WD Management Response - January 2008

The Treasury Board Secretariat (TBS) conducted the Round IV Management Accountability Framework (MAF) Assessment in 2005 with a report back to departments in 2006.  While TBS noted that their observations were mixed, Western Economic Diversification Canada (WD) was pleased to note improvement in key areas over the 2005 assessment, which reflects the department’s ongoing support of the MAF objectives.  In the year that has elapsed since the Round IV assessment, WD has made further progress in advancing MAF objectives for the department and in responding to areas indicated by TBS to be of particular concern.

WD received a number of positive assessments in relation to MAF criteria.  MAF objectives are evergreen and work continues to improve all management practices.  In particular WD notes the following areas where activity has been significant:

Renewed Commitment to Management Excellence

WD established a Management Accountability Committee (MAC), chaired by the Deputy Minister, to provide senior management leadership and responsibility for meeting WD’s management excellence priorities.  Since being established in September 2007, MAC has led two executive level department-wide meetings to review expectations for continuous improvement of management practices.  Key to meeting these priorities, are:  commitments to manage change through integrated planning, performance measurement, and communication of WD’s results.  MAC is responsible for communicating with all staff and ensuring full engagement in activities that will result in meeting management excellence priorities.

Audit and Evaluation

A new Director General Audit, Evaluation and Ethics was hired on January 29, 2007 and immediately began to address shortcomings in both audit and evaluation activities as identified by the department and through the MAF process.  A planning process was implemented to produce departmental audit and evaluation plans that ensure that audit and evaluation resources are applied to areas that will contribute the most to the achievement of WD objectives in an efficient and effective manner and add value to decision making.

Emphasis has been on ensuring compliance to the new Treasury Board Policy on Internal Audit, which outlines a three-year transition period towards a holistic audit opinion in 2009.  Included in the policy is the requirement for an independent audit committee, which is on track for WD for 2008.  During 2007-08, several audit engagements were competed providing assurances around governance and key internal controls.  All audit reports and management responses are posted on WD’s public website.

A 2007-2008 evaluation plan was developed and focused on evaluations of key contributions programs at WD.  Starting in 2008-2009, WD will develop a five-year evaluation plan covering all program expenditures (not just grants and contributions programs), out of which an annual risk-based evaluation plan will emerge.

Corporate Risk Management

WD has created both a Steering Committee consisting of:  Executive Committee representatives; the Director General, Audit, Evaluation and Ethics; a Director General of Operations; and an Implementation Committee with representation from all regions and corporate units.  Under the direction of the Steering Committee, the Implementation Committee developed a Corporate Risk Profile in the Fall 2006.  In 2007, all regions and corporate branches undertook risk assessments with the involvement of senior executive and managers.  These risk assessments were taken into account in the preparation of regional and corporate unit business plans, as well as WD’s corporate business plan.  A formal Corporate Risk Profile update will be conducted bi-annually as per the WD Integrated Risk Management Framework.

