Internal Audit of Learning and Training

Internal Audit Report
November, 2015

Table of Contents

Executive Summary

Objective

The objective of the audit is to provide assurance that training and learning activities align with corporate priorities, are adequately controlled, and are delivered efficiently and effectively.

Scope

Covering the activities from April, 2013 through to December, 2014, the audit examined the processes used by CIHR to ensure alignment of training and learning with CIHR’s strategic directions and employee needs, controls over training and learning, and the framework used to ensure the efficiency and effectiveness of training and learning activities.

The following areas were out of scope for the audit:

Overall Audit Opinion

The audit has concluded that learning and training at CIHR has significant risks and uncertainties but based on existing controls represents moderate issues.

Summary of Strengths

Throughout the audit, the following strengths were noted related to the administration and management of learning and training at CIHR:

Summary of Improvement Opportunities

The following aspects of the management and administration of learning and training require management’s attention, and are presented along with the actions to be taken by management to address the risks (the observations, recommendations and management action plan are discussed in greater detail in the Detailed Report that follows the Executive Summary).

Statement of Conformance

The Audit of Learning and Training conforms with the Internal Auditing Standards for the Government of Canada as supported by the results of the quality assurance and improvement program.

Internal Audit thanks management and staff for their assistance and cooperation throughout the audit.

David Peckham
Chief Audit Executive & Director General, Performance and Accountability
Canadian Institutes of Health Research

Management agrees with the conclusion of the audit.

Daryl Gauthier
Director General, Human Resources
Canadian Institutes of Health Research

Thérèse Roy
Chief Financial Officer/Vice President, Resource Planning and Management
Canadian Institutes of Health Research

Detailed Report

The Canadian Institutes of Health Research

The Canadian Institutes of Health Research (CIHR) is the Government of Canada's agency responsible for funding health research in Canada. CIHR was created in June 2000 under the authority of the CIHR Act and reports to Parliament through the Minister of Health. CIHR's mandate is to “excel, according to internationally accepted standards of scientific excellence, in the creation of new knowledge and its translation into improved health for Canadians, more effective health services and products and a strengthened Canadian health-care system.” Funding over 14,000 researchers and trainees, CIHR comprises 13 “virtual” institutes, each addressing a broad research domain.

Learning and Training

Learning and training is a key underpinning of an effective and professional workforce in the modern Canadian Public Service. CIHR provides for some general training that applies to employees as members of a government agency, the delivery of internal training specific to its mandate, and the specific needs of individual employees.

Funding can occur centrally through the Corporate Learning Calendar, meant to deliver group training that benefits the maximum number of employees, through salaries of specialist training staff members within the Research, Knowledge Translation and Ethics portfolio, and through externally-provided training paid out of individual budgets to meet more specific branch and employee needs. The risks facing training were particularly significant at the time of the audit for a variety of reasons including:

Learning and training is a difficult area to plan for as needs shift on an on-going basis, the benefits of investing in learning and training are difficult to demonstrate objectively, and it is frequently a target of budgetary reductions during times of fiscal restraint.

Risk Addressed By the Audit

The 2015-2016 CIHR Corporate Risk Profile (CRP) states there is a risk that CIHR does not have the right skill set to deliver on CIHR’s key priorities in the ever-changing health research environment, coupled with the impact the Reforms of Open Programs and Peer Review and Institutes Modernization will have on CIHR’s current skill set (Risk Likelihood – High; Risk Impact – Moderate). If it is not properly mitigated, this risk could result in: an inability to deliver on operational plans, an increase in employee turnover and key jobs not being filled, reduced employee engagement, a loss of core skills and knowledge, and reduced job satisfaction.

Finally, the audit assessed the risks that training and learning activities may not be:

Methodology and Criteria

The internal audit of learning and training is part of the 2014-15 Risk-Based Annual Internal Audit Plan, as approved by CIHR’s Governing Council.

The internal audit of learning and training was conducted in accordance with the Federal Government’s Policy on Internal Audit and related instruments. The principal audit techniques used included:

Controls were assessed as adequate if they were sufficient to minimize the risks that threaten the achievement of objectives. Detailed criteria and conclusions are contained in the Appendix of this report.

The audit was conducted between September, 2014 and July, 2015.

Observations, Recommendations, and Management Action Plan

The following are audit observations, recommendations, and management action plans to address the weaknesses identified during the audit.

Observation Recommendation Management Action Plan
1. There is no overall, CIHR-wide strategy to measure, monitor and report on detailed learning needs and training performance metrics to inform decision making (criteria 22, 23, and 24).

