Audit of the Management Control Framework (MCF)
Spectrum Telecommunication Program (S/TP)
Audit and Evaluation Branch
Industry Canada
November 2005
Executive Summary
1.1 Introduction
The Spectrum/Telecom Program (S/TP) in the Spectrum, Information Technology and Telecommunications Sector (SITT) is one of Industry Canada's Marketplace Service Organizations (MSO). The S/TP uses its policy and regulatory rule-making powers, and marketplace and industry sectoral development services to:
- ensure that Canadians have access to a world class telecommunications and information infrastructure to participate in the networked economy;
- promote the international competitiveness of Canadian information technologies and telecommunications industries;
- ensure effective and efficient use of the radio frequency spectrum as a strategic natural resource; and,
- analyse requirements and propose measures to enhance the cybersecurity of Canada's telecom and information infrastructure.
Three of the sector's branches: Radiocommunication and Broadcasting Regulatory Branch (DGRB), Spectrum Engineering Branch (DGSE) and Telecommunications Policy Branch share responsibility for management of the S/TP with the regional and district spectrum offices of the Operations Sector.
1.2 Audit Objectives
The objective of the audit was to assess whether the Spectrum Telecommunications Program has an effective management control framework. More specifically, the audit involved:
- conducting an assessment of the effectiveness of the management control framework in place at the Spectrum Telecommunications Program; and
- identifying key residual risks to the objectives of the Spectrum Telecommunications Program, stemming from weaknesses in the management control framework.
The audit findings were then mapped against the Treasury Board Secretariat Management Accountability Framework (MAF).
1.3 Audit Scope
The audit covered the management processes at the Spectrum Telecommunications Program at the time of the audit, i.e., August – November 2005. The audit covered the three branches within SITT that encompass the Spectrum Telecommunications Program:
- Radiocommunications and Broadcasting Regulations;
- Telecommunications Policy; and
- Spectrum Engineering.
1.4 Overall Assessment
Overall, the auditors found that the S/TP Management Control Framework (MCF) (organizational elements including its resources, systems, processes, culture, structure and tasks that support people in the achievement of the organizational objectives) is adequate and effective. The MCF provides reasonable assurance that the organization is well positioned to manage risk and achieve stated objectives.
1.5 Main Findings, Conclusions and Recommendations
All elements of the Management Accountability Framework (MAF) are being addressed through activities initiated at the Departmental, Sector, Program, Branch and Directorate levels. There is a general sense of understanding and adoption of the MAF with some initiatives newly implemented and others under review as part of a continuous improvement and transformation process.
The MAF consists of ten elements:
- Governance & Strategic Direction;
- Public Service Values;
- Results and Performance;
- Policy and Programs;
- People;
- Citizen Focused Services;
- Risk Management;
- Stewardship;
- Accountability; and
- Learning, Innovation and Change management.
1.5.1 Governance & Strategic Direction
S/TP has a corporate management framework aligned to strategic outcomes, results-focused corporate priorities, a strategic resource allocation/reallocation process based on performance, an integrated agenda for management excellence and a cyclical scanning of its environment (domestic and international factors, including client satisfaction and relationships).
Conclusion
The essential conditions of governance and strategic direction are in place to provide effective strategic planning and support to the Minister and Parliament, as well as for the delivery of results.
1.5.2 Public Service Values
S/TP senior managers continually reinforce the importance of values and ethics in the delivery of services and products. While S/TP has not developed a unique values and ethics program, the organization does operate in alignment with ethics and values policies of both the Government of Canada and Industry Canada.
Conclusion
The ethics and values policies that S/TP relies on reflect those used in many government departments and agencies. The adequacy or effectiveness of ethics and values activities, in an S/TP context, has not been evaluated.
Recommendation
The ADM, Spectrum, Information Technology and Telecommunications Sector, should ensure that an evaluation of the adequacy of the ethics and values program of S/TP is undertaken and, if necessary, a unique S/TP Values and Ethics Program should be developed and implemented.
1.5.3 Results and Performance
Key Results are reported against the Strategic Outcomes and key partners for success are identified. There are linkages to government wide themes and management methodologies such as Results for Canadians and the Management Accountability Framework. Resource allocation and utilization are reported against the identified strategic outcomes. There is evidence that the Program participates fully in Industry Canada and Government of Canada initiatives. The Program has an ongoing initiative to improve performance information definitions, collection and use.
Conclusion
The Program has commenced to establish a results and performance regime that will ensure that relevant information on results is gathered and used to make decisions. Public reporting is balanced, transparent, and easy to understand.
Recommendation
The ADM, Spectrum, Information Technology and Telecommunications Sector should ensure that work begun to strengthen performance measurement, monitoring and reporting is continued.
1.5.4 Policy and Programs
S/TP's membership and support of Canadian and International committees and organizations, as well as bilateral and multilateral negotiations with industry representatives are used as mechanisms to consult, communicate, review and challenge policies and legislative options. Ongoing monitoring and analysis of the public and private sector radio and telecommunication environment supports an ability to provide timely advice to the Minister. There is a recruitment/development succession plan for the policy community associated with the Spectrum Telecommunication Program.
Conclusion
S/TP has a sustainable research and analytical capacity to provide a high level of quality assurance in the areas of developing policy options, designing programs, and providing advice to Ministers.
