Audit of Sustainable Development

Report Summary

Introduction

The audit of Sustainable Development (SD) in Health Canada was approved by the Departmental Audit and Evaluation Committee as part of the 2003-2004 Risk-Based Audit Plan. The overall objective of the audit was to assess the adequacy of the management control framework for SD in the Department.

The 1995 amendments to the Auditor General Act created the position of Commissioner of the Environment and Sustainable Development (CESD) as part of the Office of the Auditor General, and required Health Canada to table a Sustainable Development Strategy (SDS) in the House of Commons every three years starting in 1997. The CESD also requires that the Department monitor and report annually on SDS implementation.

In 1999, Health Canada created the Office of Sustainable Development (OSD), a corporate office which now reports to the ADM, Healthy Environments and Consumer Safety Branch (HECSB) and established a departmental SD Policy in December 2000. To date, the Department has tabled three SDS's before Parliament: in 1997, 2001 and 2004. The present SDS was tabled on February 16, 2004 and covers the period of April 1^st, 2004 to March 31, 2007.

The key findings of the audit address structure, funding and accountability for sustainable development within the department.

SD Structure

Although a stable SD organizational structure was in place at the beginning of this audit, with the OSD operating as a central corporate office and the SD coordination function well established in the branches/agency and regions, there is currently a gap between the SD-related needs of the Department and the allocation of human resources at the departmental and regional levels. Given the present staffing situation, the OSD will not be able to meet its full responsibilities. Similarly, with the absence of SD coordinators, the regions will not be able to ensure the same level of effort and coordination for monitoring and reporting on the implementation of SDS 2004-2007.

The gradual erosion of the departmental SD structure and the loss of organizational capacity will put the Department at risk of being unable to meet its commitments on SDS 2004-2007 targets and comply with its obligation to monitor and report on SDS implementation.

SD Funding

The current SD funding situation was predictable due to the fact that SD has been partially financed through short term arrangements for the last few years. When temporary funding for regional SD coordination was made available in November 2002, the regions were directed to conduct a review of regional funding before the end of March 2004 and develop a self-funding plan for SD coordinators for fiscal year 2004-2005. To date, there is no evidence that concrete action has been taken during the last year.

The status of OSD within the Department may have also contributed to the current funding problem: OSD was originally designed to be a central corporate office and its role is described in the departmental SD Policy as serving the branches/agency and regions. Yet to a large extent its funding has been dependant on the 'cash management' of its deficit by HECSB.

The current SD funding situation is another high risk area for the Department in meeting its SDS commitments and complying with its obligation of monitoring and reporting on SDS implementation. Resolution of the SD funding situation would necessitate permanent rather than temporary arrangements.

Accountability for SD

The existing accountability framework for SD needs to be reviewed to take into account the lessons learned since the departmental SD Policy came into effect in December 2000. In the branches/agency and regions, the SD champion approach has produced an uneven level of leadership and support for SD. A review of the SD accountability framework needs to address the issue of assigning accountability for results to those senior managers assigned the role of SD champion. At the departmental level, the mandate and membership of DEC SDSC needs to be reviewed to ensure that it has the necessary leadership and vision to enhance the decision-making capacity for SD within the Department.

A review of the accountability framework for SD will serve to strengthen the combined ability of its key component parts to lead the department forward to meet the challenges of defining and implementing SDS targets.

Recommendations

It is recommended that:

1. The Assistant Deputy Minister Champion for Sustainable Development:
   
   
   1. Direct the preparation of a staffing plan and associated funding to provide the required level of resources for the Office of Sustainable Development at the departmental level and for the Sustainable Development coordination function at the branch/agency and regional levels; and,
   2. Request that the Departmental Executive Committee approve the staffing plan and allocate the required permanent funding to allow the Department to meet its commitments on Sustainable Development Strategy 2004-2007 targets and to comply with its obligations of monitoring and reporting on Sustainable Development Strategy implementation.
2. The Assistant Deputy Minister Champion for Sustainable Development:
   
   
   1. Direct a review of the accountability framework for Sustainable Development within the Department in relation to the roles and responsibilities of:
      
      
      • the Departmental Steering Committee on Sustainable Development and the Office of Sustainable Development
   2. Formally define the roles and responsibilities for
      
      
      • the Sustainable Development Champions and the Sustainable Development Coordinators in the branches/agency and regions; and,
   3. Seek approval from the Departmental Executive Committee for the accountability framework and the defined roles and responsibilities.