MAF Round IV Indicators	WD's Rating	Departmental Response
Public Service Values:
Values-based Leadership and Organizational Culture	Acceptable	The 2005 Public Service Employee Survey (PSES) was the basis for the assessment of departments in this category.  WD had a very high rate of response to the survey and scored above the Public Service average in many categories, notably those related to professionalism, ethical and people values.  The PSES indicated a need for WD to improve the extent to which the organization maintains and promotes appropriate, accessible avenues for disclosure of wrongdoing. In 2007, WD redesigned and reclassified its Chief Audit Executive position to include a prominent and independent roll for ethics.  Included in the role is responsibility for WD’s response to the Public Servants Disclosure Protection Act (PSDPA).  All staff has received training on the PSDPA, including the manner in which “disclosures” will be handled.  Input was also sought from staff on the development of a Public Service and WD Code of Conduct, which forms an integral part of the PSDPA. In addition, senior management maintains an ongoing dialogue with staff on both PS Values and ethics.
Governance and Strategic Direction:
Utility of the Corporate Performance Framework	Opportunity for Improvement	WD is working with TBS to adjust the language of its Strategic Outcomes in response to feedback on the Program Activity Architecture.  The adjustments will be made as part of the annual TBS submission process in 2008.
Integrity of the Corporate Management Structure	Opportunity for Improvement	WD has prepared a Corporate Business Plan covering the three-year period April 1, 2007, to March 31, 2010.  WD previously relied on the Report on Plans and Priorities as its corporate plan.  The risk-based plan integrates WD’s Human Resources Plan, as well as all regional and corporate unit business plans. WD also streamlined and formalized all corporate committees, including development of terms of reference.
Effectiveness of Extra-organizational Contribution	Acceptable	WD continues to actively participate in horizontal initiatives, both policy and program initiatives, and administrative horizontal initiatives.
Policy and Programs:
Quality of Program and Policy Analysis	Acceptable	WD is working with TBS to improve the consistency, quality and timeliness of Treasury Board submissions.
Results and Performance:
Quality and Use of Evaluation	Opportunity for Improvement	A new Director General Audit, Evaluation and Ethics was hired on January 29, 2007 and immediately began to address shortcomings in the evaluation activity as identified by the department and through the MAF process. A 2007-08 evaluation plan was developed to focus on key grants and contributions programs at WD.  Starting in 2008-09, WD will develop a five-year evaluation plan covering all program expenditures (not just grants and contribution programs), out of which an annual risk-based evaluation plan will emerge.  Initial development of this five-year evaluation plan commenced in the third quarter of 2007-08. Two key evaluations were started in fall 2007 for completion in 2008.  These are of the Western Diversification Program and the Community Futures Program.  These programs represent a significant amount of WD grant and contribution funding.  The evaluations will improve coverage of value for money issues and will be completed and publicly reported on a timely basis.
Integration, Use and Reporting of Performance Information	Opportunity for Improvement	WD has made significant progress in developing its performance measurement strategy, with particular emphasis on the Activity and Strategic Outcome levels of the Program Activity Architecture (PAA).  Outcomes for contribution projects approved since the PAA was implemented are being monitored for improved reporting in Departmental Performance Reports.
Learning, Innovation and Change Management:
Managing Organizational Change	Acceptable	WD continues to manage organizational change and put in place a formal Change Management Plan in the Fall 2007.  The plan incorporates both Management Excellence (WD’s Changing Workplace) and a renewed focus for our programming based on public consultations conducted in 2006.  WD’s Deputy Minister closely monitors implementation of the Change Management Plan and stresses the need for the broadest possible level of staff engagement, communication and the critical role of ongoing staff learning.
Risk Management:
Effectiveness of Corporate Risk Management	Opportunity for Improvement	WD places increasing emphasis on risk management in all activities and the impact of risk assessment is visible in all corporate decision making and planning processes.  The departments risk management practices for G&C projects have been discussed as a best practice in the federal government by the Blue Ribbon Panel working group.
People:
Extent to which the Workplace is Fair, Enabling, Healthy and Safe	Acceptable	WD is a small department with a total FTE count of 388 employees on March 31, 2007. Women comprise 58.8% of the WD workforce for a total of 227 FTEs. Aboriginal peoples, persons with disabilities, and visible minorities represented 103 employees. Due to the small size of the department, the departure or hire of one target group member can constitute a significant statistical decline or achievement in representation. WD has maintained or exceeded internal representation compared to workforce availability in all employment equity designated groups in fiscal years 2004-2005, 2005-2006, and 2006-2007. Separation statistics have not been statistically significant due to the continued strong performance in representation and recruitment. An action plan has been developed to address the rate of promotion and separation of employment equity group members for 2007-2008. In 2007, WD redesigned and reclassified its Chief Audit Executive position to include responsibility for WD's Wrong Doing in the Workplace Disclosure Program. Staff has s received training on the Public Servants Disclosure Protection Act (PSDPA), including the manner in which “disclosures” will be handled. Input was also sought from staff on the development of a Public Service and WD Code of Conduct, which forms an integral part of the PSDPA.
