2021 to 2022 Report on key compliance attributes of the internal audit function at Environment and Climate Change Canada
The Treasury Board Secretariat Directive on Internal Audit requires that departments with an internal audit function publish departmental internal audit performance results in the form of key compliance attributes. The objective of publishing these results is to provide pertinent information to stakeholders, such as Canadians and parliamentarians, on the professionalism, performance and impact of the internal audit function in departments. As well, it is important that the public be aware that heads of government organizations are receiving independent assurance on the effectiveness and soundness of departmental activities.
Introduction
This report presents the state of compliance of the internal audit function at Environment and Climate Change Canada (ECCC) on attributes determined by the Office of the Comptroller General of Canada (OCG). These attributes address questions that stakeholders may have related to the sound management and the oversight of public resources.
The attributes examined in this report relate to the internal audit function in place at ECCC for fiscal year (FY) 2021 to 2022. Compliance in relation to these attributes has allowed the internal audit function to play its assurance and advisory role to the Deputy Minister and senior management. ECCC is the federal lead on environmental issues, including action on clean growth and climate change, preventing and managing pollution, conserving nature and predicting weather and environmental conditions.
Compliance attributes
The internal audit function at ECCC was assessed on the following four key compliance attributes:
- Internal audit training and team
- Conformance with international standards
- Implementation of the Risk-based Audit Plan (RBAP)
- Credibility and value-add of internal audit
Internal team and audit training
These key attributes answer the following questions that stakeholders may have about the oversight of public resources:
- Do internal auditors in departments have the training required to do the job effectively?
- Are multidisciplinary teams in place to address diverse risks?
ECCC results – April 1, 2021 to March 31, 2022
- % of staff with an internal audit or accounting designation (Certified Internal Auditor (CIA), Chartered Professional Accountant (CPA)): 56%
- % of staff with an internal audit or accounting designation (CIA, CPA) in progress: 25%
- % of staff holding other designations (CGAP, CISA, etc.): 19%
Conformance with international standards
These key attributes answer the following question that stakeholders may have about the oversight of public resources:
- Is internal audit work performed in conformance with the international standards for the profession of internal audit, as required by Treasury Board policy?
ECCC results – April 1, 2021 to March 31, 2022
- Date of last comprehensive briefing to the Departmental Audit Committee on the internal processes, tools, and information considered necessary to evaluate conformance with the Institute of Internal Auditors (IIA) Code of Ethics and the Standards and the results of the quality assurance and improvement program (QAIP): September 1, 2021
- Date of last external assessment: March 31, 2019. The internal audit function received a rating of “generally conforms”.
Implementation of the Risk-based audit plan
These key attributes answer the following questions that stakeholders may have about the oversight of public resources:
- Are the risk-based audit plans (RBAP) submitted to audit committees and approved by deputy heads implemented as planned with resulting reports published?
- Is management acting on audit recommendations for improvements to departmental processes?
ECCC results – April 1, 2021 to March 31, 2022
| Internal audit title | Audit status | Report approved date | Report published date | Original planned MAP completion date | Implementation status |
|---|---|---|---|---|---|
| Audit of the management of grants and contributions | Published – MAP not fully implemented | March 26, 2019 | June 26, 2019 | September 30, 2021 | 96% |
| Audit of Occupational Health and Safety | Published – MAP fully implemented | December 17, 2019 | March 11, 2020 | June 30, 2021 | 100%, completed within the FY |
| Joint audit and evaluation of the management of the Pan-Canadian Framework | Published – MAP not fully implemented | May 22, 2020 | February 25, 2021 | December 31, 2020 | 75% |
| Audit of the administration of grants and contributions for the Low Carbon Economy Fund | Published – MAP not fully implemented | March 24, 2021 | May 7, 2021 | July 30, 2021 | 96% |
| Audit of project management | Published – MAP fully implemented | March 29, 2021 | April 22, 2022 | September 30, 2021 | 100%, completed within the FY |
| Review of the ECCC’s research scientists (RES) career progression committee structure | Approved – Unpublished internal engagement | June 28, 2021 | N/A | September 30, 2022 | 60% |
| Audit of the administration of the Canada Nature Fund contribution program | Published – MAP not fully implemented | September 16, 2021 | April 27, 2022 | March 31, 2022 | 26% |
| Advisory engagement on the design and implementation of the Enforcement Branch’s risk-based approach | Approved – Unpublished internal engagement | February 1, 2022 | N/A | N/A | N/A |
| Audit of the classification function at ECCC | Approved – Publication pending | May 2, 2022 | Scheduled: by July 31, 2022 | March 3, 2024 | 0% |
| Risk assessment of the Terra Canada Cluster of Laboratories Canada | NRC and NRCan co-led Unpublished internal assessment ECCC contribution to this project is completed – No MAP required |
N/A | N/A | N/A | N/A |
| Risk assessment of the Atlantic Science Enterprise Centre Cluster of Laboratories Canada | DFO led Unpublished internal assessment ECCC contribution to this project is completed – No MAP required |
N/A | N/A | N/A | N/A |
| Engagements in progress from Risk-based Audit Plan, fiscal year 2021 to 2022 and fiscal year 2022 to 2023 |
|
| Engagements planned for tabling in Year 1 of the 2022 to 2027 Audit and Evaluation Plan |
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Credibility and value-add of internal audit
These key attributes answer the following question that stakeholders may have about the oversight of public resources:
- Is internal audit credible and adding value in support of the mandate and strategic objectives of the organization?
ECCC results – April 1, 2021 to March 31, 2022
Average overall usefulness rating from senior management (ADM-level or equivalent) of areas audited:
- There were 2 audit survey responses for FY 2021 to 2022. Using the OCG’s scale, the overall usefulness rating from senior management was “Good”
- Audit clients considered that the internal audit function’s assurance and advisory support is adding value to their decision-making processes