Haiti Country Program Audit EN

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Audit of the Haiti Country Program Internal Audit Report October 2008 Office of the Chief Audit Executive Canadian International Development Agency200 Promenade du PortageGatineau, QuebecK1A 0G4Tel: [phone]Toll free: 1-800-230-6349Fax: [phone]Toll free for the hearing and speech impaired only: 1-800-331-5018)(For the hearing and speech impaired only (TDD/TTY): [phone]E-mail: [e-mail] The internal audit team wishes to thank the Haiti Country Program division and staff for their valuable cooperation. Haiti Country Program Audit Protected B Acronyms and Abbreviations Acronym or Description Abbreviation AMOCCI Support in Implementing the Interim Cooperation Framework CGF (Local) Fund Management Centre CIDA Canadian International Development Agency CPF Country Program Framework CPSU Cooperation Program Support Unit DFAIT Department of Foreign Affairs and International Trade DPR ental Performance Report EDRMS Enterprise Document and Records Management System FAA Financial Administration Act GPRSP Growth and Poverty Reduction Strategy Paper ICF Interim Cooperation Framework IF Interim Framework MAF Management Accountability Framework MDG Millennium Development Goals MINUSTAH United Nations Stabilization Mission in Haiti ODA Official development assistance OECD Organisation for Economic Co-operation and Development PAD Project/Program Approval Document ...

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• Publié par: Vaun
• Nombre de lectures: 18
• Langue: English

Extrait

   

     

 

 

Audit of the Haiti Country Program     

Internal Audit Report

October 2008  

Office of the Chief Audit Executive Canadian International Development Agency 200 Promenade du Portage Gatineau, Quebec K1A 0G4 Tel: [phone] Toll free: 1-800-230-6349 Fax: [phone] Toll free for the hearing and speech impaired only: 1-800-331-5018) (For the hearing and speech impaired only (TDD/TTY): [phone] E-mail: [e-mail]

  

   

 

   

         

 

The internal audit team wishes to thank the Haiti Country Program division and staff for their valuable cooperation.

 

 

Haiti Country Program Audit

Description

Acronyms and Abbreviations   Acronym or Abbreviation    AMOCCI CGF CIDA CPF CPSU DFAIT DPR EDRMS FAA GPRSP ICF IF MAF MDG MINUSTAH ODA OECD PAD PPR RCMP RPP TB TBS            

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Support in Implementing the Interim Cooperation Framework (Local) Fund Management Centre Canadian International Development Agency Country Program Framework Cooperation Program Support Unit Department of Foreign Affairs and International Trade Departmental Performance Report Enterprise Document and Records Management System Financial Administration Act Growth and Poverty Reduction Strategy Paper Interim Cooperation Framework Interim Framework Management Accountability Framework Millennium Development Goals United Nations Stabilization Mission in Haiti Official development assistance Organisation for Economic Co-operation and Development Project/Program Approval Document Project/Program Performance Report Royal Canadian Mounted Police Report on Plans and Priorities Treasury Board Treasury Board Secretariat    

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Table of Contents

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  Acronyms and Abbreviations .............................................................................................. i Executive Summary ........................................................................................................... iii 1.0 Background ..............................................................................................................1 2.0 Audit Objectives, Scope, and Strategy ....................................................................3 3.0 Audit Criteria ...........................................................................................................5 4.0 Findings, Recommendations, and Management Responses ....................................6 4.1 Governance and Strategic Directions.............................................................. 6 4.2 People............................................................................................................ 11 4.3 Stewardship................................................................................................... 18 4.4 Risk Management ......................................................................................... 26 4.5 Results and Performance............................................................................... 28 5.0 Conclusion.............................................................................................................30  Annex 1: Audit Objectives and Criteria............................................................................ 31 Annex 2: Summary of Recommendations / Management Responses and Action Plans .. 37        

