end   Post-tabling in     Report finalized and tabled March 2010.
                                  2010-2011

4. Costing and Pricing (Votes     Post-tabling in     Report finalized and tabled January 2010.
    Netted Revenue)               2010-2011

5. Governance of Specialized      Carried-over to     Project delayed due to the addition of a new audit project to
   Information Technology         2010-2011           the plan (i.e., Review of Separation Clearance Process).
   Resources

6. Information Technology Asset   Carried-over to     Fieldwork almost completed. Government-wide report
    Management – OCG              2010-2011           should be received in February 2010.
    Horizontal Audit

7. Governance of Information      Carried-over to     Not started yet due to delays caused by the addition of a new
   Management                     2010-2011           audit project to the plan (i.e., Review of Separation Clearance
                                                      Process).

8. Physical Security              Carried-over to     Fieldwork is completed. Project delayed because of the
                                  2010-2011           addition of a new audit project to the plan (i.e., Audit of
                                                      Professional Contracts).

9. Assets and Inventory (Life     Carried-over to     Final audit plan approved January 2010. Project delayed due
   Cycle Management of Assets)    2010-2011           to a new audit approach.

10. Management of Additional      Delayed one         Risk analysis completed. Project delayed because the auditor
   Funding Received through       Quarter             in charge left internal audit. Report for Year 1 will be tabled
   Canada’s Economic Action                           in June 2010.
   Plan – Year 1

11. Weather Predictions Program   Removed             Project was removed as the scope was undefined. Project was
   (Joint Audit and Evaluation    Risk mitigated by   not included and could not be carried out in the evaluation
   Project)                       other projects      plan. This project was to begin in Q4 of 2009-2010 and could
                                                      not be carried out due to two new audit projects added during
                                                      the year (i.e., Review of Separation Clearance Process,
                                                      Professional Contracts).
                                                      Risks mitigated by the evaluation of Research and
                                                      Development, production and Monitoring and Support of
                                                      Weather Predictions.




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Previous Project                   Key Change          Rationale

Unplanned Projects Introduced in 2009-2010
12. Review of the Employee         New – post-         Senior management requested a review of the employee
   Clearance Process               tabling in 2010-    clearance process due to the potential of departmental IT
                                   2011                assets not being returned upon employee severance.

13. Professional Contracts         New – carried-      The Office of the Procurement Ombudsman conducted a
                                   over to 2010-       review of procurement practices at Environment Canada
                                   2011                specifically to determine whether systemic problems exist.

2010-2011
14. Values and Ethics              Change in           MAF assessment rating for Round VII went from “strong” in
                                   priorities as a     the previous two years to “acceptable”. However, values and
                                   result of this      ethics remains a moderate audit priority.
                                   year’s risk
                                   assessment
                                   exercise that
                                   factored in new
                                   information..

15. Business Continuity            Change in           Business Continuity Plan being developed at the corporate
                                   priorities as a     level. In MAF VII, the state of the BCP Program was not
                                   result of this      assessed. Therefore, EC received an “opportunity for
                                   year’s risk         improvement” rating in Round VI for this line of evidence
                                   assessment          and noted evidence of strong senior management engagement
                                   exercise that       and commitment to the departmental BCP Program.
                                   factored in new
                                   information.

16. Official Languages Policy      Change in           In 2010-2011, three external audits and one internal audit
                                   priorities as a     (Classification) are being conducted within Human
                                   result of this      Resources Management. Also, the project was considered a
                                   year’s risk         moderate priority.
                                   assessment
                                   exercise that
                                   factored in new
                                   information.

17. Water Management               Risk mitigated by   CESD is completing an audit of Water Resource
                                   other projects      Management in the 2010-2011.

18. Stakeholders and Partnership   Change in           Although capacity is an issue (HR aspect), an international
   Management                      priorities as a     framework was implemented and the Branch has a good
                                   result of this      understanding of controls. High risks are well mitigated and
                                   year’s risk         is now considered a moderate audit priority.
                                   assessment
                                   exercise that
                                   factored in new
                                   information.

19. Performance Information in     Risk mitigated by   More value determined from an evaluation in this area versus
   Strategic Planning and          other projects      an audit, from Audit and Evaluation Branch (AEB)
   Reporting Documents                                 management discussion. New requirement of Evaluation
                                                       Policy to report annually on state of performance
                                                       measurement in the department will address this issue.
                                                       Results of annual report on state of performance




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Previous Project                   Key Change          Rationale

                                                       measurement will be provided to EAAC.

20. Financial Audit – Continuous   Risk mitigated by   Discussed at every EAAC meeting and will be covered by
   Auditing (CAAR)                 other projects      individual audit projects such as Life-cycle Management
                                                       Audit which started in 2009 and the Oracle Upgrade Audit
                                                       planned for 2012-2013. Suggest looking at what kind of
                                                       improvements EC is bringing forward under CAAR instead.

