ARCHIVED - Fisheries and Oceans Canada - Supplementary Tables

The Committee tabled this report and requested a Government Response in December 2009. This request was cancelled following the prorogation of Parliament in January 2010. In order to receive a Government Response, the Committee re-tabled the report in April 2010.

Report:
Controlling Canada's Arctic Waters: Role of the Canadian Coast Guard

Government Response:
The Government Response will be tabled in October 2010.

Recommendations:

1. That Fisheries and Oceans Canada update its estimate of the cost of bringing the core harbours to an acceptable state of repair.
2. That Fisheries and Oceans Canada prepare a plan to bring the core harbours to an acceptable state of repair.
3. That Fisheries and Oceans Canada incorporate a requirement for maintaining safe facilities when preparing its plan to bring the core harbours to an acceptable state of repair.
4. That Fisheries and Oceans Canada ensure that there are adequate funds in both its operations and maintenance, and its capital budgets for recurrent dredging and related activities. The amount of this funding should take into consideration the increasingly stringent environmental standards and regulations that apply to these activities, especially with respect to the protection of the fish habitat.
5. That Fisheries and Oceans Canada adopt a longer-term approach to solving dredging problems that could be addressed by permanent structures such as breakwaters.
6. That, where there is a need to dredge beyond the harbour basin and the entrance channel for which the Small Craft Harbours Program is responsible, Fisheries and Oceans Canada coordinate with the authorities responsible for dredging these waterways to ensure safe access to the harbour at all times.
7. That Fisheries and Oceans Canada help Harbour Authorities to recognize and respond to the local effects of climate change.
8. That Fisheries and Oceans Canada analyze harbours scheduled for divestiture or decommissioning, with a view to identifying those that could remain in the department's inventory and be maintained because of their value as safe havens in case of bad weather conditions.
9. That Fisheries and Oceans Canada assist Harbour Authorities with the development of short-term and long-term business plans as well as capitalization plans.
10. That Fisheries and Oceans Canada assist Harbour Authorities in their efforts to raise funds from other sources, including federal, provincial, and private sources.
11. That Fisheries and Oceans Canada assist and encourage Harbour Authorities to establish partnerships with local organizations where possible.
12. That the limit on contract signing authority for Harbour Authorities managers be increased from $40,000 to $200,000 for minor capital and repair projects, and that, where possible, priority be given to hiring local enterprises to do the approved work.
13. That Fisheries and Oceans Canada streamline the review and approval process of Small Craft Harbours projects to ensure that projects be approved, announced, and tendered by June 1st, where possible, and
14. That Fisheries and Oceans Canada provide clear and transparent accounting of funds related to project costs and administrative costs associated with the department or Public Works and Government Services Canada.
15. That Fisheries and Oceans Canada review and modernize the Fishing and Recreational Harbours Act and its regulations to reflect the current management reality of small craft harbours. In particular, definitions of “Harbour Authority,” “derelict,” and “harbour manager” should be included or updated.
16. That Fisheries and Oceans Canada consider legislative changes to facilitate the removal of abandoned and derelict vessels from its harbours.
17. That the Government of Canada honour in a timely manner its financial commitments to undertake environmental remediation projects needed prior to harbour divestiture.
18. That the Government of Canada recognize the heritage and cultural attributes of fishing harbours as well as their tourism and economic value, and
19. That the Government of Canada allow Harbour Authorities to be eligible to receive financial support from federal economic development agencies for projects intended to take advantage of those attributes.
20. That Fisheries and Oceans Canada review the mandate of the Small Craft Harbours Program to acknowledge that, while it primarily provides harbours that are open, safe and in good repair for the commercial fishing industry, harbours are used and managed for other purposes, including those of recreational and Aboriginal fisheries, commercial sport fishing and emerging sectors such as aquaculture.
21. That Fisheries and Oceans Canada facilitate access to federal non-DFO wharves through interdepartmental agreements when local harbour users identify a need that cannot be otherwise accommodated by the neighbouring Small Craft Harbours infrastructure.
22. That Fisheries and Oceans Canada work with Indian and Northern Affairs Canada to improve their coordination in establishing and maintaining harbour facilities in Aboriginal communities.
23. That Fisheries and Oceans Canada confirm its objective to construct all the harbours identified for small communities in Nunavut.
24. That the Department review the assessment of harbour needs for communities such as Arctic Bay, Grise Fjord and Resolute.

