Executive Summary

The audit of infrastructure programs co-delivered by Western Economic Diversification Canada (WD) was identified in WD's approved 2008-11 Risk Based Audit Plan. This internal audit is a follow-up and continuation of the audit performed by WD in March 2006.

This audit covers the period from April 01, 2006 to March 31, 2008 and examines three active Infrastructure Canada (INFC) initiatives: Infrastructure Canada Program (ICP), Municipal Rural Infrastructure Fund (MRIF) and Canada Strategic Investment Fund (CSIF). This audit does not include new INFC initiatives such as the Building Canada Fund.

The objectives of this audit are to provide audit assurance that:

• WD has applied its expertise and resources by way of sound management control frameworks towards the successful delivery of INFC programs in western Canada in order to realize the intended program results; and
• WD roles and responsibilities as outlined in the Memoranda of Understanding (MOU) and agreements for ICP, MRIF, CSIF, have been fulfilled, and are in accordance with the Treasury Board Policy on Transfer Payments and the Financial Administration Act.

Findings

WD has fulfilled its roles and responsibilities in the Memoranda of Understanding between INFC and WD and the related federal-provincial agreements for the delivery of infrastructure programs in western Canada. WD's roles and responsibilities have been fulfilled in accordance with the Treasury Board of Canada Policy on Transfer Payments and the Financial Administration Act.

The informal and formal networks established between WD personnel and their provincial, INFC and other Federal Delivery Partners (FDP) counterparts, has created a supportive and synergetic working relationship. A critical bond of confidence has emerged between WD, as the western regional FDP, and the provincial secretariat staff.

WD, in collaboration with provincial counterparts, has applied its expertise and resources successfully in the delivery of federal infrastructure programs in western Canada. Sufficient and appropriate control and risk management frameworks have been established to guide the successful management of the programs.

Many infrastructure projects are time-sensitive and there is a real cost of delays in construction projects during a time of rising costs, such as the period examined in this audit. The ability to achieve the program objectives is impacted by delays in areas such as announcements, approvals, the flow of funding, and the start and completion of projects. The audit report includes a recommendation to strengthen management practices in this area.

Reliable and high-quality performance info is critical to enable INFC to report on results achieved through the infrastructure programs. WD and provincial counterparts made some observations about the performance data collection process and the quality of data being collected. This audit contains a recommendation to enhance the current process.

The infrastructure program joint secretariats are now in a mature stage of development, having administered the programs since 2000. As such, the joint secretariats could benefit from additional modern management practices in areas such as: business planning, service standards, and program manuals. Opportunities for improvement are recommended in the report.