There is no systematic effort to analyze overall employee learning needs and training activities for decision making. A variety of mechanisms exist to monitor training at various levels, but several factors impair the ability to report on training broadly:

  • A basic evaluation model exists for in-house training courses, but these results are not combined or used to analyze overall training and no comparable model is used for external courses;
  • The Human Resources branch produces an annual Dashboard which contains broad statements about learning trends and reports a limited set of statistics and targets (percentage of employees attending training, percentage of budget spent on management courses, percentage of employees taking advantage of developmental opportunities), but does not include a more comprehensive analysis of learning and training;
  • There is a lack of communication between the two main sources of learning activities (Human Resources branch and the training providers in the Research, Knowledge Translation and Ethics portfolio);
  • There is no functional tracking or management system for employee learning (see management letter observation 3);
  • There is no recurrent mechanism to comprehensively assess the specific learning and training needs of employees;
  • The performance planning process uses simple tools to stimulate discussions between employees and supervisors, but the results are not aggregated or used to identify broad training needs; and
  • There is currently no role with the skills, training and mandate to conduct such an assessment (see observation 4).

The need to monitor and plan for learning is exacerbated by significant limitations in funding of the Corporate Learning Calendar and individual budgets. Expenditure on training at CIHR has declined for the past three years. In addition, the Canada School of Public Service announced in September, 2014 a mandatory reallocation from all government department learning budgets to fund a central program of training. While this will allow CIHR employees to access a broad set of online courses at no incremental cost, the reallocation amount ($22,000 in 2014/15, increasing to $44,000 in 2015/16 and $91,000 in 2016/17) was paid solely through the Human Resources central training budget, reducing the amount available for courses specifically aimed at CIHR learning needs. As a percentage of the historical average for the Corporate Learning Calendar ($165,000), the mandatory reallocation represents a reduction of 13%, 27% and 56% of the annual budget.

Risk and impact

The lack of a robust performance measurement strategy for learning results makes it difficult to develop an informed, agency-wide perspective on learning needs, activities, and expenditures. In particular, the ability to assess and plan for long-term learning and training needs, conduct informed succession planning, identify and mitigate future skill gaps, and the ability for senior management to make decisions about the allocation of scarce training resources, is more difficult and less informed. This presents an added risk due to the limited funds available for the shrinking Human Resources learning budget, which in turn requires better information in order to plan training delivery more strategically.

By relying on the performance management process, which provides an individual-level assessment of employees without a broader perspective, there is a risk that training needs that are widely dispersed in separate “pockets” of need, may not be recognized. This also results in a lost opportunity for a “bottom-up” assessment of training needs from an employee perspective that is independent from that of their supervisors.

1a) The Human Resources branch should consider establishing a CIHR-wide performance management strategy for training, including tracking and reporting metrics to support the decision making process. This should include metrics on the assessment of training needs, value for money, and training results.

1a) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will develop a corporate strategy for training that includes the following elements:

  • evaluation of external courses
  • metrics on the assessment of training needs
  • better links with training offered by the Research, Knowledge Translation, and Ethics portfolio
  • ongoing tracking of learning in the MYGCHR human resources tracking system

Assessing value for money would be difficult due to the limited resources available to administer the learning program as well as the majority of training currently taking place is primarily online and funded through annual payments to the Canada School of the Public Service and Ellicom which provide unlimited online training per user.

Expected completion

March 2016

2. No training is provided for the Human Resources' delegation of authorities instrument, which has not been updated since 2009 (criteria 6, 9, 10, 11, 12, 15, 19, and 20).

The application of human resources delegation of authorities is crucial for positions that supervise other employees or make decisions on matters such as hiring and termination. The CIHR Human Resources' delegation of authorities instrument delineates the approval authorities for Human Resource actions, including approving training and leave requests. No training is provided for the Human Resources' delegation of authorities instruments. CIHR training for new supervisors and managers does exist but is rarely delivered, and focuses more on the management of people and “soft skills” without addressing legal and policy requirements in the Government of Canada Public Service. This training is also rarely attended by actual first-time managers.

During the audit period, several errors regarding Human Resource actions were identified, including:

  • Use of the inappropriate leave types, approved by the wrong level of authority (see observation 8);
  • Failing to prepare necessary documentation for an educational allowance for an employee taking educational leave without pay (see management letter observation 1);
  • Several training application and authorization forms indicated incorrectly that the training was after hours;
  • Several expenditures had limited or no documentation to justify how the training or education linked to the employees' role, future CIHR need, or professional requirements;
  • There was no effort or review to prorate reimbursement based on current employee role or future organizational needs; and
  • Inappropriate categorization of overtime reimbursements.

The Canada School of Public Service offers training for new supervisors and managers that addresses the exercise of human resources delegated authorities, performance management, supervision, as well as general management skills. Additional training is available for executives, for executive-specific delegation information and executive-level management, and a senior executive level orientation course.

In addition, the Human Resources delegation of authorities instrument is not harmonized with the Financial delegation of authorities instrument, to which it is complementary, with discrepancies between position titles and incorrect authorities. The instrument itself has not been updated since 2009.

Risk and impact

Supervisors, managers, and executives who do not understand their Human Resources delegation of authorities may misapply their authorities, approve human resources actions that are outside of their authority level, and make errors in their management of employees leave, training and other entitlements. These risks could be compounded by the outdated materials and guidance found in the Human Resources delegation of authorities instrument.