Report:
Small Craft Harbours: An Essential Infrastructure Managed By and For Fishing Communities

Government Response:
Government of Canada Response to the Report of the Standing Committee on Fisheries and Oceans: Small Craft Harbours: An Essential Infrastructure Managed By And For Fishing Communities

Recommendation:
In light of the new Convention's potential to affect Canada's Atlantic fisheries and coastal communities for many generations to come, the committee asks that the government delay any immediate moves toward ratification and take the time to review the new agreement with the greatest care.

Report:
The Standing Senate Committee on Fisheries and Oceans

Government Response:
No Government Response requested

Recommendation:
That, notwithstanding the motion adopted by the House of Commons Standing Committee on Fisheries and Oceans on October 8, 2009 and given the evidence heard by the Committee in March and May 2009 as well as the serious concerns expressed by various witnesses during hearings in October 2009, the Committee recommends that the Government of Canada not ratify the Amendment to the Convention on Future Multilateral Cooperation in the Northwest Atlantic Fisheries adopted by the General Council of the Northwest Atlantic Fisheries Organization (NAFO) in 2007, and that Canada notify NAFO of its objection to the amendment as per Article XXI of the Convention.

Report:
House of Commons - Eighth Report

Government Response:
No Government Response requested

Recommendation:
Given the evidence heard by the House of Commons Standing Committee on Fisheries and Oceans at hearings in March, May and October 2009, and the serious concerns recently expressed by the Government of Newfoundland and Labrador, the Committee recommends that the Government of Canada not ratify the amendment to the Convention on future multilateral cooperation in the northwest altantic fisheries adopted by the General Council of the Northwest Fisheries Atlantic Organization (NAFO) in 2007, until the Standing Committee on Fisheries and Oceans has had an additional twenty-one (21) sitting days to study the matter further and to report the results of that study to the House.

Report:
House of Commons - Seventh Report

Government Response:
No Government Response requested

Recommendations:

1. That the Government of Canada explore in cooperation with the lobster industry all the options to provide the industry bridge financing or loan guarantees that they need to get through the current global economic and financial crisis.
2. That the Government of Canada encourage Export Development Canada to provide insurance on receivables to processors that export lobster products abroad.
3. That Export Development Canada provide a report to the House of Commons Standing Committee on Fisheries and Oceans on its fishing industry portfolio.
4. That the Government of Canada develop initiatives to increase access to credit for fishermen and fishing enterprises, as well as encourage private lenders to ease credit restrictions on the fishing sector.
5. That the Government of Canada increase the visibility of existing specific federal financing programs for which fishermen are eligible, and that Fisheries and Oceans Canada play a coordinating role in that respect.
6. That the Government of Canada in partnership with the lobster industry explore the idea of some form of income support for lobster fishermen to address immediate concerns.
7. That Fisheries and Oceans Canada provide assistance to the lobster fishermen to reduce their costs. The review of the fishery licence fee structure should be expedited.
8. That the Government of Canada, in partnership with all provincial governments and industry representatives encourage the creation of an Atlantic-wide multi-stakeholder marketing research and advertising council to promote Canadian lobster domestically and abroad.
9. That Fisheries and Oceans Canada in partnership with the lobster industry explore the idea of a Canadian certification system for fishery products that would comply with the internationally established management guidelines on responsible fisheries.
10. That Fisheries and Oceans Canada support the efforts of the lobster industry to obtain and maintain the international certification of their fishery for sustainable management.
11. That the Government of Canada, in collaboration with the governments of the Atlantic Provinces and Québec, support an industry-led rationalization plan for the Canadian lobster fishery (publicly-funded where appropriate) that must take into account regional needs and requirements.

