14.1 The Office has almost completed a cycle of comprehensive audits of departments and agencies. Entities audited in 1982 and 1983 are scheduled for re-examination in 1987 and 1988. We believe it is therefore appropriate at this time to present a status report on action taken as a result of the observations and recommendations we made in 1982 and 1983.

Scope of the Follow-up and Status Report Work

14.2 Because of resource constraints and other priorities, we decided for this year that detailed follow-up of actions taken by departments and agencies, in response to observations and recommendations of the Office and, where applicable, of the Public Accounts Committee, would be performed only in a limited number of organizations.

14.3 Section A of this chapter reports on eight chapters from our 1983 and 1982 annual Reports where we carried out follow-up reviews to determine the current position in regard to certain observations and recommendations made by this Office and by the Public Accounts Committee.

14.4 Section B contains representations made to us by nine departments and agencies concerning the current position in regard to recommendations we made in 1983 annual Report chapters. We have not yet followed up these representations or the effectiveness of the actions described. We will be reviewing these status reports during comprehensive audits of these organizations that are scheduled in the near future.

14.5 Exhibits 14.1 and 14.2 show the organizations and areas followed up and the number of recommendations made by this Office and by the Public Accounts Committee in each area. Also shown is the number of recommendations this chapter addresses.

(Exhibits not available)

Section A: Follow-up Reviews

Constraints to Productive Management - 1983, Chapter 2

Introduction

14.6 In 1983, we commented on general conditions in the federal public service that constrain managers in their attempts to achieve higher levels of productive management. Although some of these constraints are in part an inherent element of public administration, others could be changed and improvement in productivity could occur.

14.7 The main constraints to productivity, judged in managerial terms, were reported in 1983 as:

- the impact of political priorities on productive management;

- the excess of administrative and procedural rules and regulations; and

- the relative absence of incentives to productive management and the presence of some disincentives. 14.8 Accordingly, we suggested that departments and agencies:

- encourage productive management;

- reduce disincentives, increase managerial authority and clarify accountability;

- emphasize the development of managers; and

- support experiments to improve productive management. 14.9 In our review of events and statements since 1983, we interviewed senior officials in representative central agencies, departments serving the public, and internal common service departments. We also looked at relevant public statements about managerial productivity that have been made since 1983.

Findings

14.10 It was encouraging to learn that interest in the findings and conclusions of the chapter had not diminished. On the contrary, concern with the problems then outlined had sharpened, and the chapter has served as a focal point for increased interest in productive management.

14.11 Several officials interviewed said that the chapter formed part of a series of related events and trends that helped focus attention on constraints. This included recognition by central agencies of the difficulties caused by ever-increasing detailed controls, and growing concern about the undue complexities caused by the proliferation of Ministries of State.

14.12 Although there have been no major changes in practices since the chapter was published, there have been some initiatives taken. Central agencies have negotiated some special arrangements with departments, modifying central controls according to the needs of individual departments. This tailoring of otherwise service-wide directives and processes is one of several encouraging signs. In addition to benefiting from these more flexible arrangements, departments are increasingly moving toward measuring program results. This greater attention to accounting for results, as distinct from accounting for compliance with central regulations, should encourage greater local initiative which, in turn, should contribute to improving productive management.

14.13 The complexity and slowness of the staffing process was identified in the chapter as a prominent complaint by managers. The Public Service Commission, in its 1984 annual report, stated that administrative reform of the staffing process is a first priority and that it is pursuing legislative reform to remove further constraints.

14.14 An important initiative has been the series of "Best Practices" seminars run by the Treasury Board Secretariat for managers. At these seminars, managers who have achieved significant improvements in productivity communicate their knowledge and experience to others. This emphasis on action-oriented management reflects a trend away from "fad management" to a greater trust by managers in their own judgement.

14.15 Several of the senior officials interviewed during the follow-up review showed continued concern with the state of managerial morale and motivation, recognizing it as a problem with no short-term answer. One department stated that improvements in this area had been made as a result of committed leadership.

14.16 Notwithstanding the developments that have taken place, a central problem remains. Some departments continue to perceive themselves as straining under detailed central agency controls, while central agencies point to the progress they have made in relaxing constraints. At the same time, a general dialogue has been going on between line departments and central agencies. This has included an exchange of views on the importance of leadership, of management values, of an appropriate system of incentives and rewards, and of an effective accountability regime.

14.17 The issue, then, is to strike an appropriate balance between the need and desire for greater departmental freedom of action on the one hand, and the need, on the other, for an appropriate amount of management policy that is consistent across government. This includes finding the right balance of delegation, control and accountability for performance while at the same time responding to pressures for managing with fewer resources due to efforts to reduce the deficit.

Program Evaluation - 1983, Chapter 3

14.18 We followed up two key matters dealt with in the 1983 chapter on program evaluation:

- the availability to Members of Parliament of information contained in evaluation studies; and

- the extent to which the evaluation function continues to be productive. 14.19 This review is based on findings from an examination of the program evaluation function in 18 of the departments and agencies included in our original sample.

Reporting to Parliament

14.20 In 1983 we recommended that the "Office of the Comptroller General should ensure that Part III of the Estimates refers to and incorporates the findings of evaluation studies that are pertinent to program performance and resource management."

14.21 In August 1984, the Office of the Comptroller General issued draft guidelines to departments and agencies on disclosure of pertinent program evaluation studies in Part III of the Estimates for 1985-86. These guidelines were issued on a draft basis pending further study of the nature of information contained in evaluation studies that would be relevant for inclusion in the Part IIIs. At the time of our follow-up, the Office of the Comptroller General was re-examining the guidelines with a view to making them more effective.

14.22 We found that, in the period from April 1983 to July 1984, 15 departments had completed 57 evaluations. Although the Comptroller General's guidelines had been issued only in draft form, 11 of these departments (accounting for 37 of the 57 studies) had reported one or more of their studies in Part III of the Estimates. Our review indicated that 15 of the 22 studies reported in the Estimates (68 per cent) both identified the evaluation and summarized the findings in a general way. Four of the 15 departments did not report any information concerning their studies in the Part III Estimates. It should be noted that some of these studies may not have contained information relevant to program performance and/or resource management.

14.23 In the 1983 chapter, we noted that only one program evaluation report had been tabled in the House. We recommended that the "Government should establish procedures to ensure that the recommendation of the Public Accounts Committee (in its report to the House dated 18 July 1980) with respect to tabling program evaluation reports is acted on."

14.24 In response, the Office of the Comptroller General noted that, in addition to providing summaries of pertinent findings in Part IIIs, access to information legislation provides for any member of the public to request a particular evaluation study. Seven departments have responded to requests from Members of Parliament for evaluations studies under access to information legislation. In addition, a few departments have widely distributed a number of their evaluations in response to less formal requests. We also note that, in January 1984, the President of the Treasury Board provided the Public Accounts Committee with a list of the evaluation studies that had been completed in the previous two years.

Program Evaluation Initiatives

14.25 Overall, the annual number of corporate program evaluations carried out by the 18 departments has remained stable (see Exhibit 14.3) since 1983.

(Exhibit not available)

14.26 Eighty-two evaluation studies were completed from 1 April 1983 to 31 March 1985. A list of these is in Exhibit 14.4. We did not audit the quality and use of these studies.

(Exhibit not available)

14.27 In the 1983 chapter, we reported that the National Parole Board and the Solicitor General Secretariat had not attempted any corporate evaluation assessments or studies. Since that time they have both completed evaluation assessments and have program evaluation studies in progress.

14.28 In 1983, only 6 evaluation frameworks had been completed by the 18 departments and agencies. We recommended that "departments and agencies should develop evaluation frameworks in conjunction with the design and early implementation of all new, substantially modified programs or, where appropriate, renewed programs."

14.29 There has been a significant increase in the number of frameworks; 23 were completed in 1983-84 and 1984-85.

Energy, Mines and Resources - Energy Program - 1983, Chapter 9

14.30 Our 1983 observations resulted in 16 recommendations in various areas of the Energy Program. In this follow-up, we dealt only with the status of implementation of recommendations concerning program evaluation at the corporate level and program evaluation and monitoring of the Petroleum Incentives Program (PIP).

Corporate Program Evaluation

14.31 The Department has increased the resource levels from $387,000 and 6 person-years in 1982-83 to $1,150,000 and 10 person-years in 1985-86. The current resource levels are considered by the Department to be adequate to complete the number of evaluation initiatives scheduled over a six-year period.

Evaluation and Monitoring of the Petroleum Incentives Program

14.32 Scheduling. In recognition of the problems related to the timing of the corporate evaluation of PIP identified in our 1983 Report, the Department has done preliminary work to address some of the main issues on an interim basis.

14.33 Our 1983 chapter recommended that the scheduling of program evaluation studies be co-ordinated to ensure timely information for the decision-making process. A revised plan rescheduled the evaluation assessment to 1984. It was completed in February 1985. The program evaluation was rescheduled to be completed by the fall of 1985 instead of 1986.

14.34 Before the program evaluation was started, the government announced the termination of PIP as part of the Western Accord. This indicates the difficulty of co-ordinating the scheduling of program evaluations.

14.35 Scope of the evaluation. Most of the important long-term effects of the program identified in our 1983 Report will be included in the program evaluation, with the exception of issues related to:

- the impact on Canadian control in the oil and gas industry of substituting foreign debt for equity; and

- the effectiveness of National Energy Program funds invested in exploration incentives relative to conservation measures. Both topics have been specifically excluded from the terms of reference of this evaluation, although it should be noted that many conservation programs have been evaluated separately.

14.36 Monitoring. In 1983 we recommended that the Department implement a monitoring system for the Petroleum Incentives Program. Since then, a computerized information management system has been put in place that includes information on applications, applicants, eligibility, claims, activity and payment. In addition, data continue to be received on the status of oil and gas activities on Canada Lands, activity in the provinces, discoveries, and estimated and potential reserves.

14.37 The monitoring system now in place has been used to develop a data base for evaluation of the current program. It also provides a basis for evaluating new programs in this area.

14.38 An evaluation framework and an evaluation assessment were completed under the revised schedule. The program monitoring system meets the evaluation requirements as set out in the evaluation assessment.

