Annex to the Statement of Management Responsibility Including Internal Control over Financial Reporting (ICFR) (unaudited)
1. Introduction
This document provides summary information on the measures taken by the Office of the Commissioner of Official Languages (OCOL) to maintain an effective system of internal control over financial reporting (ICFR), including information on internal control management, assessment results and related action plans.
Detailed information on OCOL’s authority, mandate and program activities can be found in the 2016–2017 Departmental Performance Report and the 2017–2018 Departmental Plan.
2. Departmental system of internal control over financial reporting
2.1 Internal control management
OCOL has a well-established governance and accountability structure to support organizational assessment efforts and oversight of its system of internal control. An organizational internal control management framework, approved by the Commissioner, is in place and includes:
- Organizational accountability structures as they relate to internal control management to support sound financial management, including roles and responsibilities of senior managers in their areas of responsibility for control management;
- Values and ethics;
- Ongoing communication and training on statutory requirements, and policies and procedures for sound financial management and control; and
- Monitoring of and regular updates on internal control management, as well as the provision of related assessment results and action plans to the Commissioner and organizational senior management and, as applicable, OCOL’s Audit and Evaluation Committee (AEC).
The AEC provides advice to the Commissioner on the adequacy and functioning of OCOL’s risk management, control and governance frameworks and processes.
2.2 Service arrangements relevant to financial statements
OCOL relies on other organizations for the processing of certain transactions that are recorded in its financial statements as follows.
Common Arrangement
- Public Works and Government Services Canada centrally administers the payments of salaries and the procurement of goods and services in accordance with OCOL’s Delegation of Authority, and provides accommodation services.
Specific Arrangements
- Public Works and Government Services Canada provides OCOL with a financial system platform—the Common Departmental Financial System (CDFS)—to capture and report all financial transactions; and
- Public Works and Government Services Canada provides OCOL with an employee pay administration service to capture all pay transactions.
3. Organizational assessment results during fiscal year 2016-17
No assessment activities were performed during fiscal year 2016-17 as per OCOL’s ICFR Plan. However, activities will resume in 2017-18.
3.1 Design effectiveness testing of key controls
No testing activities were performed during fiscal year 2016-17 as per OCOL’s ICFR Plan. However, activities will resume in 2017-18.
3.2 Operating effectiveness testing of key controls
No testing activities were performed during fiscal year 2016-17 as per OCOL’s ICFR Plan. However, activities will resume in 2017-18.
4. Organizational action plan
4.1 Progress during fiscal year 2016-2017
No ICFR activities were performed during fiscal year 2016-17 as per OCOL’s ICFR Plan. However, activities will resume in 2017-18.
4.2 Status and action plan for the next fiscal year and subsequent years
| Key control areas | Design effectiveness testing and remediation | Operational effectiveness testing and remediation | Ongoing monitoring rotation |
|---|---|---|---|
| Procurement and supplier payment | 2018-2019 | 2019-2020 | 2020-2021 |
| Salaries / pay administration | 2017-2018 | 2019-2020 | 2020-2021 |
| Delegation of financial signing authorities for disbursements (signature cards) | 2017-2018 | 2019-2020 | 2020-2021 |
| Asset and inventory management | 2018-2019 | 2019-2020 | 2020-2021 |
| Hospitality and events | 2017-2018 | 2019-2020 | 2020-2021 |
| Travel expenses | 2017-2018 | 2019-2020 | 2020-2021 |
| Business travel credit cards | 2018-2019 | 2019-2020 | 2020-2021 |
| Manage acquisition cards | 2018-2019 | 2019-2020 | 2020-2021 |
| IT general controls under organizational management | 2018-2019 | 2019-2020 | 2020-2021 |
| Budgeting and financial resource management and monitoring | 2018-2019 | 2019-2020 | 2020-2021 |
| Financial close and reporting | 2018-2019 | 2019-2020 | 2020-2021 |
| Interdepartmental settlements | 2018-2019 | 2019-2020 | 2020-2021 |
Approved by the Chief Financial Officer
Eric Trépanier, CFO