Audit at a Glance—Report 7—Office of the Ombudsman for the Department of National Defence and the Canadian Forces

Audit at a Glance Report 7—Office of the Ombudsman for the Department of National Defence and the Canadian Forces

What we examined (see Focus of the audit)

The Office of the Ombudsman for the Department of National Defence and the Canadian Forces was created in 1998 to promote transparency and fairness in managing the concerns of military personnel, civilian employees of National Defence, and their family members.

The objectives of the audit were to determine

  • whether the Office of the Ombudsman for the Department of National Defence and the Canadian Forces established and followed key controls, systems and practices related to human resource management, finances, and contracting in carrying out its mandate, in compliance with government legislation and policies; and
  • whether National Defence adequately carried out its oversight responsibilities for the Office of the Ombudsman in compliance with government legislation and policies.

Why we did this audit

This audit is important because the Office of the Ombudsman is an essential recourse mechanism for military personnel and National Defence civilian employees. To carry out its mandate, the Office requires effective internal controls to safeguard public assets and ensure that public funds and resources are used economically and efficiently. Given the fact that the Office is part of National Defence, the Department’s monitoring of the Office is critical in helping to ensure the Office’s accountability in managing financial and human resources.

What we concluded

We concluded that the Office of the Ombudsman for the Department of National Defence and the Canadian Forces had inadequate controls for financial, contract, and human resource management in carrying out its mandate in compliance with government legislation and policies. In many cases, the Office did not comply with rules or codes of conduct.

We saw evidence of some improved controls at the end of the term of the previous Ombudsman that continued under the current Ombudsman. There were efforts to identify and address gaps in financial management and to put in place an agreement whereby the Office would use the civilian human resources group of National Defence for human resource services.

We also concluded that although National Defence carried out some of its responsibilities for monitoring the Office of the Ombudsman, these activities were not sufficient to be in compliance with government legislation and policies. The Department did not fully define the roles and responsibilities for carrying out this oversight and did not carry out sufficient monitoring in key areas where we found non-compliance. The Department also did not fully address employee complaints about workplace issues related to values and ethics.

What we found

Governance

Overall, we found that National Defence did not fully define or document its roles and responsibilities for monitoring the administration of the Office of the Ombudsman for the Department of National Defence and the Canadian Forces. The Ombudsman was treated the same as other senior departmental managers in some cases, but not in others.

National Defence and the current Ombudsman agreed that the Department should monitor the Ombudsman’s financial and staffing authorities to ensure these were properly exercised. However, the details of how this should be done and the mechanisms for monitoring other administrative activities were not fully defined or documented.

This is important because the lack of defined roles and responsibilities resulted in inadequate monitoring of the administrative activities of the Office of the Ombudsman, and in instances of non-compliance with government legislation and policies.

Financial controls

Overall, we found that an inadequate system of internal financial controls and the overriding of existing controls by management led to non-compliance with rules within the Office of the Ombudsman for the Department of National Defence and the Canadian Forces. In many cases between 2009 and 2013, the Office did not follow rules related to the approval and disclosure of travel and hospitality expenses, and to the management of contracts.

National Defence communicated the rules that applied to approval of travel and hospitality expenses and carried out some monitoring of the Office’s transactions, but did not monitor whether those who approved travel and hospitality were authorized to do so, whether all hospitality expenses were disclosed, or whether contracts were in compliance with rules. This monitoring is required by Treasury Board to ensure that rules are being followed. In the transactions we examined, we found no evidence that the previous Ombudsman personally profited from any of these transactions. The previous Ombudsman told us that his priority was always the Office’s constituents.

This finding is important because compliance with financial rules and monitoring of compliance help to ensure good stewardship of public resources and accountability for money spent.

  • Inadequate financial controls and the overriding of existing controls by management led to non‑compliance with rules

    Recommendation. The Office of the Ombudsman for the Department of National Defence and the Canadian Forces should identify risks and gaps in its financial management processes, such as issues related to approvals, disclosure of expenses, and contracting practices, and take corrective action to address these in its system of financial controls.

    Recommendation. National Defence should provide regular financial monitoring to ensure that controls are in place at the Office of the Ombudsman for the Department of National Defence and the Canadian Forces, such as checking that approvers have the right authorization and following up on instances of non-compliance.

Human resource management controls

Overall, we found that the previous Ombudsman for the Department of National Defence and the Canadian Forces and some senior managers did not respect the Values and Ethics Code, which resulted in grievances, complaints, and high levels of sick leave and turnover. National Defence received two separate disclosures of values and ethics violations at the Office of the Ombudsman for the Department of National Defence and the Canadian Forces and, in our opinion, failed to fully investigate either one or take adequate action to address the issues raised. After 2012, the situation improved, with some changes put in place under the previous Ombudsman and additional changes made under the current Ombudsman.

This finding is important because the Values and Ethics Code is in place to ensure fairness and respect in the workplace. A lack of respect for values and ethics can lead to a deterioration in the work environment. To maintain trust and uphold the integrity of the disclosure process, it is also important for the Department to take action when staff members come forward with serious complaints.

  • The previous Ombudsman and senior managers did not respect the Values and Ethics Code, and National Defence took insufficient action to address complaints

    Recommendation. National Defence should conduct periodic reviews of staffing to ensure that the human resource authorities delegated to the Office of the Ombudsman for the Department of National Defence and the Canadian Forces are being exercised in compliance with legislation and departmental policy. Where discrepancies are found, National Defence should discuss and jointly resolve the matter with the Ombudsman.

    Recommendation. The Office of the Ombudsman for the Department of National Defence and the Canadian Forces, together with National Defence, should identify potential risks in staffing and workplace relations at the Office of the Ombudsman and address them in the Office’s internal human resource management controls.

Operations

Overall, we found that that the combination of a lack of standard procedures for conducting investigations and workplace issues such as turnover and sick leave at the Office of the Ombudsman for the Department of National Defence and the Canadian Forces contributed to delays in processing investigations from 2009 to 2012. After 2012, the workplace environment stabilized, and efforts to close long-standing files were successful. Procedures for investigations were being developed but were still not incorporated into training for investigators.

This finding is important because the timely completion of files is necessary to carry out the Office’s mandate and provide closure for complainants. Standard procedures are central to carrying out investigations in a timely manner.

Entity Responses to Recommendations

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Related Information

Report of the Auditor General of Canada
Type of product Performance audit
Topics
Audited entities
Completion date 20 February 2015
Tabling date 28 April 2015
Related audits

For more information

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The Auditor General’s Comments

National Defence and Ombudsman’s Office must clarify respective roles to resolve long-standing issues
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