ARCHIVED - MAF Assessment: National Defence - 2008

1.1 Leadership: Strong

• Regarding Values and Ethics Leadership, the organization is maintaining its Round V (2007-08) assessment of Strong. It has submitted a Management Assertion to CPSA that no significant changes have occurred within the organization to affect this rating.

1.2 Infrastructure: Strong

• Regarding Values and Ethics Risk Assessment and Mitigation, the organization is maintaining its Round V (2007-08) assessment of Strong. It has submitted a Management Assertion to CPSA that no significant changes have occurred within the organization to affect this rating.
• Values and ethics plans or strategies are tailored to an organization's work, span several years, and measure results and are used to inform senior management on the state of the organization's values and ethics.

1.3 Culture: Strong

• Regarding the Current State of Organizational Values and Ethics, the organization is maintaining its Round V (2007-08) assessment of Strong. It has submitted a Management Assertion to CPSA that no significant changes have occurred within the organization to affect this rating.

2.1 PAA Consistency: Acceptable

• The Strategic Outcome(s) reflects the departmental area of influence and is/are adequately aligned with the organization’s mandate.

2.2 Measurability: Acceptable

• An adequate Program Activity Architecture has been developed with some issues to be resolved.

2.3 Quality:

• An incomplete or inadequate performance measurement framework has been developed.

3.1 Business Plan: Acceptable

• Corporate business plan generally integrates human resources, IM/IT, communications or other key corporate plans.
• Sector or branch business plans are generally aligned with the corporate business plan.

3.2 Governance Structure: Acceptable

• Resource reallocation is generally proactive when or where required.
• Senior corporate management structure or subordinate governance structure (e.g., committees) meet regularly.
• Terms of reference are generally current and complete.
• Corporate business plan generally aligns resources and accountabilities to priorities.
• Senior corporate management structure meets regularly and terms of reference for all levels in the governance structure are current and complete.

4.2 Participation in Priority Initiatives: Acceptable

• The organization contributes effectively to priority interdepartmental initiatives.
• The organization contributes effectively to Public Service Renewal.
• The organization's commitments are clear and are consistent with its role.

4.3 Portfolio Coordination: Acceptable

• The Department’s portfolio coordination is effective.
• Implementation of measures has begun – but is not complete.

DND has been assessed for its participation in the following initiatives: Web of Rules - Strong; Public Service Renewal - Acceptable and Afghanistan - Acceptable.

5.1 Supporting Information: Acceptable

• Organization has established a capacity to assemble usually accurate, reliable and complete supporting information in TB submissions.
• Organization has the capacity to respond effectively to most TBS feedback.

5.2 Analysis: Acceptable

• Established capacity for appropriate responses to TBS comments is acceptable.
• Established capacity for options analysis is demonstrated.
• Generally, the correct policy authorities are used.

5.3 Consultations: Acceptable

• Established capacity to initiate consultations with TBS with sufficient lead time is evident.

5.4 Quality control: Acceptable

• Generally rigorous and effective quality control process is in place and is usually followed for TB submissions.
• TBS feedback is usually fully addressed.
• Overall, the organization’s submissions meet acceptable standards for clarity and reflect DND’s responsiveness to TBS feedback.
• Opportunities for improvement have been identified in the following areas:
  • Maintaining a high level of analysis in the face of compressed submission timelines.
  • Interdepartmental coordination of joint submission processes.

6.1 Quality: Acceptable

• The majority of evaluations submitted to TBS consistently employ appropriate methodologies to gather data and inform the analysis.
• The majority of evaluations submitted to TBS include analysis of the limitations of the methodology and data sources used.

6.2 Neutrality: Strong

• All resources dedicated to evaluations are directed by the Head of Evaluation.
• Evaluation function resourcing is commensurate with the organizational evaluation plan.

6.3 Coverage: Opportunity for Improvement

• The organization has shown evidence of moving towards full coverage of all ongoing programs of grants and contributions over a five-year cycle as per 42.1 of the FAA. Year to year percent coverage indicates organization is on track to achieve 100% coverage.
• A one-year plan has been developed and shared with TBS. The plan has information on evaluations planned, completed and carried over and include links to the organization's PAA. As well, the organization has committed to developing a multi-year risk-based plan.
• Option 2: The organization has committed to moving towards full evaluation coverage of their program base (e.g. over a five year cycle). However, year-to-year coverage of direct program spending is relatively low due to small number of evaluations completed.