2a) New supervisors, managers, and executives should be trained on their responsibilities in exercising human resources authorities.

2a) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will provide training on the Human Resources Delegation of Authorities. A process will also be put in place for ongoing monitoring.

Expected completion

March 2016

2b) The Human Resources' delegation of authorities instrument and related materials should be updated to reflect current roles and accountability levels, and harmonized with the Financial Signing Authorities instrument.

2b) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will review and update the Delegation of Human Resources Authorities document in consultation with the Terms & Conditions of Employment and the Delegation of Financial Authorities

Expected completion

January 2016

3. Employees with the delegation to exercise financial authorities are not required to revalidate their knowledge on a regular basis, receive only CIHR-specific training on their authorities, and are not required to complete additional training when exercising new types of authorities (criteria 8 and 18).

CIHR requires managers and executives who will hold a budget or exercise financial authorities to take an internal training course on the delegation of financial signing authorities. While the course is highly customized to CIHR's budgetary and approval processes, including how to read and complete internal documents, it does not reflect the broader context of the Government of Canada or all of the legal and policy aspects of exercising authorities.

Further, the process to track course attendees, verification of which is required to generate a Specimen Signature Record that confirms authority levels, now relies on corporate memory and past Specimen Signature Records rather than an independent list of course attendees. Due to staff departure and the change of responsibility for this training, it was not possible to verify that some new budget holders had attended this training before being given a Specimen Signature Record and financial authorities.

It is also possible for budget holders to move into a new position that requires the exercise of a different type of authority (i.e. an employee who only managed an operating budget being moved to a position that controls a granting budget) and not be required to take supplementary training, a “refresher” course, or undertake some sort of verification of their ability to understand and exercise these new authorities.

The Treasury Board Policy on Learning, Training and Development normally requires most new managers and executives in the Government of Canada to undertake the online mandatory training delivered by the Canada School of Public Service at no incremental cost regarding the exercise of delegated signing authorities. While CIHR is exempt from this restriction due to its status as a schedule II/V agency, the Policy does consider it good practice for separate agencies to develop their learning, training, and development polices in compliance with the Policy. The Policy also requires existing managers and executives to revalidate their knowledge of their delegation of authority responsibilities using an online revalidation tool. CIHR does not regularly revalidate authorities.

Risk and impact

As agents of the Government of Canada, budget holders, managers, and executives must meet the legal requirements of the Federal Accountability Act and Financial Administration Act which require, at minimum, awareness of those responsibilities. Failure to provide comprehensive, up-to-date training on the exercise of delegated authorities risks inappropriately initiating, committing, approving, or disbursing funds, possibly resulting in inaccurate budgeting, waste, fraud, material error in financial reporting or lack of compliance with laws and policies. Additionally, it increases the risk of failure of key internal controls.

Moving into a role with new or fundamentally different financial responsibilities presents a higher level of risk, accountability, and potential for public scrutiny as compared to positions that do not have these authorities. The failure to revalidate this knowledge, particularly if it has been years since initial training presents the risk that these responsibilities may not be understood or discharged ineffectively, and employees may not be aware of any policy or legislative changes that impact these duties.

Without a formal record of having attended the delegation of authorities training, there is no independent record of an employee having received the training as a completed Specimen Signature Record indicates holding authorities in the past, not completing relevant training. An error in the preparation of a previous Specimen Signature Record risks being perpetuated without any independent means to confirm training.

3a) Employees who exercise financial delegated authorities should be required to take the mandatory, cost-neutral online training offered by the Canada School of Public Service in addition to the CIHR customized training.

3a) Responsibility

Chief Financial Officer

Action

Agreed

The Finance Branch will require that employees with newly assigned financial delegated authorities complete the online training offered by the Canada School of Public Service. A process will also be put in place for ongoing monitoring.

Expected completion

December, 2015

3b) As a best practice in-line with the rest of the Public Service, employees with financial delegation signing authorities should revalidate their knowledge on a regular basis.

3b) Responsibility

Chief Financial Officer

Action

Agreed

The Finance Branch will conduct an annual review of those employees who have been delegated financial signing authorities and require those employees to revalidate their knowledge every 5 years. A process will also be put in place for ongoing monitoring.

Expected completion

December, 2015

3c) Employees who move into jobs with fundamentally new financial responsibilities should have their delegation of authorities training revalidated to reflect their new responsibilities.

3c) Responsibility

Chief Financial Officer

Action

Agreed

Any time a new Specimen Signature Record is created as a result of an existing employee moving into a new role at CIHR, the Finance Branch will do a comparison between the old and new Record to assess whether that employee will be taking on new financial responsibilities and as such whether they should have their delegation of training authorities revalidated.

Expected completion

Starting effective October, 2015

3d) A separate record of employee delegation of authorities training should be maintained.

3d) Responsibility

Chief Financial Officer

Action

Agreed

The Finance Branch will ensure that a separate record of employee delegation of authorities training is maintained and monitored.