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Executive Summary Backgroun   d The Haiti Country Program audit was planned as part of the 2007–2010 Internal Audit Plan recommended by the CIDA Audit Committee and approved by the President. The audit covered the period from April 2004 to December 2007. The audit took place between June 2007 and March 2008. Canada has provided development assistance to Haiti since 1968. Haiti bilateral program funding increased from C$17.2 million in 2003–2004 to C$90 million in 2007–2008. Audit Objectives The audit objective was to provide CIDA’s senior management with an independent and objective assessment of the key controls established for the Haiti (bilateral) Country Program to help achieve expected results, and to determine whether the key controls identified in Annex 1 exist and function properly. The work focused specifically on essential controls of the MAF components deemed important following the preliminary survey of the program. Selected MAF components include: governance and strategic directions; people; stewardship; risk management; and results and performance. Summary of Findings The audit concluded that improvements should be made to program management, especially in terms of documentation of strategic directions and objectives, human resources management, compliance with legislation and policies, due diligence and delegation of authority, risk management, and analysis of expected results versus achieved results. The program exercises adequate control of other MAF components.   Audit Opinion In my opinion as Chief Audit Executive, the Haiti Country Program requires significant improvements to correct major weaknesses in human resources and risk management as well as compliance with legislation and policies. Steps have been taken or are being taken to address these issues. Statement of Assurance In my professional judgement as Chief Audit Executive, the audit procedures followed and the evidence collected are sufficient and appropriate to support the accuracy of the opinion stated in this report. I reached this opinion by comparing the circumstances that existed at the time with the pre-established auditing criteria approved by management. This opinion applies only to the subject examined. The evidence was gathered in accordance with the Treasury Board's internal auditing policy, guidelines and procedures, and is sufficient to corroborate the findings and conclusions of this internal audit report.   CIDA Chief Audit Executive

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1.0 Background

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The objective of the Haiti Country Program is to implement CIDA’s bilateral programming in Haiti. CIDA has supported programs and projects in Haiti for 40 years, save a brief interruption during the military dictatorship from 1991 to 1994. It is the fragile state in which CIDA has been working the longest. Haiti is the only fragile state in the Americas and one of the poorest countries in the world. Haiti has several characteristics of a state in crisis, such as the Government’s inability to meet citizens’ needs, lack of security, the absence of the rule of law, a high crime rate, widespread unemployment, an informal economy, etc. The frailty of the economic and political conditions, and the Government’s inability to meet most of the population’s basic human needs are serious threats to the country’s stability and the security of the region. Haiti receives more development assistance from CIDA than any other country in the Americas and the second largest amount of aid that CIDA budgets for any specific country. To deal with the current situation in Haiti, several Government of Canada departments (including CIDA) have used a horizontal initiative to coordinate their activities aimed at strengthening good governance and democracy in Haiti, making the country more secure, and addressing basic human needs. Since the Spring of 2004, Canada has taken an international leadership role in Haiti. In cooperation with other donors and in support of Haiti’s interim government, Canada has been actively involved in developing and implementing a reconstruction plan for Haiti, described in the Interim Cooperation Framework (ICF). In November 2007, this framework gave way to a new development strategy approved by the Government of Haiti, theGrowth and Poverty Reduction Strategy Paper (GPRSP) 2008–2010. From April 1, 2004 to March 31, 2006, Canada pledged to provide assistance totalling $180 million. After Haiti’s interim government developed economic and social priorities for 2006–2011, Canada pledged in 2006 (and reconfirmed its pledge in July 2007) to provide $555 million in assistance during this period. The Haiti Country Program budget was substantially modified from $17.2 million in 2003–2004 to $77.5 million in 2004– 2005, and then to $90 million for the 2007–2008fiscal year. According to OECD statistics, Canada is Haiti’s second largest bilateral donor after the United States. The following table shows the value of CIDA’s disbursements to Haiti for 2003–2007:

