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Audit criterion: The Department has in place an approved investment planning framework.
Deputy heads are responsible for implementing an effective management framework for
assets and acquired services, including departmental procedures, processes and systems,based on principles of stewardship and value for money.
The Department does have an approved Investment Planning Framework. The frameworkincludes: a reporting framework; project management guides, templates; and a guide andtemplate specific to Project Complexity and Risk Assessments. The Investment Planning
Framework is focused primarily on project investments and includes a description of projectmanagement governance, definitions, information management practices, performancemanagement and a description of key roles and responsibilities. Some elements of the
Framework were modified and presented at the Budget Day in February 2012, including an
updated governance model, project delegation process and a gating process. These updatesshould be made in the Investment Planning Framework to support management in theupcoming planning cycle.
As mentioned, the investment planning process has been designed to support an enterprise
approach. Interviews indicate that while some stakeholders recognized a standardized
enterprise approach for investment planning, others thought there was some flexibility inhow branches would conduct investment planning. More clarity around the enterpriseapproach could be documented in the Framework.
Through document review and interviews, the audit concluded that branches understood the
departmental requirements to identify, cost and select investments. However branch
officials did not always understand how to complete the process. In support of theimplementation of the approach to investment planning, the framework should providemore detail on roles and responsibilities at the branch level. While prioritization criteria were
included in the Investment Planning Framework, some new criteria were introduced duringthe current round of planning and should be updated in the framework.
The recommendation below includes a few areas where the Investment Planning Frameworkshould be updated. Some of these observations are discussed further in the report.
Recommendation 1
It is recommended that the Chief Financial Officer update the Investment Planning
Framework to: update roles and responsibilities; formalize a planning strategy for moving
forward; identify priority areas and costing for non-project investments; strengthenintegration of investment planning with operational planning; and clarify the life-cyclemanagement process for all assets.
The updates to the Investment Planning Framework are consistent with the Department'sforward agenda for investment planning.
Regarding linkages with non-project investments or ongoing acquisition of assets and
services into the Investment Planning Framework, the Chief Financial Officer Branch will
review the scope of expenditures to be included in the Investment Plan and will work withrelevant branches to determine priority areas in non-project investment.