Report:
The Canadian Lobster Fishery: Trapped in a Perfect Storm

Government Response:
Government of Canada Response to the Report of the House of Commons Standing Committee on Fisheries and Oceans: The Canadian Lobster Fishery: Trapped in a Perfect Storm

Recommendations:

1. That the Government of Canada act immediately to implement changes to the Employment Insurance program to address the problems created by low lobster prices specifically by: (a) allowing fish harvesters to qualify for EI benefits based on 2008 earnings; and (b) extending EI fishing benefits by five weeks.
2. That the Minister of Fisheries and Oceans immediately enter into formal discussions with Atlantic fish harvester organizations and the provincial governments to develop a short-term assistance plan for the fishery.
3. Further recommends a comprehensive plan for the lobster fishery, including voluntary fleet rationalization to reduce fishing capacity where needed. The federal government should contribute to the costs of removing lobster licences from the fishery.

Report:
The Standing Senate Committee on Fisheries and Oceans - Fifth Report

Government Response:
No Government Response requested

Recommendations:

1. That the Government of Canada move forward to develop and implement, in collaboration with the Government of Nunavut, the harbour development plan recommended by the DFO–Nunavut Harbours Working Committee in its 2005 Nunavut Small Craft Harbours Report.
2. That the Department of Fisheries and Oceans continue to assign 100% of the NAFO Division 0A turbot allocation to Nunavut.
3. That, in NAFO Division 0B, the Department of Fisheries and Oceans continue its policy that no new access to 0B turbot be given to non-Nunavut interests until Nunavut has achieved a level of access to adjacent marine resources comparable to levels of access enjoyed by other coastal jurisdictions in their adjacent fisheries.
4. That the Minister of Fisheries and Oceans put in place a policy giving Nunavut stakeholders the right of first refusal to purchase, at a competitive rate, all fishery quotas in Nunavut's adjacent waters that are transferred or sold.
5. That, as a general principle, Inuit Qaujimajatuqangit, as an indispensable complement to scientific knowledge, always be given full consideration in fisheries decision-making.
6. That, with respect to the Eastmain-1-A and Rupert Diversion Project, the Minister of Fisheries and Oceans indicate when and how the research and monitoring program outlined by the 2006 Federal Review Panel in Recommendation 34 will be implemented.
7. That the Department of Fisheries and Oceans substantially increase its funding for exploratory research in Nunavut's adjacent waters, and that it commit to a multi-year, multi-species research program.
8. That the Department of Fisheries and Oceans assess the impact of all vessel activity on whales and in concert with the Nunavut Wildlife Management Board, develop protective management measures, such as vessel exclusion zones at certain times of the year.

Report:
Nunavut Marine Fisheries: Quotas and Harbours

Government Response:
Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Nunavut Marine Fisheries: Quotas and Harbours

Recommendation:
That the government restore full funding to the Canadian Centre for Fisheries Innovation to enable this organisation and its partners to pursue its mission to make available to the fishing industry the largest and best equipped body of experts in fisheries-related science and technology in the country for the benefit of the industry's long-term competitiveness and sustainability.

Report:
House of Commons - Fifth Report

Government Response:
No Government Response requested

Recommendation:
The Standing Committee on Fisheries and Oceans fully endorses the harp seal hunt, it approves of current regulated killing methods, approves that the harvesting of harp seals is fully acceptable and that the Canadian harp seal hunt is humane, responsible and sustainable and should continue for generations to come and the Committee strongly condemns the ban of Canadian seal products by the European Union.

