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Response to Parliamentary Committees and External Audits

Table of Contents

Response to Parliamentary Committees

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages)

Response to Parliamentary Committees

Standing Committee on Public Accounts: Report 4, Chapter 1, "Gender-Based Analysis," of the Spring 2009 Report of the Auditor General of Canada

(Adopted by the Committee on March 16, 2010; presented to the House on April 14, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
Gender-based analysis (GBA) is an analytical tool used to assess how policies might impact men and women differently. When used effectively, GBA attempts to integrate gender sensitivity at each stage of the policy analysis process. Responsibility for performing GBA is shared throughout the federal government. The Committee believes that Status of Women Canada (SWC) should take a leadership role in GBA implementation and that it is best placed to close the accountability loop by reporting on the government's progress in implementing its action plan. A Supplementary Opinion was included in the Report from the members of the Committee representing the Conservative Party of Canada to highlight Canada as a leader in GBA analysis. The Supplementary Opinion also brings up the release of the government's Action Plan on GBA. The partnership between SWC, the Privy Council Office (PCO) and the Secretariat will allow for continued guidance to departments and agencies in discussing GBA challenges. In recommendations 2 and 3 related to the challenge function, the Committee asked the Secretariat and PCO to require departments and agencies to explain in writing why gender impacts were deemed to be relevant or not. The position of central agencies is that the challenge function is generally done informally or verbally and that documentation would not inherently improve the nature of the challenge function.

Recommendation 4 asked the Secretariat to clarify the government's commitment to GBA and develop a communications plan to provide clear guidance on what is expected of departments and agencies in relation to GBA.

Since the tabling of the GBA Action Plan, SWC with the support of the central agencies has been working with federal organizations to meet expectations for the application of GBA and the creation of GBA framework elements.		 Government Response

(Presented to the House on August 18, 2010)

Standing Committee on Public Accounts: Report 5, Chapter 1, "Safeguarding Government Information and Assets in Contracting," of the October 2007 Report of the Auditor General of Canada

(Adopted by the Committee on March 16, 2010; presented to the House on April 14, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee was concerned about the security of government information and assets that are made available to contractors hired from the private sector.

The Department of Public Works and Government Services (PWGSC) is the lead department for procurement in the federal government. The Secretariat adopted a Policy on Government Security, under which each department is responsible for protecting sensitive information and assets for any contract it manages.

The Committee believes that the Secretariat must be more proactive in ensuring that Treasury Board policies are clear and that departments and agencies understand their responsibilities. The Committee was critical of the Secretariat's ability to monitor compliance and of its willingness to hold departments and agencies to account for failure to comply with Treasury Board policies.		 In response to the specific recommendations, PWGSC and the Secretariat provided the Committee with the consolidated results of the Management Accountability Framework Assessments for Round V and Round VI, showing federal institution compliance with Area of Management 19 (Security and Business Continuity).

The Secretariat and PWGSC also provided the Committee with the results of a review of whether all contracts with a security requirement of Secret level or higher should be processed by the Industrial Security Program. The review determined that the processing of these contracts should not be consolidated in one organization but made a number of conclusions to improve the processing of the security requirements across government.		 Government Response to the Fifth Report of the Standing Committee on Public Accounts

(Presented to the House on September 20, 2010)

Report on the Review of Security in Contracting

Presented to the Committee on March 9, 2011)

Standing Committee on Public Accounts: Report 6, Chapter 3, "Human Resources Management - Foreign Affairs and International Trade Canada," of the May 2007 Report of the Auditor General of Canada

(Adopted by the Committee on March 16, 2010; presented to the House on April 14, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee was concerned that Foreign Affairs and International Trade Canada (DFAIT) did not have a strategic plan for its human resources and that its ability to respond to growing and changing demands and meet objectives such as coordinating Canada's efforts abroad might be hampered. The Secretariat participated in the response to two recommendations.

The Committee asked for the results of the Foreign Service Directives Review and an action plan for the implementation of the results.

The review was completed in 2008 and came into effect on April 1, 2009. New directives have been implemented. Prior to the effective date, there was extensive outreach to clients and training of administrators.

In addition, the Committee asked the Secretariat to work in partnership with members of the National Joint Council to improve the flexibility and accessibility of accidental death and dismemberment insurance for public service employees posted abroad. The government's position is that the insurance provided by the Government of Canada as an employer through the Workman's Compensation Board has proven to be reliable and effective for public service employees posted abroad.