21. Departmental Resources and     Change in           From discussion within AEB management; considered a
   Capacity                        priorities as a     moderate audit priority. A number of initiatives have being
                                   result of this      implemented to mitigate the areas of risk.
                                   year’s risk
                                   assessment
                                   exercise that
                                   factored in new
                                   information.

22. Governance                     Postponed to        During interviews, it was commented that an audit in 2010-
   Framework/Operational           2011-2012           2011 maybe too soon. Identified in risk assessment
   Planning and Reporting                              interviews as problem area.

23. Greenhouse Gas Data            Postponed to        Risk assessment indicates that program is not running yet and
   Collection, Management and      2011-2012           should be given more time before auditing.
   Reporting

24. Financial Audits               Postponed to        Postponed as a result of discussion with AEB management.
                                   2012-2013           A new exercise now could potentially cause an audit fatigue
                                                       since the entity has already been audited three times in the
                                                       past year. Concerns are now well known.

25. Greening                       Postponed to        The impact of FSDS implementation to the Initiatives is
   Initiatives/Sustainability      2012-2013           required before project can be defined. The delay also
                                                       provides time to conduct an in-depth risk assessment on
                                                       Integrated Policy and see how that fits with the FSDS.

New Projects for 2010-2011
26. Services to Marine             New                 The project has never been audited or evaluated and is a high
   Transportation                                      audit priority. Opportunity for a joint Audit and Evaluation
                                                       project.

27. Risk Management                New                 The project is a high priority, is one of the key
                                                       responsibilities delegated to departmental audit committees
                                                       and was suggested as a result of discussion with AEB
                                                       management.

28. Information Technology (IT)    New                 The project is a high priority as it affects the departmental
   Controls                                            financial audit readiness.




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APPENDIX C                         K E Y C H A N G E S T O E V A L U AT I O N
                                   PROJECTS – 2009-2010 TO
                                   2 0 1 0 - 2 0 11


Previous Project                   Key Change           Rationale

2009-2010
1. Great Lakes Action Plan         Carried-over to
                                   2010-2011

2. Water Management Evaluation     Carried-over to
   Plan                            2010-2011

3. CAA International Actions –     Carried-over to
    Thematic Evaluation            2010-2011

4. Improved Climate Change         Carried-over to
    Scenarios                      2010-2011

5. Research and Development,       Delayed one         Project delayed from Q1 to Q2 2010-2011.
    Production and Monitoring in   quarter
    Support of Weather
    Predictions

6. Clean Air Community             On Hold              Program not yet implemented.
    Partnerships Thematic
    Evaluation

Unplanned Projects Introduced in 2009-2010
7. Genomics Research and Design    New – carried-       New project introduced in Q4 of 2009-2010
   Initiatives                     over to 2010-2011    Interdepartmental led by Natural Resources Canada and a
                                                        Treasury Board requirement; will address a moderate risk
                                                        program area.

2010-2011
8. Stakeholders and Partnership    Removed              In the Context of the new Evaluation Policy, the evaluation
    Management                                          needs to focus on PAA and Program entities.

9. Greening Initiatives /          Removed              In the Context of the new Evaluation Policy, the evaluation
   Sustainability                                       needs to focus on PAA and Program entities.

10. Greenhouse Gas Data            Removed              Will be considered as an audit project for 2011-12.
   Collection, Management and
   Reporting

11. Ice Program                    Renamed Services     Program will be covered under new joint evaluation and audit
                                   to Marine            project.
                                   Transportation

12. Weather Predictions Program    Renamed Weather      Program will be covered under new evaluation project in
                                   Observations,        2014-2015.
                                   Forecasts and




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Previous Project                  Key Change        Rationale

                                  Warnings and
                                  postponed to
                                  2014-2015

13. Evaluation of Lake Simcoe     Renamed
   Freshwater Initiative and      Freshwater
   Evaluation of Lake Winnipeg    Initiatives and
   Freshwater Initiative          includes Great
                                  Lakes Program

14. Northwest Territories         Postponed to
   Protected Areas Strategy       2011-2012
   Program

15. Water Management              Postponed to
                                  2012-2013

16. Policy on Green Procurement   Postponed to
                                  2013-2014

17. Federal Contaminated Sites    Postponed to
   Action Plan                    2013-2014

New Projects for 2010-2011
18. Waste Reduction and           New               High risk program area and presents an opportunity for
   Management                                       testing the feasibility of evaluating an entire PAA program.
                                                    This test will inform possible future adjustments to the five-
                                                    year plan.

19. Pilot Project on Reducing     New               Treasury Board requirement and will address a small
   Emissions from Vehicles and                      component of a high risk program area.
   Engines

20. Vehicle Scrappage             New               Treasury Board requirement and will address a moderate risk
                                                    program area.

21. Clean Energy Dialogue         New               Treasury Board requirement and will address a very high risk
                                                    program area. Results from this evaluation will feed into a
                                                    CAA-level roll-up.




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