Report:
House of Commons - Fourth Report

Government Response:
No Government Response requested

Recommendations:

1. That Canada uphold its position that the waters of the Northwest Passage are its internal waters, and that Canada should be prepared to defend any legal challenge.
2. That Canada develop a much stronger year-round, national presence and enforcement capability to show the world that Canada is serious about controlling the Northwest Passage, protecting Canadian interests and Canada's northern residents, and making the waterway a safe and efficient shipping route.
3. That the Government of Canada consider Goose Bay, Labrador, as a sub-Arctic staging area for the coordination and support of Coast Guard, fisheries, search and rescue, surveillance and other Arctic activities.
4. That the Nunavut Marine Council (Part 4, Article 15.4.1 of the 2003 Nunavut Land Claims Agreement) be created as a forum for priority setting and planning, and as a practical means to enhance Canada's sovereignty in marine areas.
5. That Canada assume a leadership role in promoting international cooperation on: (a) issues relating to continental shelf claims; and (b) the development of a mandatory common code relating to the construction, manning and equipment of all vessels operating in the Arctic Ocean equal to Canada's domestic standards.
6. That Canada demonstrate its commitment to international cooperation within the Arctic Council by re-establishing the position of Ambassador for Circumpolar Affairs (which was eliminated in 2006).
7. That the Department of National Defence make the Canadian Rangers an integral part of the Canadian reserves and provide them with marine capability.
8. That the Government of Canada establish an Arctic Strategy Advisory Committee, led by Indian and Northern Affairs Canada, to monitor and to advise in the development and implementation of an effective and integrated strategy for the North. The new Arctic Strategy Advisory Committee should comprise representatives from the federal government departments and agencies with a mandate in the Arctic, with particular emphasis on the Coast Guard, the various Aboriginal/Inuit groups in the region, and the three territorial governments.
9. That Inuit, with their unique knowledge of the region, be recruited for the Coast Guard whenever possible.
10. That the Coast Guard, as the expert agency on the maritime situation facing Canada in the Arctic, formulate and implement a long-term strategic vision to guide it for the future.
11. That NORDREG, Canada's current voluntary vessel traffic system in the Arctic, be made compulsory. All foreign ships that enter Canada's Arctic waters should be required to register with NORDREG, regardless of vessel size.
12. That the federal government amend the definition of Arctic waters in the Arctic Waters Pollution Prevention Act to include the waters beyond the Arctic Archipelago to the 200-nautical-mile Exclusive Economic Zone, which is the case with other Canadian legislation, such as the Oceans Act and the Canada Shipping Act, 2001.
13. That Canada develop a long-term plan for the acquisition of new multi-purpose heavy icebreakers “made-in-Canada” and capable of operating year-round in its Arctic Archipelago and on the continental shelf as part of an integrated approach to vessel procurement recognizing the complementarity of Coast Guard and naval vessels.
14. The committee recommends the deployment of multi-mission polar icebreakers operated by the Coast Guard as a cost-effective solution to Canada's surveillance and sovereignty patrol needs in the Arctic.

Report:
Second Report

Government Response:
Government of Canada Response to the Report of the Standing Senate Committee on Fisheries and Oceans: Rising to the Arctic Challenge: Report on the Canadian Coast Guard

2009 Spring Report of the Auditor General of Canada
The OAG audit looked at how intellectual property is managed in three federal science-based organizations-the National Research Council Canada, Health Canada, and Fisheries and Oceans Canada. We examined to what extent they comply with federal policy in managing intellectual property that arises in the course of contracted activities and how adequately they manage intellectual property generated by their own employees.

Externally generated intellectual property

Recommendation:
2.39 Fisheries and Oceans Canada should ensure that they accurately identify the intellectual property expected to result from their Crown procurement contracts and ensure that the intellectual property is accurately reported.

Response:
Fisheries and Oceans Canada agrees with the recommendation. Over the next 6 to 12 months, the Department will ensure that intellectual property generated through Crown procurement contracts is identified, accurately recorded in the Department's financial system, and reported to central agencies. The Department will ensure that intellectual property is properly identified in all contract documents.