Parks Canada - 1983, Chapter 10

14.39 The Office's observations resulted in 11 recommendations related to 5 aspects of Parks Canada's operations: managing new park acquisition and development; information relating to program delivery; managing professional staff; resolving the status of Banff and Jasper townsites; and revenue policy.

14.40 We conducted a follow-up study to determine what actions have been taken by Parks Canada in response to the observations and recommendations.

Managing New Park Acquisition and Development

14.41 Since the audit, Parks Canada has been under a period of constraint and new initiatives on capital projects have been very limited.

14.42 The Systems Planning Division of National Parks and the Program Socio-Economic Branch have been conducting studies for future acquisitions with due attention to cost implications. In the case of the Northern Yukon park proposal, the costs were carefully identified.

14.43 An approved plan for the development of Dawson City still does not exist, but internal documentation is available for input to a development proposal should Parks Canada be in a position to seek funding for developing the site. Historical data on the restoration costs of individual properties at Dawson City are not complete but the planned expenditures on each have been identified. The status of Bear Creek depends on the Dawson City plan. The decision at this stage is to maintain the project but limit expenditures to those required to stabilize the existing buildings.

14.44 No Treasury Board or Cabinet approval has been obtained for the development of Steveston Cannery. In addition to the $480,000 previously spent, as noted in our 1983 audit, a further $120,000 has been spent on planning; however, there is still no final decision on how and when to proceed with developing the site. The Steveston Cannery building, which is in an advanced state of deterioration, was acquired in 1984 from the Department of Fisheries and Oceans.

14.45 Parks Canada has updated its list of historic sites and recommendations of the Historic Sites and Monuments Board but has not yet produced an updated analysis of the backlog of properties for acquisition/development and their physical state. However, criteria have now been established for setting priorities for implementing the Board's recommendations that apply to cost-sharing arrangements.

14.46 There have been some improvements in project control systems. Capital projects are more clearly listed in the Main Estimates. However, we found a problem with the presentation of total park development costs in the case of Grasslands: the estimated total property acquisition cost is listed at $8 million in the current Estimates whereas in the 1982-83 Estimates it had been listed at $83 million. Parks Canada points out that the difference is because the 1984-85 Estimates, in accordance with Treasury Board's request, include only the planned costs for a five-year period.

Program Delivery

14.47 Resource management and public safety. We were informed that corrective actions have been taken concerning potentially hazardous conditions on certain highways and bridges. For example, of six bridges identified as needing upgrading, two were replaced, three were repaired and the other is under review. The water supply problem at Banff has been corrected. Various directives in the area of public safety have been issued and others, on such issues as water quality and sewerage effluent standards, are being prepared.

14.48 Attendance statistics. Parks Canada has taken steps to improve data collection methods and accuracy and has clarified measurements of park use. It does not agree, however, with the need to distinguish between through traffic and other park users in reporting attendance statistics.

14.49 Economic impact. Parks Canada continues to publish some summary data on the economic impact of its program, such as in Part III of the Estimates, without the help of interpretive information. It does not agree that there is a need to change its reporting.

14.50 Program activity structure and cost accounting. A program activity structure has been developed by Parks Canada and the multi-year operational plan has been produced using the new framework. This has had interim approval from Treasury Board and formal approval was to be sought by August 1985. Parks Canada is also implementing work planning and identifying performance measures.

14.51 Management information. A Management Information Framework has been developed which is intended to clarify responsibilities and accountability at all levels for parks development, acquisition, operations, controlling and monitoring. It is too early to assess its usefulness.

14.52 Parks Canada has taken action to improve its financial and operational information systems. The systems installed to date, however, are not yet all linked together. This interface is necessary before Parks Canada can achieve the economies and other results expected.

14.53 The major overhaul of the program activity structure under way is designed, among other things, to co-ordinate the maintenance management system and the financial system.

Managing Professional Staff

14.54 Parks Canada has reviewed the role, activities and performance of the Engineering and Architecture function. There have been changes in the emphasis of the work. Functional reviews have been established. The costs of the engineering component - the design and project management aspects - of capital projects are being monitored. The Socio-Economic function has been active in reviewing regionally-prepared project proposals and has attempted to improve socio-economic analysis through a user guide, functional reviews and development of models. Historic research projects are identified in terms of purpose, completion date, resources required, and product to be produced. Progress, however, is still not formally reported to senior management.

14.55 The costs related to the operation of the Historic Sites and Monuments Board are now separately identified in Part III of the Estimates.

14.56 Parks Canada management has reviewed our recommendation on the need for independence of the Board and does not consider that any changes in the Board's relationship with Parks Canada are warranted because Parks Canada believes the Board is already independent.

The Status of Banff and Jasper Townsites

14.57 There are now cost accounting reports for the townsites of Banff and Jasper. These reports are appropriate for townsite costing but, at present, are produced manually from the financial and maintenance management systems. Plans for computerization, however, include costing for Banff, Jasper and other communities.

14.58 Parks Canada has forwarded for the Minister's review various options in respect of both townsite management and cost recovery. Approval has been obtained to increase townsite utility charges by 35 per cent in 1985-86 and by further annual increments until appropriate municipal costs are recovered. Meetings have also been initiated to review the implications of self-government for these townsites.

Revenue Policy

14.59 In 1983, management developed a revenue plan called Parks 2000 which was related to potential revenue generation tied in with parks expansion. Budget restrictions have limited expansion plans and Parks 2000 was never sent to Cabinet. Parks Canada is proceeding to implement changes in fee structures.

PAC Recommendations

14.60 The Public Accounts Committee in its Third Report dated 8 May 1984 recommended that:

(a) Parks Canada prepare a report for your Committee by 31 October 1984, on its progress in developing and implementing the long-term capital plan, in resolving the problems of the Banff and Jasper townsites, and in responding to all other recommendations of the Auditor General; and

(b) Parks Canada consult with the Auditor General in the review and assessment of all major initiatives taken in relation to the findings of his comprehensive audit.

14.61 Parks Canada has provided the following response to the PAC recommendations, in addition to its earlier response to those in the Auditor General's Report:

(a) Parks Canada was advised that the requirement to table a formal report to the Committee was eliminated by the dissolution of Parliament on 9 July 1984, and consequently did not table a response.

A long-term capital plan is being finalized and is expected to be submitted to Treasury Board for approval in the near future.

(b) Parks Canada has responded to and provided scheduled implementation dates for all recommendations in the Auditor General's Report.

Department of Transport - Marine Transportation Program - 1983, Chapter 13

14.62 In the 1983 chapter on the Department of Transport - Marine Transportation Program, we reported our overall findings and also made a number of specific recommendations.

14.63 With respect to overall findings, we commented that, despite identification over the previous decade of areas requiring improvement, the departmental response had not yet resulted in significant change. We included specific reference to areas such as:

- analysing the needs of mariners for services provided by the Coast Guard and defining the appropriate service levels as a prerequisite to justifying requirements for vessels and navigational aids;

- remote monitoring of automated lighthouses and further reduction of personnel levels through unmanning; and

- assessing needs and cost-benefits for Vessel Traffic Services. 14.64 Another significant matter that we addressed was the Fleet Capital Investment Plan which outlines a scheduled approach to replacing the Fleet at a cost of $2.5 billion over 30 years. We pointed out that this Plan was not based on defined levels of service. Thus, in our opinion, the size and composition of the fleet required by the Coast Guard could not be related adequately to need.

14.65 With respect to the system of marine navigation, we commented on areas where cost savings of $10 million to $20 million annually would be possible through improvements such as:

- completing the Lighthouse Automation Program started in 1970;

- revising the standards for checking and maintaining buoys;

- reassessing the continuing need and specific equipment requirements for some of the Department's Vessel Traffic Services systems; and

- increasing automation and consolidation of the Coast Guard radio stations. 14.66 In the areas of marine safety, we noted that, although the Department collects data on the marine accidents it investigates, it does not systematically analyse all these data to monitor relative levels of marine safety by type of traffic and degree of risk. Such analysis could assist the Department in recognizing accident patterns and in planning appropriate and timely action.

Results of Follow-up Review

14.67 The Department has had a formal follow-up procedure to address our specific recommendations and has achieved differing levels of progress in response to them. The scope of our follow-up work covered the overall findings as well as the specific recommendations.

Overall Concerns

14.68 With respect to our overall concerns, we noted that the positive effects of departmental response to areas requiring improvements are still, in many cases, years away.

Level of Service

14.69 The Levels of Service Project is an example of this kind of response. We noted the positive commitment of the Department in 1983 to this important topic. This major project to analyse needs of mariners and define appropriate levels of service began in 1984. It covered short-range aids to navigation and icebreaking. The exercise, however, has not been completed. The Department informs us that a pilot project has been finished, but that progress on the project has been delayed by Treasury Board's refusal to approve the additional resources needed to complete the work. The project is now scheduled to be completed in April 1986. However, the time needed to prepare and submit the Treasury Board Submission and the Cabinet Document required to support the levels of service recommended will extend beyond the project completion date. Implementation will begin only after approvals have been received. We are concerned about the length of time before benefits, including the relationship between the size and composition of the fleet and the approved levels of service, will be realized.

14.70 Furthermore, in our 1983 chapter, we noted that cost recovery is an important requirement of the Department's strategic plan. Cost recovery could have a major influence on demand for marine services and, as a result, on levels of service. In 1983 we wrote that "when determining an appropriate level of service for an activity, the Department will need to assess the impact of cost recovery on demand for the service".

14.71 We noted that the Levels of Service Project has been operating independent of cost-recovery considerations. Our concern is that defining levels of service without dealing with cost recovery and its inherent restraining effect on demand for marine services can raise questions about the adequacy of the scope of the project and threaten the achievement of its objectives.

14.72 The Department informs us that authority for implementing cost recovery is being sought through amendments to the Canada Shipping Act.

14.73 There has been limited response to the recommendation that the Coast Guard should improve its cost information on aids to navigation. The departmental cost accounting system that was to be a solution does not yet go to the necessary level of detail. The Department notes that developing a costing methodology is an integral part of the Levels of Service Project.

