Audit of Professional Services

On this page

• Executive summary
• 1.0 Introduction
• 2.0 Detailed observations, recommendations and management responses
• 3.0 Conclusion
• Annex A: About the audit

Executive summary

The Treasury Board, through the Directive on the Management of Procurement, sets the direction and guides the procurement of professional services within the Government of Canada. The Directive is designed to ensure that the procurement of goods, services and construction acquires the essential assets and services necessary to support the delivery of programs and services to Canadians, while also ensuring best value for the Crown. Several other federal instruments support procurement practices including the Financial Administration Act, Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest.

At Agriculture and Agri-Food Canada (AAFC), the Procurement and Materiel Management Division, within the Corporate Management Branch, is responsible for providing procurement and materiel management related advice and direction to business owners (individuals who are responsible for the business or program area for which the procurement is established). The Procurement and Materiel Management Division consists of the Corporate Materiel Management Centre which services the National Capital Region and the Regional Materiel Management Centre which services regional sites through the Eastern and Western Service Centres. The work outside of these service areas is supported by procurement specialists within Integrated Services offices across Canada.

The Audit of Professional Services was included in the Office of Audit and Evaluation’s 2022-23 to 2026-27 Audit and Evaluation Plan. The objective of the audit was to determine whether the procurement of professional services had an adequate management control framework in place.

The audit examined the adequacy of AAFC's governance structures and mechanisms in place to support the procurement of professional services. It also examined the risk management processes used to identify, escalate and report risks associated with procuring professional services. In addition, the audit evaluated the compliance of AAFC's procurement activities with Treasury Board directives, the Values and Ethics Code and AAFC’s internal processes and control frameworks.

Overall, the audit found that while AAFC had key elements of a management control framework for the procurement of professional services, improvements are required to address gaps in the following areas:

• Revising the Procurement Review Board’s processes so that members can effectively perform their challenge role when evaluating submissions, that Records of Decision include sufficient detail and that procurement activities for professional services are reported to senior management at least annually;
• Revising the decision-making process for the procurement of professional services to include adequate risk management practices that align with the Directive on the Management of Procurement;
• Developing comprehensive and accessible guidance documents and enhanced support for procurement staff and users; and
• Improving documentation practices to demonstrate compliance with professional services processing requirements.

1.0 Introduction

1.1 Risk context and objective

The Audit of Professional Services was included in Agriculture and Agri-Food Canada’s (AAFC) Audit and Evaluation Plan for the period of 2022-23 to 2026-27 due to the material expenditures incurred by the Department on professional services, concerns surrounding the efficiency of the procurement process and the inconsistent level of support provided to AAFC business owners.

As disclosed on the Government of Canada Open Government portal for contracts over $10,000, AAFC had entered into professional servicesFootnote1 contracts, including amendments, that averaged $46 million annually from 2018 to 2023, with individual years ranging between $26 million to $74 million. The number of professional services contracts and amendments entered into annually averaged around 222, ranging from 199 to 257 over the same period.

Figure 1: Number and value of professional services contracts awarded exceeding $10,000, including contract amendments, 2018-19 to 2022-23

The objective of the audit was to determine whether the procurement of professional services had an adequate management control framework in place.

The scope of the audit included the assessment of AAFC activities for the procurement of professional services. Both competitive and non-competitive contracts were examined including those with former public servants.

The audit examined the adequacy of AAFC's governance structures and mechanisms in place to support the procurement of professional services. It also examined the risk management processes used to identify, escalate and report risks associated with procuring professional services. In addition, the audit evaluated the compliance of AAFC's procurement activities with Treasury Board directives, the Values and Ethics Code and AAFC’s internal processes and control frameworks.

More details about the audit objective, scope, criteria and approach are in Annex A: About the audit.

1.2 Overview of professional service procurement

Professional services contracts are used by the Government of Canada to acquire specialized expertise and can be an effective way to meet requirements during times of unexpected increases in workload. Professional services may be solicited through a number of different types of procurement strategies such as competitive, non-competitive and through procurement instruments including standing offers and supply arrangements.

The Treasury Board, through the Directive on the Management of Procurement, sets the direction and guides the procurement of professional services within the Government of Canada. The objective of the Directive is to ensure that the procurement of goods, services and construction acquires the essential assets and services necessary to support the delivery of programs and services to Canadians, while also ensuring best value for the Crown. Several other federal instruments support and govern procurement practices including the Financial Administration Act, Values and Ethics Code for the Public Sector and the Directive on Conflict of Interest.

