What we examined (see Focus of the audit)

This audit was focused on results, examining whether Agriculture and Agri-Food Canada, the Canada Revenue Agency, Canadian Heritage, and Fisheries and Oceans Canada adequately

• applied the Cabinet directive and its related guidelines to policy, plan, and program proposals submitted for approval to an individual minister or to Cabinet, including the Treasury Board;
• reported on the extent and results of their strategic environmental assessment practices as required by the Cabinet directive and its related guidelines; and
• met their departmental sustainable development strategy commitments to strengthen their strategic environmental assessment practices, as stated in their 2011–12 reports on plans and priorities.

We did not examine the progress made by the entities toward Federal Sustainable Development Strategy goals and targets other than their commitments to strengthen the application of strategic environmental assessment practices. Also, we did not carry out a detailed examination of the quality of the analysis included in each completed detailed strategic environmental assessment.

Why we did this audit

This audit is important because the government needs relevant information on environmental, economic, and social factors to make informed decisions that support sustainable development. This is particularly important for ministers of federal departments, whose decisions on government policies, plans, and programs can significantly affect Canada’s economy, society, and environment. It is also important for stakeholders and the public to be assured that ministers receive information about potential important environmental effects when making decisions.

What we concluded

We concluded that Agriculture and Agri-Food Canada, the Canada Revenue Agency, Canadian Heritage, and Fisheries and Oceans Canada did not adequately apply the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and its related guidelines to policy, plan, and program proposals submitted for approval to an individual minister or Cabinet, including the Treasury Board.

We also concluded that these four federal entities did not report adequately on the extent and results of their strategic environmental assessment practices as required by the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and its related guidelines.

In addition, we concluded that these four federal entities did not make satisfactory progress in meeting their departmental sustainable development strategy commitments to strengthen their strategic environmental assessment practices, as stated in their 2011–12 reports on plans and priorities.

What we found

Applying the Cabinet directive

Overall, we found that ministers were not provided with information about potential important environmental effects for the majority of the proposals submitted to them. For example, Canadian Heritage could not provide evidence that it applied the Cabinet directive and related guidelines, as was required, to any of its 109 policy, plan, or program proposals.

We also found that about half of the preliminary scans that were done did not meet the selected requirements of the Cabinet directive. For example, the Cabinet directive requires an assessment of important environmental effects (both positive and negative) of proposals that will be submitted to ministers. We noted that, in Canada Revenue Agency’s assessment of the environmental effects of converting approximately 180,000 corporate tax clients from paper to electronic filing, it concluded that the overall impact was negligible. We found, however, that this initiative had a potential important positive environmental effect of saving approximately 28 million sheets of paper annually.

This is important because ministers need to receive complete information on the potential important environmental effects of the proposals they are considering for approval.

• Ministers were not provided with information about potential important environmental effects of policy, plan, or program proposals

  Recommendation. Agriculture and Agri-Food Canada, the Canada Revenue Agency, Canadian Heritage, and Fisheries and Oceans Canada should provide ministers with information on the potential important environmental effects of all their policy, plan, and program proposals as required by the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and its related guidelines.

• About half of the preliminary scans did not meet selected requirements of the Cabinet directive

  Recommendation. Agriculture and Agri-Food Canada, the Canada Revenue Agency, Canadian Heritage, and Fisheries and Oceans Canada should ensure that, when they assess proposals, the requirements of the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals and its related guidelines are met, or that rationales for exceptions are documented.

Reporting publicly

Overall, we found that none of the entities met the requirements for public reporting on the extent and results of their strategic environmental assessment practices, as set out in the Cabinet directive and its related guidelines. For example, their reporting did not describe how their policy, plan, and program proposals that were subject to a strategic environmental assessment had affected, or were expected to have affected, progress toward Federal Sustainable Development Strategy (FSDS) goals and targets, as required.

We also found that Fisheries and Oceans Canada had carried out six detailed strategic environmental assessments. However, it issued the required public statement for only one of these six detailed assessments.

This is important because departments and agencies are required to report publicly on the extent and results of their strategic environmental assessment practices. Public reporting helps to demonstrate to stakeholders and the public that departments and agencies do consider the environmental effects of proposals and that the environmental decision-making process is open and accountable.

• Public reporting on the extent and results of strategic environmental assessment practices did not comply with the Cabinet directive and its related guidelines

  Recommendation. Agriculture and Agri-Food Canada, the Canada Revenue Agency, Canadian Heritage, and Fisheries and Oceans Canada should report on the extent and results of their strategic environmental assessment practices as required by the Cabinet directive and its related guidelines.

• Public statements were not prepared

  Recommendation. Fisheries and Oceans Canada should issue a public statement for all announced or approved proposals as required by the Cabinet directive and its related guidelines.

Meeting commitments

Overall, we found that none of the four entities examined had made satisfactory progress in meeting their departmental sustainable development strategy commitments to strengthen their strategic environmental assessment practices.

This is important because strong strategic environmental assessment practices that comply with the Cabinet directive and its related guidelines are needed to make sure the government is considering the environment in its decision making. Moreover, when departments and agencies follow through on what they said they would do, it shows departmental commitment to the government-wide Federal Sustainable Development Strategy (FSDS) goal of strengthening strategic environmental assessment practices.

• None of the entities made satisfactory progress in meeting their commitments to strengthen their strategic environmental assessment practices

  Recommendation. We made no recommendations in this area of examination.

Entity Responses to Recommendations

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Related Information

Report of the	Commissioner of the Environment and Sustainable Development
Type of product	Performance audit
Topics	Environment Environmental Assessment
Audited entities	Agriculture and Agri-Food Canada Canada Revenue Agency Canadian Heritage Fisheries and Oceans Canada
Completion date	27 October 2015
Tabling date	26 January 2016
Related audits	Chapter 5—Departmental Progress in Implementing Sustainable Development Strategies, 2014 Fall Report of the Commissioner of the Environment and Sustainable Development Chapter 8—Federal and Departmental Sustainable Development Strategies, 2013 Fall Report of the Commissioner of the Environment and Sustainable Development Chapter 4—Annual Report on Sustainable Development Strategies, 2008 December Report of the Commissioner of the Environment and Sustainable Development Chapter 3—Sustainable Development Strategies: Using the Tax System and Managing Office Solid Waste, 2004 October Report of the Commissioner of the Environment and Sustainable Development

For more information

Media Relations
Tel.: 1-888-761-5953
E-mail: infomedia@oag-bvg.gc.ca

Twitter: OAG_BVG