Lightstation Automation

14.74 The original Lightstation Automation Program began 15 years ago. To date, over 40 lightstations out of a total of 272 have been successfully unmanned. The Department informs us that the potential for further remote monitoring and unmanning is being reassessed to determine the impact on users as well as the cost and political implications. Based on this assessment, further decisions on unmanning lightstations will be made.

Floating Aids

14.75 In response to the recommendations in this area, we note that the Department has taken action by issuing guidelines for the installation of buoys. Work has also advanced on the development of maintenance standards. Similarly, development of a policy on cyclical review of all floating aids is near completion and, in some cases, regions have started their review.

14.76 With respect to revising buoy checking standards, we pointed out in 1983 that reducing the frequency of checking could result in substantial savings without affecting the overall level of safety. Operational requirements for vessels are significantly affected by the requirements for the checking of such aids. New standards for checking frequency, issued as part of departmental cost-reduction measures, have been promulgated as the minimum standards, to be adhered to unless circumstances justify deviation. Initial savings of $400,000 have been identified through cost-reduction measures. The Department informs us that any further savings are and will be reflected in current and subsequent updates of the Fleet Capital Investment Plan.

Vessel Traffic Services

14.77 Progress and cost savings have been realized in this area. As a result of the 8 November 1984 expenditure reduction initiatives announced by the Government, two Vessel Traffic Services locations were to be closed (Eddy Point in March 1985 and Placentia Bay in the fall of 1985) and levels were to be reduced at three other sites. Forecast savings for 1985-86 are $1.2 million.

14.78 Similarly, consolidation and automation of radio stations are under way.

Marine Safety

14.79 The Department had committed itself to developing a systematic analysis for monitoring the level of safety in all major areas of risk, so that it could improve its methods of identifying situations where effort should be redirected and improve its information base for responding to pressures external to the Department.

14.80 A shift of organizational responsibility, moving the Casualty Investigations Branch out of the Coast Guard and into the Marine Administrator's area, has been cited by the Coast Guard as the reason that activity has ceased on implementing our recommendation. However, while its input may be important, Casualty Investigations Branch is of the opinion that its role does not include determining areas where corrective measures are required. It is therefore important that the Marine Administrator follow up on the recommendation and assign responsibility for implementing it. The Department has informed us that it is currently involved in implementing the recommendations contained in the Study on Marine Casualty Investigations in Canada (the Deschênes Report), reported in July 1984. The Department will address our recommendation in conjunction with the recommendations of the Deschênes Report.

Other Points

14.81 Other specific recommendations included:

Regular review of fees for ship inspection services

Increase efforts to assess preparedness of marine personnel in simulated emergency situations

Review the level of foreign flag vessel compliance with Canadian regulations and take action, if necessary, to improve compliance.

14.82 We had also noted that, in connection with the Eastern Arctic Sealift, an amount of $2.1 million was due from a carrier of cargo and was in litigation. The claim was subsequently revised by the Department to $1.4 million. The carrier is in bankruptcy and, as a result, negotiations with the trustee for recovery are under way.

Conclusion

14.83 There has been mixed progress in responding to the various recommendations made in 1983. Overall, we remain concerned with the amount of progress. We are also concerned that, despite a generally positive response to our recommendations in 1983, when significant cost savings were identified as being available, actual savings will not approach such a level for a significant period of time.

14.84 The Department points out that progress is limited by environmental considerations such as impact on employment and the economics of the shipping industry and that these factors must be taken into consideration when assessing progress.

Canada Employment and Immigration Commission - Immigration Program - 1982, Chapter 7

14.85 The Office's observations on the Immigration Program resulted in 16 recommendations in the areas of operations, control and monitoring systems, evaluation of program effectiveness, and evaluation of program efficiency.

14.86 We conducted a follow-up study to determine what action the Canada Employment and Immigration Commission (CEIC) had taken in response to our 1982 audit. Our follow-up consisted of examining the steps taken by CEIC National Headquarters to address the recommendations in the 1982 Report. No follow-up review was undertaken in the regions or abroad.

Recruitment and Selection

14.87 The requirement that an immigrant "will be able to become successfully established in Canada" defines the legal basis for the entire immigration selection process.

14.88 Nevertheless the Commission affirmed in a "Background Paper on Immigration Intake/Composition/Class Components and Immigration Settlement Services", published shortly after our 1982 audit, that "under the existing policy of family reunification, immigrants with much less potential for successful settlement are also admitted."

14.89 In pre-assessment studies of the components of the Immigration program conducted in 1983, CEIC's Program Evaluation Branch concluded that a clear understanding of what constitutes "successful settlement" would also be necessary before any statement on program effectiveness would be made.

14.90 However, the definition of "successfully established" is still open to diverse interpretations within CEIC. The Commission has not developed an operational definition by identifying the characteristics of immigrants that have established themselves successfully. Thus, CEIC has not resolved the issue raised in our 1982 Report - to evaluate its program effectiveness in selecting immigrants in the family class. As a result, the Commission is not in a position to recommend appropriate changes in the selection criteria or to modify its procedures to ensure that the immigrants it selects have the ability to become "successfully established in Canada".

14.91 On the basis of regulations made under the Act for selecting members of the family class, CEIC only determines whether the health, security status and family ties of sponsored immigrants meet the criteria for the family class. Given this limited role and CEIC's interpretation of the phrase "successfully established in Canada", we believe that, for the family class, the process is not really one of selection. However, the Commission does not believe it would be worthwhile to make any more rigorous assessment of whether immigrants seeking entry to Canada as members of the family class have the ability to become successfully established.

14.92 The Commission has studied the extent of abuse of the family class selection criteria by courier parents and through marriages of convenience. It has found no evidence that abuses are widespread. However, following a court decision, immigration regulations have been changed in an attempt to curb marriages of convenience.

14.93 The Commission's plans for 1985 include setting up systems to monitor the granting of landing to people already in Canada. In the longer term, the Commission intends to monitor the issuing and renewal of Minister's permits.

Enforcement

14.94 Since 1964, Customs officers have performed the primary examinations for immigration purposes of persons arriving in Canada. However, it was only in October 1983 that Revenue Canada and the Commission concluded a formal agreement that defines the immigration responsibilities of Customs and Excise. This agreement took effect in May 1985 and calls for prior training in immigration matters for customs officers conducting primary examinations.

14.95 However, because no effectiveness indicators for the primary examination exist, CEIC has not been able to specify an acceptable level of performance for the task, and Customs and Excise has not been able to make a commitment to achieving a precise and verifiable level of performance. To rectify this shortcoming, CEIC began a study in January 1985 of primary examinations at Canada's three largest airports. In this way, the Commission hopes to be able to establish performance indicators and effectiveness standards that Customs and Excise would agree to meet.

14.96 The Analysis and Intelligence Directorate's 1985 plans also include setting up systems to monitor the admissions authorized at the secondary examination stage.

14.97 The Commission continued efforts already under way at the time of the 1982 audit to improve the analysis and use of the information gathered by the intelligence network. New "Terms of Reference for Intelligence Services" were prepared and distributed in October 1984. As well, an annual projects plan is sent to the regions to enlist their support and help them establish priorities.

14.98 The need for clarification of the role of investigators was corroborated by a CEIC study on officers' safety and security. This study also reported the investigators' and other immigration officers' need for work instruments and technical knowledge.

14.99 At the time of the follow-up, CEIC was preparing a policy statement on the roles and responsibilities of investigators that will be the subject of a new chapter in the Immigration Manual; it was also in the process of planning the implementation of the study recommendations.

Settlement

14.100 In early 1985, CEIC approved new guidelines and procedures for the Adjustment Assistance Program. Interim guidelines had been issued in March 1984.

14.101 The new guidelines include practical examples that should help to ensure that Canada Employment Centre officers make the same decisions in similar cases.

14.102 Our 1982 Report noted that the Commission had already taken steps to install a new computerized control system for the $60 million revolving advance used to make loans to immigrants. The system, which was to have been implemented in September 1983, did not become operational until January 1985. However, procedures for using the system are still at the draft stage.

Control and Monitoring Systems

14.103 National Headquarters has taken steps to collect information that would reveal statistical anomalies in regional and Immigration Centre activities over a given period. At a later and as yet undetermined date, the Immigration Group will use these statistical anomalies as a basis for conducting field audits to check whether decisions made by immigration officers in favour of applicants comply with the Act, Regulations and guidelines issued by the Commission.

Evaluation of Program Effectiveness

14.104 The 1983 pre-assessment study of the settlement component of the Immigration program previously referred to showed that the Commission had not identified adjustment criteria for assessing whether immigrants had adapted; in the absence of such indicators, no evaluation of the recruitment and selection and settlement components was possible.

14.105 As noted previously, CEIC had undertaken studies on primary examination effectiveness.

Evaluation of Program Efficiency

14.106 The Commission has technical standards ready for most of the measurable activities carried out in the recruitment and selection component of the Immigration program. This component accounts for about 30 per cent of the program's resources. Devised through time and motion studies, these standards are designed to measure efficiency.

14.107 The work involved in arriving at these standards began early in 1981 and was completed at the end of 1984. The standards are not yet in effect.

14.108 In addition, at the time of the follow-up, the Commission had undertaken to measure the enforcement activities component which uses almost 40 per cent of Immigration program resources. The Commission expects this to be completed by 1987 or 1988.

14.109 In the last quarter of 1983, the Commission began to publish quarterly reports on regional and national productivity in the Immigration program, without reference to the technical standards.

14.110 The reports cannot be used to justify resource allocation as they are based on historical productivity data. Still, regions where productivity is below average can be identified and recommendations to improve their performance can be made.

National Health and Welfare - 1982, Chapter 12

14.111 Our 1982 audit focused on the Department's five main program branches. This follow-up covers all major observations and the 14 recommendations we made in 1982. However, it should be noted that:

- The follow-up on observations and recommendations pertaining to the Old Age Security and Canada Pension Plan programs in the Income Security Programs Branch was addressed as part of our audit of public pension management and accordingly is reported in chapter 4 of this Report. Consequently, our comments with respect to the Income Security Programs Branch in this chapter relate only to the Family Allowance program.

