4th E Practice Guide
2. Guidance for Considering Environmental Effects in the Survey Phase of a Performance Audit
The Office's one-pass planning process yields a selection of audit topics for examination. Applying this section of the guide will ensure that environmental issues are consistently and systematically considered in performance audits where the central focus is not already an environmental or sustainable development issue.
The section presents a two-part screening tool that helps auditors identify environmental issues potentially related to their audit topic. The section also provides guidance on evaluating the degree of environmental risk involved and ultimately the significance of the issue in an audit context. It does not include specific guidance on developing lines of enquiry or criteria related to environmental issues.
The screening tool is applicable to entity or program audits, as well as government-wide and sectoral audits.
If you are engaged in one-pass planning, you should consult Section 1 of this guide.
When you should use this audit guidance
Audit teams should use this section's guidance and the screening tool to identify and assess environmental issues during the survey phase of their audit. This will help teams comply with Office requirements that they specifically consider environmental issues when planning an audit, as set out in the Office's Quality Management Framework and performance audit policies. For example, Section 4.21 of the Office's Performance Audit Manual specifies that the survey report should include "environmental issues considered and reasons for their inclusion or exclusion in the proposed audit scope."
The screening tool should be filled out after the team has gained a good understanding of the audit topic and familiarity with it. However, it is a good practice to review the screening tool and other guidance provided much earlier when the team is starting to plan its survey work.
Instructions for completing the Environmental Risk Screening Tool for performance audits
Step 1: Start by reviewing the documents and other resources noted. The screening tool is designed to be completed by audit teams with a minimum amount of time and effort. Teams will naturally rely heavily on the information they gather in their overall survey phase efforts, but they should also review the documents and resources listed here before they complete the screening tool. (See Exhibits 1 and 2 for links.)
Note: Some sections of the screening tool and some of the resources noted here apply only to departments and agencies required to prepare Sustainable Development Strategies. See Exhibit 1 for a list of these organizations.
- Departmental/agency issues scans exist only for departments/agencies preparing Sustainable Development Strategies. These organizations were each asked to prepare a departmental profile and issues scan as a first step toward developing an initial Sustainable Development Strategy. The issues scan is a self-assessment of departmental policies, programs, and operations in terms of their impact on the environment and sustainable development. It presents environmental and sustainable development issues identified by the organization itself as important.
If the current strategy does not contain an issues scan, consult previous strategies. - The Sustainable Development Strategy of any department/agency required to prepare it. Review the current SDS carefully to determine whether there are any targets/objectives and commitments associated with the audit topic. If the SDS is relatively new, review the previous strategy as well.
- The Database of Canada's International Environmental Commitments allows teams to determine whether an entity is involved in implementing international environmental commitments made by Canada that relate to the subject matter of the audit. A search of the database by entity name will generate a list of agreements where the entity is involved in either a lead or supporting role. The database was developed by the Office and is currently managed by the Department of Foreign Affairs and International Trade. It has not been updated since late 2002 and does not reflect changes or agreements beyond that date. Nonetheless it provides useful information on close to 100 binding environmental agreements. It does not provide information on trade agreements.
- Documents outlining the general principles and priority areas for greening physical operations of the federal government include
- A Guide to Green Government, 1995;
- Sustainable Development in Government Operations: A Coordinated Approach, 2000.
See also Appendix 3.
- Environmental petitions submitted to the Office pursuant to the Auditor General Act (only for departments/agencies that table Sustainable Development Strategies). Departmental/agency responses to petitions are posted in our Petitions Catalogue on the Office's website. It can be searched by entity name or subject matter.
- Other accountability documents include
- departmental performance reports, and
- reports on plans and priorities.
