About the audit

Audit objectives

1. To provide assurance as to how sound the WD governance framework is, its integration at the broad level to maximize results and whether it lines up to authorities, performance, program management and grants and contributions as a way of doing business for a stronger West and a stronger Canada;
2. To determine whether WD periodically reassesses the appropriateness of its business lines, programs and activities and whether its strategic decisions are made with adequate consideration of risks, options, stakeholders and potential impacts supported by documentary evidence of linkages and communication;
3. To assess whether the strategic level elements identified in the model integrated management framework (Exhibit 2) mapped by WD Audit, Evaluation and Ethics branch, are sound to enable WD measure and report on results and impacts of its efforts; and
4. To identify opportunities for continuous improvement in WD modern management practices, in order to mitigate risk and add value to the organization.

Scope and approach

Planning

The audit planning work started April 2007 and audit examination ended in September 2007. The auditors reviewed WD 2006-07 Corporate Risk Profile (CRP), Audit, Evaluation and Ethics risk-based audit plan for 2007 - 2008 and previous WD audit reports of relevance in assessing risk. Materials on the Internet, Intranet and manuals about WD were reviewed in order to acquire deeper knowledge of the business and identify risks. A model Integrated Management Framework for Performance (Exhibit 2) was developed based on the business knowledge and preliminary discussions and walk through with selected staff. Materials from Treasury Board Secretariat, Office of the Auditor General reports, Institute of Internal Auditors were utilized in selecting audit criteria and developing audit questions. Based on knowledge gained of WD and its challenges, we examined selected management controls and assessed risk.

Methodologies and sampling

Collaborative evidence was gathered through interviews with a cross-section of senior management and managers in all locations and functions. The 56 people interviewed formed 15% of total WD staff population and comprised of managers-and-above and six key functional staff members (Exhibit 3). Presentations were given to the Audit Committee and regional management teams. Data was gathered and analyzed through review of documents, including WD's mandate, visioning initiative, RPP, DPR, regional business plans, financial statements, periodic reports, policy and procedure binders, organization charts, intranet, internet and external references.

Emerging themes from the interview notes were summarized, analyzed for interpretation and evaluated for significance, effects, impact and risk exposure. The analysis included review or verification of evidence and support documentation where available in order to validate the themes. Evidence on the themes was compared against audit criteria and expectations in assessing observed conditions. Opportunities for improvement determined were put through the WD Corporate Risk Profile lens. Risks were assessed for impacts and effects or likelihood of any unacceptable exposure. Comparatives between regions were done. Benchmarking was done for different areas of the audit using available information from three other federal regional development agencies, National Research Council, Industry Canada, Canadian International Development Agency, OAG Reports for 2002 to 2007, and Treasury Board Secretariat audit database.

Exhibit 4: Staff Interviewed by function

Function	Number of staff interviewed
Deputy Minister and Assistant Deputy Ministers	6
Policy, Planning and Research	11
Operations and Programs	20
Finance	9
Communications	4
Corporate Services (includes HR and IMT)	5
Audit, Evaluation and Ethics	1
Total	56

Audit team

Donald MacDonald	Chief Audit Executive
John Hagan	Project Leader
Kathy Locke	Senior Auditor
Amarjit Mundi	Senior Auditor
Stella Okyere	Executive Assistant