- As part of our regular cycle of audit activities in the Department, a comprehensive audit of the Indian and Northern Health Services is scheduled to be undertaken in 1985-86. Therefore, a further follow-up of what is reported below concerning Medical Services Branch will be carried out at that time.

Overall Conclusion

14.112 Although all our observations have received serious study and consideration by the Department, not all recommendations have been implemented. In some instances, corrective action has been immediate and substantive; in other cases, action has been slow.

Social Service Programs Branch - Canada Assistance Plan

14.113 The Canada Assistance Plan (CAP) is one of the most significant social assistance programs in Canada. Through it, the federal government funds 50 per cent of the cost of provincial social assistance and welfare services to people in need. Currently, an estimated 2.5 million Canadians (the same number as in 1981-82) receive some form of assistance under CAP. The federal government's share of the cost in 1984-85 was $3.6 billion ($2.4 billion in 1981-82).

14.114 In both our 1978 and 1982 annual Reports, we commented on the need to improve substantially the documentation, communication and application of policies and administrative and financial procedures for the program. The absence of properly documented guidelines, responsibilities and procedures has resulted in lengthy delays in the settlement of provincial claims and inadequate direction and monitoring of the federal field representatives who play a key role in the approval of payment of funds to the provinces.

14.115 In our opinion, the length of time being taken to complete these initiatives has been very unsatisfactory and, as a result, many of the same administrative problems still exist. For example, because of the absence of definitive guidelines and unresolved cost-sharing issues with the provinces, provincial claims dating from 1977-78 have not been finalized and settled.

14.116 We are pleased to note, however, the increased emphasis given by current management to addressing our concerns.

Guidelines and Manuals

14.117 We noted in 1982 that major initiatives were under way to develop guidelines and manuals. In late August 1985, the cost-sharing guidelines were officially transmitted to all provinces and the comprehensive financial procedural manual was distributed to field offices. However, the policy manual, although largely completed, will not be released formally until November 1985; a study to review the feasibility of consolidating various levels of audit activities was still in the initial stages.

Federal Field Representatives

14.118 These representatives are responsible for reviewing and certifying provincial claims that form the basis for determining federal contribution payments to the provinces. We found that there is a continuing lack of strong direction and monitoring provided by headquarters to the field representatives. In addition to the lack of documented directives, senior officials of Field Operations were absent, without replacements, for most of the past year. Moreover, during our visits to field offices in May 1985, we found that the federal representative positions (PM-5) in two provinces have been underfilled by junior officers (PM-2) for some time. In July 1985, the Branch began to reorganize the CAP organization and to strengthen the authority of the field representatives.

Management Information Systems

14.119 In 1982, we pointed out that more extensive use of information on provincial welfare programs was needed to ensure more efficient administration of the Canada Assistance Plan.

14.120 At present, the use of information available from federal and provincial sources appears generally satisfactory. However, there is an urgent need to computerize management information systems for the administration of the Plan. A proposal for this purpose was approved by senior management of the Branch and submitted to Treasury Board for funding.

Medical Services Branch - Indian and Northern Health Services

14.121 In 1982, we made a number of observations on the Department's activities that involve providing health services to registered Indians and Inuit resident in the provinces, and to all residents of the Yukon and the Northwest Territories. Cost of these services was $196 million in 1981-82 and $337 million in 1984-85. In making our recommendations, we pointed out the complexities involved in delivering these services. Some of the factors are the geographic dispersion and isolation of the population, the variety of native cultures, languages and needs, and the fragmentation of jurisdictional responsibilities.

Policy and Co-ordination

14.122 We commented in 1982 that, although the Department had begun to develop a position paper, little progress had been made on a comprehensive interpretation of the 1979 Indian Health Policy. Since then, there have been several policy papers prepared and studies carried out that have clarified specific aspects of the Policy. Particular emphasis has been placed on giving Indians and Inuit a greater role in the delivery of health care services. As well, the Branch has developed Health Care Standards and has integrated them in its operational planning documents.

14.123 We also noted in 1982 that there was limited co-ordination of activities with the Department of Indian Affairs and Northern Development (DIAND) for the delivery of Indian and Inuit programs. Better co-ordination of activities has since been achieved through appointing a senior co-ordinating consultant in the Branch and through specific agreements reached with DIAND.

Non-insured Health Services

14.124 We recommended in 1982 that the Branch place greater emphasis on the development of appropriate program delivery standards and central co-ordination mechanisms to ensure uniform delivery of non-insured health services. The annual expenditures for this category of services continue to escalate - $81 million in 1982-83, $96 million in 1983-84 and $116 million in 1984-85.

14.125 The Branch states that many program expenditure decisions are made on the basis of the judgement of health professionals and are affected by regional fee and price differentials. As a result, most directives and procedures for ensuring uniform delivery standards for non-insured health services are developed and implemented on a regional basis. However, a Branch study indicates that some consistency exists in these regional directives and procedures.

Reimbursable Services

14.126 In 1982, we noted that, because of the absence of documented guidelines, inaccurate cost information and the resulting low priority given to recoveries, the Branch was absorbing a large portion of the costs incurred in providing reimbursable services. The Branch has now completed the two costing studies that were under way at that time. Most recommendations contained in one study have been implemented and it is expected that the procedures recommended in the other will be implemented by December 1985.

Contribution Agreements

14.127 In 1982, we recommended that the Branch modify its management information system to permit more effective monitoring of contribution agreements. The policies and procedures needed to ensure the fulfilment of the terms and conditions for all contributions were promulgated in August 1983 and the Branch now has an active Contribution Audit Section. However, the existing management information systems do not yet provide management with enough program information to monitor contribution agreements effectively.

Health Protection Branch

Laboratory Safety

14.128 We reported in 1982 that air handling systems in several of the Branch's 12 laboratories were not adequate for work with hazardous substances and were creating potentially hazardous work environments. The lack of a complete understanding between the Branch and the Department of Public Works regarding respective responsibilities for the maintenance of Branch laboratories and inadequate safety practices in several of the facilities were contributing factors. At that time, the Department was taking action to address these deficiencies. In particular, those facilities found to be the most inadequate were being given highest priority for renovation. Funds of $48.5 million were approved in principle by Treasury Board in March 1982 to upgrade existing facilities over a 10-year period.

14.129 Since that time, the following has occurred:

- The Department continues to give high priority to monitoring the progress of the renovation of the existing facilities and construction of new ones that began in 1982-83. It is expected that this upgrade will be completed by 1992. The estimated cost is now $197 million. This includes a new facility for the Laboratory Centre for Disease Control and Virus Operations, and funds for building maintenance.

- Responsibilities for maintaining the laboratory facilities have been clarified with the Department of Public Works and have been documented. Branch management advises that this has resulted in improved maintenance service in the laboratories.

- There have been considerable improvements in safety practices in the laboratories. These include implementing branch-wide inspection procedures and establishing contingency plans (see Exhibit 14.5). Most instances of improper waste storage have been rectified (see Exhibit 14.6). (Exhibits not available)

Income Security Programs Branch

14.130 The Income Security Programs Branch is responsible for administering the Family Allowance, Old Age Security and Canada Pension Plan programs. Our 1982 audit focused on the adequacy of financial and EDP controls over benefit payments and performance measurement systems.

Family Allowance Program

14.131 We recommended in 1982 that the Branch ensure that Family Allowance recipients be made aware of income restrictions. This recommendation has been implemented.

14.132 In 1982, in response to our observation, the Branch decided to carry out a national review of existing birth verification procedures and to implement new national procedures in the 1983-84 fiscal year. However, this review was not completed until November 1984. The new standardized procedures are expected to be implemented by the end of this year.

Health Services and Promotion Branch

Health Care Contributions to Provinces

14.133 Under the Federal-Provincial Fiscal Arrangements and Federal Post -Secondary Education and Health Contributions Act, 1977, the Branch administers payments for health care contributions to the provinces. Total payments to the provinces in 1984-85 were $10.6 billion (1981-82 - $7.9 billion), of which $6.3 billion was paid in cash and the balance in tax points.

14.134 In 1982 we commented on the fact that monitoring of compliance by the provinces with the conditions under which payments were made was limited. At that time, however, the federal government had announced that the national standards for health care would be clarified and would be incorporated in new legislation by April 1983.

14.135 The new legislation, the Canada Health Act, was proclaimed in April 1984, one year later than originally scheduled. Expanded program criteria and conditions have been incorporated in the new Act.

14.136 Following the change of government in the fall of 1984, a new series of consultations with the provinces is taking place. At a conference of Federal/Provincial Ministers of Health held in May 1985, the manner in which the Canada Health Act would be interpreted, implemented and administered was discussed. The Department expects that the current discussions will soon result in an agreement with the provinces. We have been informed that in the first annual report to Parliament, scheduled for December 1985, the Department plans to report, as required by the legislation, on the administration and operation of the new Act. The report will include information on the extent to which provincial health care insurance plans have satisfied the criteria and the extent to which the provinces have satisfied the conditions for payment under the Act.

14.137 In view of the fact that these consultations are still going on, we concluded that it was too early to carry out further work at this time. We plan to continue the follow-up in 1986, after the first report to Parliament is tabled by the Department.

Foreign Operations - 1982, Chapter 14

14.138 The audit of Foreign Operations reported in 1982 included the Department of External Affairs (the Department) and the programs abroad of the Canada Employment and Immigration Commission (Immigration program) and the Department of Industry, Trade and Commerce (Trade Development program). Responsibility for the Trade Development program was transferred to External Affairs on 12 January 1982.

14.139 The Office's observations resulted in 37 recommendations in 7 areas of Foreign Operations - program management, human resource planning, management of accommodation abroad, financial management and control, internal audit and inspection service, international trade development, and immigration abroad.

14.140 In its Twenty-first Report, dated 24 October 1983, the Public Accounts Committee made four recommendations resulting from its review of our 1982 Foreign Operations chapter. These recommendations were that:

- The report of the Department's task force include firm commitments on dates for the implementation of the Auditor General's recommendations on planning and financial management and that the Department advise your Committee of this timetable for implementation by March 31, 1984.

