Western Economic Diversification Canada
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Introduction

The administration of grants and contributions, which falls under the Treasury Board’s Policy on Transfer Payments, is a core business activity of Western Economic Diversification Canada. Monitoring and Payments is one activity in the management of a contribution project’s life cycle. The department has adopted similar monitoring and payments process for all departmental programs. Effective monitoring and payment processes and controls help to ensure successful achievement of program objectives.

Monitoring and payment processes cut across all departmental programs. In 2008, the Treasury Board of Canada made significant changes to its Policy on Transfer Payments. This audit examined the department’s responses to the new policy requirements in the area of monitoring and payments.

Audit Objective

The overall objective of the audit was to provide assurance to the Deputy Minister that the department has a sound management control framework to manage the monitoring and payment of grants and contributions, and that the controls were operating as intended.

Key Risks

The audit focused on the controls management has designed to mitigate the risks associated with the following areas:

  • Clarity of the roles, scope and objectives for monitoring and payments;
  • Sufficient monitoring activities that meet Treasury Board and departmental policies;
  • Adequate resource capacity (people, tools, money, material, training);
  • Reliability of internal and external information, in support of project claims; and
  • Sound cash management and payment processing.

Audit Scope

The audit covered the period from March 2009 to December 2010. The scope of the audit covered all departmental contribution programs except the Community Adjustment Fund and Recreational Infrastructure Canada.

Acknowledgements

We would like to thank management and staff involved with Grants and Contributions Monitoring and Payments for their timely cooperation and assistance provided to the audit team throughout the engagement.