6.4 Usage: Acceptable

• Active, systematic and regular tracking of management action plans arising from evaluation recommendations is in place.
• Some evaluations submitted to TBS incorporate data from a performance measurement system to support the evaluation. Submitted evaluations usually cite data availability and/or quality as constraints.
• The results of evaluations are sometimes brought for consideration in TB submissions, Memorandum to Cabinet, RPPs, DPRs and Strategic Reviews.

In general, DND continued to demonstrate its intention to address its evaluation commitments, to expand coverage and to scale-up of resources available for evaluation.

7.2 Credible information: Acceptable

• The DPR occasionally provides independently verifiable evidence-based performance information.

7.3 Context: Opportunity for Improvement

• DPR is generally balanced – the report presents both positive and negative aspects of performance and substantiation or explanation is generally provided.
• Reports present limited strategic context and operating environment information including challenges, risks, opportunities and capacities.

8.1 Change plan: Acceptable

• The organization has the capacity to evaluate whether or not change is required.

8.2 Engagement: Acceptable

• Change management related training programs are available to some components of the organizations.

8.3 Assessment: Acceptable

• Change plans and strategies are included in Performance Management Agreements of Senior Executives.
• Change plans and strategies are priorities across the organization.
• Results are apparent.

9.1 Engagement: Acceptable

• Senior management reviews the organization’s Risk Management approach within the current three-year planning cycle.
• The organization has a common risk assessment approach and it has been approved by senior management.
• Senior management ensures that the organization’s Risk Management approach is tailored to the specific needs of the organization.
• Senior management has not reviewed/approved the Corporate Risk Profile for over a year.
• Senior management somewhat encourages Risk Management and a risk-smart culture.
• Accountability for key risks is assigned to senior management.

9.2 Implementation: Acceptable

• The organization’s Risk Management approach is regularly communicated to staff and stakeholders.
• The Corporate Risk Profile is systematically (horizontally and vertically) implemented into most operational levels across the organization.
• Risk Management guidance and tools that enable the organization’s risk management approach are made available to staff.

9.3 Integration: Acceptable

• Risk information is routinely consulted in senior management decision-making. This is done systematically and explicitly.
• Risk information and Risk Management principles influence planning and resource allocation decisions.
• Operational level risks are prioritized into key risks.
• Risk information and Risk Management principles are inconsistently captured in senior management reporting.
• The organization makes course corrections on an ongoing basis based on Risk Management performance and new information.

9.4 Continuous Improvement: Acceptable

• Most relevant external sources are consulted during the development of the organization’s CRP.
• Key risk information was adequately gathered from internal sources of the organization for preparing the CRP.
• Corporate risks are inconsistently linked to the organization’s strategic outcomes.
• The CRP provides a reliable assessment of the quality of risk information used.
• The organization adequately builds on past experience, better practice, and adjusts to fit any changes in management structures, priorities or strategic direction.
• The organization has implemented most recommendations provided during its last MAF assessment.

DND has implemented a number of strong risk management practices that have contributed to an improvement in its rating this assessment period.  Risk now explicitly informs key senior management decisions, the organization makes course corrections based on risk performance information and a solid risk management framework is in place.

10.1 Fair: Strong

• Classification program is at low to medium risk and an effective classification monitoring program is in place.
• Evidence shows that labour relation matters are proactively and innovatively managed/addressed.
• Evidence shows that the organization exceeds standards of timeliness in payments to employees.
• Evidence shows that the organization is proactively seeking labour relations policy direction (terms and conditions of employment, collective agreements and/or applicable legislation).

10.2 Enabling: Opportunity for Improvement

• Organization demonstrates a generally adequate linguistic capacity to provide personal and central services and supervision in both official languages.
• Organization is under-representative in one or more of the four employment equity designated groups.
• Organization progress remains unchanged from the previous year in representation, recruitment, promotions and separations of the four employment equity groups.
• Promotions among employment equity groups are greater than or equal to previous year's performance.
• Separations among employment equity groups are equal or greater than previous year's performance.
• Some deficiencies in the availability of work instruments, electronic systems and communications with employees in both official languages exist.

10.3 Healthy and safe: Opportunity for Improvement

• A considerable number of employees do not feel recognized for positive performance.
• Evidence indicates that the organization has in place a well-managed program to protect employee's occupational health and safety.

11.1 Productive: Opportunity for Improvement

• An insufficient number of employees indicate their organization supports their career development and learning needs.

