Management Response and Action Plan (MRAP) Audit of Health Policy Branch's management control framework and Canadian Institute for Health Information - Input from the Health Care Policy Directorate and ARAD

Help on accessing alternative formats, such as Portable Document Format (PDF), Microsoft Word and PowerPoint (PPT) files, can be obtained in the alternate format help section.

---

Audit of Health Policy Branch's management control framework and Canadian Institute for Health Information - Input from the Health Care Policy Directorate and ARAD

Recommendations	Management Response: 1. Accept 2. Accept with conditions 3. Reject	Planned Management Action	Deliverables	Expected Completion Date	Accountability
1. It is recommended that the Assistant Deputy Minister of Health Policy Branch ensure that eligible expenses are explicitly defined for the renewal of all transfer payment agreements with the Canadian Institute for Health Information, so that only appropriate costs are funded by the programs, and ensure that all travel costs claimed are in accordance with the Treasury Board Travel Directive.	Accept	This is currently the practice for funding agreements administered by Health Care Policy Directorate (HCPD), as eligible expenses are explicitly defined in the Terms and Conditions of the Health Care Policy Contribution Program (HCPCP), and this information is both communicated to all recipients (both NGO and P/T) of Program funding, as well as outlined in all Contribution Agreements (CAs). Similarly, when travel is required for a project, every CA ensures that travel costs claimed are in accordance with the Treasury Board Travel Directive. All CIHI transfer payment agreements previously administered by ARAD, including the Health Information Contribution Agreement (effective April 1, 2008), have recently been consolidated into a single funding vehicle, the Health Information Initiative (HII). As per Treasury Board direction, the newly consolidated CIHI funding is governed through a conditional grant (CG). Given CIHI works with many stakeholders, including P/Ts, this arrangement allows CIHI to effectively operate as an independent body at arm's length from the federal government, a factor critical to the success of the program. Reporting requirements, approved by Treasury Board, are set out in the terms and conditions of the conditional grant agreement, and are less stringent than under a CA. Currently there is detailed financial cash flow reporting and monitoring of HII expenses to ensure compliance with eligible expenses under the new conditional grant funding, although there is no explicit clause on eligible expenses or requirement for compliance with the Treasury Board Travel Directive. Every effort will also be made to integrate these recommendations into subsequent transfer payment agreements upon the renewal of the HII funding.	Integration of recommendations into subsequent transfer payment agreements.	Done Upon renewal of the Health Information Initiative Funding.	Kathryn McDade A/DG, ARAD
2. It is recommended that the Assistant Deputy Minister of Health Policy Branch ensure that the recipient's management reporting provides adequate financial and non financial information to monitor performance and ensure compliance to the terms and conditions of each funding agreement.	Accept	While this is currently the practice, we recognize that there are areas where improvements could be made and steps have already been taken to address these. The Health Care Policy Contribution Program is in the process of revising its RMAF and performance measurement framework pursuant to commitments made to Treasury Board. Tools and templates to reflect improved integration of financial and non-financial reporting are being created and will be implemented in this fiscal year. The new Health Information Initiative funding agreement clearly outlines the financial and non-financial reporting and monitoring requirements. Tools and templates to ensure compliance with reporting requirements are being created and will be implemented this fiscal year.	Refined reporting tools, templates and guidelines. Refined reporting tools, templates and guidelines for the HII funding. Appropriate training for tools and templates will be provided to staff involved in the monitoring process.	In Progress In Progress	Kathryn McDade A/DG, ARAD
3. It is recommended that the Assistant Deputy Minister of Health Policy Branch direct preparation of a Risk-Based Recipient Audit Plan in accordance with Treasury Board policies and guidelines.	Accept	This is currently the practice for the CAs under HCPD. A Departmental Risk-Based Recipient Audit Plan is prepared on an annual basis. In addition, the Health Care Policy Contribution Program has just completed the revision of its RBAF. Implementation of an integrated RMAF/RBAF is underway. As per direction of Treasury Board, RMAF/RBAF are not required for a conditional grant. There are also no provisions for an Annual Recipient Audit Plan under the CG. The HII CG funding agreement has alternative provisions for audit, including the authority to audit at the discretion of the Office of the Auditor General and Minister. In addition, Health Canada is represented on the CIHI Board of Directors, and reporting based on the terms and conditions of the CG funding agreement allows active monitoring of risks.	Project Risk Assessments Annual Recipient Audit Plan Refined reporting tools, templates and guidelines for the HII funding.	In progress In progress	Kathryn McDade A/DG, ARAD
4. It is recommended that the Assistant Deputy Minister Health Policy Branch recover $39,465 from the Canadian Institute for Health Information .	Accept	In progress - CIHI is aware of the audit findings and documentation is being prepared to effect the recovery.	Health Care Indicators $12,000 NPDUIS $27,465	In Progress In Progress	Kathryn McDade Abby Hoffman
5. It is recommended that the Assistant Deputy Minister Health Policy Branch direct the Canadian Institute for Health Information to review its overhead allocation formula to be in compliance with the terms and conditions of the contribution agreements.	Accept	As the recently approved Terms and Conditions of the HCPCP explicitly state that 'overhead' is not an eligible expense, CIHI is required to remove all overhead allocations from their expenditure reports. Given the HII GC grant funding provides ongoing stable funding for CIHI's core operations and activities, "overhead" is an allowable expense when consistent with the objectives of the HII funding agreement.	N/A N/A	Done	Kathryn McDade A/DG, ARAD