![]() |
![]() ![]() | |||||
![]() ![]() |
Français | Contact Us | Help | Search | Canada Site |
What's New | About Us | Policies | Site Map | Home |
Alternate Format(s)
|
![]() |
The issues considered during the Step Two fieldwork were drawn in large part from Chapter 27 of the 1998 OAG Report, many of which were re-emphasized in their November 1999 Report. The broad issues considered by the fieldwork were as follows:
QAR deals with issues at the project, not program, level. In making that distinction, QAR does not consider program-level issues such as choice of funding instrument, compliance with government or departmental priorities or overall program reporting (e.g. Annual Report, Performance Report, etc.). The QAR Step II: Best Practices Report provides a schematic to help put the QAR initiative in perspective, and place the issues covered by QAR relative to an overall program and project life cycle. QAR Step IIIWhere Are We Now?QAR Step III is now complete, and has followed from the work reported under Step II in The Best Practices Report. In that document, we recognized that best practices are not only documents; but rather the activities around ensuring that appropriate file documentation exists:
We make this distinction to emphasize that although documents may be on file, if they are not supported by best practices, there is a possibility that the need to ensure due diligence, have clear objectives, measure and report on performance and manage funds responsibly has not been accomplished. Step III has included:
This report on Step III brings this stage of the QAR Initiative to a close in terms of A&E's developmental efforts. As noted, we have received valuable feedback from the Regions, and via this report, will clarify where the contents of the QAR checklists come from, and how they might be adjusted for the project file types to reflect the best practices and documentation identified. A&E is now looking to the program areas to make any further adjustments to these tools to meet local and program/project considerations - bearing in mind the content of this report. In addition to this Report A&E has prepared a guidance document (Appendix Three) that is an essential part of considering the QAR Checklists. The QAR ChecklistsThe checklists have been adjusted to take into account key suggestions from the latest feedback on the instruments. Each has been changed to remove the word "Form" from "Client Application Form" and substitute "Information". There is a sense that if the information is completed as suggested in the guidance document (Appendix Three), it will indeed meet the intent of TB without compromising the informal way that WD wants to interact with our clients. For all of the QAR Checklists, including the WDP Checklist; the best practices work suggests very strongly that a T&C (Terms and Conditions) Checklist, a PAS (the Project Assessment Summary) and a PAN (Project Approval Note) should all be completed and on file. Discussions have made it clear that the PAS is seen as a document that supports the PAN; but does not replace it as an essential element of ensuring that due diligence has taken place. With that said, some discretion must be used. And that discretion should correspond directly to an on-file assessment of the risk presented by each project. It is clear that unduly complex files, and exhaustive file contents are not the best use of effort where risk is assessed to be low. Nonetheless, certain critical elements must exist in all files, and certain critical best practices must be undertaken. These include a T&C Checklist, a PAS, and a PAN. In terms of the Loan Funds Checklist, some modification of specific wording may be in order for specific projects given regional preferences in terms of program and project-level accountability. The guidance provided by WD on our web site [http://www.wd.gc.ca/finance/programs/appsum_e.asp] is also helpful in that it clearly defines the information that is expected from each applicant. Also worth considering is the direction provided in the TB submission for LIFP that states that the application process will include the documentation of the technology review and a business plan. One specific suggestion in refining the QAR Checklist may be to replace the "Terms and Conditions Checklist" with a document (or checklist) that will help to demonstrate that basic eligibility criteria had been checked and met. In addition, some type of formal signed-off approval note is advisable. The eligibility letter to the bank is a clear file content requirement, as would be a copy of the loan approval letter from the financial institution. Undertaking these best practices will reflect the notions included in WD's TB submission suggesting that applicant screening, due diligence and loan/investment application approval is be based on an integrated and transparent process. It is apparent that