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QAR: Best Practices Report
Background
As a result of discussions with the Special Advisor to the Deputy Minister regarding issues raised by the Office of the Auditor General (OAG) in Chapter 27 of their December, 1998 Report; Audit and Evaluation, in consultation with all stakeholders, has undertaken a Quality Assurance Review (QAR) of grants and contributions (Gs&Cs) at Western Economic Diversification Canada (WD).
In 1994 and 1995, the OAG audited a number of contribution programs delivered by Industry Canada and by federal regional development agencies (including WD). At that time they noted opportunities for improvement in different aspects of program delivery, including concerns about due diligence in project assessment. Their recommendations included the need for:
- More persuasive assessments to support funding decisions, and documentation that reflects all the major factors supporting decisions to approve assistance;
- The streamlining of guidelines and criteria for assessing applications, differentiated by size and risk, and simplification of application documentation for small projects;
- Better co-ordination with other federal and provincial departments in view of the potential for duplication of effort and funding; and
- Greater attention to collecting repayable contributions.
The QAR initiative represents a proactive effort to move WD's grant and contribution efforts further along a continuum to having all of the characteristics that the OAG describes in Chapter 27 of the December, 1998 Report as, Qualities of a Well-Managed Grant or Contribution Program:
- The choice of funding instrument - grant or contribution - respects accountability to Parliament and achieves a balance among principles of cost-benefit, risk management, and reasonable treatment of program recipients.
- Management can explain how recipients are expected to benefit from funding and to what end.
- Program officers understand who and what is eligible for funding, under what conditions funding can be provided, for what purposes, and in what amounts.
- Potential applicants are aware of the program.
- Eligible projects represent value for money to both the applicant and the program.
- More deserving recipients are funded and at an appropriate level.
- Funding is used for the purposes agreed.
- Problems with project and program performance are resolved quickly.
- Management reporting demonstrates a good knowledge of program performance.
- Money owed to the Crown is collected promptly (in the case of repayable contributions).
The QAR Initiative has provided an opportunity for WD to be proactive and move to the forefront of government departments in providing grants and contributions that are administered in a manner which ensures due diligence and provides performance information in keeping with government policy and central agency expectations. And, in line with the Mid-Term Strategy, this initiative shows WD in a leadership position that emphasizes a move to being a Department that sets an example for others.