- The Department improve its personnel planning and assignment system for foreign service officers, implement the Auditor General's recommendations in this area, and report its progress in this regard to your Committee by March 31, 1984.

- The Department and the Treasury Board Secretariat immediately negotiate more appropriate rules governing property acquisition, and report progress to your Committee by March 31, 1984.

- The Department implement the Auditor General's recommendations on management of accommodation abroad and ensure that these recommendations are followed through with consistent, detailed plans of action of cost-effective acquisition and management of property and report progress to your Committee by March 31, 1984. 14.141 On 29 March 1984, the Department forwarded a detailed response to the Committee's recommendations including progress reports and action plans. This response was published in the proceedings of the Public Accounts Committee, Issue 8, dated 10 April 1984.

14.142 At the time of our 1982 audit, the nature of the Department was changing because of the consolidation of the foreign service. To address our recommendations and other management issues, the Department developed the External Affairs Management Improvement Plan (EAMIP). Approved in March 1984, this plan contains 125 separate projects and addresses all the recommendations made in 1982. The degree of progress achieved against each recommendation varies.

14.143 In our follow-up we examined in detail recommendations concerned with financial management and control, accommodation abroad and immigration. For the four other areas, we obtained information on progress and initiatives taken, but did not do any detailed audit work.

14.144 In the areas of program management, internal audit and inspection service, and international trade development, the Department has undertaken activities to respond to our 1982 recommendations. The documentation and description of these activities are encouraging in terms of new systems being put in place to correct the deficiencies identified. Examples include a redesigned planning system and a revitalized Internal Audit and Management Review.

14.145 The Department has made little progress in human resource planning because the priorities of consolidation and Foreign Service Officer conversion to the Senior Executive classification have left little space for the Personnel Branch to react to many of our recommendations. We made recommendations concerning the Personnel Management Information System (PMIS), the assignment process, training, and the integration of personnel systems into other management systems.

14.146 The documentation needed to support PMIS has been developed. However, the computerized system is still not delivering timely reports and does not contain all the information needed by assignment officers. The Department has decided that major systems changes are required to satisfy the needs of assignment officers, and some progress is being made to implement them.

14.147 The assignment process requires that people with specific skills are identified for specific jobs. The identification of employees with specific skills is done mainly by using employee appraisal reports. The assignment officer's knowledge of his or her community also comes into play and discussions are held with program managers. Currently, the support branches (Physical Resources, Finance, etc.) are not consulted to determine whether the person being assigned has the prerequisite skills in administration. Personnel Branch is reorganizing its management of the rotational administrative officers to couple it with the management of the domestic officer category.

14.148 In the area of training, there has been increased activity for administrative personnel especially AS and CR officers, who are required to perform Office Manager and Consular duties abroad. Courses have been established in consultation with Physical Resources, Finance and Consular Affairs bureaux. However, courses are not compulsory and often operational demands preclude attendance at courses.

14.149 Also in the area of training and development, there has been some additional action. Consultants have prepared two reports and a training policy, long-term training priorities plan and training management framework have been developed. Further action is contingent on other key human resource management issues being considered by the Department.

14.150 The Department has integrated the identification of human resource needs into its operational planning process. Because of this, there is now a clear link between operational needs, resource constraints and person-year allocation and use.

Management of Accommodation Abroad

14.151 In this area, the Department has taken a number of steps that respond in large part to the recommendations made in 1982. In particular, the Department has refined, formalized and communicated its process for identifying accommodation needs and setting priorities. A Project Development Procedure Manual and an Activity Network were developed, setting out and explaining the steps to be followed during the front-end portion of projects, especially the project initiation and feasibility study stages. The Department adopted a computerized model to standardize and facilitate economic analysis of purchase/construction/leasing options.

14.152 There has been significant progress in three of four problem cases cited in 1982. In Lagos, where rents were escalating rapidly, construction is now scheduled to start in the fall of 1985 with completion planned for 1987. The Porta Latina property in Rome has now been renovated and furnished at a cost of $1.4 million, with occupancy in May 1985.

14.153 In Tokyo, the Department has established a short list of joint venture partners to develop the Crown-owned property. The selected developer is to provide, at no cost to the Crown, a stipulated amount of office and residential space in exchange for the rental rights, for a specific period of time, to the space in excess of Canadian needs.

14.154 The only project that has not made tangible progress is the Moscow complex.

Financial Management and Control

14.155 As reported to the Public Accounts Committee in 1982, the Department commissioned a task force to investigate issues related to financial management and propose solutions. The task force proved to be ineffective and alternative means were adopted to address our recommendations. At present, the financial manual is almost complete and was scheduled for distribution in the fall of 1985. A new Financial Reporting System continues to be developed and should be operational in 1987. The Senior Financial Officer is still not involved in the selection, professional development and performance evaluation of financial officers outside the Bureau of Finance and Management Services.

14.156 Finally, progress has been slow in modifying the role and methodology of the post accounts section. After the task force, the Department commissioned a complete review of the activity. The review was expected to take three months; it took one year. The Department accepted the report after a further five months of deliberation.

Immigration

14.157 There is a need to link strategic and operational plans, or levels and targets, to plan and manage the immigration process. Our 1982 report highlighted certain limitations in the planning process. The Department was not involved in the levels planning process and consequently had no reliable basis for determining the optimal number of foreign service immigration officers.

14.158 In 1984, the Department and CEIC established a formal consultative process for the levels planning exercise. The Department has refined its human resource planning process and is also attempting to rationalize deployment in assigning officers for temporary duty purposes in order to use the best available data and most economic and efficient approach.

14.159 In 1982, there was inadequate consultation between CEIC and the Department to ensure that the operational implications of guidelines were taken into consideration before being issued by the Commission. Interdepartmental consultation has improved, largely because of Interdepartmental Committee meetings that have been held since December 1983.

14.160 To address our concerns with respect to proper functional supervision over the program, CEIC and the Department signed an agreement in August 1984 that sets out the respective roles, responsibilities and authorities for internal audit of operations abroad.

14.161 The CEIC information system on the status of immigration cases abroad did not produce timely data in 1982. It still does not. However, the Department has planned a pilot project, scheduled to be implemented in November 1985, to computerize the processing and management of immigration records abroad. This should improve timeliness of the data and thus the Department's and CEIC's ability to monitor the program.

14.162 Control over visa forms was weak. CEIC has issued new directives governing the control over such forms and randomly conducts reviews of control logs requested from the posts. The Department is immediately notified of any discrepancy. Since October 1984, the Department has audited eight posts; no control weaknesses or discrepancies have been noted.

14.163 The Commission has studied the feasibility of recovering costs for services provided, such as immigrant visas. A proposal was prepared in August 1983. Since March 1984, CEIC has been discussing it with the Department. We have been informed that Cabinet approved the proposal in June 1985.

Section B: Departmental Representations

Management of the Forecasting Process - Department of Finance - 1983, Chapter 5

14.164 In 1983, the Office made a number of observations regarding the management of the forecasting process that resulted in 13 recommendations covering both this process and electronic data processing in the Department of Finance. The Department reports that implementation is considered complete with the exception that a hold has been placed on one of the recommendations dealing with EDP security pending a relocation planned for the summer of 1986.

14.165 As noted in the 1983 chapter, some initiatives were already under way while we were conducting the audit because of changes being made by the Department in the forecasting process. The following is a summary of the status report as provided by the Department.

The Forecasting Process

14.166 Detailed procedures were distributed to all forecast participants in the Department of Finance and are now operational. A committee provides senior management with a regular review at each stage of the process, including written reports of discussions and decisions. Within the Economic Forecasting Division, which became operational in November 1983, the Department has established the positions of Forecast Co-ordinator and Model Development Co-ordinator. Their functions include periodic review of the integrity of the Quarterly Forecasting and Simulation (QFS) model and the forecast.

14.167 Evaluation of the predictive capability of individual sector models has been a regular part of the forecast since before the 1983 Report. With each quarterly release of the National Accounts, a note is prepared analysing the sources of error in the previous forecast.

14.168 The internal consistency of the full model is now subject to regular review through the maintenance of an up-to-date library of model responses to standard shocks. These provide an indication of the appropriateness of the dynamic structure of the model. The model's ability to track historical data is also tested regularly.

14.169 The Branch Model Development Committee (BMDC) is now operational. All major modelling projects are preceded by a paper outlining the rationale, objectives, possible problems and required resources.

14.170 Written standards for documentation and testing of model-related research have been prepared and circulated by the Model Development Co-ordinator. The BMDC provides a format for review and appraisal of all model-related econometric studies.

14.171 The Economic Forecasting Division co-ordinates the Department's economic forecast and oversees model development. The Model Development Co-ordinator maintains a complete up-to-date version of the QFS Documentation Book. In addition, related procedures are fully documented in the QFS Model Handbook.

Electronic Data Processing

14.172 Policy. In December 1984, the Department published a policy on the acquisition and use of information processing facilities. This policy sets a general framework for planning and procuring EDP goods and services, and establishes roles and responsibilities for Branches, the Information Systems Committee (DACIS), the Data Services Unit, and the Systems Division.

14.173 The Department has set up a microcomputer support group in the Systems Division to assist users in acquiring and using microcomputer hardware and software. This group is now preparing a departmental microcomputer policy.

14.174 In March 1985, a policy on EDP security was published. It was developed and approved by DACIS and, under that group, a sub-committee was established comprising designated EDP security co-ordinators from each Branch. This sub-committee is chaired by the Departmental Security Officer, who is now responsible for recommending appropriate measures to DACIS for ensuring effective protection of EDP resources.

14.175 The Director of Financial Services has been designated as the departmental EDP co-ordinator, in accordance with Treasury Board policies, and is the senior officer responsible for departmental EDP activities. DACIS gives advice to senior departmental management on long-term plans for EDP and on acquiring and applying EDP facilities.

14.176 Security. The Department has not taken action on all the recommendations made by the RCMP as a result of its 1980 review because a relocation is planned for the summer of 1986. The Department has requested, and the RCMP has agreed to defer its review planned for 1985 until six months after the relocation.