the intent of the Loan investment Funds is to bridge access to financing gaps in particular industries that represent opportunities for the diversification of the western economy. While efforts to assess program performance have focused on statistics regarding take-up and funding issues, the intent of monitoring and evaluating the effort should include whether or not the loans help achieve that broader objective. And for that reason, progress and final reports from the individual loan recipients is seen as a key component of the files. Our QAR File Contents and Best Practices Checklist for Projects Delivered by WD's Service Partnership Network, are also finalized. Our discussions indicate that program staff view the agreements (and resulting file contents) that cover the relationship between service partners and WD as a strong point. Recent developments - most particularly Treasury Board's new Policy on Transfer Payments - have strengthened expectations in this regard. In this light, WD should continue to ensure that we meet the expectations of central agencies (e.g.: the OAG) that may be looking for comprehensive documented knowledge of individual projects funded by our service partners who deliver either WD-core, or one-time programs. One way to meet the expectations of central agencies is for service partners to have the QAR checklist on file, and to have the necessary supporting documentation there as well. WD can contribute by undertaking activities that ensure our identified "Best Practices" are taking place on a project-by-project basis. This could be accomplished in a comprehensive manner by having critical service partner project-specific information on our files, and undertaking a planned and regular risk-based review of files. Doing so will help to ensure that due diligence is exercised, objectives are clear, performance is measured and reported, and funds are managed responsibly. Next StepsAttached are the three final checklists as prepared by A&E. As we have mentioned, it is now up to WD staff associated with project management to adjust the checklists to reflect wording peculiarities as they reflect operational conditions, and considering the comments above. With our role in Step 3 complete, Step 4 of the QAR Initiative is a review of files which is expected to start late in the final quarter of FY 2000-2001. In the interim, there remains the clear probability that the OAG will exercise its prerogative to audit our files as well, either as part of a government-wide G&C audit or an audit of WD alone. A wealth of effort exists to demonstrate WD's strong approach to managing the department's grant and contribution portfolio. Through QAR, these best and promising practices have now been shared; allowing WD to build on the existing grant and contribution management efforts and promote the consistent application of the best and promising practices identified. By doing so, we are assuring that grant and contribution funds at WD are providing the maximum intended benefits to Canadians, and that scrutiny of our practices would result in consistently positive observations. Through the QAR initiative, WD is acting in a positive manner and has assumed a leadership role for all government departments that provide grants and contributions to Canadians. Appendix One - General Approach to the QAR Initiative
|
STEP |
Description |
Step One Issue identification, planning, and analysis. |
|
Step Two Quality Assurance Review. |
|
Step Three Develop and provide tools. |
|
Step Four Quality Assurance |
|
Due diligence is demonstrated by reviewing and approving applications in a complete and appropriate manner. Persuasive assessments exist to support the funding decisions, and documentation is on file that reflects all the major factors supporting decisions to approve assistance.
Clear, attainable objectives are set, allowing management to explain how recipients are expected to benefit from funding and to what end.
Performance against objectives is measured and reported to ensure control, monitoring and evaluation of the funding effort and that funding is used for the purposes agreed.
Funds are managed in a responsible manner.
Program Officers are expected to ensure that the Best Practices of Information Gathering, Preparation and Entry, Verification and/or Information Analysis are undertaken; and that the Core and Supporting Documents are on file.
Covered by WDP T&Cs:
Covered by Separate T&Cs [and agreements]:
Covered by Separate T&Cs for Operational Funding, and responsible for Third-Party Delivery of Programs:
The Tables below offer guidance with regard to the documents one might expect to find on file for current, on-going WD programs. The x symbol represents a required item based on established WD policy, or more importantly, Treasury Board Decision. A y denotes a document that been suggested through our QAR Best Practices exercise.