Expected completion

October, 2015

4. Important learning and training responsibilities defined within the CIHR Learning Program Policy have not been assigned to any specific accountability or role with the experience and skills to deliver against those responsibilities (criteria 1, 2, 4, 7, 8, 22, and 24).

There is no position within Human Resources that has the skills and expertise to deliver on several of the responsibilities currently listed in the CIHR Learning Program Policy specifically related to the Learning Advisor position. The responsibilities of the Learning Advisor listed in the Learning Program Policy include:

  • Administering and monitoring the Learning Program at CIHR;
  • Ensuring that employees and their respective managers are informed of how to register for learning programs;
  • Tracking the names of Learning Program participants;
  • Reporting periodically on the implementation of the Learning Program;
  • Advising managers and employees on matters related to learning;
  • Seeking feedback and making necessary adjustments to the Learning Program; and
  • Managing the corporate learning budget to the best advantage of CIHR.

In addition to the responsibilities listed in the Learning Program Policy, the duties of the position included:

  • Undertaking cost/benefit, economic, and efficiency analyses for internal and external training;
  • Identification of common learning needs;
  • Long-term planning to meet future learning needs;
  • Supporting succession and talent management planning;
  • Development and championing of the learning and leadership development programs;
  • Maintaining a virtual and physical learning resource center; and
  • Researching best practices and excellence in learning and development.

The position represented a unique confluence of skills and responsibilities that enabled long-term planning for learning needs, and the opportunity to deliver CIHR-specific courses using a salaried positon with in-depth knowledge of the organization rather than through the use of contracts with independent training providers. The position was removed as part of a reorganization in 2012-13 and responsibilities were dispersed within the Human Resources branch as a result of the Deficit Reduction Action Plan. The key activities found in the Learning Program Policy and role profile are currently not undertaken, or are performed in a relatively limited manner by existing staff who lack the time and expertise to meet the full potential of the position. The position also had the expertise and mandate to assess employee and CIHR-wide skill gaps excluding functional specialists, a responsibility which currently resides solely with employee supervisors who may lack a CIHR-wide, independent perspective, and the specific skills to undertake such an assessment (see observation 1).

Risk and impact

Failure to reassign key responsibilities previously carried out by the Learning Advisor and defined by the CIHR Learning and Training Policy to a position with the ability to deliver on these responsibilities appropriately means that the process to plan and deliver training will be reactive, based on a shorter-term horizon, and suboptimal information. It is also a missed opportunity to deliver specific and customized in-house training that represents CIHR's circumstances and strategic context.

Retaining the responsibilities of the Learning Advisor position in the Learning Program Policy is misleading and obscures which employee is actually accountable for these activities.

4a) All key responsibilities of the Learning Advisor position should be assigned to accountable positions, taking into account the required skillset necessary to deliver on them.

4a) Responsibility

Director General, Human Resources

Action

Agreed

If there is no opportunity to re-establish a Learning Advisor role at CIHR, those responsibilities will be reassigned to the Manager, Organizational Development & Planning role.

Expected completion

January 2016

4b) The Learning Program Policy should be updated to reflect the reassignment of these responsibilities.

4b) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will update the Learning Program Policy to reflect current realities (remove references to Learning Advisor role and responsibilities and change to the Manager, Organizational Development & Planning role).

Expected completion

January 2016

5. New employees and functional specialists are not required to take Government of Canada mandatory training (criteria 8 and 17).

The Policy on Learning, Training and Development and related instruments detail who must take mandatory training in the core Public Service, including new employees and first-time functional specialists. CIHR is a Schedule II/V agency and is therefore exempt from the requirements of the Policy, but despite this CIHR adheres to many of its requirements and best practices. However, while new employees are urged to take in-house orientation training, this training is specific to CIHR and focuses on transactional aspects of positions. It does not identify and contextualize the array of responsibilities required of federal public servants related to legislation and Treasury Board policies, including access to information, values and ethics, information management, etc., all of which are critical elements for the discharge of duties by all Public Servants, including CIHR employees. Testing a sample of employees hired during the audit period found that not all new employees attended the training.

Similarly, new functional specialists are not required to attend the mandatory training that would be provided for comparable positions within the core Public Service that informs them of the requirements of their position including compliance with legislation, policies and professional guidelines (new functional specialists are generally provided with on-the-job training, shadowing, and development opportunities).

The Canada School of Public Service provides cost-neutral courses, often on-line, for a large amount of the required training that is available to all public servants, including employees new to the public service or their roles as functional specialists.

Risk and impact

Employees have responsibilities to meet legal requirements as agents of the Government of Canada which require, at minimum, awareness of those requirements. Furthermore, functional specialists have additional legislation- and policy-based compliance requirements that require specific knowledge in order to discharge their duties effectively. The failure to train new employees and functional specialists regarding these responsibilities could result in a lack of compliance with legislation or policy, the inappropriate exercise of delegated authorities, failure to maintain protected information, or the mismanagement of government resources.

5a) The standard, mandatory cost-neutral training offered online by the Canada School of Public Service for new first-time employees should be required for CIHR employees new to the Public Service.

