2010 Fall Report of the Auditor General of Canada:
Chapter 4, Managing Conflict of Interest AAFC’s Detailed Action Plan

13 January 2011

Recommendation

AAFC Response in Chapter

AAFC Planned Action / Status Update

Target Date

Branch Head Responsible

4.51 Agriculture and Agri-Food Canada, Canadian Heritage, Human Resources and Skills Development Canada, and Natural Resources Canada should put in place standards to ensure that conflict of interest declarations are addressed in a timely fashion, and that public servants take the required action to eliminate or reduce the conflict of interest.

Agreed.  A review of the Values and Ethics Policy Centre activities has been completed.  Service standards are being developed.  In October 2010, the service standards will be communicated to employees, and performance against the standards will be tracked from that date.

Service standards developed:

The Values and Ethics Policy Centre (VEPC) completed a review of its service standards.

The following three standards have been updated and revised  to ensure consistency with other Human Resources Branch service standards:

  • Conflict of Interest (COI) Assessment of Interchange Canada Program Agreements (ten (10) working days);
  • COI Assessment of offers of third party funded travel (four (4) weeks); and
  • Political Activities Messages to Employees (two (2) working days following notice from the Public Service Commission).

The VEPC has also established new service standards for the following:

  • Assessment for a formal COI disclosure (one (1) month, complex cases: up to 90 days); and
  • Response to NIL Confidential Reports (ten (10) working days)

The service standards include timeframes for acknowledgements of receipt and account for the possibility of temporary mitigating measures to be taken to eliminate, alleviate or minimize existing risks associated with a disclosed activity, asset or liability while the assessment is underway.

Service standards communicated to employees:

Service Standards are posted on the internal AAFC- Values and Ethics Website along with other information for employees regarding their obligations to avoid conflict of interest.

Performance monitoring

Monitoring adherence to the service standards has begun using the existing case tracking mechanisms.  Performance will be reported regularly to the ADM, HR, as part of established quarterly performance monitoring.  

Completed

Completed

Incorporated in the quarterly reports by March 31, 2011.

ADM, Human Resources

4.64 Agriculture and Agri-Food Canada, Canadian Heritage, Human Resources and Skills Development Canada, Natural Resources Canada, and Public Works and Government Services Canada should develop an approach to risk assessment that includes identification and prioritization of risks, assessment and mitigation strategies, and residual risk assessment, in the key areas where major conflicts of interest could arise.

Agreed.  The Department has completed a risk assessment for conflict of interest for 2010.  It will use lessons learned from this process, along with any direction and guidance from the Treasury Board of Canada Secretariat on assessing conflict of interest risk, in future assessments.

Conflict of interest risk assessments

Building on the department-wide conflict of interest risk assessment, Research Branch and the Centre for Program Excellence (COPE) have led a more detailed risk assessment of collaborative agreements between AAFC and outside stakeholders.  Of the eight (8) risk areas considered, six (6) are explicitly related to conflict of interest, but none of the identified risks were found to have a high residual risk given the controls already in place, including training and guidance for employees.  Results were presented to the Departmental Audit Committee in November 2010.  HR Branch is continuing to work with other branches to ensure that conflict of interest risk controls are adequate and up-to-date.

Mitigating strategies

The forthcoming organizational Code of Conduct for AAFC will include additional measures to address specific identified conflict of interest risk areas, including employees serving on external boards of directors, employees receiving offers of travel from a third party, and employees with assets or outside activities related to AAFC’s mandate.

Performance measurement and future assessment

AAFC will measure performance under the new Code and use that information to determine where additional conflict of interest risk assessments and/or mitigation may be necessary.

Completed

The Code of Conduct for AAFC will be implemented further to the establishment of the Values and Ethics Code for the Public Sector, expected in Spring 2011.

AAFC will seek to develop outcome-based measures for values and ethics in 2011-12, further to the requirements of the new AAFC Code.

Human Resources (for conflict of interest risk assessment only; the Office of Audit and Evaluation has overall responsibility for departmental risk assessment)

4.65 Once they have identified high-risk areas through an appropriate risk assessment process, Agriculture and Agri-Food Canada, Canadian Heritage, Human resources and Skills Development Canada, Natural Resources Canada, and Public Works and Government services Canada should require public servants in identified high-risk areas to report regularly, whether or not they have a conflict of interest.

Agreed.  Once the Department has identified its areas at high risk for conflict of interest, it will implement a process where public servants occupying high risk positions in those areas attest regularly that they understand their obligations under the Values and Ethics Code for the Public Service and indicate whether or not they need to submit or update their Confidential Report.  Phased implementation will begin in April 2011 in conjunction with the implementation of the new Values and Ethics Code for the Public Service.

Regular reporting in identified high-risk areas

AAFC has already identified its Grants and Contributions programs as having an elevated risk of conflict of interest.  Accordingly, AAFC is working with the Centre of Program Excellence (COPE) in the Farm Financial Programs Branch to incorporate conflict of interest attestations into the steps of the management processes related to these grants and contributions.

In addition, AAFC will introduce a new organizational Code of Conduct for AAFC in Spring 2011, coordinating with the new Values and Ethics Code for the Public Sector.  As part of the implementation of its organizational Code, AAFC is planning to introduce its own clearer and user-friendly Confidential Report form.

AAFC is also planning an electronic prompt for employees to attest regularly that they understand their conflict of interest obligations.

April 2011.

Expected in Spring 2011 (simultaneous with the new codes of conduct).

Development and testing by June 2011, with initial implementation to follow.

Human Resources