|
Covered by WDP T&Cs: (i) |
Covered by Separate T&Cs: |
||||||||||||
|
Agri-Food |
Canada Foun- |
First Jobs in |
Inter- |
Sponsor- |
Strategic Initiatives |
Western Coop- |
Western Economic Diversi- |
All |
Service Delivery Network |
Western |
Western Urban Develop- |
Programs Delivered |
Programs Delivered |
To Ensure Due Diligence - Review and approve applications in a complete and appropriate manner and provide persuasive assessments based on relevant documentation to support decisions to approve assistance. |
||||||||||||||
Client Project Application (ii) |
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
WD Project Screening Information: (iii)
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
|
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
|
x |
x |
x |
x |
x |
x |
x |
x |
NA |
NA |
NA |
NA |
NA |
NA |
|
x |
x |
x |
x |
x |
x |
x |
x |
NA |
NA |
NA |
NA |
NA |
NA |
To Ensure Due Diligence - Review and approve applications in a complete and appropriate manner and provide persuasive assessments based on relevant documentation to support decisions to approve assistance. |
||||||||||||||
Client Project |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
Client Business Plan (v) |
x |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
WD Technology Review |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
NA |
x |
NA |
NA |
NA |
NA |
NA |
WD Terms and Conditions Checklist (vi) |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
WD Project Assessment |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
WD Project Approval Note |
y |
y |
y |
y |
y |
y |
y |
y |
y |
y |
y |
y |
y |
y |
WD Letter of Offer (viii) |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
WD Client Contact Notes (ix) |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
WD/Client Signed Agreement (x) |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
x |
TB Approvals (xi) |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
NA |
NA |
NA |
NA |
NA |
To Measure and Report on Performance - Ensure control, monitoring and evaluation of the funding effort and that funding is used for the purposes agreed. |
||||||||||||||
WD Monitoring Plan |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
Client Progress Reports (xii) |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
WD Project Monitoring Report |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
WD Project Audit Reports |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
Client Final Project Report (xiii) |
x |
x |
x |
x |
x |
x |
x |
x |
y |
y |
y |
y |
y |
y |
To Ensure Responsible Fund Management - Ensure that resources are used efficiently and that payments and repayments occur in a timely manner. |
||||||||||||||
Client Claim for Reimbursement |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
WD Risk Assessment for Claim Verification |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
WD Record of Claim Review |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
WD Record of Payment |
x |
x |
x |
x |
x |
x |
x |
x |
NA |
y |
y |
y |
y |
y |
QAR File Contents and Best Practices Checklist: For Projects Covered by WDP Terms & Conditions |
Best Practices |
||||||||||||||
Information Gathering, Preparation and Entry |
Information Verification |
Information Analysis |
|||||||||||||
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
|||||||
Y |
N |
NA |
Y |
N |
NA |
Y |
N |
NA |
|||||||
Required to Ensure Due Diligence - Review and approve applications in a complete and appropriate manner and provide persuasive assessments based on relevant documentation to support decisions to approve assistance. |
|||||||||||||||
Client Application Information |
|||||||||||||||
WD Project Screening Information |
|||||||||||||||
Client Project Proposal |
|||||||||||||||
Client Business Plan |
|||||||||||||||
WD Terms & Conditions Checklist |
|||||||||||||||
WD Project Assessment Summary |
|||||||||||||||
WD Project Approval Note |
|||||||||||||||
WD Letter of Offer |
|||||||||||||||
WD/Client Signed Agreement |
|||||||||||||||
TB Approvals |
|||||||||||||||
Required to Measure and Report on Performance - To ensure control, monitoring and evaluation of the funding effort and that funding is used for the purposes agreed. |
|||||||||||||||
WD Monitoring Plan |
|||||||||||||||
Client Progress Reports |
|||||||||||||||
WD Project Monitoring Report |
|||||||||||||||
WD Project Audit Reports |
|||||||||||||||
Client Final Project Report |
|||||||||||||||
Required to Ensure Responsible Fund Management - To ensure that resources are used efficiently and that payments and repayments occur in a timely manner. |
|||||||||||||||
Client Claim for Reimbursement |
|||||||||||||||
WD Risk Assessment for Claim Verification |
|||||||||||||||
WD Record of Claim Review |
|||||||||||||||
WD Record of Payment |
QAR File Contents and Best Practices Checklist: For Each Individual Loan Fund Application |
Best Practices |
||||||||||||||
Information Gathering, Preparation and Entry |
Information Verification |
Information Analysis |
|||||||||||||
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
|||||||
Y |
N |
NA |
Y |
N |
NA |
Y |
N |
NA |
|||||||
Required to Ensure Due Diligence - Review and approve applications in a complete and appropriate manner and provide persuasive assessments based on relevant documentation to support decisions to approve assistance. |