5a) Responsibility

Chief Financial Officer/Director General, Human Resources

Action

Agreed

Human Resources is developing a new Onboarding Program that will orient new employees to CIHR. A review of mandatory Canada School of Public Service training offerings will be explored to maximize their value to CIHR staff.

Expected completion

January 2016

5b) As a best practice, new functional specialists should be required to attend the mandatory cost-neutral classroom training offered specific to their positions.

5b) Responsibility

Chief Financial Officer

Action

Agreed

The Directors General of the Resource Planning and Management portfolio will require that employees with newly assigned functional specialist responsibilities complete the specialized training offered by the Canada School of Public Service.

Expected completion

December, 2015

5c) Where possible and when the budget is available, new functional specialists should be provided with the opportunity to attend the fee-based required training that would be mandatory for employees of the core Public Service.

5c) Responsibility

Chief Financial Officer

Action

Agreed

The Directors General of the Resource Planning and Management portfolio will provide new functional specialist employees with the information pertaining to training courses offered by the Canada School of Public Service in their areas of responsibility.

Expected completion

December, 2015

5d) As a best practice, it should be mandatory for new employees to commit to attend the Government of Canada and CIHR orientation courses in their performance plans.

5d) Responsibility

Chief Financial Officer

Action

Human Resources is developing a new Onboarding Program that will orient new employees to CIHR. A review of mandatory Canada School of Public Service training offerings will be explored to maximize their value to CIHR staff.

Expected completion

January 2016

6. Guidelines regarding reimbursement and prepayments for courses are unclear or are not always followed (criteria 15 and 16).

The CIHR Learning Program Policy specifies that employees may be reimbursed for courses taken outside of working hours, and courses may be prepaid if requested by the manager. These courses tend to be for university classes and/or tuition fees, and are therefore relatively expensive compared to other training costs. A review of files identified several issues or errors related to courses taken outside of working hours.

Policy issues

  • None of the prepayments were made at the request of the manager, which is suggested by the Learning Program Policy;
  • Several payments were made for “ongoing” courses or student enrollment that had no final grade, course work, or other measure of progress, completion or success that the Learning Program Policy requires for reimbursement; and
  • Registration late fees were reimbursed, and interviews indicated that there was no policy regarding the reimbursement of late fees.

Internal control issues

  • No proof of completion could be located for courses that were prepaid;
  • Some prepayments were made directly to the institution rather than the employee, which makes it more difficult to recover funds if the employee does not successfully complete the course;
  • No mechanism exists by which prepayments can be monitored for course completion; and
  • All courses were reimbursed for the full amount, with no justification for lack of prorating, as required by the Learning Program Policy.

Risk and impact

Employees who receive prepayments can withdraw from the course or leave CIHR before completing the course, resulting in a relatively large expenditure that does not benefit the agency. Prepayments made directly to institutions transfers the risks and burden of recovering funds to CIHR rather than the employee taking the course.

Prepayments or reimbursements for courses with no fixed end point or final grade reduces the incentive for the employee to complete their course efficiently, which could result in further reimbursement costs for tuition or enrollment fees

Reimbursement for late fees is an ineffective use of training funds that does not benefit CIHR or taxpayers.

6a) The system for employee departures (CCM Mercury) should be modified to ensure the employee departure process includes a review for prepayments.

6a) Responsibility

Director General, Human Resources

Action

Agreed

The CIHR departure process will be modified to include review for prepayments.

Expected completion

January 2016

6b) The guidelines for prepayment or reimbursement of training costs should be clarified regarding the payment of late fees, “ongoing” courses with no clear end point or final grade, and reimbursement of CIHR for incomplete or dropped courses.

6b) Responsibility

Chief Financial Officer and Director General, Human Resources

Action

Agreed

Human Resources/Finance will review guidelines for training costs to determine CIHR's approach to reimbursement for late fees and ongoing courses.

Expected completion

December, 2015

6c) A process should be put in place to identify completion dates for prepayments to allow follow-up on the successful completion of courses by employees.

6c) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will review and develop a process for responsibility centre Managers to follow-up with employees on completion dates for prepaid training.

Expected completion

December, 2015

6d) Requests for prepayments should be accompanied by evidence that the course was taken at the request of the manager, or the Learning Program Policy should be modified to remove or clarify this requirement.

6d) Responsibility

Chief Financial Officer and Director General, Human Resources

Action

Agreed

Human Resources will update the Learning Program Policy to clarify managerial approval/request requirements.

Expected completion

January, 2016

7. There is no comprehensive process to identify and address the training needs for employees reorganized outside of program delivery positions because of the Reforms of Open Programs and Peer Review (criteria 2 and 5).