11.2 Principled: Opportunity for Improvement

• Adequate linguistic capacity is generally in place as shown by the majority of incumbents of bilingual positions who meet the language requirements of their position.
• Employees consider that they can not regularly communicate in the official language of their choice within their organization and work instruments, electronic systems and communications in both official languages are not consistently available.
• Organization is under-represented in one or more of the four employment equity designated groups.
• Progress against the previous year's performance on recruitment, promotion and separation for employment equity groups equal the organization's average for all employees.
• Promotions among employment equity groups are less than representation for at least one group.
• Some deficiencies in communications with and services to the public in both official languages.

11.3 Sustainable: Strong

• Evidence indicates human resources planning is integrated with business planning and there is ongoing support by means of governance/organizational infrastructure.

11.4 Adaptable: Acceptable

• A sufficient number of employees indicate their organization encourages continuous learning, improvement and innovation.

12.1 Governance: Acceptable

• IM requirements are integrated as a part of the approval, development, implementation, evaluation, and reporting of departmental policies, programs, services, or projects.
• IM is represented in the corporate-wide governance structure and/or in the corporate-wide governance or approval committee(s).
• Extensive participation is evident in GC-wide approaches and initiatives related to developing, implementing, sharing, and leveraging IM policies and practices.

12.2 Strategy: Opportunity for Improvement

• The IM strategy is in development but it is not clear how it supports departmental business priorities and operations nor how it integrates with other corporate strategies, plans, and planning cycles.
• A plan to implement the strategy is in development but it lacks timelines or resource estimates.
• Minimal IM awareness activities are underway to help staff and executives understand their IM roles, responsibilities and accountabilities.

12.3 Privacy Act: Acceptable

• Some collections of personal information under the control of the organization have not been appropriately identified or described in accordance with the Privacy Act.

12.4 Access to Information Act: Opportunity for Improvement

• A significant number of institution-specific Classes of Records do not meet Treasury Board Secretariat requirements.

13.1 Leadership: Acceptable

• Senior official for information technology has only a partial scope of responsibility and accountability for information technology.
• Organization actively participates and demonstrates leadership in setting government-wide directions for information technology.

13.2 Planning: Acceptable

• Acceptable information technology plan is in place that aligns with the government-wide directions for information technology and departmental business needs.
• Organization has aligned corporate and information technology governance structures and has an integrated planning process.

13.3 Value: Acceptable

• Organization is making efforts to appropriately use and plan for further use of information technology shared services.
• Organization devotes adequate management attention to service costing, asset management, performance measurement and reporting to ensure value delivery.

14.1 Investment Planning: Acceptable

• The organization has a planning document that ranks priority investments.
• The organization’s investment planning process considers investments over multiple years.
• The investment planning process integrates investments decisions across all asset classes.
• Organizational priorities and areas of highest risk are identified and guide investment decisions.

14.2 Real Property Management: Acceptable

• Some elements of a real property management framework have been implemented.
• Governance structures, approval processes and authority limits are documented and disseminated.
• Information systems are in place but real property information is not reliable or integrated with other systems.
• Certification of information in the FCSI is not received and accepted.
• Some indicators of real property performance are monitored.
• Contaminated site management is consistent with policy and program guidelines.

14.3 Materiel Management: Acceptable

• All elements of a materiel management framework are evident.
• Governance structures, approval processes and authority limits are documented and disseminated.
• Comprehensive internal policies are documented and disseminated.
• Reliable and sufficiently integrated information systems are in place.

14.1 Investment Planning: Significant progress has been made as a pilot department in developing an acceptable Investment Plan. *

14.2 Real Property Management: The Secretariat has conditionally accepted the 2008 certification of the DFRP.

15.1 Governance and Oversight: Acceptable

• Business cases support some project proposals, but are not required for all projects.
• There is evidence of formal and effective organization-wide governance and oversight mechanisms.
• There is evidence of formal project governance and oversight mechanisms and that approved projects are generally linked with the strategic plans and priorities of the organization through established organization-wide procedures. Approval and corrective action decisions are documented.
• There is no evidence that the organization has exceeded Treasury Board approval limits.

15.2 Effective Management of Project Resources: Opportunity for Improvement

• The funding models used for projects support the achievement of expected project outcomes and cost estimates are generated at the work package level and consider historical data and/or industry benchmarks.
• There is evidence that most project managers prepare a staffing plan to secure authorization for necessary resources prior to project execution.
• There is no evidence that the organization has failed to meet TB conditions regarding projects.
• While project management related training is made available by the organization for employees, there are no processes to ensure that employees with project management responsibilities are encouraged to complete relevant training and the number of qualified project managers is unknown.