At AAFC, the Procurement and Materiel Management Division, within the Corporate Management Branch, is responsible for providing procurement and materiel management related advice and direction to business owners (individuals who are responsible for the business or program area for which the procurement is established). The Procurement and Materiel Management Division consists of the Corporate Materiel Management Centre which services the National Capital Region and the Regional Materiel Management Centre which services regional sites through the Eastern and Western Service Centres. The work outside of these service areas is supported by procurement specialists within Integrated Services offices across Canada.

Procurement lifecycle process in AAFC

The procurement lifecycle process in AAFC is broken down into four phases as follows:

Figure 2: Procurement lifecycle

Phase 1, Procurement planning and requirement definition:

Key steps include defining the service requirements, obtaining funding approvals, preparing a Statement of Work, identifying the procurement strategy and instruments and seeking Procurement Review Board (PRB) approval when required.

Phase 2, Solicitation and bid evaluation:

Key steps include preparing the procurement solicitation and evaluation documents, publishing them on the Government of Canada approved electronic tendering system (when required), evaluating the bids received and awarding the contract.

Phase 3, Contract administration and management:

Key steps includes initiating work under the contract, monitoring and managing the progress of the work and performing change control.

Phase 4, Contract closeout:

This phase consists of actions related to closing out the procurement.

The duration of the procurement process can vary based on several factors including the monetary value, the complexity of the requirement and the procurement strategy selected, such as opting for a competitive or non-competitive process or using existing standing offers and supply arrangements.

2.0 Detailed observations, recommendations and management response

The following sections present the key observations based on the evidence and analysis associated with the audit and provide recommendations for improvement. Management responses were provided and include:

• an action plan to address each recommendation;
• a lead responsible for implementation of the action plan; and
• a target date for implementation and completion.

2.1 Governance

As described in the Directive on the Management of Procurement, procurement governance involves a structured system within an organization to oversee and regulate the procurement process. It incorporates a well-defined set of policies, procedures and controls to ensure that all procurement activities are carried out in a lawful, ethical and efficient manner. Moreover, procurement governance takes into account the distinct needs of a department and aims to proactively mitigate potential risks associated with the procurement process.

Audit criteria

The audit examined whether governance structures and mechanisms were in place to support the procurement of professional services.

The Treasury Board Directive on the Management of Procurement requires that “effective governance and oversight mechanisms are in place to support the management of procurement.”

What the audit found

AAFC has an established governance structure in place, which includes the Procurement Review Board (PRB). However, additional awareness on procurement vehicles and processes would benefit some committee members. In addition, the PRB Records of Decision excluded details to support the discussions and decisions that were made. There has also been a lack of reporting on professional services procurement activities which may limit the ability to provide sufficient oversight.

Procurement Review Board

Governance and oversight of procurement activities are provided by the PRB, which serves as AAFC's management forum, responsible for the review and approval of procurement vehicles associated with high-value and high-risk procurement activities. The PRB reports directly to the Assistant Deputy Minister of the Corporate Management Branch, includes members from branches with significant procurement involvement and convenes biweekly.

Interviews conducted with PRB members indicated that members who were not procurement subject matter experts would benefit from increased training on procurement vehicles and processes to assist them in effectively carrying out their challenge role when evaluating submissions.

Limited knowledge of professional services procurement vehicles among PRB members may impede their ability to perform their challenge function effectively and make informed decisions. This in turn may diminish the overall effectiveness of the PRB.

Governance mechanisms

The audit reviewed the PRB Records of Decision from April 1, 2021 to December 31, 2022, and confirmed they were completed for each meeting and saved in AAFC’s corporate repository, Knowledge Workspace. However, the review found the Records of Decision contained only partial information including whether submissions were approved, denied or put on hold. Details such as discussion points, evidence of a challenge function or the results of voting quorums were not documented.

Having incomplete details documented in the PRB Records of Decision does not provide a complete audit trail should questions about decisions occur, may diminish the ability of senior officials to understand professional services procurement recommendations and decisions made and may restrict their ability to compile lessons learned.

Senior management reporting

The audit examined whether the Department was effectively supporting governance and oversight by providing performance reports on professional services procurement activity as required by the Directive on the Management of Procurement. According to the Directive, the departmental procurement management framework should include performance results, lessons learned and best practices to inform procurement decision making. However, the audit found that no performance reporting on procurement activities was compiled or shared with the PRB.

In 2022, the Corporate Materiel Management Centre launched a pilot program for a new digital procurement log tool with the aim of supporting future monitoring and reporting efforts. This tool is intended to capture and track all procurement requests from their initial submission and throughout the entire procurement process. Once fully implemented, the log tool will enable effective monitoring and reporting of procurement activities while also facilitating the identification of areas where efficiencies can be made.