While the process to train employees on the changes to program delivery based on the Reforms of Open Programs and Peer Review is supported by a robust planning, reporting, and monitoring infrastructure, there is no comparable infrastructure or monitoring process for the 17 employees who have been reorganized into new positions outside of the program delivery function. In addition, 200 employees were re-mapped within the Research, Knowledge Translation and Ethics portfolio to new positions, some of which involve responsibilities separate from program delivery (the position changes are on an interim basis). The Corporate Learning Calendar, which is expected to be the primary mechanism by which employees are trained for non-program delivery duties, is currently in flux with no courses scheduled and was significantly reduced by the Canada School of Public Service mandatory reallocation. While employees do have access to the training offered by the School, as well as a package of online courses purchased this year, the content of both these course offerings are either a small number of extremely targeted courses for a limited subset of professional groups (e.g. IT security training for computer specialists), or are general interest topics (e.g. time management) that may not reflect CIHR's overall needs or context, or the specific needs of individual employees.

The transfer of employees out of the Research, Knowledge Translation and Ethics portfolio was not accompanied by a matching transfer of operational funds for training.

Position-level monitoring and support for employees moved out of direct program delivery roles is delegated to their supervisors and budget holders. Decisions about and support for the training of these employees devolves to the standard performance planning process, without necessarily garnering extra attention or support from the broader organization and management (see observations 1 and 4).

Risk and impact

Transferring employees to new positions outside of their training and experience could risk the employees' success in their new role, delay existing or new projects, and reduce morale. The current tools to assess training needs do allow for a broad assessment of a general perception of training needs, and a narrow assessment of specific employee training needs by individual managers, but do not integrate the two or provide an independent assessment of widespread training needs. The ability to deliver such training is further limited by the reduction in the budget for the Corporate Learning Calendar and the failure to transfer budget to support identified training needs.

7a) Employees moved into new positions outside of program delivery roles, where they lack training and experience, should be monitored to determine whether they need and have access to specific and relevant training and the accompanying budget.

7a) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will develop an approach to ensure that relevant training is provided to employees in transition (should form part of observation 1 regarding a corporate strategy).

Expected completion

March 2016

8. The distinctions between different types of training leave are not clear (criteria 10, 11, and 12).

Several different types of leave exist, designed to be used for different purposes (e.g. sick leave for illness versus family leave to meet family obligations) with different levels of approval depending on the type of leave. All types of learning and training leave reviewed were generally appropriate with two exceptions.

Four employees took a total of five leaves classified as “career developmental with pay”. This type of leave is included in the CIHR Learning Program Policy, based on the Terms and Conditions for Employment, and is supposed to be approved by a level 3 authority (Executive Director/Director General), but in none of these cases was there evidence of approval by that level of authority. The issue is complicated by the fact that the leave is essentially indistinguishable from another type of leave, “paid leave for training during working hours” (which can be approved by a Manager). Discussion with the Human Resources and Finance branches could not determine how these types of leave are different. In addition to requiring a higher level of approval, career development leave is also accompanied by additional restrictions, such as indicating how the leave supports CIHR's learning needs (no explicit discussion was provided for the leave approvals reviewed), and restrictions on overtime and travel costs. Overall these types of leave appear to have been requested in error, as “normal” training leave would have been appropriate.

Risk and impact

Failing to distinguish between different types of leave, and the authority needed to approve different types of leave, can lead to confusion and inappropriate approvals.

8a) The distinction between “paid leave for training during working hours” and “career development leave with pay” should be clarified within the Learning Program Policy, with requirements and approvals commensurate with related risks.

8a) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will review and update the distinctions between leave types.

Expected completion

January 2016

9. The process to develop the Corporate Learning Calendar is not standardized to ensure continuity across years (criteria 2, 7, and 9).

For the past three fiscal years, a combination of senior (Director General) level and employee-level input was used to develop the Corporate Learning Calendar, but a different process was used for each year. Planning and delivery of the Corporate Learning Calendar is made more difficult given the substantial reduction of the budget caused by the Canada School of Public Service mandatory reallocation of funds, the impact of the Reforms of Open Programs and Peer Review on the Research, Knowledge Translation and Ethics portfolio, reorganization which has delayed the delivery of Corporate Learning Calendar courses in 2015/16, the lack of fully assigned responsibilities under the Learning Program Policy (see observation 4), and the lack of a performance measurement strategy and metrics for learning (see observation 1). The courses offered by the Canada School of Public Service and another source of bulk online training are being used to supplement the resulting reduced budget with unlimited access to online course offerings but they offer unknown benefits for most employees, particularly those with unique or specialized training needs (see observation 7).

Risk and impact

The year-to-year variation in the planning of the Corporate Learning Calendar makes it difficult to determine if one process is more efficient or effective than another, as well as impairing the ability to plan timelines or compare results across years.

The Canada School of Public Service mandatory reallocation of funds drastically reduces the scope of customizable or targeted corporate learning opportunities, and the ability to meet broad training needs for the agency as a whole. This makes the planning of the Corporate Learning Calendar and management of the remaining funds in a judicious and strategic manner more difficult.

9a) The process to plan the Corporate Learning Calendar on an annual basis should be reviewed to determine best practices and allow a standardized process to improve year-over-year strategic planning of training needs.

9a) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will adopt a standardized approach to planning the annual Corporate Learning Calendar.