15.3 Effective Management of Project Results: Acceptable

• The organization requires that project milestones, deliverables and outcomes are documented for major projects.
• There is evidence that the organization monitors project performance and uses this information to support corrective action.
• There is no requirement for business cases that define project outcomes and few projects are subject to a review.
• While lessons learned are used to improve project management governance and oversight in some instances, there is no formal or organization-wide mechanism which supports continuous improvement.

16.1 Governance and Oversight: Acceptable

• Clear links have been established between procurement activities and the organization-wide program plans, priorities and long-term investments.
• Effective and accountable procurement management processes and controls are in place (e.g., contract review mechanisms, documented decision making, guidance documents, appropriate delegation instruments or proper use of delegated authorities).
• Organization prepares an annual procurement plan.

16.2 Meeting Operational Requirements: Acceptable

• Clear links to human resources planning are established (e.g., succession planning and recruitment strategies for procurement staff).
• Consistent procurement training is evident.
• Efficient and integrated procurement information systems and processes are in place.
• Informed decision making and oversight exist.
• Mandatory training underway.
• Procurement processes that contribute to cost savings and value for money are in use.
• Qualified procurement human resources exist.
• Results and reviews are being used to continuously adjust and improve current procurement management activities and future procurement plans.
• Results and reviews are used to continuously adjust current procurement management activities and future procurement plans.
• Some staff enrolled in the Professional Development and Certification program.
• Timely and accurate procurement financial and non-financial reports have been submitted.

17.1 Authorities and Policies: Acceptable

• Audit report results show evidence of deficiencies that are of serious concerns.
• Departmental procedures, tools, training and support for those individuals delegated with Section 34 authority show evidence of solid financial management practices.
• Departmental processes for classification of moneys, internal controls for receiving and recording money and depositing money show evidence of solid financial management practices.
• Departmental processes to provide individuals delegated Section 33 authority with the information necessary to assess and approve specific transactions and to assess the adequacy of Section 34 account verification show evidence of solid financial management practices.
• Limited response to management letter recommendations.
• The reporting of external user fee information shows some omissions in relation to reporting guidelines.

17.2 Public Accounts Reporting: Opportunity for Improvement

• Eighty to 89% (grade B) of Public Accounts reporting plates submitted on time.
• Few significant errors found during the course of the OAG Public Accounts audit.
• Minimal Central Financial Management Reporting System (CFMRS) coding errors.

17.3 Management Capacity: Acceptable

• A low proportion of FIs or management team members in the financial management organization have current, approved learning plans.
• A reasonable amount of training is provided for the financial management organization.
• Positions, the duties of which are being performed by an individual indeterminately appointed to that position, comprise a reasonable proportion of the FI segment of the financial management organization.
• Positions, the duties of which are being performed by an individual indeterminately appointed to that position, comprise a reasonable proportion of the positions on the management team of the financial management organization.
• Some processes in support of a sound succession plan for key positions are in place.
• There is a position (or positions) established in the financial management organization that is dedicated to community management and development.
• There is an acceptable functional relationship between the CFO/SFO and FI positions that exist outside the financial management organization. *This row is only applicable where the department or agency indicates there are FI positions outside the financial management organization.

17.4 Financial Statements: Opportunity for Improvement

• All concerns identified in the audit readiness assessment are addressed in a detailed action plan.
• The Financial Statements are compliant with Treasury Board Accounting Standard 1.2 – Departmental and Agency Financial Statements and reporting deadlines were met.
• There are significant unremedied known financial internal control weaknesses.

17.5 Internal Reporting: Strong

• The internal financial reporting package is accompanied by a good discussion and analysis.
• The internal financial reporting package is presented to senior management less than 15 calendar days after period end.
• The internal financial reporting package is presented to senior management ten or more times per year.
• The process for reviewing information before it is presented to senior management to ensure no material errors or omissions is established.
• The scope of the internal financial reporting package is comprehensive.

17.6 Other Initiatives: Acceptable

• Evidence of some initial measures taken towards implementing the Guide to Costing.

While the organization maintained an overall rating of acceptable, there was a significant drop in its rating for the quality, timeliness and accuracy of reporting for the Public Accounts and the quality of its organizational financial statements and progress towards realizing audited financial statements.