Recommendation:
2.41 When the Crown takes ownership of the intellectual property produced as the result of a contract, Fisheries and Oceans Canada should justify this decision using the exceptions provided for in, and required by, the Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department will fully support and record all intellectual property ownership decisions. Over the next 6 to 12 months, the Department will implement measures to ensure that where it wishes to invoke one or more exceptions toward claiming Crown ownership of intellectual property arising under Crown procurement contracts, it will state and justify the exceptions as per the Treasury Board of Canada Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts.

Recommendation:
2.48 Fisheries and Oceans Canada should state in both the documents soliciting bids and in the contract itself who will own the intellectual property, including the exception invoked when the Crown decides to take ownership of the intellectual property expected to result from the Crown procurement contract. These departments should also ensure that the Crown's ownership and/or licensing rights are protected in sub-contracts where applicable.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department will implement measures, over the next 6 to 12 months, to ensure the following:

• Documents soliciting bids and corresponding procurement
• Contracts state whether intellectual property arising under contracts will be vested in the Crown or owned by the contractor, to ensure that the Crown's ownership and licensing rights are protected.
• In cases where the Crown elects to own the intellectual property, these exceptions will be set out in those documents and recorded in the Department's financial system for reporting purposes. The Project Authority of these contracts will also ensure protection of this Crown-owned intellectual property.
• Crown ownership and/or licensing rights are protected/secured in subcontracts, where applicable.

Fisheries and Oceans Canada will include standardized intellectual property clauses in all procurement contracts.

Recommendation:
2.54 Fisheries and Oceans Canada should develop and approve a department-wide intellectual property policy, including guidelines for licensing and commercializing intellectual property.

Response:
Fisheries and Oceans Canada agrees with the recommendation. The Department has created a working group to expedite the development of a Fisheries and Oceans Canada intellectual property policy for managing, licensing, and commercializing intellectual property. Guidelines supporting implementation of the policy will also be developed. The policy and the guidelines should be completed in the 2009–10 fiscal year.

Recommendation:
2.60 Fisheries and Oceans Canada should establish a mechanism to ensure that inventions are adequately identified and disclosed.

Response:
Fisheries and Oceans Canada agrees with the recommendation. It will develop a departmental intellectual property policy that will include measures to identify and disclose inventions and other intellectual property arising from Crown procurement contracts that it awards or that are awarded by Public Works and Government Services Canada on its behalf. Fisheries and Oceans Canada will develop guidelines consistent with its intellectual property policy, which will incorporate measures to ensure that in-house inventions and other intellectual property are adequately identified and disclosed. It will implement the guidelines immediately following their approval, and ensure that they are understood by all managers. As the policy and guidelines will be completed in 2009–10, implementation will be initiated subsequently.

Recommendation:
2.63 Fisheries and Oceans Canada should ensure that Crown-owned copyright material that has potential intellectual property value is properly disclosed.

Response:
Fisheries and Oceans Canada agrees with the recommendation. It will ensure that mechanisms are developed to ensure that Crown-owned copyright assets that have potential value can be properly disclosed. The Department's Canadian Hydrographic Service data and data products are disclosed automatically upon incorporation in data management systems that are used by the Canadian Hydrographic Service to process the data and create data products.

The Department intends, over the next 6 to 12 months, to raise awareness among staff of the potential value of intellectual property associated with scientific papers, including software and data products that are subject to copyright and technology that might be disclosed therein.

It is believed that enhanced awareness among staff on the potential value of intellectual property will substantially contribute to addressing the recommendation as staff would generally be better informed and more cautious about publishing any copyright material that might jeopardize the commercialization of the copyright material or of any invention described therein.

2009 Spring Report of the Auditor General of Canada
The Office of the Auditor General assessed whether departments were planning for fire emergencies in compliance with key requirements of the Treasury Board Standard for Fire Safety Planning and Fire Emergency Organization (the Standard), including conducting required fire drills. In addition, we looked at the activities of Fire Protection Services (formerly called the Fire Commissioner of Canada), the division within HRSDC's Labour Program responsible for administering and enforcing this Standard. We also looked at the role of the Labour Program's regional and district offices in reviewing fire safety plans for buildings occupied by the federal government.

