Audit of capital assets management: chapter 8

Annex 3 - Capital Assets Related Recommendations of the 2008 Report of the Cesd

2.36 Recommendation. Environment Canada should document and implement the policies, systems, and procedures necessary to support its commitment to full lifecycle management of its monitoring network assets.

The Department’s response: Environment Canada agrees with this recommendation and has already taken concrete steps toward this goal. The surface weather, radar, and upper air networks were ISO (International Standards Organization) 9001 certified in 2007, which means that systems and processes are in place to ensure effective management of the networks, as verified by regular and successful internal and external audits. Our ISO certification also requires that performance measures be collected and analyzed to improve effective planning for the maintenance of these assets. The result is a dynamic risked-based lifecycle management approach that ensures the health of the networks while respecting resource realities.

Environment Canada will continue to improve its procedures through the Department’s new integrated investment planning (IIP) process. The condition of the current assets will first be assessed through the development of an Asset Condition Index (ACI), to be completed before fiscal year 2009-10. Performance measures generated through our ISO processes will provide the basis for ongoing assessment of network and component performance, and will guide ongoing lifecycle investment planning through the IIP process.

2.42 Recommendation. Environment Canada should prepare a fully costed long-term strategy supported by a capital plan for its monitoring networks. The strategy and plan should be consistent with lifecycle management and linked to the Department’s approved strategies, priorities, and integrated investment planning.

The Department’s response: Environment Canada agrees with this recommendation. The Department is developing a fully costed business case that will incorporate a monitoring strategy and long-term capital plan within the Treasury Board’s new integrated investment planning (IIP) process that will support Environment Canada’s mandate in severe weather and climate monitoring. As outlined in the response to the previous recommendation (paragraph 2.36), the Asset Condition Index (ACI) and ongoing performance measures collected through International Standards Organization (ISO) processes will be fully integrated with and inform this process. Environment Canada will work to identify the ongoing resources to support this strategy in fall/winter 2008-09. From an asset-integrity perspective, investments will be prioritized taking into consideration the condition (as identified by the ACI) and the performance of the asset.