Expected completion

February 2016

9b) The process to review the CLC should involve a regular review of the cost-neutral courses to determine if they adequately meet broad training needs at CIHR.

9b) Responsibility

Director General, Human Resources

Action

Agreed

Human Resources will analyze and report annually on the cost-neutral training taken by CIHR staff.

Expected completion

March 2016

In the course of our audit, some minor opportunities for improvement were identified that could improve systems of internal control, streamline operations and/or enhance processes related to learning and training. We have documented these observations in a management letter and are satisfied with management’s response.

Appendix

Audit Criteria and Conclusions

The audit uses the following definitions to make its assessment of the internal control framework.

Conclusion on Audit Criteria Definition of Opinion
Well controlled Well managed, no material weaknesses noted or only minor improvements are needed.
Moderate issues Control weaknesses, but exposure is limited because either the likelihood or the impact of the risk is not high.
Significant improvements required Control weaknesses either individually or cumulatively represent the possibility of serious exposure.

The overall conclusion considers the cumulative risk exposure related to the audit observations in the context of the above criteria.

Overall Conclusion

The audit has concluded that learning and training at CIHR has significant risks and uncertainties but based on existing controls represents moderate issues.

Criteria Reference to Observations Conclusion
Line of Inquiry 1 – Strategic Planning
  1. CIHR's Senior Management has established structures and processes to support corporate learning and employee development (i.e. tone from the top).
    1. CIHR has a learning policy which:
      1. Encourages employee development
      2. Supports employees in pursuing accredited learning activities
    2. Engages employees and managers in understanding, communicating and practicing CIHR's learning philosophy.
Audit report observation # 4 Moderate issues
  1. The human resources branch strategically plans employee training and learning activities to align with existing and future corporate needs.
    1. Strategic planning activities are used to identify corporate learning needs.
    2. A process exists to link corporate learning needs with employee learning and training plans.
    3. CIHR human resources branch has a process for identifying skill gaps, common learning needs, employee eligibility and priority.
    4. Employee learning plans are used to inform the learning calendar.

Audit report observation # 4, 7, and 9

Management letter observation #2

Moderate issues
  1. CIHR human resources branch defines the new skills and job profiles in line with CIHR's strategic plans.
None Well controlled
  1. CIHR human resources branch ensures proper integration between:
    1. The existing HR competency framework (i.e., identified gaps), Performance Management Program, and Learning and Development Program, and;
    2. Learning and development plans, management and leadership development (i.e., based on capacity assessment), and succession planning.

Audit report observation # 4

Management letter observation # 4

Well controlled
  1. Research and Knowledge Translation employees are given training when strategic planning is translated into new program delivery processes.

Audit report observation #7

Management letter observation #2

Well controlled
Line of Inquiry 2 - Controls over training

General controls

  1. Supervisors (i.e. directors and managers) are responsible for:
    1. Developing an annual personal learning plan (incorporated in the annual Performance Plan and Report) with every member of their team;
    2. Ensuring that employee plans support the organization's objectives;
    3. Ensuring that employee plans support the employees' career aspirations;
    4. Ensuring that employee plans are supported through appropriate planning and budgeting;
    5. Informing employees of learning opportunities and professional development activities; and
    6. Ensuring employees have the time and opportunity to participate in learning opportunities and professional development activities.
Audit report observation # 2 Well controlled
  1. The CIHR human resources branch is responsible for:
    1. Administering and monitoring the Learning Program at CIHR;
    2. Ensuring that employees and their respective managers are informed of how to register for learning programs;
    3. Tracking the names of Learning Program participants;
    4. Reporting periodically on the implementation of the Learning Program;
    5. Advising managers and employees on matters related to learning;
    6. Seeking feedback and making necessary adjustments to the Learning Program; and
    7. Managing the corporate learning budget to the best advantage of CIHR.

Audit report observation # 4 and 9

Management letter observation #2

Moderate issues
  1. CIHR has a formal personal and professional learning program based on:
    1. Legislation, Treasury Board policies, directives, and guidelines, and CIHR internal policies and guidelines.
    2. Fit with professional requirements, personal development and/or future needs of CIHR.
Audit report observation # 3, 4, and 5 Moderate issues
  1. CIHR has a process to determine allocations of training budgets within individual RCs.
    1. Guidelines exist for the allocation of individual training budgets for all RCs.
    2. Employee, supervisor and human resources responsibilities and accountabilities for training are clearly documented, including budgetary control.
Audit report observation # 2 and 9 Moderate issues

Delegation of Authority (DoA)

