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Observations and Recommendations
The internal audit observations and recommendations are reported under each of the stages in the management of the project cycle as set out in Section 2 - Objectives.
4.A Initial Screening of Project Applications
Project compliance with program criteria. In this stage of the program the application is reviewed for compliance with the CBCIP Agreement. Documents are prepared to evaluate the project against program criteria.
Project applications are submitted to the applicable provincial ministry and are initially screened by MCSE or MCAWS depending on the nature of the project. Both provincial ministries have documented processes in place for the initial screening of project applications. Applications are date stamped when received. A Program Officer reviews the application and completes a standardized "Basic Screening Checklist" to ensure that the application is complete and that the project qualifies for program funding. Missing information, if any, is identified on this Checklist and the Program Officer follows up with the applicant to obtain the required documents or responses to queries.
During the review of the provincial project files, CAC noted that all applications were signed by the applicant, date stamped on receipt by MCAWS and that there was a "Basis Screening Checklist" on file. Also, evidence in the form of letters or phone conversation notes was found to show that the ministry followed up with applicants to obtain information missing from the original application.
For Green projects, MCAWS completes the following analyses to evaluate the project:
- Engineering Assessment Report
- Building 21 st Century Infrastructure Rating Matrix
- Regional Growth Strategies
- Financial
All of the summary evaluation documents were found on file for the Green projects reviewed. During the review, however, CAC noted that the majority of documents and information related to the engineering assessment are retained by the engineer who completed the review. The engineer's telephone conversation or meeting notes and engineering documents are not on the formal project file and not referenced anywhere in the files. MCAWS advised that they will only file engineering information which is related to a decision. Therefore, there may be significant background information related to the engineering assessment that is not on the official project file. This means that there may not be an adequate audit trail in terms of eligible and ineligible costs for the nature and scope of the approved project. This is particularly important for those projects whose scope changed significantly between the application and approval stages.
The Other projects submitted to MCSE are not subject to the same level of evaluation since they are less complex and the maximum federal and provincial contribution is limited to a $2 million cap. Program officers review the application and prepare an analysis of the project from a technical and financial perspective. For some of the Other projects MCSE engaged the services of expert Ministries; for example, road projects were sent to the B.C. Ministry of Transportation for technical review.
For the three other projects reviewed, evidence was found on the provincial files at MCSE that a project evaluation was conducted.
Recommendation
MCAWS should ensure that all of the engineer's files related to a project evaluation are maintained and either filed with or cross referenced to the main project file.