Audit of the Industrial and Regional Benefits Management Control Framework

3.0 Findings and Recommendations

3.1 Overview

The new management control framework for IRB is at an early stage of development (key elements such as the three-year Business Plan, annual report, policy direction, and system improvement are yet to be finalized). Therefore, our audit assessment of governance and risk management relates to the actions taken to date to implement a new management control framework, and reports significant gaps as compared to key Core Management Controls, categorized by MAF elements.

Table 3 below shows the status of the IRB Directorate's revised MCF by the ten MAF elements.

Table 3: IRB Management Control Framework — Overview

MAF Element/Stage of Development	Implemented	In Process	Start-up Phase
Governance and Strategic Direction			X
Public Service Values	X
Results and Performance		X
Learning, Innovation and Change Management			X
Risk Management			X
Policy and Programs			X
People		X
Citizen-Focused Service		X
Accountability			X
Stewardship		Not in scope

3.2 Governance

3.2.1 Policy and Programs

Prior to the announcement of the changes to the IRB Policy in September 2009, the Directorate engaged in a process of consultation with key users and stakeholders of the IRB Policy. According to the Directorate, the consultation process highlighted the need for both the creation of a policy cell within the IRB Directorate, and a strategy to keep the IRB Policy "evergreen".

The Directorate has since established a dedicated policy unit and has identified the development of a strategy to keep the IRB Policy evergreen as a key output for 2010–11 draft IRB Business Plan.

Currently the IRB Policy framework consists of a Policy Statement on the IC website, a model request for proposal, and a model contract. These documents specify the terms and conditions to be added to IRB eligible procurements.

In its draft Business Plan, the IRB Directorate has identified the need to create a formal IRB operational policy document.

3.2.2 People

All IC employees (except executives and senior excluded/unrepresented managers) are subject to the Employee Performance Measurement (EPM) Framework. The EPM facilitates the performance appraisal process by encouraging regular communication between managers/supervisors and employees about work expectations, job performance and employee development. The IRB Directorate follows the EPM. A similar performance management process is also in place for executives and excluded employees.

The Director of the IRB Directorate plans to institute a process (by the end of FY 2010–11) to review performance on a quarterly basis for those IRB staff who report directly to him.

Improved HR management is one of the seven areas of critical importance in the draft IRB Business Plan, which also includes specific expected outputs over the planning period. The Business Plan notes that the nature of IRB activity requires an on-the-job training period for junior IRB managers.

The Directorate is in the process of implementing a new organizational structure. The structure was changed for several reasons including a desire to improve training and succession planning. The Directorate has developed a three-year training plan for new and existing employees.

The IRB Directorate is included in the Industry Sector Human Resources Plan, but we did not find a formal document listing current and future resource competency needs, or an analysis of key positions and succession planning for the Directorate.