Fire safety planning and fire emergency organization

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

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the preparation and administration of fire safety plans and we have taken measures to ensure that we comply with all established legislation, policies, and standards by 31 December 2009.

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

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the requirement to hold various types of evacuation drills in accordance with the legislation, policies, and standards, and we have taken measures to ensure full compliance by 30 June 2009.

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

Response:
The Department agrees with this recommendation.
We duly noted the audit results and comments previously provided by the OAG concerning the establishment and administration of building fire emergency organizations, and corrective measures have been implemented to comply with all applicable legislation, policies, and standards as of the first quarter of 2009.

2009 Spring Report of the Commissioner of the Environment and Sustainable Development
The Commissioner of the Environment and Sustainable Development examined how both Environment Canada and Fisheries and Oceans Canada carry out their respective responsibilities for fish habitat protection and pollution prevention under the Fisheries Act. We also looked at their arrangements with others, such as provinces and stakeholders, that support the administration and enforcement of these provisions. In addition, we looked at Fisheries and Oceans Canada's Environmental Process Modernization Plan (EPMP), its continuous improvement plan introduced in 2004.

Recommendation:
1.33 In order to make consistent decisions on project referrals, in accordance with departmental expectations, Fisheries and Oceans Canada should ensure that an appropriate risk-based quality assurance system is in place for the review of these decisions.

Response:
The Department accepts this recommendation. Over the past number of years, Fisheries and Oceans Canada has made efforts to improve the quality, consistency, and transparency of its decision making by implementing the Risk Management Framework. Although much progress has been made, the Department recognizes that there is still much work to be done with respect to documentation standards. With that in mind, by 31 March 2010, Fisheries and Oceans Canada will implement a risk-based quality assurance system to verify that documentation standards are being applied consistently by staff.

Recommendation:
1.41 Fisheries and Oceans Canada should accelerate the implementation of its Habitat Compliance Decision Framework to ensure that there is an adequate risk-based approach to monitoring projects and providing assurance that proponents are complying with the Fisheries Act and all terms and conditions of departmental decisions. The Department should also determine whether the required mitigation measures and compensation are effective in meeting the no net loss principle.

Response:
The Department accepts this recommendation. Fisheries and Oceans Canada currently applies a risk-based approach, but recognizes that opportunities for improvement remain. Once the Habitat Compliance Modernization initiative is fully implemented, the Department will be able to provide better assurance that proponents are complying with the terms and conditions of the Department's decisions. Considering this, the Department commits to fully implement the Habitat Compliance Decision Framework and report on results of project monitoring activities by 31 March 2010 and annually thereafter.

Fisheries and Oceans Canada will continue to work with proponents to design and implement follow-up monitoring studies. Between now and the end of 2011, the Department will review and develop standard scientific methodologies to examine the effectiveness of compensation in achieving the no net loss guiding principle so that these methodologies can be used by proponents when designing monitoring studies.

Recommendation:
1.48 Fisheries and Oceans Canada should ensure that its enforcement quality assurance and control processes are sufficient to demonstrate that its actions have been taken in accordance with the Compliance and Enforcement Policy. The Department should provide guidance on the type of complaints that fishery officers should respond to and take action on, and the Department should specify minimum documentation requirements for occurrences.

Response:
The Department accepts this recommendation and, by 31 August 2010, will establish, disseminate, and communicate to regions an operational protocol to ensure better documentation of enforcement actions and monitoring of activities to ensure consistency with the Compliance and Enforcement Policy.
Guidance on the nature of complaints that warrant the attention of fishery officers has also been identified as a need by the Department. By 31 March 2011, the Department will examine the process currently in use and, by 31 March 2012, the Department will examine the Habitat Compliance Decision Framework to improve its guidance to staff, clarify documentation protocols, and establish minimum documentation standards for occurrences.