14.177 Most security-sensitive forecasting is now done on the in-house computer. Following the relocation, all forecasting activities will be done in-house. A draft set of EDP standards has been produced for submission to DACIS, and control of access to computer facilities has been tightened.

14.178 A working committee was established to provide security information to DACIS. This committee is engaged in preparing a procedures manual, sensitivity assessments and threat assessments related to recommendations made in the RCMP report; these three areas cover the action to be taken on the remaining 17 RCMP recommendations.

14.179 A procedure for deleting and/or modifying computer passwords was implemented in August 1984 and is used regularly where the sensitivity of the computer systems warrants. The Department Security Officer acts as the EDP Security Officer and maintains an ongoing liaison with the RCMP team co-ordinator. The Administration Branch has dedicated one person-year for EDP security specialization.

Commissioner of Official Languages - 1983, Chapter 6

14.180 The Office's observations resulted in 11 recommendations relating to the Commissioner's mandate, planning, complaints and audits program, information program, policy analysis and liaison program, program evaluation, and information systems and efficiency. The following is a status report provided by the Commissioner.

The Commissioner's Mandate

14.181 Mandates of other federal organizations. Working agreements have been concluded between the Office of the Commissioner of Official Languages (OCOL) and the Treasury Board Secretariat concerning language audits and the exchange of information. For other areas where there could be duplication, OCOL considers it would be the prerogative of the Standing Joint Committee of the Senate and of the House of Commons on Official Languages Policy and Programs to study this question.

Planning

14.182 A document on strategy was developed in November 1984. Subsequently it was re-defined in terms of the priorities the Commissioner set out in the 1984 annual report. A 1985-86 corporate workplan based on this report has been completed.

Complaints and Audits Program

14.183 Investigation of complaints. A number of analyses and studies on categories have been done. A new classification grid will be developed during the reorganization of the procedures for processing complaints that is under way at present. A filing system is now in place and will be computerized in the coming months.

14.184 Linguistic audits. The Office applies formal methodology for the audits and the follow-ups it conducts. A manual describing the steps to be followed and the methodology to be used has been distributed. With respect to standards of quality for the audit files and reports, the Complaints and Audits Secretariat has developed a form to assist in the monitoring of an audit or a follow-up. This form, once completed, should ensure continuous and consistent information on all files. Thus it will be possible for OCOL to do substantial analyses of the documentation used in preparing the audit report.

14.185 Systematic follow-ups are reviewed periodically in order to improve the quality and effectiveness of work methods. These follow-ups are an integral part of the OCOL strategic planning.

Information Program

14.186 A statement on the Program's mandate was completed in May 1985. The 1985-86 operational plan, flowing from the legal mandate of the Commissioner, includes the corporate objectives as well as the objectives from which will derive all the information tools.

Policy Analysis and Liaison Program

14.187 Liaison. OCOL is examining all its regional activities with respect to priorities. On the basis of an in-depth consultation between headquarters and the regional offices, a revised regional mandate was to be submitted to the Commissioner in mid-July 1985. This will assist in making decisions about resources, in defining a role for the regions and in preparing plans for each region.

Program Evaluation

14.188 The Commissioner has initiated an internal review of all the activities of OCOL, their effectiveness and staffing with respect to the established priorities. It is expected that a unit responsible for co-ordinating planning and evaluation will be set up.

14.189 Initial studies of mandates of various groups within OCOL are planned to be completed by September 1985. A complete review of financial and human resource allocation will be done following these initial studies of mandates and organizational revisions.

Information Systems and Efficiency

14.190 The computerized system now in place takes into account human resources information requirements of OCOL.

Department of Communications - 1983, Chapter 7

14.191 The Office's observations resulted in 17 recommendations covering 3 areas of the Department's operations - the Communications Program, the Arts and Culture Program, and management systems. The Department considers that implementation is complete on all but four recommendations. The following is a status report as provided by the Department.

Communications Program

14.192 Policy sector. Representatives from CRTC and the Department have agreed on the type of information and the format to adopt for sharing information. A document will be exchanged annually and meetings will be held to discuss reports and studies of mutual interest. This mechanism is considered complementary to the many discussions held between representatives of both organizations.

14.193 The Department established a Corporate Strategy and Plans Branch to oversee the planning and policy development processes in the Department. It is actively pursuing this role and is also taking an active role in advising the Senior Management Committee on major policy activities. A directive on the procedures and sign-off sequence for developing policy that requires Cabinet or ministerial consideration has been approved by the Deputy Minister and is now being followed by all sectors. As well, there is a new monthly inventory of such projects that constitutes, in effect, a project control document for the Deputy Minister and the Senior Management Committee.

14.194 Spectrum management. The evaluation of the spectrum management system by an outside management consulting firm has been completed. The terms of reference included comparison of projected savings against actual savings. The findings were endorsed by sector management in May 1984. The final report will be forwarded to the Treasury Board Secretariat.

14.195 The Government decided that full costs were to be recovered, and fees were accordingly increased by about 115 per cent, effective 1 April 1985. If projections are achieved, this should yield revenues equal to full costs except for costs associated with statutory exemptions and broadcast regulations.

14.196 The 31 March 1984 discussion paper relating to the fee structure provides estimated spectrum management costs and revenues, including estimated foregone revenues. The fee structure was revised effective 1 April 1984.

14.197 Government Telecommunications Agency. A comprehensive statement of service objectives, completed with assistance from the Treasury Board Secretariat, was endorsed by the Telecommunications Advisory Committee in March 1984. Network engineering is now governed by these objectives, which will be included in future multi-year operational plans.

14.198 Research sector. Although the full management information system (MIS) has not yet been implemented, the Research Sector has introduced revised guidelines to improve management information and practices associated with project proposals and the budget cycle. The process of data gathering and reporting, including documentation, will improve once the MIS software is introduced, although the content is currently valid and operational. Structured periodic progress reports are now in use.

14.199 The Telidon program has been evaluated, and results of the evaluation were to be presented to management during the spring of 1985.

Arts and Culture Program

14.200 The operational planning framework which contains the role and objectives of Cultural Affairs has been finalized and submitted to Treasury Board.

14.201 Following a consulting firm's study on periodicals, the Department is now actively looking at the postal subsidy program. Decisions are expected shortly.

14.202 Procedures have been established to notify the Special Investigations Section at Revenue Canada of any suspected cases of fraud in production costs of Canadian films, and direction has been given that every effort should be made to co-operate with Revenue Canada in its investigations.

Management Systems

14.203 Electronic data processing. A long-range informatics plan accepted by the Senior Management Committee in April 1985 stressed central informatics co-ordination and dissemination as opposed to a central informatics authority. The activities of the Planning and Co-ordination unit will involve ensuring compliance with central agencies directives and guidelines.

14.204 An updated internal EDP audit report is being finalized and the implementation of recommendations will be monitored.

14.205 Program evaluation. The evaluations of the Special Program of Cultural Initiatives and the Book Publishing Development Program have been completed.

14.206 Inventory control. A complete revision of the Materiel Management Manual is under way and the conversion of inventory records at headquarters to a uniform system is completed.

Canada Employment and Immigration Commission - 1983, Chapter 8

14.207 The Office's observations led to 29 recommendations in 4 areas of the Department's operations - organization, strategic and operational planning, programs, and management controls and support functions. The following is a status report as supplied by the Commission (CEIC).

14.208 The Commission has a team that monitors the progress of branches in carrying out the recommendations and correcting the weaknesses identified by the Office of the Auditor General, central agencies and internal groups. The Commission considers that at 31 March 1985 action is complete on 13 of the Office's recommendations and that action plans are in place on the other 16.

Organization

14.209 Since 1983, CEIC has redefined the roles of senior managers and has issued a new policy on functional responsibilities.

14.210 The Commission has taken two steps in response to the recommendation on co-ordinating promotional activity and communication with the public: it has consolidated the various job creation programs and made a plan for revitalizing Employment Services activities. The consolidation of job creation programs was completed in the fall of 1983, and a National Steering Committee on Employment Services was set up. In 1984, the Committee approved the revitalization plan that will be implemented through a series of projects as determined and approved by the Committee. Testing of new service delivery concepts and new and revised policies and procedures through a series of user trials began in the fall of 1984.

Strategic and Operational Planning

14.211 The Commission has taken action aimed at improving the strategic and operational planning processes, and implementation of the action plans should be completed by the end of 1985-86.

Unemployment Insurance Program

14.212 Quality control and quality assurance. In January 1984, regions implemented action plans to ensure the operation of the quality control and quality assurance policy, which was issued after our audit, and National Headquarters will assess the results of these regional action plans by the end of 1985.

14.213 Insurance Services at Headquarters drew up a six-step action plan for assessing training requirements for Insurance delivery personnel to be implemented between February 1984 and January 1986. By 31 March 1985, two of the steps had been completed; some parts of the project were behind schedule. To date, a procedure for identifying Insurance personnel training needs has been developed, and a partial inventory of training requirements has been compiled.

14.214 In July 1984, Headquarters circulated for comment from the regions a draft Quality Control checklist designed to allow for a uniform and complete review of claimants' files. The checklist was introduced on a trial basis in June 1985.

14.215 CEIC began revising the reports produced at Canada Employment Centres and in the regions to analyse the causes of overpayments and underpayments. In January 1984, it began instituting procedures to ensure that steps are taken when overpayments and underpayments are identified. The new reporting system was to have been tested in June 1985.

14.216 Investigation and control. Since 1983, CEIC has completed studies of major Investigation and Control programs. In June 1984, National Headquarters approved a work plan to review the concepts of prevention, deterrence and detection, as they relate to the mandate of the Control Branch. At 31 March 1985, CEIC had concluded that prevention and deterrence cannot be measured in a meaningful way with the data available. CEIC has begun a project to obtain information about the nature, characteristics and extent of non-compliance with the Unemployment Insurance Act. A final report was due in September 1985.

14.217 CEIC completed the revision of the monthly and quarterly Investigation and Control activities reports in July 1984.

14.218 Interview program. A new interview program policy on selecting claimants to be interviewed was issued in June 1983.