In response to the May 2007 Auditor General's Report, DFAIT provides extra accidental death and dismemberment insurance for DFAIT public service employees serving in Afghanistan and Iraq through an external supplier. Other departments and agencies have followed DFAIT's example.		 Government Response to the Report of the Standing Committee on Public Accounts

(Presented to the House on August 18, 2010)

Standing Committee on Public Accounts: Report 8, Chapter 6, "Selected Contribution Agreements - Natural Resources Canada," of the Spring 2009 Report of the Auditor General of Canada

(Adopted by the Committee on March 25, 2010; presented to the House on April 19, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee was troubled by events that occurred at Natural Resources Canada's (NRCan's) Office of Energy Efficiency, which had entered into a series of contribution agreements with private sector organizations. An internal audit assessed NRCan's control and management practices in administrating the contribution agreements and found material breaches of the terms and conditions of the agreements. The Committee believes that this situation may arise in other departments and agencies and considers that it is necessary for all federal organizations to take action to prevent conflicts of interest. The Committee also believes that the Secretariat should provide all departments and agencies with additional guidance on avoiding conflict of interest when managing grants and contributions. The Secretariat was asked to provide clear rules and guidance, including draft contractual provisions, to departments and agencies to assist them in identifying and avoiding conflict of interest by contractors and the recipients of transfer payments. The Secretariat was also asked to provide guidance on how to reconcile possible conflicting contractual obligations arising from contribution agreements and statutory requirements outlined in the Financial Administration Act.

The government agrees that the prevention of situations of conflict of interest is fundamental to maintaining the public's trust in public institutions, and the government is committed to ensuring that requirements are as clear as possible.

Over the past few years, the government has made significant changes to enable public service employees to identify and avoid conflict of interest. In addition, the government has been working on renewing the suite of Treasury Board policies and clarifying the management responsibilities and accountabilities of deputy heads, including clear compliance requirements and consequences.

The Secretariat is also developing a new Values and Ethics Code for the Public Sector. In addition, the Treasury Board Directive on Account Verification, renewed in 2009, sets out specific requirements for ensuring that payments are properly authorized and accurate, and fulfill legitimate obligations.		 Government Response to the Eighth Report of the Standing Committee on Public Accounts

(Presented to the House on September 20, 2010)

Standing Committee on Public Accounts: Report 9, Chapter 2, "Intellectual Property," of the Spring 2009 Report of the Auditor General of Canada

(Adopted by the Committee on March 25, 2010; presented to the House on April 19, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee is concerned that the federal government does not manage Crown-owned intellectual property effectively. The Committee found that the decentralized approach to intellectual property in the federal government is not working well. It believes that the Secretariat should provide stronger leadership, coordination and direction on this issue. The Secretariat should also use the best practices and expertise of National Research Council Canada to better assist departments and agencies in developing effective policies and practices to manage internally generated intellectual property. Industry Canada (IC) and the Secretariat are working in collaboration to improve monitoring of the application of the Policy on Title to Intellectual Property Arising Under Crown Procurement Contracts. They are also working together to ensure that intellectual property data is accurately interpreted and that reporting systems correctly report ownership to support future evaluation of the policy.

In November 2009, a joint IC-Secretariat Action Plan was tabled before the Committee. All activities that IC and the Secretariat committed to undertake are completed or in progress. The government's efforts to provide administrative and policy guidance include an implementation guide to assist departmental officials in understanding policy requirements.

The Canada School of Public Service, with guidance from IC and the Secretariat, is developing a course that will provide background on intellectual property and guidance on the interpretation of the policy.		 Government Response to the Ninth Report of the Standing Committee on Public Accounts

(Presented to the House on August 18, 2010)

Standing Committee on Public Accounts: Report 10, Public Accounts of Canada 2009

(Adopted by the Committee on April 1, 2010; presented to the House on April 28, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee recommended that instead of taking a cautious approach, the government make a firm commitment to adopt accrual appropriations. Further, the Committee is concerned about departments and agencies allowing funds to lapse and about losses to the Crown and the lack of disclosure of errors found in the Public Accounts of Canada. The Government Response addresses accrual appropriations, a long-standing Committee concern.

In 2008, the government adopted a pilot project to implement accrual budgeting, which is currently underway. Sixteen departments and agencies are including accrual-based information in their Reports on Plans and Priorities (RPPs). All remaining departments and agencies included the information in their 2011–12 RPPs.

In 2012–13, an evaluation will be conducted to assess the benefits and costs of accrual appropriations. The President of the Treasury Board will then ask interested parliamentarians to establish a Parliamentary Working Group. This group will participate in the evaluation process and report the results and recommendations of the evaluation to Cabinet and Parliament.