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  Fiscal Years 2003–2004 2004–2005 2005–2006 2006–2007 4-Year Tota4lYear %      Total Haiti $28,280,034 $103,781,289 $99,114,531 $97,294,750 $328,470,603 100% Americas Branch •Haiti $17,205,249 $77,878,999 $77,506,685 $82,552,926  $255,143,858 77,7% •  $653,826 Other programs  $821,321 $1,243,085 $3,707,441 $6,425,673 2,0% Canadian Partnership $4,898,617 $4,848,655 $5,145,753 $5,544,503 $20,437,528 6,2% Multilateral Programs $5,467,592 $20,127,557 $14,155,931 $4,560,116 $44,311,196 13,5% Office for Democratic $0 $54,483 $994,132 $908,107 $1,956,722 0,6% Governance  Communications $54,750 $50,274 $68,945 $21,657 $195,626 0,1%  Source: SAP, unaudited The Department of Foreign Affairs and International Trade (DFAIT) is continuing its efforts to help strengthen security and justice, penitentiary reform, as well as disarmament, demobilization and reintegration. The Royal Canadian Mounted Police (RCMP) is responsible for selecting and deploying Canadian police officers for the United Nations Stabilization Mission in Haiti (MINUSTAH). CIDA’s challenges   CIDA programming is in line with the principles of theParis Declarationand reflects the Principles for Good International Engagement in Fragile States, approved by the OECD in April 2007. In order for CIDA to meet its national and international obligations, the Haiti Country Program must meet a number of challenges, such as attracting and mobilizing experienced personnel at Headquarters and in the field, while also ensuring their safety. The Program must also maintain flexibility and timeliness to respond to the volatility of the social, political and economic situations, while respecting the legislation, policies and guidelines of the Canadian government and CIDA. Moreover, the Program must operate with heightened political and media visibility, which entails numerous and frequent visits by politicians, as well as continual requests for information in addition to regular work to ensure program delivery. The Program had to adapt its programming to the specific aid delivery conditions in this fragile state. Therefore, the Haiti Country Program emphasizes direct programming that includes contributions to projects aimed at supporting the Haitian population and democratic government structures. The context that exists in other fragile states encourages CIDA to mainly use a program delivery mechanism that involves grants to international organizations working in those countries. To this effect, the Program has undergone significant changes in its personnel. In the last year, the Program has received a substantial increase in personnel at Headquarters and in the field. At Headquarters, the number of positions rose significantly, from 28 as of March 31, 2007, to 43 in December 2007. Moreover, the program team will now rely on

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a team of 66 people at the Cooperation Program Support Unit (CPSU), including 20 specialists in CIDA’s various areas of intervention in Haiti. Since the fall of 2007, this renewed team has been managed by a new Vice-President of the Americas Branch and new Director General of the Haiti Country Program. 2.0 Audit Objectives, Scope, and Strategy

Objectives  CIDA encounters high risks in delivering aid programs in fragile states, so these fragile states were identified in last year’s risk-based audit plan. The Haiti Country Program audit — like those for Afghanistan and Sudan — was approved by the President as part of the 2007–2010 Internal Audit Plan. The audit covered the period from April 2004 to December 2007. The audit objective was to provide CIDA’s senior management with an independent and objective assessment of the key controls established for the Haiti Country Program to help achieve expected results, and to determine whether the key controls identified in Annex 1 exist and function properly. Scope The audit focused on the key controls of five components of the Treasury Board Secretariat (TBS) Management Accountability Framework (MAF): governance and strategic directions; people; stewardship; risk management; and results and performance. These components were selected based on the risks identified during the preliminary survey of the Haiti Country Program. Other TBS MAF components were excluded from the detailed audit work, as no significant risk was identified during the planning phase. The audit work focused on the following controls: •legislation and with TBS and CIDA policies and guidelines.Compliance with •Management and financial controls of the Program’s activities at Headquarters and in the field, including the Cooperation Section of the Canadian Embassy in Haiti, the Fund Management Centre (CGF), local funds, and Support in Implementing the Interim Cooperation Framework (AMOCCI). •The Program’s current accountability framework and human resources management strategy, including its organizational and functional structure, as well as planning, reporting and performance appraisal. •CIDA’s participation in the horizontal initiative put in place by the Government of Canada to coordinate its strategies in Haiti.

