DEPARTMENTAL ACTION PLAN

ON

FOLLOW-UP AUDIT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING

IN RESPONSE TO AUDIT FINDINGS AND RECOMMENDATIONS CONTAINED IN

CHAPTER 1, “FOLLOW-UP AUDIT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING” OF THE

FALL 2013 REPORT OF THE AUDITOR GENERAL OF CANADA

PRESENTED BY

THE TREASURY BOARD OF CANADA SECRETARIAT

Spring 2014


Office of the Auditor General Recommendation

Response

Actions and Timelines

OAG Recommendation 1.33: 

1.33 Recommendation. The Office of the Comptroller General of Canada should work with Aboriginal Affairs and Northern Development Canada; Foreign Affairs, Trade and Development Canada; Human Resources and Skills Development Canada; Transport Canada; and Veterans Affairs Canada to see that the first full risk-based assessments of internal controls over financial reporting, the identification and the addressing of gaps and weaknesses, and the implementation of a program of ongoing monitoring, as applicable, are completed without delay.

Response from the Treasury Board  of Canada Secretariat on the OAG recommendation:

Agreed.

Consistent with its responsibilities as set out in the Policy on Internal Control (the Policy), the Office of the Comptroller General (OCG) will continue to work with Aboriginal Affairs and Northern Development Canada; Foreign Affairs, Trade and Development Canada; Human Resources and Skills Development Canada; Transport Canada; and Veterans Affairs Canada on the completion of risk-based assessments of internal controls. It will do so in a manner that fully respects the responsibilities of deputy heads for implementing the Policy and setting appropriate timelines for the assessments. Specific attention will be paid to determining whether any significant changes in the implementation plans are warranted and to supporting departments to address any issues that are identified. The engagement of these five departments on these issues by the OCG will be completed by March 31, 2014.

Related actions to be taken by TBS further to the response to the OAG:

The Office of the Comptroller General has engaged directly with senior management of the five departments and plans further discussions prior to March 31, 2014.

In addition, further to a December 6 meeting with the five departments, the Office of the Comptroller General (OCG) has reviewed departmental plans and timelines to complete their risk-based assessments of internal controls. The OCG followed up with each department during February 2014 to provide the results of the OCG review of the plans and to raise or address any significant concerns.  Once the engagement process is complete, the OCG will develop a final report covering the process, the review results and the final summary assessment plan information. The OCG will share this report by March 31, 2014 with the departments and others, as appropriate.

After March 31, 2014, the OCG will continue its assessment of the five departments through a number of means and primarily through the Management Accountability Framework (MAF), which has been part of standard practice for all departments since the institution of the policy in 2009.