• Introduction
• Program Overview
• NIF is not a Grant
• NIF Program Management
• Principles and Guidelines
• General Policies and Conditions
• NIF Proposal Application Process
• The Proposal Form
• Project Management
• Audit and Review
• Glossary
• Appendices
• Forms
• Reporting Requirements

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10.0 AUDIT and REVIEW

Recent changes to the Treasury Board Secretariat's Audit and Evaluation policies include a focus on results-based management and an emphasis on audit assurances to ensure that public funds are expended in a responsible manner. As a result, a number of changes have been made to the Audit and Review policies governing the NIF.

10.1 Program Objectives and Guidelines

Program objectives and guidelines are set out in the NIF Guide that describe all of the terms, conditions and program requirements needed by program managers, applicants and auditors.

The NIF Guide is distributed to all managers or other individuals with an interest in accessing the NIF program.

The Guide is reviewed and updated on a periodic basis to ensure its continued relevance to all stakeholders.

The Guide is supplemented by the provision of additional information to program participants on an "as required" basis.

10.2 Funding Categories

Projects must address the priorities of the NSP.

10.3 Program MOUs

Program MOUs are agreed to and signed by Secretariat-authorized Sponsors. The MOUs are based on the principles set out in the Guide.

The MOUs have no expiry date and may only be amended or terminated by mutual agreement.

10.4 Proposal Application

All proposals are reviewed by the sponsoring department, the Secretariat and representatives of the Sponsors, who make up the NIF Merit Board, against the stated funding categories and the program terms and conditions set out in the Guide. Proposals must comply with the form and content requirements set out in the Guide, and include the following:

• Proposal description;
• Proposal budget and cash flow statement linked to milestones;
• Proposal work plan linked to milestones;
• Proposal management plan;
• Proposal results and benefits statement in measurable terms;
• Communications Plan.

10.5 Project Approvals and Funding

The list of projects proposed for funding is approved by the NIF Merit Board, ICSAR and the Lead Minister.

Proposal approvals must be confirmed by signature prior to the start of the proposal.

All approvals must be consistent with the terms and conditions set out in the Guide and the MOU.

NIF Program funds are managed by the Secretariat, and disbursed through the Sponsor/recipient organization in accordance with the requirements of the proposal approval, the MOU, and the Guide.

The proposal approval forms an Annex to the MOU.

10.6 Project Management

The project must be managed in accordance with the policies and practices of the sponsoring organization as well as the requirements of the NIF Guide and the approved management plan set out in the proposal application.

NIF Sponsors must put in place an agreement (e.g. contract, Memorandum of Understanding) between themselves and the NIF Project Manager to mirror the Secretariat-NIF Sponsor Memorandum of Understanding.

10.7 Project Reporting

Specific reporting requirements for each project are incorporated into the approved proposal (e.g. the appropriate Annex to the Sponsor's MOU). They are tailored to the realities of the project but, in general, they are required each quarter, outline the activity results to date and the expenditures for the past quarter against the approved plan, and indicate the activity project for the subsequent period. The sponsoring organization is responsible for submitting the reports in accordance with the agreed timetable.

If quarterly reports are not received on time, further funding will be withheld until they are received.

10.8 Project Monitoring

The sponsoring department is responsible for monitoring the project, including those carried out by a third party.

The Secretariat reviews all project reports and conducts the necessary follow-up work to ensure that all project requirements are being met.

The Secretariat reserves the right to conduct random checks (active monitoring) throughout the life cycle of any project to ensure that funds are being expended in accordance with Treasury Board policies, the Project work plan and the principles set out in the NIF Guide.

10.9 Project Claims and Payments

The sponsoring department prepares and submits claims in accordance with the requirements of the NIF Guide.

The Secretariat reviews all claims for accuracy and compliance with the project approval. All payments will comply with the project approval and the requirements set out in the NIF Guide.

10.10 Post-Project Evaluation

Post-project evaluations must comply with the NIF Program's reporting requirements.

10.11 NIF Program Evaluation

An independent evaluation of the NIF Program will be carried out at least every five years, or more frequently if requested by the Executive Director of the National Search and Rescue Secretariat.

The evaluation will assess the success, relevance and cost-effectiveness of the NIF program, as well as the adequacy of the Secretariat design and management of the program and its monitoring activities. The adequacy of NSS management of the program and its monitoring activities will be commented on as well.

The evaluation will make use of previous NIF audits and all available NIF project evaluations.

10.12 NIF Project Audits

• Each MOU will make provision for the conduct of an independent audit.
• Projects will be selected for audit in accordance with the agreed selection criteria.
• Project audits will be based on the MOU, specific project approvals and on the management practices and audit criteria set out in the NIF Guide.
• Project audits are designed to ensure that the recipient organizations are managing in compliance with the principles set out in the NIF Guide and the MOU proposal Annex. Such audits will be carried out on individual projects or on groupings of projects managed by a single department, agency or organization.
• These audits will be selected in accordance with the agreed audit selection criteria noted above. The audits will be carried out on behalf of the Secretariat, either directly by the Secretariat or on a contract basis.
• In addition to tabling the individual reports, it will be useful to review key findings and trends that arise over the course of the year's audits and produce an annual summary.
  

10.13 "Third Party" Audits

In cases where a government organization applies for funding to support a proposal to be managed by a third party (for example, Non-Governmental Organization (NGO)) the same criteria should also apply. The sponsoring department or provincial/territorial authority should apply the relevant criteria to the third party in the same manner as the Secretariat would apply them to the department. The sponsoring department is responsible for conducting any necessary audits of the third party.

These audits could be carried out by the organization's own internal audit group or by independent external auditors. The client for the reports would be the sponsoring department but the results should be provided to the Secretariat as part of the regular progress reporting process.

The Secretariat project audit would assess the scope and quality of the third party audits as part of their audit process. As a general rule, there would be no need to go back to the third party but that option would be open to the Secretariat if there was a need to do so.

The three types of audits listed above (NIF project evaluation; project audits by the Secretariat, and NIF sponsor audits of third party projects) provide comprehensive coverage of both the NIF and the individual projects. This is a reasonable audit regime that is designed to meet everyone's needs.

The Executive Director of the National Search and Rescue Secretariat, as the accountable Program Manager of the NIF, reserves the right to require an audit of any NIF project, in accordance with the departmental MOU and the approved NSP Audit and Review policy.