18.1 Internal Audit governance: Strong

• There is an approved Internal Audit Charter in line with the 2006 Policy on Internal Audit.
• The Implementation Plan covers all of the required policy elements.
• Ongoing monitoring of, and progress in implementing, key elements of the plan are ahead of schedule.
• Chief Audit Executive reports solely and exclusively to the Deputy Head.
• An independent Departmental Audit Committee is in place.
• There is an approved Departmental Audit Committee Charter in line with the 2006 Policy on Internal Audit.
• There is an approved Departmental Audit Committee Annual Plan for fiscal year 2008-2009.
• There is a written statement indicating that a Departmental Audit Committee Annual Report will be produced for fiscal year 2008-2009 and future years.

18.2 Internal Audit Professional Practices: Acceptable

• The Risk-Based Audit Plan was approved by the Deputy Head and sent to the Office of the Comptroller General in a timely manner.
• Annual Risk-Based Audit Plan methodology is evident and applied.
• There is evidence of preparation to provide for holistic assurance.
• All post-engagement follow-up activities are clearly identified.
• There is very little or no information of the planned use of all audit function resources.
• Majority of planned work is on audit assurance versus other types of activities.
• Continuity of previous years work is identified with status or rationale.
• Approved assurance products are consistent with policy and internal audit standards requirements.
• Reasonable completion rate of assurance products (number of assurance audit reports) against 2007-2008 Risk-Based Audit Plan.
• Internal Quality Assurance and Improvement Program is well documented and in place.
• Assurance products (reports) are produced in a reasonably timely manner.
• Post-engagement follow-up process is well documented, and all recommendations are followed up using a risk-based approach.
• The department or agency provides notification to the Treasury Board Secretariat on issues of importance on an ad hoc basis or is aware of this requirement.
• The department or agency is proactive in providing notification to the Treasury Board Secretariat for the posting of reports.

18.3 Administration of the Internal Audit Function: Strong

• Recruitment and external resourcing activities are guided by a documented Human Resources Plan.
• Investment in Certified Internal Auditor certification, learning and training represents a minimum of 5% of FTE salaries.
• Planned spending, * was given to the Office of the Comptroller General. When comparing current spending of 2008-2009 with planned financial resources of 2007-2008, resource levels identified exceeds the resource level identified in 2007.
• Planned FTEs dedicated to internal audit have dropped when compared to the resource level identified in the planned internal audit function’s budget for 2008-2009.

18.4 Internal Audit Performance: Acceptable

• Regular periodic reporting on the follow-up of Management Action Plans is evident.

The department continues to make progress towards full implementation of the Policy on Internal Audit. In particular, the Departmental Audit Committee has been established.

19.1 Departmental Security Program: Strong

• Organization's security program is fully developed and sustainable, and comprises all key policy elements.
• Organization demonstrates leadership and contributes to the government-wide security program.
• Organization's security strategy is completely aligned and integrated with its corporate priorities and business plan.

19.2 Management of IT Security (MITS): Acceptable

• Organization has achieved the three priority objectives that form the foundation for Management of Information Technology Security (MITS) and complies with most MITS requirements.
• Some deficiencies in meeting key MITS requirements.

19.3 Business Continuity Planning (BCP): Opportunity for Improvement

• Organization has partially developed measures to provide for the continuity of critical business operations and services.
• Some deficiencies in meeting key BCP program requirements.
• Business Continuity Planning (BCP) program governance has been established.
• Business Impact Analysis (BIA) has been completed to identify and prioritize the organization's critical services and assets.
• Significant deficiencies in establishing business continuity plans and arrangements.
• Maintenance cycle has been partially put in place to review, test and audit business continuity plans.
• Completed and approved plans are in place for Pandemic and Information Management/Information Technology emergency preparedness.

20.1 Management Engagement – Service and CLF:

• There is monitoring by senior management to ensure that the requirements of CLF 2.0 are being met institution-wide; this information is generally used to make timely and proactive decisions and course correction.

20.3 Official Languages: Opportunity for Improvement

• Analysis of the Annual Review on OL shows some shortcomings.
• Audits reveal numerous shortcomings in active offer and service delivery in both OL.
• In general, the institution has adequate resources to serve the public in both OL.
• The institution has initiated the necessary follow-ups to improve service delivery in both OL.
• Small number of complaints deemed founded by the Commissioner of Official Languages.

Note that TBS did not assess DND with regards to line of evidence 20.1. TBS commits to working with DND in this area in the future.