1.5.5 People
Human Resource issues are of critical importance to the S/T Program. The SITT Integrated Risk Management (IRM) Implementation Plan Timeline (January 2005) identified human resource capacity as one of the highest risks for the Program. Work levels and the pace of change have increased dramatically while available resources have remained level or have been reduced over the past few years. Many of the senior and highly specialized positions have incumbents who are near or at retirement age. There are special projects such as the Spectrum Informatics Review and Redesign (SIRR) and the Telecommunication Policy Review Panel that have applied additional work load pressures on key resources in all three Branches. A workgroup of Directors has been formed to assist / support the implementation of Human Resource Modernization. This group will review current HR management practices and strategies and make recommendations for improvements.
Conclusion
S/TP managers demonstrate a commitment to maintaining a positive work environment and a focus on building capacity and leadership to assure future success.
1.5.6 Citizen Focused Services
As indicated in 1.3.4 Policy and Programs, S/TP uses a variety of methodologies to ensure that policies and programs are developed in cooperation and partnership with S/TP clients and that Canadian interests are appropriately considered in international and global negotiations and discussions.
Conclusion
S/TP has clearly addressed and is committed to all aspects of providing client-focused services.
1.5.7 Risk Management
A sector-level Risk Profile and an Integrated Risk Management (IRM) Action Plan, consistent with Treasury Board Secretariat expectations, have been developed. The Risk Profile establishes SITT's strategic organizational context, key risk areas (KRAs), and potential risk events that could evolve from the organization's mandate, as well as the internal and external environment. A sound understanding of the operational environment and risk vulnerabilities establishes a basis for identifying areas where specific risks should be assessed further, in consultation with key stakeholders.
The SITT IRM Implementation Plan Timeline, January 2005, outlines desired outcomes, existing and planned mitigation measures, timelines, lead organizations and participating branches and the progress/status for each key risk area. Program funding levels for S/TP, human resource capacities and coordination of telecommunication – Emergency Response were identified as high risk (probability and impact) areas. Mitigation strategies are being implemented and the S/TP Branches are addressing the major risk areas identified.
Conclusion
S/TP has begun to establish the context and practices for managing organizational and strategic risks proactively.
Recommendation
The ADM, Spectrum, Information Technology and Telecommunications Sector should ensure that risk management continues as defined in the SITT IRM Implementation Plan and that mitigation strategies for high risk areas continue to be closely managed.
1.5.8 Stewardship
Financial management practices are standardized throughout the Program. Common sets of spreadsheets are used to monitor HR and financial resource information. Sector reporting requirements are defined through a schedule. Financial transactions are reconciled to the departmental financial system. Sector and Branch committees are used to communicate and coordinate financial, human resource and administrative policies and procedures. Resources are allocated and monitored against strategic priorities.
IT systems are integrated to provide end-to-end support to business activities. The legacy systems are nearly 25 years old. The Spectrum Informatics Review and Redesign (SIRR) project has been initiated to develop a sustainable new IT environment better able to meet current and future business requirements and will replace many of the legacy systems
Critical business activities have been identified and are covered by a fully operational, maintained and tested Business Continuity Plan (BCP) for SITT. The S/TP activities are part of a larger Government of Canada Emergency Preparedness Plan. Testing of the BCP has occurred during actual situations and a lessons learned activity is performed after each incident. There is no up-to-date Disaster Recovery Plan (DRP) for related legacy systems.
Conclusion
The S/TP control regime is integrated and effective and its underlying principles are clear to all staff. However, there is a need to ensure that the Disaster Recovery Plan is current and integrated with the tested Business Continuity Plan.
Recommendation
The ADM, Spectrum, Information Technology and Telecommunications Sector should ensure that priority is given to the maintenance of fully tested Business Continuity and Disaster Recovery Plans, and that such plans are kept up to date over time.
1.5.9 Accountability
Business plans, priority lists, meeting minutes and risk documents define expected outcomes and assign organizational and, in some cases, individual accountabilities. Delegations of authority are established following the Industry Canada directives and are controlled using temporary assignment forms.
A network of committees with clear terms of references and appropriate membership has been established. The committee structure oversees and coordinates performance for S/TP Branches and Regional Offices who deliver parts of the Program.
Conclusion
There is clear accountability for results and delegations are appropriate to capabilities.
1.5.10 Learning, Innovation and Change Management
The commitment of Spectrum and Telecommunication managers to learning, innovation, and change management is evident in the number and types of ongoing and special projects at the time of the audit. Organizational learning and knowledge management practices are being improved through the establishment of personal learning plans, the implementation of an electronic information management system, and the implementation of the Human Resources Modernization initiative. Transformation and continuous improvement projects include the renewal of the informatics and business support systems (SIRR), the use of rotational and acting assignments to facilitate the passage of corporate knowledge, and the ongoing analysis and review of performance indicators and performance measurement practices. The Certification and Engineering Bureau of Spectrum Engineering Branch is ISO 9000 certified.
All managers interviewed were receptive to this audit and keen to have areas requiring attention identified.
Conclusion
S/TP manages in an environment of continuous innovation and transformation.
Final Report (PDF - 193KB - 26 pages)
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Date Created: 2006-06-19
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