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Audit of AgriRisk Initiatives Program

Abbreviations

AAFC
Agriculture and Agri-Food Canada
ACB
Administrative Capacity Building
BRM
Business Risk Management
GF2
Growing Forward 2
RRMF
Recipient/Project Risk Management Framework
R&D
Research and Development
SPED
Service and Program Excellence Directorate

Executive summary

AgriRisk is a five-year program within the suite of Business Risk Management (BRM) programs, designed to facilitate the development and adoption of new private sector or producer-funded agricultural risk management tools.

AgriRisk was created to encourage partnerships between governments, industry stakeholders, and the private sector to develop, and deliver new risk management products and services. The Program supports industry-led projects for new insurance-based plans and other risk management tools through the Research and Development (R&D) stream. Through the Administrative Capacity Building (ACB) stream, AgriRisk also provides support for cost-shared federal-provincial-territorial initiatives to implement and administer new private sector and government risk management tools. For this stream, the provincial and territorial governments are considered as partners with lower inherent risks.

The Audit of AgriRisk Initiatives Program was approved as part of the 2017-21 Integrated Audit and Evaluation Plan for fiscal year 2017-18. The objective was to provide assurance on the adequacy and effectiveness of controls in place to support the management and delivery of AgriRisk.

The audit concluded that adequate and effective controls are in place to support the administration of AgriRisk. In particular, the following good management practices were noted:

The audit identified opportunities to improve the documentation practices in place, particularly for the ACB stream. These included:

1.0 Introduction

1.1 Background

To reduce burden on senior management, the OAE coordinated the audit and the evaluation engagements with regard to the timing and scope of work and shared findings.

1.2 Audit objective

1.3 Audit scope

1.4 Audit approach

1.5 Conclusion

1.6 Statement of conformance

2.0 Observations, recommendations and management responses

This section presents the key observations, based on the evidence and analysis associated with the audit, and provides recommendations for improvement. Management action plans were provided, and include:

The results of the audit are organized into two lines of enquiry:

2.1 Assessment of applications

Recommendation 1

The Assistant Deputy Minister, Programs Branch, should ensure that internal procedures for AgriRisk, particularly for ACB stream projects, are current and applied consistently.

Management response and action plan:
Agreed. AgriRisk is in the process of reviewing and updating the existing guides and documents to ensure all the requirements are up-to-date. AgriRisk will finalize the detailed guides and documents for the Administrative Capacity Building stream, where relevant. AgriRisk will also ensure that internal procedures are applied consistently, in particular for ACB stream projects.

AgriRisk will review guides and documents on a regular basis, and will update these as required during the Canadian Agricultural Partnership framework.

Lead responsible:
Director General, Business Risk Management Programs Directorate

Target date for completion: April 2018

Recommendation 2

The Assistant Deputy Minister, Programs Branch, should review documentation requirements for the eligibility assessment of applications, particularly for ACB stream projects, to strengthen the decision-making process.

Management response and action plan:
Agreed. AgriRisk is in the process of reviewing and updating existing tools and processes for the eligibility assessment of applications to ensure consistent documentation to support the assessment and decision-making process, particularly for ACB stream projects.

AgriRisk will review the tools and processes for the eligibility assessment of applications on a regular basis, and will update these as required during the Canadian Agricultural Partnership framework.

Lead responsible:
Director General, Business Risk Management Programs Directorate

Target date for completion: April 2018

2.2 Administration of agreements

Annex A: Audit criteria

  1. Line of enquiry 1: Assessment of applications
    • Application assessment is conducted in an efficient and effective manner in line with funding Terms and Conditions and established policies and procedures.
    • Adequate controls are in place to ensure that the due diligence conducted is available to Program Management to support funding decisions.
  2. Line of enquiry 2: Administration of agreements
    • Appropriate risk-based monitoring strategies have been established for program recipients to ensure compliance with funding Terms and Conditions.
    • Claims are processed in an efficient and effective manner in accordance with recipient risk assessment and funding Terms and Conditions.
    • Service standards are effectively tracked, reported and used by management to support decision making.
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