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PACC Committee Report

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The government’s response

 

 

to the report OF THE

 

 

STANDING COMMITTEE ON PUBLIC ACCOUNTS

 

 

CONCERNING CHAPTER 10 OF THE DECEMBER 2001 REPORT

 

 

OF THE AUDITOR GENERAL OF CANADA

 

 

(NATIONAL DEFENCE: IN-SERVICE EQUIPMENT)

 

 

16 October 2002

 

GOVERNMENT RESPONSE TO THE REPORT OF THE STANDING COMMITTEE ON Public Accounts

 

Chapter 10 of the december 2001 report OF

THE AUDITOR GENERAL OF CANADA

(national defence: in-service equipment)

 

Introduction

 

The Government of Canada has considered carefully the report of the Standing Committee on Public Accounts (SCOPA) concerning Chapter 10 of the December 2001 Report of the Auditor General of Canada (National Defence: In-Service Equipment.)  The Government has taken note of the eight recommendations contained in the Report. 

 

The Government shares the concerns of the Committee about the information management systems governing in-service equipment and has undertaken a significant number of initiatives to improve these systems. In addition, the Committee may find it useful to note that the Department of National Defence recently completed an Information Management Strategic Review that addressed information management practices across the department. One important consequence of this Review will be the design of an integrated information environment that will bring previously isolated information systems, including those in the materiel management domain, into an integrated whole. It is the Department’s intent that improvements in information management for in-service equipment will be one important result of this Review.

 

The Response

 

This Response addresses each recommendation made by the Committee.  In so doing, it provides a concise overview of the Government’s position with respect to each recommendation. 

 

Recommendation 1: That the Department of National Defence develop and implement an action plan to close gaps in its existing information management systems and to ensure that those systems are used consistently and correctly by military personnel. This plan must be submitted to the Committee no later than 31 December 2002. 

 

Recommendation 2: That, in its action plan, the Department of National Defence devote particular attention to the interim steps it will take to improve the information management systems used to support its most important equipment. 

 

By December 31, 2002, the Department of National Defence will provide to the Committee an action plan on interim and ongoing steps to improve its information management systems for in-service equipment.

 

Recommendation 3: That the Department of National Defence require its internal audit function to provide senior departmental management with ongoing assurance that existing and new information management systems, such as the Materiel Acquisition and Support Information System, are capable of supporting the management of Canadian Forces equipment. 

 

Internal audit planning within the Department of National Defence provides for a broad program of audit work, based principally on an analysis of risk as well as the priorities of senior management. Proposed internal audit plans are considered and approved by a Departmental Audit and Evaluation Committee co-chaired by the Deputy Minister and the Chief of the Defence Staff. This approach is designed to ensure appropriate allocation of limited audit resources to competing areas of risk/priority. Information for decision-making is certainly a key element of assurance and will continue to be addressed. To the extent that new information systems represent a relatively high risk or a key concern relative to competing priorities, internal audit will be tasked to provide the necessary coverage and assurance. 

 

At present, the Department is in the process of completing audit work which is complementary to that performed by the Office of the Auditor General on In-Service Equipment. Review work is also underway that is expected to contribute to improvements in the governance of the planning and delivery of information technology projects. 

 

Recommendation 4: That, in keeping with the Government of Canada’s Policy on Internal Audit, the Department of National Defence make all internal audit reports on the adequacy of departmental information systems that support equipment management available to Parliament on a timely basis. 

 

The Treasury Board policy on reporting internal audit results requires departments to issue completed reports in a timely manner and to make them publicly accessible with minimal formality in both official languages. The Department of National Defence fully supports this policy and applies it to all audit topics, including reports on the adequacy of departmental information systems that support equipment management. To ensure widespread availability of audit reports prepared by the Department, they are placed on the Internet in bilingual format where they are available to Parliamentarians and the public.  DND internal audits are available at: www.forces.ca/crs/home/reports.

 

Recommendation 5: That the Department of National Defence include a summary of the results of all internal audits of its management information systems in its annual performance reports, beginning with its Performance Report for the period ending 31 March 2003. 

 

Commencing the year ending March 31, 2003, key internal audits will be identified in National Defence’s Departmental Performance Report. Summaries as well as full reports will be available on the Internet at www.forces.ca/crs/home/reports.

 

Recommendation 6: That the Department of National Defence set readiness and maintenance standards for its most important equipment and report performance against those standards in its annual performance report to the House of Commons. This reporting must begin with the Performance Report for the period ending 31 March 2003 and must include a discussion of steps taken in response to performance that has failed to meet expectations. 

 

The Department of National Defence is in the process of integrating a number of separate readiness evaluation and reporting systems for the Canadian Forces. A framework has been established based on the annual Report on Plans and Priorities and the Defence Plan. Work is now focused on establishing the procedures and reporting mechanisms to bring a Canadian Forces-wide readiness and reporting system into effect. This system will set clear and standardized measures of operational readiness and maintenance for major in-service equipment. The Department’s ability to track in a holistic fashion equipment performance against readiness and maintenance standards will be facilitated by the implementation of the Materiel Acquisition and Support Information System (MASIS). Full implementation of MASIS is expected by 2006.

 

Much of the developmental work that is underway in relation to Readiness Reporting can be linked to the Department’s Performance Measurement Framework that is also under development. This system is not yet fully operational but is evolving, and its progress will be reflected in future annual performance reports. 

 

The Canadian Forces complete annual readiness evaluations on those units that need to be evaluated based on operational requirements. Some information on readiness reporting is already incorporated in the annual Departmental Performance Report and the Chief of the Defence Staff Annual Report on the Canadian Forces. The Department of National Defence is examining how to enhance readiness reporting in these reports and will aim to implement changes beginning with the period ending March 31, 2003, with the intent of enabling progressively more detailed reporting thereafter.

 

Recommendation 7: That the Department of National Defence submit a detailed action plan to the Committee that responds to the audit results contained in Chapter 10 of the December 2001 Report of the Auditor General of Canada. This action plan must make specific reference to each of the Auditor General’s recommendations, include target implementation and completion dates for each action, and be submitted to the Committee no later than 31 December 2002. 

 

In addition to the action plan referred to in the Response to Recommendations 1 and 2, the Department of National Defence will provide to the Committee by December 31, 2002 a detailed action plan for each of the recommendations contained in Chapter 10 of the Auditor General’s December 2001 report.

 

Recommendation 8: That the Department of National Defence measure, assess and report the outcomes of its efforts to improve the management of its in-service equipment to the House of Commons in its annual performance reports. This reporting must make specific reference to each of the actions undertaken for this purpose and must commence with its Performance Report for the Period ending 31 March 2003. 

 

The Government is committed to providing Parliament and all Canadians with clear, meaningful and timely information on the effectiveness of its programs and policies. In keeping with this commitment, the Department of National Defence will develop a summary assessment of the results of efforts to improve the management of in-service equipment and will include this assessment in future annual reports.