14.219 Record of employment. CEIC established manual procedures for the control of blank Record of Employment forms. These procedures will be followed up by the internal auditors during visits to employment centres.

Labour Market Development Program

14.220 Selection and monitoring of contribution projects. At 31 March 1985, a review of monitoring had been completed and, as a result, generic monitoring guidelines were expected to be issued in August 1985.

14.221 Work sharing. As of 31 March 1985, directives had been developed specifying the scope of work-sharing agreements, and a management information system was in place. Work-sharing claimant files are subject to the same quality controls as those used for regular Unemployment Insurance claimants' files.

Employment Services Program

14.222 Counselling and placement. The National Steering Committee on Employment Services has adopted an action plan for revitalizing Employment Services. In the context of revitalization, specific and detailed projects have been developed that should respond to the concerns raised in the areas of developing a national strategy for providing required services to job seekers and employers and for the exercise of functional direction by National Headquarters.

14.223 CEIC is gradually introducing new concepts in service delivery in all employment centres. These include Service Needs Determination interviews to ascertain the appropriate level of service, improved self-service and group-service mechanisms, and improved management of the counselling service. Nationwide implementation should be completed by the fall of 1986. CEIC has improved its manual record file system for employer clients. A concept and plan to computerize employer files have been completed.

14.224 CEIC has also launched a training program for employment counsellors to improve the effectiveness of interviews. CEIC expects that the program, begun in 1984, will have been delivered to 1,000 employment counsellors by 1986.

14.225 CEIC has revised its time standards and has put in place a project to begin measuring the effectiveness of services provided to individual clients.

Personnel

14.226 Human resource planning. To improve human resource planning, Personnel Services issued guidelines to headquarters and regional management to be introduced starting with the 1985-86 planning cycle. In September 1983, CEIC senior management approved a career planning and review system to match future organizational needs with individual employee needs. It was implemented for middle and senior-level managers in 1984 and could be extended to other categories following evaluation.

14.227 Training. Personnel Services took steps in the fall of 1983 to improve co-ordination of training. CEIC established the position of national training co-ordinator. Following the approval of a new training policy in 1984, a strategic approach to the management of training was defined in March 1985 and is now being implemented. CEIC will be able to use new information flowing from the Regional Personnel Services System, which will be fully implemented by the end of 1987.

Systems and Procedures Group

14.228 Direction and management. The steps set out in the Systems and Procedures group action plan to update the EDP Policy Standards and Procedures Manual and to ensure compliance with it are scheduled for completion by 31 March 1986.

14.229 Planning for EDP. Senior management approved an EDP planning process in October 1983.

14.230 Organizing and managing projects. The Auditor General recommended that the Systems and Procedures group should define and document the process required for detailed planning of projects, as well as the monitoring and reporting processes. CEIC began a review of its policy manual and Treasury Board requirements in the fall of 1983. In addition, a task force with representatives from the Systems and Procedures group and from Finance and Administration is analysing how to improve procedures for planning, monitoring and reporting on EDP projects. Given progress on the action plans up to 31 March 1985, implementation of the recommendation and the new procedures should be in place later in 1985.

14.231 Evaluation of EDP systems after installation. CEIC considers that major EDP systems are evaluated periodically.

14.232 Planning for the recovery of processing capability. As a result of a study of its back-up equipment needs for on-line systems, CEIC submitted several proposals to Treasury Board. No decision had been made at 31 March 1985; the EDP Policy Standards and Procedures Manual has therefore not been updated to reflect contingency processing activities. Since then, CEIC has advised that Treasury Board requested that further action be suspended pending direction from the Information Task Force which is considering the possible provision of a government-wide computer system back up facility.

Employment and Immigration Information System

14.233 Action plans in this area should be in place by the end of 1985-86.

Performance Measurement

14.234 Since December 1983, CEIC has identified several steps to address the recommendations in this area and most of the action plans had been completed by 31 March 1985. The balance should be in place by the end of the 1985-86 fiscal year.

Internal Audit

14.235 Planning. Audit plans for 1984-85 addressed the issues of materiality and risk in setting annual and long-term priorities.

14.236 Human resources. Since fiscal 1983-84, the Internal Audit Bureau has had a staffing plan, which is updated regularly to identify and respond to personnel needs.

14.237 Reports. The Bureau has revised its procedures manual to include policy and guidelines on the format, content and distribution of its audit reports.

Department of Labour - 1983, Chapter 11

14.238 The Office's observations resulted in 11 recommendations in the areas of regional operations, mediation and conciliation, administration of the Government Employees Compensation Act, grants and contributions, data dissemination and electronic data processing. The following is a status report provided by the Department on the major observations.

Administration of the Government Employees Compensation Act

14.239 The Department is implementing a computer system to handle claims processing as well as other applications. This system is now scheduled to be fully implemented by December 1986. Once the purchase and development costs have been recovered (by 1990-91), the Department anticipates net savings of at least $1.1 million a year.

Regional Operations

14.240 Action has been taken to define strategic and operational objectives for work planning purposes. In addition, program priorities have been identified and communicated to the responsibility centre. A number of other inter-related initiatives have been undertaken to improve the management of the Occupational Safety and Health and Conditions of Work programs. Two of these are the development of compliance and enforcement policies and strategies and the development of a computerized information system and performance indicators. Although these initiatives are at an early stage, the Department expects them to address the concerns identified during our audit.

Other Matters

14.241 Concerns were raised about a number of other issues. These included data quality and usefulness of some of the Department's surveys and the conditions of labour information; the financial controls over the contracts and accounts receivable in the Government Employees Compensation Act and the accounts payable in the $11 million Labour Adjustment Benefits Program; and the need to expand current reporting on the effectiveness of the Federal Mediation and Conciliation Service (FMCS). Observations were made about the adequacy of the Department's evaluation efforts, follow-up of internal audits and planning and control of EDP purchases. The Department has taken action to review its wage survey, reinforce its evaluation and audit practices, and to enhance the reporting of FMCS's effectiveness. Similarly, the Department is currently addressing the other matters reported during our audit.

Secretariat of the Department of the Solicitor General - 1983, Chapter 12

14.242 The Office's observations resulted in six recommendations related to planning, program evaluation, policy areas, and the Programs Branch. The following is the status report provided by the Secretariat.

Planning

14.243 The Secretariat did not provide evaluation information in the strategic overview documents as required by the Policy and Expenditure Management System. The Ministry of State for Social Development (MSSD) advised the Secretariat that evaluation information needed to be included only when it pertained directly to issues highlighted in the review. The Secretariat believed that none had been pertinent to issues highlighted in any strategic overview. The Secretariat notes that no criticism of this stance has been made by MSSD or Treasury Board.

14.244 The link between the operational plans and resources and priorities in the workplans of the branches of the Secretariat has been made clearer and more explicit.

Program Evaluation

14.245 The Secretariat began an evaluation program in 1984 and has a long-term plan.

Policy Areas

14.246 Workplans have improved since 1983; however, different branches are presenting workplans in different formats and of varying effectiveness. Although monitoring of job progress against plans remains limited, workplans are now prepared for all major projects and initiatives.

14.247 The existing statements on roles, responsibilities, activities, tasks, and milestones are not always sufficiently precise to provide objectives against which effectiveness can be measured, because of the complex and intangible nature of the activities and achievements in question. However, performance objectives have improved since 1983.

Programs Branch

14.248 Evaluations of 51 projects were initiated during 1983-84 and 1984-85, and approximately 10 were completed. In addition, a self-evaluation/monitoring process has been developed to promote uniform format in evaluation reports and to capture information from these reports on a computer data base. Self-evaluation guidebooks have been prepared for three policy areas.

National Library of Canada - 1983, Chapter 14

14.249 The Office's observations resulted in 14 recommendations covering the areas of the Collection, bibliographic records, technology support, library direction at the executive level, reporting to Parliament, and the National Library Advisory Board. The following is the status of implementation as reported by the National Library.

The Collection

14.250 Preservation. A planning document was submitted to and approved by the Executive Committee in the fall of 1984. The Executive Committee identified priorities to address the problems detailed in the audit and is taking action. A conservation co-ordinator has been monitoring activities throughout the Library since December 1983, and staffing for a senior conservation officer is in progress.

Bibliographic Records

14.251 Union catalogues. Activities are ongoing to rationalize the reporting that provides input to the union catalogue of books and serials that will improve methods of reporting, and that will develop a machine-readable union catalogue of materials for the handicapped and a registry of material in production. These activities include:

- establishment and approval of criteria for reporting to the union catalogues;

- a study to rationalize reporting to the union catalogue (first progress report prepared March 1985);

- a survey of machine-readable reporting (June - July 1984); and

- the production of a catalogue for the Union Catalogue of Materials for the Handicapped (February 1985). 14.252 A document was prepared detailing concerns arising from the present National Library Act and these are under review by the National Librarian.

14.253 National bibliographic standards. A contract for a survey on the use of Dewey classification numbers in Canadiana has been signed, a questionnaire has been prepared and the survey will be conducted in September 1985.

14.254 Specifications for a minimal level catalogue record were approved by the Canadian Committee on Cataloguing and the Canadian Committee on MARC. The Library is preparing the specifications for publication.

14.255 The Cataloguing in Publication program has been expanded and now includes over 600 publishers, in both French and English languages.

14.256 The program evaluation of the Cataloguing Branch is in the assessment stage.

Technology Support

14.257 Library automation. A strategic systems study was begun in September 1984 and a report submitted in June 1985. It is now under discussion and will provide the Library with an updateable strategic plan for information systems development. The Canada Institute for Scientific and Technical Information of the National Research Council had a representative working with the consultants on the study. Questions relating to the range of services to be provided by the data base are being considered during the study.

14.258 Budgets and cost projections for the library automation system (DOBIS) are prepared regularly.

14.259 DOBIS plans were discussed with federal libraries in December 1983 and the federal libraries have established two committees to provide advice and input on the needs of federal DOBIS users.

14.260 Network development. Resources have been obtained for a second phase of the network pilot project that centres on assessing new telecommunications technology in terms of its uses in libraries. This includes developing the necessary standards for applications in the areas of interlending, acquisitions and directories. The results of an evaluation of the project will be available in 1985-86.