The Government Response also addresses the issue of errors found in the Public Accounts of Canada. The government agreed that the Comptroller General of Canada will disclose errors and other concerns in the Public Accounts of Canada to the Committee prior to the commencement of its hearing on the matter. Thus, prior to appearing before the Committee in March 2011, the government informed the Clerk of the Committee about known errors in the published report. In addition, corrections of errors are now displayed in a new "Errata" section of the Public Accounts of Canada Web page.

The Government Response highlights several initiatives put in place by the government to improve internal controls. The Treasury Board Policy on Internal Controls, which took effect in April 2009, addresses the Committee's concerns regarding losses of money or property due to offences, illegal acts or accidents reported in Volume 3 of the Public Accounts of Canada. As a result, since the Fall of 2010 and commencing with large departments, Departmental Performance Reports contain links to an annual risk-based assessment on the state of internal controls.		 Government Response to the Tenth Report of the Standing Committee on Public Accounts

(Presented to the House on August 18, 2010)

Standing Committee on Public Accounts: Report 15, Selected Departmental Performance Reports for 2008-2009 - Department of Industry, Department of Transport

(Adopted by the Committee on June 10, 2010; presented to the House on September 20, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee found that parliamentarians do not give much attention to the Departmental Performances Reports (DPRs), in part because they are dissatisfied with their quality. The Committee recommended that all House of Commons Standing Committees review the DPRs referred to them to ensure that the reports contain the information needed to allow parliamentarians to hold the government to account. However, the Committee stressed that it is up to parliamentarians and committees to encourage government to provide reports that are useful and to make recommendations to improve the reports. The Government Response states that improving the overall quality of DPRs continues to be a priority for government.

In 2007, the Secretariat implemented a strategy to improve the content and form of these documents. Specifically, for the 2013–14 DPRs, the Secretariat will explore how departments and agencies can use departmental websites to present indicator methodologies in order to provide parliamentarians with more accurate performance information, including information on the methodology used to present results.

The Committee recommended that the DPRs provide credible and balanced reports. The government agrees that DPRs should serve as an accurate depiction of department and agency successes and shortcomings over the course of the reporting period.

The Secretariat supports the practice of balanced reporting and expanded its guidance for the 2010–11 DPRs to emphasize the need for departments and agencies to discuss the steps they have taken to modify program design and delivery in order to improve performance, where warranted and supported by evidence.

The Secretariat also committed to develop a new common structure that will provide a standardized index and template for all departments and agencies to follow in preparing their 2010–11 DPR. Departments and agencies will continue to have the flexibility needed to adapt reports to their unique context, mandate and results.

The government concurs with the Committee's recommendation that departments and agencies provide detailed financial and performance information about programs on their websites. Various departments and agencies have already begun posting more detailed program information to complement the results reporting contained in the DPRs.		 Government Response to the Fifteenth Report of the Standing Committee on Public Accounts

(Presented to the House on January 31, 2011)

Standing Committee on Public Accounts: Report 17, Chapter 1, "Evaluating the Effectiveness of Programs," of the Fall 2009 Report of the Auditor General of Canada

(Adopted by the Committee on June 17, 2010; presented to the House on September 20, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
The Committee has encouraged the development of effectiveness evaluation because this provides managers with an objective, evidence-based assessment of the extent to which government programs are achieving their intended results. The Committee is pleased that the government has strengthened the requirements for evaluation. However, the Committee would like to see further improvements made in this area. The government agrees with the Committee on the importance of evaluating programs to provide reliable information on program effectiveness for decision making. It values the Committee's support for the continued development of effectiveness evaluation in the federal government and for the recently strengthened policy requirements for evaluation.

The government recognizes program evaluation as a key source of information on value for money, including program effectiveness, efficiency, economy and relevance. As a management tool, evaluation supports policy and program improvement, expenditure management, Cabinet decision making and public reporting by providing reliable, neutral assessments of the value for money of government programs.

With the renewal of the Government of Canada's Expenditure Management System in 2007, evaluation plays an increasingly important role in the effective management of public spending. It is also in keeping with the Government Response to the Public Accounts of Canada's Fourth Report, tabled in July 2008, which accepted a recommendation that the Secretariat reinforce the importance of evaluation by adding program evaluation as a key requirement in the Expenditure Management System.