Recommendation:
1.69 Fisheries and Oceans Canada should clarify the parts of the Habitat Management Program that it will continue to administer, the extent that it wants others to deliver the program on its behalf, and the resource implications. The Department should also assess whether accountability mechanisms in all of its existing agreements are working effectively enough to report and assess the results achieved through its collaboration with others. In addition, it should review the agreements to ensure that they are aligned with its view of the long-term goals of the Habitat Management Program.

Response:
The Department accepts this recommendation and, by 31 March 2011, will have reviewed and evaluated its memoranda of understanding with provinces and territories. The Department will continue to work with its partners to strengthen the governance and accountability mechanisms and ensure that the partnership arrangements are aligned with the Department's goals and its strategic vision.

Recommendation:
1.74 Fisheries and Oceans Canada should develop habitat indicators to apply in ecosystems with significant human activity. The Department should use these indicators to assess whether it is making progress on the Habitat Policy's long-term objective to achieve an overall net gain in fish habitat.

Response:
The Department accepts and agrees with this recommendation and is committed to moving toward an ecosystems approach and the increased use of biological indicators, particularly in areas of significant human activity. However, this task is far from trivial as it will require significant new scientific understanding to ensure that the indicators adopted do in fact tell us what we need to know about the health of the aquatic ecosystem.

Recommendation:
1.80 Fisheries and Oceans Canada should determine what actions are required to fully implement the 1986 Habitat Policy and confirm whether it intends to implement all aspects of the Policy.

Response:
The Department accepts this recommendation and, by March 2010, will determine what actions are required to fully implement the Habitat Policy.

Recommendation:
1.134 Fisheries and Oceans Canada, with the support of Environment Canada, should clearly establish the expectations for Environment Canada's administration of the pollution prevention provisions, including the expected interactions between the two departments to support the delivery of the 1986 Habitat Policy.

Response:
The Department accepts this recommendation and, by March 31, 2011, will review the administration of section 36 of the Fisheries Act. By March 31, 2012, a renewed Memorandum of Understanding that better establishes expectations and responsibilities for Environment Canada will be in place.

2009 Fall Report of the Auditor General of Canada
The Office of the Auditor General examined how evaluation units in six departments identify and respond to the various needs for effectiveness evaluations. They also looked at whether they have built the required capacity to respond to those needs. In addition, they looked at the oversight and support role of the Treasury Board of Canada Secretariat in monitoring and improving the evaluation function in the government, specifically with respect to effectiveness evaluations. The period covered by their audit was 2004 to 2009.

Recommendation:
1.37 Fisheries and Oceans Canada should develop and implement action plans to ensure that ongoing program performance information is collected to support effectiveness evaluation.

Response:
Agreed. The Department's performance measurement framework links its core indicators to the departmental program activity architecture (PAA), thus identifying performance measures for all program activities and sub-activities. Each fiscal year, the Department conducts an analysis of the state of performance measurement in the Department and provides an annual report to the Departmental Evaluation Committee. In addition, the Department will develop and implement an action plan to ensure that ongoing program performance information is collected to support effectiveness evaluation by the end of August 2010.

Recommendation:
1.43 Fisheries and Oceans Canada should consider the merits of including external experts on their departmental evaluation committees. The Treasury Board of Canada Secretariat should provide guidance to departments in this regard.

Response:
Agreed. The Department will consider the merit of including external members on its department evaluation committee, in the context of guidance provided by the Treasury Board of Canada Secretariat.

Recommendation:
1.48 Fisheries and Oceans Canada should implement systematic processes to determine whether their effectiveness evaluations are meeting government-wide requirements and internal corporate needs, and act on areas identified for improvement. The Treasury Board of Canada Secretariat should monitor and provide any additional support it considers necessary for the implementation of these processes.

Response:
Agreed. The recommendation echoes the intent of the 2009 Policy on Evaluation. As such, actions are already under way within the Department to implement a systematic process to determine whether effectiveness evaluations are meeting internal corporate needs and government-wide needs (i.e., a strategic review) and to act on areas identified for improvement. Further work in this area will be completed in the context of guidance provided by the Treasury Board of Canada Secretariat.