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The audit focused on the management of 13 aid initiatives (2 grants, 6 traditional projects, 2 projects managed by consultants/cooperants, 3 responsive local fund projects) of the 60 that were operational from FY 2004–2005 to FY 2006–2007   .Total disbursements for the Program were $82.5 million for FY 2006–2007, $24.9 million of which went towards these initiatives. For the responsive local fund projects, the audit focused on management controls of projects activities and related funds.     Disbursements 3-Year Total  2004–2005 2005–2006 2006–2007 Total disbursements from aid budget $77,878,999 $77,506,685 $82,552,926 $237,938,609      Disbursements for selected projects $5,344,573 $12,776,734 $24,879,051 $43,000,358      Percentage of coverage 6.9% 16.5% 30.1% 18.1% Source: SAP, unaudited The audit excluded the activities of the Cooperation Program Support Unit (CPSU) and all other activities conducted by Canadian organizations in Haiti. Audit Strategy The audit included a review of CIDA’s key financial and management controls, operations, activities and processes implemented as part of the Haiti Country Program at Headquarters and at the Canadian mission in Port-au-Prince, Haiti. The audit work included: •Interviews with CIDA management and personnel at Headquarters, at the Canadian embassy, and at the CPSU in Port-au-Prince, as well as with representatives of other donors, the Government of Haiti, Canadian executing agencies, consultants and cooperants, international organizations, and local non-governmental organizations •Interviews with DFAIT and Privy Council Office representatives involved in the horizontal initiative to coordinate Canada’s efforts in Haiti •Site visits to selected initiatives •Review and analysis of documents contained in CIDA files concerning the initiatives, including project approval documents, selection and approval of agreements, budgets, program development assistance plans and reports, minutes of meetings, and so on •Review and analysis of documents concerning program management, including strategy, budget, work plans, strategic and sectoral analyses, minutes, and so on   The audit was conducted in coordination with the internal audit ofManagement of Competitive Contracts. To ensure effective use of resources and to prevent duplication of effort, the Haiti Country Program audit used the findings presented in the report on the   Aid Expenditure Systems, wherever these findings proved applicable and appropriate.

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3.0 Audit Criteria

 

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The Haiti Country Program representatives discussed and accepted the criteria (see Annex 1), which were based on the components of the Management Accountability Framework and the essential controls and objectives defined by Treasury Board Secretariat.

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  4.0 Findings, Recommentidoans, and Management  Responses

4.1 Governance and Strategic Directions The audit aimed to establish whether the program meets the essential conditions (internal consistency, organizational discipline and harmonization with results) to ensure effective strategic directions, support the Minister responsible and Parliament, and achieve results.

4.1.1 Horizontal Initiative Criterion The Haiti Country Program is fully committed to (appropriateness, leadership, resource commitment) and actively participates in the smooth operation of the horizontal coordination strategy related to activities in Haiti. Finding The Program is committed to the horizontal initiative for Haiti and participates actively in its implementation. According to Treasury Board Secretariat (TBS), when government objectives exceed the scope of a federal department’s activities, departments must work with their partners to achieve shared objectives. For TBS, according to theGuide for the Preparation of Part III of the Estimates: Reports on Plans and Priorities (RPP) and Departmental Performance Reports (DPR), a horizontal initiative is “an initiative in which partners, from two or more organizations, have agreed under a formal funding agreement (e.g. Memorandum to Cabinet, Treasury Board Submission, federal/provincial agreement) to work towards the achievement of shared outcomes.” Partners include other federal departments or agencies, other national governments, non-government agencies, private-sector organizations, and so on. After analyzing lessons learned from various horizontal initiatives identified in 2001, and to provide guidance for departments, TBS produced draft guidelines in 2006 on the organization and operation of horizontal initiatives. In June 2006, DFAIT launched the implementation of a formal structure to coordinate Canadian departments, agencies and paragovernmental organizations called upon to play a leading role in Haiti’s reconstruction. Used as a forum for coordinating efforts, this structure is proactive in ensuring coordinated decision-making and the smooth conduct of Canada’s activities. This three-level structure includes a committee of deputy ministers of the departments involved, co-chaired by the President of CIDA and the Deputy Minister of Foreign Affairs. The structure also includes an executive committee, chaired by CIDA

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