As a result, Treasury Board's 2009 Policy on Evaluation introduced significant changes for the evaluation function government-wide that aim to expand the evaluation coverage of programs, focus evaluations on value-for-money issues, ensure the collection of ongoing performance data to support evaluations, and improve the governance and neutrality of the function. Because of the substantial changes introduced in the 2009 Policy on Evaluation, a four-year gradual implementation has been adopted to give institutions adequate time to adapt to the new requirements and to build their evaluation capacity to meet policy requirements.

During the implementation of the Policy on Evaluation and the Policy on Management, Resources and Results Structures, the Secretariat will continue to provide advice and support to departments and agencies on improving their evaluation functions and their ongoing performance measurement. The Annual Report on the Health of the Evaluation Function will be publicly released after it has been approved by Treasury Board and will track progress on the evaluation function.		 Government Response to the Seventeenth Report of the Standing Committee of Public Accounts

(Presented to the House on January 31, 2011)

Standing Committee on Public Accounts: Report 19, Chapter 5, "Acquiring Military Vehicles for Use in Afghanistan," of the Fall 2009 Report of the Auditor General of Canada

(Adopted by the Committee on October 7, 2010; presented to the House on October 25, 2010)
Summary of Report Discussion of progress made to address recommendations Link to the Secretariat's response
In order for the Canadian Forces to carry out their operations in Afghanistan in an effective and safe manner, National Defence and Public Works and Government Services Canada (PWGSC) acquired equipment to better protect against improvised explosive devices. The Committee commended the work being done by Canadian Forces personnel in Afghanistan and recognized the work of officials at National Defence and PWGSC to provide equipment to the Forces as quickly as possible. However, the Committee believes that it is important to learn from this experience to ensure that future urgent needs are met in an efficient and effective manner. The Committee is critical of National Defence for not disclosing some important information to the Secretariat. In Recommendation 3, the Committee asked that PWGSC and the Secretariat develop criteria and guidelines on how to manage urgent acquisitions.

In response to the Committee, PWGSC, with input from the Secretariat, developed and posted on the Internet a Policy Notification establishing a new section in the PWGSC Supply Manual on "Managing Urgent Acquisitions," effective December 20, 2010. This Policy Notification updates instructions to contracting officers on the process for acquiring goods and services when there is an urgent requirement. The notification defines what is considered an urgent requirement and provides strategies to expedite the procurement process when a requirement is considered urgent. It stresses the importance of engaging PWGSC early in the process, developing an integrated approach and engaging with industry and other stakeholders. It states that concurrent review processes should be established and used whenever possible. Where project approval is required from the Treasury Board, consideration is given to developing a joint Treasury Board submission signed by both the Minister of Public Works and Government Services Canada and the minister of the department seeking project approval and contract approval at the same time.		 Government Response to the Nineteenth Report of the Standing Committee on Public Accounts Acquiring Military Vehicles for Use in Afghanistan

(Presented to the House on February 18, 2011)

Response to the Auditor General (including to the Commissioner of the Environment and Sustainable Development)

2010 Fall Report of the Auditor General of Canada 

Chapter 1—Canada's Economic Action Plan

This audit looked at the Economic Action Plan as it was being delivered, how programs were designed and delivered, and what steps were taken to ensure that only eligible projects were funded. The Secretariat received two recommendations; our responses can be found in this chapter's Appendix B—List of recommendations.

Chapter 4—Managing Conflict of Interest

The objective of this audit was to determine whether departments and agencies have provided the tools that public service employees need to meet the federal government's responsibilities for managing conflict of interest. The Secretariat received two recommendations; our responses can be found in this chapter's Appendix—List of recommendations.

Chapter 6—Acquisition of Military Helicopters

This audit examined whether National Defence and Public Works and Government Services Canada managed the acquisition of the maritime and the medium-to-heavy-lift helicopters in compliance with selected key provisions of applicable regulations and policies. The Secretariat received no recommendations.

2010 Spring Report of the Auditor General of Canada

Chapter 1—Aging Information Technology Systems

This audit looked at the extent to which selected organizations have adequately identified and managed the risks associated with the aging of IT systems. The Secretariat received one recommendation; our response can be found in this chapter's Appendix—List of recommendations.

Chapter 2—Modernizing Human Resource Management

The objective of this audit was to determine whether central human resources agencies and selected departments and agencies have implemented the new requirements of the Public Service Modernization Act. The Secretariat received one recommendation; our response can be found in this chapter's Appendix—List of recommendations.

External Audits (Note: These refer to other external audits conducted by the Public Service Commission of Canada or the Office of the Commissioner of Official Languages)

Not Applicable

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