Departments/agencies required to prepare sustainable development strategies and respond to environmental petitions. |
||||
---|---|---|---|---|
Departments and agencies |
SDS I |
SDS II |
SDS III |
SDS IV |
Agriculture and Agri-Food Canada (AAFC-AAC) |
I |
II |
III |
IV |
Atlantic Canada Opportunities Agency (ACOA-APECA) |
I |
II |
III |
IV |
Canada Border Services Agency (CBSA-ASFC) |
N/A |
N/A |
N/A |
IV |
Canada Economic Development for Quebec Regions (CED-DEC) |
I |
II |
III |
IV |
Canada Revenue Agency (CRA-ARC) |
I * |
II ** |
III |
IV |
Canadian Heritage (CH-PC) |
I |
II |
III |
IV |
Canadian International Development Agency (CIDA-ACDI) |
I |
II |
III |
IV |
Citizenship and Immigration Canada (CIC-CIC) |
I |
II |
III |
IV |
Environment Canada (EC-EC) |
|
II |
III |
IV |
Finance Canada, Department of (FIN-FIN) |
I |
II |
III |
IV |
Fisheries and Oceans Canada (DFO-MPO) |
I |
II |
III |
IV |
Foreign Affairs and International Trade, Department of (DFAIT-MAECI) |
I |
II |
III |
IV |
Health Canada (HC-SC) |
I |
II |
III |
IV |
Human Resources and Social Development Canada (HRSDC-RHDSC) |
I* |
II * |
III * |
IV |
Indian and Northern Affairs Canada (INAC-AINC) |
I |
II |
III |
IV |
Industry Canada (IC-IC) |
I |
II |
III |
IV |
Justice Canada, Department of (JUS-JUS) |
I |
II |
III |
IV |
National Defence (ND-DN) |
I |
II |
III |
IV |
Natural Resources Canada (NRCAN-RNCAN) |
I |
II |
III |
IV |
Parks Canada (PCA-APC) |
N/A |
II |
III |
IV |
Public Health Agency of Canada |
N/A |
N/A |
N/A |
IV |
Public Safety and Emergency Preparedness Canada (PSEPC-SPPCC) |
I * |
II * |
III |
N/A |
Public Service Human Resources Management Agency of Canada (PSHRMAC-AGRHFPC) |
N/A |
N/A |
N/A |
IV |
Public Works and Government Services Canada (PWGSC-TPSGC) |
I |
II |
III |
IV |
Transport Canada (TC-TC) |
I |
II |
III |
IV |
Treasury Board of Canada Secretariat (TBS-SCT) |
I |
II |
III |
IV |
Veterans Affairs Canada (VAC-ACC) |
I |
II |
III |
IV |
Western Economic Diversification Canada (WD-DEO) |
I |
II |
III |
IV |
Federal organizations that voluntarily prepare strategies |
||||
Canadian Environmental Assessment Agency (CEAA-ACEE) |
I |
II |
III |
IV |
Correctional Service Canada (CSC-SCC) |
I |
II |
III |
IV |
Office of the Auditor General of Canada (OAG-BVG) |
I |
II |
III |
IV |
Royal Canadian Mounted Police (RCMP-GRC) |
I |
II |
III |
IV |
Exhibit 2 — Other Documents and Resources
Database of Canada's International Environmental Commitments
Documents outlining the general principles and priority areas for greening physical operations of the federal government:
- A Guide to Green Government
- Sustainable Development in Government Operations: A Coordinated Approach
Environmental Petitions Catalogue
Other accountability documents:
Step 2: Complete the Environmental Risk Screening Tool for performance audit. Photocopy the screening tool and create a working version, or work from the electronic form on the INTRAnet. Start by completing Part 1. This helps you quickly identify whether there are any potentially significant environmental issues associated with the entity and area being audited.
If all of the responses to Part 1 are negative, there may be no significant environmental issues or risks associated with your audit topic. With these screening results you may decide, in consultation with the Internal Specialist—Environment and Sustainable Development, that further investigation of environmental issues is not required. If so, you need not complete Part 2 of the screening tool.
The results of the evaluation using Part 1 of the tool are documented in the survey report and summary examination plan.
If some of the responses to Part 1 of the screening tool are in the affirmative, complete Part 2. Only certain portions of Part 2 are likely to be applicable. This part helps auditors explore relevant issues in more depth, and start to consider the level of environmental risk and ultimately the significance of the environmental issues identified.
With the information gained plus other information gathered in the survey phase of the audit, auditors can determine whether there are matters of potential significance associated with environmental issues for the audit topic, and ultimately whether a line of enquiry and audit criteria to address these issues are merited. Audit objectives may also need to be adjusted to reflect the application of the screening tool.
The Internal Specialist is available to assist teams in making this determination, which may be based on additional survey work. The Internal Specialist is available to advise and assist teams on conducting additional survey work, as well as developing or refining audit objectives, audit scope, applicable lines of enquiry, and criteria. Teams should consult with the Internal Specialist as appropriate.
Environmental issues identified and considered in Part 2 of the screening tool should be documented in the survey report as well as discussed with the Internal Specialist.
How can environmental issues/risks emerge from an audit where the central focus is not an environmental or sustainable development issue?
For example
An audit on management of military training and test areas by National Defence is slated to begin. The team has not yet defined the scope of the audit, the lines of enquiry, or the criteria. Use of the environmental screening tool prompts the team to consider how activities may have adversely affected the land where military training or testing has occurred. The screening results point them to priority areas for greening of government operations (which includes addressing the legacy of contaminated sites), as well as activities or hazards that lead to environmental degradation of the land and/or ecosystems. Further survey work in these areas reveals that past and present use of the training and test areas has given rise to several environmental problems for National Defence, including significant liabilities. The Department's Sustainable Development Strategy also includes commitments related to environmental stewardship of training and test areas. Lines of enquiry and criteria are developed to audit the Department's management of contamination problems arising from past military training and testing in these areas, as well as the Department's present efforts to exercise due diligence with the aim of preventing further problems and complying with federal environmental standards and best practices.
For more information on environmental issues associated with military training and test areas, refer to the Auditor General's April 2003 Report to Parliament, National Defence—Environmental Stewardship of Military Training and Test Areas.
Environmental Risk Screening Tool
Click here to access the Environmental Risk Screening Tool.