Library Direction at the Executive Level

14.261 Mandate. The statement of sub-objectives was dropped from the Main Estimates Part III following consultation with the Office of the Comptroller General. The existing objective statement is considered to be adequate and appropriate. In October 1984, the Library prepared a new statement of goals and critical success factors that will be used as the basis for subsequent policy and planning documents.

14.262 Co-ordination of federal government library services. Meetings of a Special Committee of the Council of Federal Libraries were held in the summer and fall of 1984 to prepare a statement of federal library expectations regarding the National Library's co-ordinating role. The report of this Committee was presented to the Council in May 1985 and was later communicated to the federal library community. The National Library meets regularly with directors of federal libraries, and a new structure for the Council has been put in place.

14.263 Planning and control. A new planning schedule approved by the Executive Committee in May 1984 has been implemented and some further elaborations to incorporate the new multi-year human resource plan will be made this year.

Reporting to Parliament

14.264 Work on the implementation of a departmental performance measurement system continues on the schedule approved by the Executive Committee in February 1984. In consultation with the branches and the Office of the Comptroller General, the format and presentation of the 1985-86 Main Estimates Part III were reorganized and simplified and are consistent with other planning and statistical information.

The National Library Advisory Board

14.265 A working paper on the role and function of the National Library Advisory Board was discussed at the Board meeting in May 1984. As a result, a discussion paper on its role was approved at the Board's meeting in November 1984.

Public Archives of Canada - 1983, Chapter 15

14.266 The Office's observations resulted in 12 recommendations covering the areas of the Archives, records management, departmental administration, and reporting to Parliament. The following is a status report as provided by the Public Archives.

The Archives

14.267 Mandate. The objective of the Public Archives of Canada has been further clarified in Part III of the Estimates for 1984-85 and for 1985-86.

14.268 The Public Archives is currently developing a general acquisition policy document, to be finalized by the fall of 1985, that will include a statement of the basic criteria for defining the national significance of material appropriate for acquisition.

14.269 Acquisition of federal archives. Pilot studies on the effectiveness of the scheduling process for acquiring photographic records and cartographic records were initiated in 1984. Reports were completed in April 1985. Specific recommendations will be made to the senior management committee by the end of 1985-86. A study of the scheduling process for written documents is pending.

14.270 To assist in developing procedures and standards required to apply the principles of records management to computerized information, the Public Archives, in co-operation with selected departments, initiated pilot projects related to machine-readable records.

14.271 Preservation. The Archives Branch survey of the Collection was initiated in 1984 and a study report was completed in April 1985. A report summarizing conservation requirements in the Branch has been completed and approved by the Archives Branch management committee. The Branch action plan calls for the Divisions to work on developing mechanisms to select material for restoration or copying and to establish priorities for work to be done.

14.272 Divisions in the Archives Branch are expected to be ready to state their priorities by March 1986. The Archives Branch should then be able to prepare a document outlining a plan for conservation and copying of its holdings for review by the senior management committee in the fall of 1986.

14.273 An Archives-wide program evaluation study of the Conservation Component was completed and forwarded to the Dominion Archivist in March 1985. It sets out findings and conclusions about the management of the departmental conservation program. Recommendations and implementation plans relating to the study require review and decision this year.

14.274 Archives control. The Public Archives has been awaiting the Bureau of Canadian Archivists Study of Archival Standards before developing its own standards. This study, in which Public Archives participated, is due for release in the fall of 1985. Subsequently, a comparative study of standards in other institutions will be done. In 1986-87, a departmental policy document will be issued and the various Divisions will begin to apply detailed standards of descriptions and control.

14.275 Automated systems. The Public Archives has reviewed documentation from the National Library and from the National Museums on their automated systems and their management. Application of appropriate system elements will be made as necessary in the future.

14.276 An internal audit of the management of existing EDP functions in the Public Archives was undertaken in 1984-85, and the report is to be reviewed by senior management by the fall of 1985.

Records Management

14.277 Evaluation of records management in government. Discussions with Treasury Board officials on implementing records management responsibilities are going on. The action plan of 1983 called on the Public Archives to report annually to Treasury Board on the effectiveness of records management in the Government of Canada. The evaluation function was undertaken in 1984-85. Planning for its initiation had been started with representatives of the Treasury Board and the Office of the Comptroller General and through consultation with the federal government audit community.

14.278 Two annual reports on the evaluation and assessment of the state of records operations in approximately 60 departments have been prepared.

14.279 Service to departments. Participation in one of the Department of Communications Office Communication Systems field trials provided the Public Archives with an opportunity to develop, implement, test and assess records and archival management concerns in the automated office. These are documented in a final report issued in May 1985.

14.280 Detailed goals and guidelines exist in the Records Management and Micrographics Services Division. The Division consults bi-monthly with the government records management community, through the Advisory Council on Records and through the Federal Micrographics Council. The Division communicates the results of these consultations to the records management community.

14.281 The Public Archives has undertaken a needs analysis of all government departments in all regions on the storage of non-active government records. The data base of this analysis will remain as an operational information base in each of the regional records centres.

14.282 The Public Archives has created a Research and Development Section within its Records Management and Micrographic Services Division.

14.283 Central microfilm operations. The mandate and scope of activities for Central Microfilm Operations (CMO) Division were approved in December 1984. Performance criteria will be developed by the end of 1985-86. A CMO pricing policy is being formulated for submission to Treasury Board. The target date for the approval, issuing an Order in Council, and ministerial approval of this policy is March 1986. Application is planned for 1986-87.

Administrative Services

14.284 Exhibitions and publications. The policies and procedures on exhibitions are to be completed by 31 March 1986. Departmental publications and exhibitions committees are now functioning, and the roles and responsibilities of these committees provide controls and mechanisms for decision making.

Reporting to Parliament

14.285 Preliminary guidelines for the preparation of the Public Archives 1985-86 expenditure plan were issued in June 1984. Internal Audit plans an audit in 1985-86 of the Departmental Program Planning and Evaluation Division, the information in Part III of the Estimates and the underlying systems and procedures.

Statistics Canada - 1983, Chapter 16

14.286 The Office's observations resulted in 20 recommendations related to credibility, meeting user needs, co-operation of respondents, and management control.

14.287 The Agency concurs that action is completed on 7 recommendations and that implementation or preliminary study is under way in 12 other cases, 3 of which involve long-term projects.

14.288 The Agency concurs with the underlying intent of the remaining recommendation, 16:45, which stated: "The Agency should establish reasonable goals for the reliability of its statistics in relation to the major uses being made of them and the costs of gathering them. Achievement of the goals should be monitored and reported to senior management." This recommendation was based on the relationship between the reliability of statistics and their costs. In view of the multiplicity of uses to which any particular statistic may be put, Statistics Canada has advised that it believes the most practical manner of addressing this issue is through "market feedback" based on regular consultation with major users. Processes to intensify and systematize "market feedback" are being developed in conjunction with the increased orientation toward cost recovery.

14.289 The following information on the status of the other recommendations was provided by the Agency.

Credibility

14.290 A draft policy and procedures dated 29 April 1985 on institutional and peer review of analytical studies prior to release are now in place.

14.291 A comprehensive set of Quality Guidelines dated May 1985 has been issued. These include methodology guidelines and are designed to provide significant aid to the judgement of program managers and methodologists.

14.292 A task force reviewed the Agency's 1977 policy on the development and disclosure of measures of quality, and recommended necessary changes in its content, implementation and monitoring. A draft policy informing users of data quality and underlying methodology was circulated 3 May 1985 with a planned implementation date of 1 June 1985. The policy includes a provision for a review for compliance with the policy.

14.293 A quality assurance function was established and studies have been released on two subject areas that will guide the development of this function.

14.294 The Agency has taken a major initiative to redevelop its business register to provide an up-to-date and more complete sampling frame for all its economic surveys. This initiative also provides some of the infrastructure necessary for creating benchmarks for these surveys on a regular basis. This is a long-term project to develop a business frame for all business surveys. With respect to current labour income estimates, the Agency commissioned and received three major consulting studies. Implementation of their recommendations has begun.

Meeting User Needs

14.295 The Agency has established a formal planning system based on the operational planning framework that has improved its ability to achieve balance within and among its individual programs. The new planning process implemented in 1983 has now completed two cycles. An explicit objective of the planning process is to review, on a systematic basis, frequency and timeliness of statistical programs in relation to users' needs and costs.

14.296 On 24 May 1985, the Government announced that it was establishing a National Statistics Council as recommended in the 1983 Auditor General's Report. This Council will supplement the advice Statistics Canada receives in specific areas from its network of Advisory Committees.

14.297 In the area of developing a comprehensive marketing strategy, major steps have been taken on organizational, policy, technical, and procedural aspects. Although the marketing strategy is not yet developed, overall elements have been identified.

Co-operation of Respondents

14.298 A task force has been established to review all surveys and determine whether further reduction in response burden is feasible. The interim report, issued in February 1985, recommended a strategy for measuring response burden. These recommendations are being reviewed.

Management Control

14.299 Statistics Canada has advised that the program evaluation function is now fully operational. The work of the program evaluation function is under regular scrutiny by the Program Evaluation Committee.

14.300 The Agency is pursuing a number of initiatives aimed at improving the efficiency of its operations. One such initiative involves integrating operations and regionalizing activities and is well under way. Major changes are being implemented in External Trade and also in Manufacturing and Primary Industries, Merchandising and Services, Construction and Transportation. A headquarters Operations Division has been established. Outside experts have been retained to examine workflow and operational procedures as well as to recommend specifications for operational performance efficiency measurements. The application of such measurements for the period April 1983 to March 1984 indicates that efficiency levels had increased to 77 per cent as opposed to 56 per cent at the time of the 1983 audit. These initiatives are gradually producing a reduced requirement for clerical staff and a shift in professional requirements from operational to analytical roles.

14.301 Agreement has been reached between the Agency and Treasury Board Secretariat on the application of the classification standards. Necessary corrective action is under way. The Agency reports that it now has in place appropriate control mechanisms to manage its classification system.