Extent to which the Workplace is Productive, Principled, Sustainable and Adaptable	Acceptable	WD has an approved Learning Strategy, which has been communicated to all employees with clearly identified corporate learning priorities for 2007-2008. Learning budgets are at both the corporate and regional level. WD's Performance Management Policy (implemented in 2006-2007) introduced core competencies in staffing, performance assessment, learning and career development. The program guides employees in the way that they work and manage their own performance, confirms the department's investment in the learning and development of staff, and strengthens WD's capacity to achieve its mandate and operational goals. Competency gaps for career progression are developed and discussed with staff through the performance assessment process and learning plans developed in support of advancement. A Corporate Human Resource Plan was developed for 2007-2008 and has been integrated with the Corporate Business Plan and all regional business plans. Values and ethics issues are brought to the attention of employees through management meetings or one-on-one discussions. In 2007-2008 WD delivered: Regional sessions on values and ethics, roles and responsibilities, and information on where to seek advice. Included values and ethics goals in Executive performance agreements. Awarded the Keith Draper Values and Ethics award.
Stewardship:
Effectiveness of Information Management	Acceptable	WD has met all TBS deadlines for submission of its Access to Information and Privacy reporting requirements. In addition, WD's 2006-2007 Annual Reports to Parliament on the Access to Information Act and Privacy Act were tabled in October 2007. An Access to Information and Privacy Officer is involved in the quality control aspects of Proactive Disclosure to ensure that exemptions are applied under the Access to Information Act or Privacy Act , if appropriate.
Effectiveness of Information Technology Management	Acceptable	The Director, Information Management Technology (IMT) has functional control of WD's information management technology and is responsible for establishing the department's IT Plan. An IMT Council, comprised of representatives of regions and headquarters, provides departmental oversight of IMT initiatives and oversees the IMT function to ensure alignment with the department's strategic business objectives.
Effectiveness of Asset Management	Acceptable	As a small department WD is not asset intensive – neither in materiel nor IMT. WD is also a tenant versus custodian department. In the Fall 2007, WD developed an Asset Management Framework, which outlines and communicates WD's policies and procedures for planning, acquisition, operation, utilization and disposal of assets. It has been developed and documented in the overall context of an asset management lifecycle. The Framework also ensures that environmental considerations are included in all aspects of the management of assets from the planning phase through acquisition, use and disposal of assets.
Effective Project Management	Not Applicable	In accordance with the MAF definition of a project, WD is a small department and does not carry out a large number of projects. Those that meet the definition are within the IMT directorate. IMT applies project management discipline to its projects to assure they are completed within budget and on time.
Effective Procurement	Acceptable	WD uses a variety of procurement tools to meet its needs in a manner that enhances access, fairness and competition resulting in fair value, meeting of operational requirements, support for aboriginal business and promotion of green procurement. A Contract Review Committee (CRC) reviews all non-competitive (sole source), exceptional and/or unusual contracts issued by WD to ensure consistency and compliance in contracting practices across the Department. The CRC is accountable to the WD's Executive Committee.
Effectiveness of Financial Management and Control	Acceptable	WD is undertaking a readiness assessment review to assess the department's financial controls and documentation in support of audited financial statements. This work will be completed in 2008-2009. Quality assurance results on departmental trial balances for WD improved substantially for 2006-2007. Automated system checks and improved departmental reconciliation procedures contributed to these error reductions.
Effectiveness of Internal Audit Function	Attention Required	A new Director General, Audit, Evaluation and Ethics, was hired January 2007 and immediately began to address shortcomings in audit activity as identified by the department and through the MAF process. Emphasis has been on ensuring compliance to the new Treasury Board Policy on Internal Audit, which outlines a three-year transition period towards a holistic audit opinion in 2009. Included is the requirement for an independent audit committee, which is on track for WD for 2008. During 2007-08, several audit engagements were competed providing assurances around governance and key internal controls. All audit reports and management responses were provided to TBS and posted on WDs website in a timely manner.
Citizen-focused Service:
Organization knows and responds to citizens'/clients' needs and expectations	Opportunity for Improvement	Service standards are in place with regard to services to grants and contribution applicants/recipients, Ministerial Correspondence, Access to Information, Privacy, Website Inquiries and Public Disclosure. Performance has been measured and communicated and results will be acted upon. Client satisfaction continues to be a central element of WD program evaluations. Evaluations of the Western Diversification Program and the Community Futures Program are underway and will provide information about client satisfaction. In addition, WD is conducting a Client Satisfaction survey of grants and contribution clients using the Common Measurement Tool. WD's Executive Performance Management process places emphasis upon relationships with the business community, other levels of government, and service delivery partners to better serve western Canadians. WD services are provided in both official languages in accordance with the Policy on Service to the Public. WD's websites are compliant with Common Look and Feel 1 requirements and WD a plan is in place for Common Look and Feel 2 implementation.
Accountability:
Alignment of Accountability Instruments	Unrated	This area was not rated by TBS in Round IV.