2009 Fall Report of the Commissioner of the Environment and Sustainable Development
The chapter describes the nature of environmental petitions and the extent to which some of them may have influenced the federal management of environmental issues in Canada. In fulfillment of statutory obligations contained in the Auditor General Act, the chapter contains an annual report to Parliament on the nature and status of petitions.
Fisheries and Oceans Canada responded to 11 petitions this year. There was one late notification sent but no responses were late.

Horizontal Internal Audit of Corporate Risk Profiles in Large Departments and Agencies
The objective of the audit was to determine whether systems and practices related to the development of Corporate Risk Profiles (CRPs) are in place to ensure strategies exist to identify and mitigate risks within the operations of (LDAs).
Although the audit did not find particular weaknesses in Fisheries and Oceans Canada related to the other recommendations found in the audit report, the department should consider whether other management action plans are required.

Recommendation:
LDAs should ensure that their process used to identify risks integrates regional risks with organizational risks, and identifies external risks as well. This process should be formalized in their risk scanning tools such as environmental scans.

Response:
The 2009-10 CRP will contain external risks. External risk scanning is now integrated in DFO's IRM handbook as a standard element. DFO is in the process of formalizing an environmental scan that informs the corporate risk profile.

Recommendation:
LDAs should define, document, and communicate their definitions of risk tolerance

Response:
The 2009-10 Corporate Risk Profile will define and communicate risk tolerance.

Recommendation:
LDAs should integrate risk management into the Departmental Performance Report to ensure reporting against the Corporate Risk Profile's effectiveness.

Response:
This will be addressed as part of the updating of integrated risk management tool kit that should be in place by the end of 2009-10. This will include the IRM cycle process, an updated IRM Policy Guidelines, and Handbook; all to be posted on the website.

Horizontal Internal Audit of High Risk Expenditure Controls in Large Departments and Agencies
The objective of the audit was to assess the adequacy and effectiveness of processes in place to identify higher-risk transactions that enable more efficient account verification practices. We examined the risk management over expenditure controls and the practices currently in place in a sample of eighteen LDAs in order to conclude on whether or not expenditure management was being carried out in a cost-effective and efficient manner, while also maintaining the required level of control.

Recommendation:
LDAs should ensure that high versus low risk payment types are identified and determine whether verification procedures are consistent with resulting risk principles

Response:
High/low risk payments and the level of verification/quality assurance review per payment stream were identified through consultation with regional and national Finance staff including officers, managers and directors, and Ernst & Young. The risk identification of payment streams and the quality review procedures will be re-evaluated in the 3rd quarter of 2010-11 based on 12 months of results.

Recommendation:
LDAs need to develop rigorous sampling plans to monitor the verification process of low risk payments. These should be national in scope and allow for the collection of results indicating systemic errors, best practices, and monitoring of appropriate risk identification.

Response:
A departmental Quality Assurance of Account Verification program including system generated reports on results has been developed, piloted in 3 regions and targeted for full implementation on September 30, 2009. A review of the random-sampling plan will be re-evaluated in the 3rd quarter of 2010-11 based on 12 months of results.

Recommendation:
LDAs should develop clear guidance for those providing quality assurances over account verification that stipulates the risk identification of high versus low risk payment types. LDAs should consider using checklists outlining verification procedures based on risk type or other measures.

Response:
The departmental Quality Assurance of Account Verification program including policy, guidelines, checklists and procedures is available on a national shared drive, to Finance staff involved in the quality assurance process.

Recommendation:
LDAs should establish the reporting requirements for the governance function over expenditure management in order to discharge their responsibilities in a robust, timely, and comprehensive manner. Those responsible for quality assurance need to develop reports to meet these needs and prepare and present them in a periodic manner.

Response:
Semi-annual reporting to the CFO, Departmental Management Committee, and Finance Sub-Committee will include a summary of errors by organizational structure and spending streams, analysis of risk and tolerance levels, and recommendations on modifications to the quality assurance program and remedial plans where necessary.