Conclusion

The audit found that overall grants and contributions procedures at WD were effective and improvements are being made on an ongoing basis as a result of previous audit work. Compliance around Appendix C of the Policy on Transfer Payments issued by Treasury Board was found to be acceptable. Opportunities for improvement still exist and the department can benefit by giving consideration to recommendations outlined in the report.

By clarifying and communicating roles and responsibilities around project management, a clear, consistent structure can emerge. Strategies should be developed for recording performance results, which are factored into decision-making. Continued development of a performance measurement system would assist in determining that planned results have been achieved not just at the project level, but also departmentally.

Ensuring that recipients meet requirements of the contribution agreements by filing reports on time, accounting for advances received within agreed upon time limits and claiming only eligible expenses would strengthen control around contribution agreement management. The introduction of an automated contribution management system would allow officers to respond to milestone dates on a proactive basis and would, therefore, be beneficial to ensuring compliance to contribution agreements. The use of risk information to trigger audit action on specific projects could be built into this system as well.

In general, progress has been made in the management of grants and contributions at WD. The online Project Assessment Tool has ensured uniformity of contribution agreements between the regions, and standardized assessment procedures. Continuing to follow the Policy on Transfer Payments and clarification of roles and responsibilities around grants and contributions management, will assist WD to improve program delivery.

Audit Team:

• Amarjit Mundi - British Columbia Region
• John Hagan - Saskatchewan/Manitoba Region
• Kathy Locke - Alberta Region/Headquarters