  1. Training, learning and related expenses are approved by individuals with the appropriate HR delegation levels:
    1. Educational leave without pay, educational allowances, tuition fees and books (Chief Financial Officer).
    2. Language training; career development leave with pay (short term); after hours training and associated costs (level 3).
    3. Paid leave for training during working hours (level 4).
Audit report observation # 2 and 8 Moderate issues
  1. Training and learning-related expenses approvals follow the guidelines set by the Treasury Board's Directive on Travel, Hospitality, Conference and Event Expenditures and the CIHR Delegation of Financial Signing Authorities:
    1. Responsibility centre managers recommend employee learning and development activities, and approve expenditure initiation for learning/training events within the limits specified by their delegation of authorities.
    2. Responsibility centre managers document the estimated cost of training.
    3. CIHR training that costs more than $25,000 or has hospitality costs that exceed $5,000 are approved by the Minister of Health.
    4. The President approves:
      1. Training that costs between $5,001 and $25,000
      2. Training-associated hospitality costs between $1,500 and $4,999
      3. Training that involves alcoholic beverages, entertainment, is provided to a CIHR employee spouse or partner, exceeds the standard food or beverage cost per person, or takes place at the residence of a federal employee.
      4. For events associated with an internal audit engagement, when total costs associated with the event exceed $5,000.
    5. Employee supervisors approve all internal and external training for employees.
    6. Training is related to the employee's role, personal development or future needs of the organization.
    7. Employee learning plans are linked to performance plan.
    8. Mandatory training for new and current employees is incorporated in training plan (i.e. DOA)
Audit report observation # 2 and 8 Well controlled
  1. Career development leave with pay:
    1. Is requested in writing, indicating how the course supports CIHR learning needs;
    2. Does not include reimbursement or compensation for overtime or travelling time; travel or other expenses reimbursed are reviewed by the employee's supervisor.
    3. Is approved by the employee's supervisor for the following activities:
      1. a course given by CIHR;
      2. a course offered by a recognized academic institution;
      3. a seminar, convention or study session in a specialized field directly related to the employee's work or to career development.
Audit report observation # 2 and 8 Moderate issues
  1. Educational leave without pay:
    1. Is only provided to indeterminate employees;
    2. Is requested and approved in writing;
    3. Has a maximum duration of one year or is renewed on an annual basis; and
    4. Is justified through an improved ability to fulfill the employee's current role, or current or future CIHR need.
    5. Employees who are granted educational leave without pay agree in writing, prior to the commencement of the leave, to return to the service of CIHR for a period equal to the duration of the leave.
Management letter observation # 1 Well controlled
  1. Educational allowances:
    1. Are approved by the Chief Financial Officer;
    2. Does not exceed the employee's annual salary;
    3. Relates level of reimbursement to CIHR's business requirements; and
    4. Are reduced by any grants, bursaries or scholarships received by the employee.
N/A, no educational allowances during the audit period Unable to conclude
  1. Reimbursement for courses taken outside working hours:
    1. Does not include the time needed to take the courses;
    2. Are pre-approved by the employee's manager;
    3. Occurs in proportion to how directly the course relates to the employee's work and organization's needs; and
    4. Are accompanied by proof of successful completion of the course by the employee.
Audit report observation # 2 and 6 Moderate issues
  1. Advanced payments for courses taken outside of working hours:
    1. Only occurs if courses are taken at the request of the manager;
    2. Only cover tuition and study materials; and
    3. Are accompanied with proof of payment to the educational institute.
Audit report observation # 6 Moderate issues

Mandatory training

  1. New employees attend a CIHR orientation session within two months of appointment.
Audit report observation # 5 Moderate issues
  1. New budget holders attend courses on the delegation of financial signing authorities, the financial management framework, procurement and any other required training before they receive signing authority
Audit report observation # 3 Moderate issues
  1. New supervisors attend training sessions on leadership and management within two months of acquiring supervisory responsibilities.
Audit report observation # 2 Moderate issues
  1. New functional specialists (e.g. procurement staff) attend training sessions on their functional responsibilities within two months of appointment.
Audit report observation # 2 Moderate issues
Line of Inquiry 3 - Efficiency and effectiveness
  1. CIHR has an evaluation model for the courses it offers.
None Well controlled
  1. Learning and training programs include formal reporting against pre-established performance measurements.
    1. HR has developed metrics to measure efficiency and effectiveness of training and professional development activities (internal and external).
    2. Reporting includes comparison of results against performance measures.
    3. Reporting is reviewed for completeness, accuracy, relevance, timeliness, appropriateness, and reasonableness.
    4. Reports are reviewed and approved by HR management and communicated to management.
    5. Reports are used to shape future training and professional development.
    6. CIHR evaluates the effectiveness of it training activities and the return on its investment.
      1. Student evaluations for internally-provided courses are submitted to CIHR's human resources function and used to inform future training options.
      2. Students for externally-provided courses submit assessments to CIHR's human resources function to inform decision-making about external course providers.
    7. Cost of providing the training in-house vs. external are assessed (cost vs. needs).

Audit report observation # 1 and 4

Management letter observation #3

Moderate issues
  1. CIHR has a mechanism to systematically capture and assess how knowledge from these activities is transferred back to the organization.

Audit report observation # 1

Management letter observations # 3

Moderate issues
  1. Senior Management is provided with information to support decision making including trends, needs, budgets, costs, value for money and results.
Audit report observation # 1 and 4 Moderate issues
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