|||||||||||||||
Client Application Information |
|||||||||||||||
WD Project Screening Information |
|||||||||||||||
Client Project Proposal |
|||||||||||||||
Client Business Plan |
|||||||||||||||
WD Technological Review |
|||||||||||||||
WD Terms & Conditions Checklist |
|||||||||||||||
WD Project Approval Note |
|||||||||||||||
Client/Bank Signed Agreement |
|||||||||||||||
Required to Measure and Report on Performance - To ensure control, monitoring and evaluation of the funding effort and that funding is used for the purposes agreed. |
|||||||||||||||
Client Progress Reports |
|||||||||||||||
Client Final Project Report |
QAR File Contents and Best Practices Checklist: For Projects Delivered by WD's Service Partners |
Best Practices |
||||||||||||||
Information Gathering, Preparation and Entry |
Information Verification |
Information Analysis |
|||||||||||||
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
On File? |
Ref. |
Sig. |
|||||||
Y |
N |
NA |
Y |
N |
NA |
Y |
N |
NA |
|||||||
Required to Ensure Due Diligence - Review and approve applications in a complete and appropriate manner and provide persuasive assessments based on relevant documentation to support decisions to approve assistance. |
|||||||||||||||
Client Application Information |
|||||||||||||||
WD Project Screening Information |
|||||||||||||||
Client Project Proposal |
|||||||||||||||
Client Business Plan |
|||||||||||||||
Terms & Conditions Checklist |
|||||||||||||||
Project Assessment Summary |
|||||||||||||||
Project Approval Note |
|||||||||||||||
Letter of Offer |
|||||||||||||||
Signed Agreement |
|||||||||||||||
Required to Measure and Report on Performance - To ensure control, monitoring and evaluation of the funding effort and that funding is used for the purposes agreed. |
|||||||||||||||
Monitoring Plan |
|||||||||||||||
Client Progress Reports |
|||||||||||||||
Project Monitoring Report |
|||||||||||||||
Project Audit Reports |
|||||||||||||||
Client Final Project Report |
|||||||||||||||
Required to Ensure Responsible Fund Management - To ensure that resources are used efficiently and that payments and repayments occur in a timely manner. |
|||||||||||||||
Client Claim for Reimbursement |
|||||||||||||||
WD Risk Assessment for Claim Verification |
|||||||||||||||
WD Record of Claim Review |
|||||||||||||||
WD Record of Payment |
Guidance Document Notes:
(i) Covered by WDP Ts&Cs - Required information is based on the content of the WDP Operations Handbook. [Return]
(ii) Client Project Application - WDP Ts&Cs [807005] stipulate that, "All project applications must be in writing and must be received at a designated office of WD or at such other location or by such other means as may be determined by WD." [section 8. I]. In addition the WDP Ts&Cs define "application" as, "a written request by an applicant to the Minister for assistance under the WDP. It should describe:For WD Loan Programs applicants are asked to submit a two-page summary of your project. This is used to help determine if the project meets the basic criteria of the loan program. The summary should include the following information:
(iii) WD Project Screening Information - All elements well described in WD's Operations Handbook. [Return]
(iv) Client Project Proposal - May be included as part of the client's Business Plan. [Return]
(v) Client Business Plan - May consist of some or all [officer's discretion and as applicable] of the following components depending on the project:
(vi) WD Terms and Conditions Checklist - To be developed by program staff - will include all relevant requirements from the Terms and Conditions as accepted or demanded by TB. [Return]
(vii) WD Project Assessment Summary - All projects covered by WDP Terms and Conditions must have a fully completed Project Assessment Summary. [Return]
(viii) WD Letter of Offer - WDP Ts&Cs [807005] stipulates that, "The Letter of Offer will constitute the only legally binding confirmation of assistance under WDP. Letters of Offer, which may vary in contents according to the nature of the project, time to completion, etc.) will set out specific Terms and Conditions for the financial support that WD is offering to the applicant." [Return]
(ix) WD Client Contact Notes - Formalization on-file of informal contact information from phone calls, meetings, non-audit related site visits, etc. [Return]
(x) WD/Client Signed Agreement - The parties to the agreements may vary depending on the program. For those covered by the WDP Terms and Conditions, the agreement is indeed between WD and the applicant. For the Loan Funds programs the parties to the agreement are WD and the financial institution. For SDN, WEPA and WUDA agreements may include several parties. CFDC and WEC delivered programs may involve agreements between WD and another department as well as the CFDC or WEC and the applicant. [Return]
(xi) TB Approvals - For all projects with a WD assistance level of $10 million or more. [Section 7, WDP Ts&Cs] [Return]
(xii) Client Progress Reports - Under WDP, required on a quarterly basis. [Return]
(xiii) Client Final Project Report - As set out in the Letter of Offer indicating the results, actual and expected benefits, and any follow-up activity planned. [see Section 13 v) of the WDP Ts&Cs] [Return]
|
||||
![]() |