The absence of regular reporting to the PRB on procurement metrics such as non-competitive procurements, high use vendors, procurements with former public servants and processing timelines may restrict informed decision making in the procurement of professional services.

Recommendation 1: Governance

The Assistant Deputy Minister, Corporate Management Branch should revise Procurement Review Board (PRB) processes so that committee members can effectively perform their challenge role when evaluating submissions; that Records of Decision include sufficient detail; and that procurement activities for professional services are reported to the PRB at least annually.

Management response and action plan:

Modernize the Procurement Review Board (PRB) by realigning the Terms of Reference with the Directive on the Management of Procurement and the Directive on the Management of Materiel, which will clarify roles, responsibilities and processes.

Establish a digital tool to capture discussion topic(s) and Record(s) of Decision for each PRB meeting and individual PRB submissions.

Launch a digital dashboard that will be presented quarterly to the PRB members and Chair to help contribute toward effective departmental results-based investment and procurement decisions.

Lead(s) responsible:

Assistant Deputy Minister, Corporate Management Branch;

Director General, Real Property and Asset Management Directorate

Target date for completion: March 2024

2.2 Risk management

As described in the Treasury Board’s Guide to Integrated Risk Management, an integral component of good management involves a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, making decisions on and communicating risk issues. An effective management framework for the procurement of professional services should have risk mitigation measures incorporated within procurement processes.

Audit criteria

The audit examined whether risk management processes were established and applied to identify, escalate and report risks associated with procurement activities.

The Directive on the Management of Procurement requires procurement decisions to be based on risk management practices, performance information and an assessment of full life-cycle costs whenever possible.

What the audit found

Procurement processes were established and guidance documents were available to help manage and avoid risks associated with certain procurement practices (for example contracts with former public servants). However, the audit identified that some risk management practices, such as risk assessment and risk mitigation discussions, were not occurring.

Risk management processes and guidance

The audit examined AAFC’s established processes for the procurement of professional services and found that they included various requirements to mitigate risks. These requirements involved adhering to departmental delegated financial signing authorities for approval, identifying and approving security requirements, making determinations regarding limitation of liability and completing Sole Source and Limited Tendering Certification when applicable.

Supporting these requirements, AAFC’s Procurement and Materiel Management Division developed a Guide to Procurement to inform procurement specialists how to manage and mitigate risks associated with procurement activities. It specifically emphasized the importance of avoiding certain practices including establishing employer-employee relationships and ensuring appropriate justifications for contracting with former public servants.

Risk-based decision making

The PRB serves as AAFC's primary management review and approval forum for high value and/or high risk procurement. Its responsibilities include making risk-based decisions and ensuring that procurement practices adhere to administrative, contractual and financial policies, as well as relevant legislative regulations and delegations. By doing so, the PRB aims to ensure compliance with procurement practices and effectively manage risks.

Although the PRB mandate is to review and approve high risk procurements, the audit found that submission requirements for the PRB were primarily based on the procurement vehicle type and dollar amount, without adequately considering the level of risk. Procurements that required PRB approval included, for example, competitive contracts of $100,000 or more, sole source contracts of $25,000 or more, amendments to previous contracts where these thresholds are reached and any previously tabled requirements where there is a 25% or more increase in contract value.

The review of PRB Records of Decision from April 1, 2021 to December 31, 2022, showed a lack of evidence indicating risk discussions took place during the PRB's review of submissions seeking approval. Interviews with PRB members also highlighted the need for improved consideration of risks during the challenge function.

The absence of risk management practices in the decision-making process for professional services may limit the PRB’s ability to make informed approval decisions. Without proper identification and discussion of risks, the development of effective risk mitigation strategies for procurement activities may not occur leading to loss of value to the Crown, inefficiencies in the process or reputational damage to the Department.

Recommendation 2: Risk management

The Assistant Deputy Minister, Corporate Management Branch should revise the decision-making process for the procurement of professional services to include adequate risk management practices that align with the Directive on the Management of Procurement.

Management response and action plan:

Implement the mandatory use of the Procurement Request Form for Goods and Services for the submission of all procurement requirements. This will provide Procurement Officers an accurate and comprehensive level of information to recommend procurement strategies based on key considerations such as risk, complexity and best value.

Deploy a modernized intranet site via AgriSource dedicated to Business Owner(s) that is a one-stop-shop providing all relevant forms, templates and job aids related to the submission of a procurement requirement at AAFC

Lead(s) responsible:

Assistant Deputy Minister, Corporate Management Branch;

Director General, Real Property and Asset Management Directorate

Target date for completion: March 2024

2.3 Controls and processes

As described by Public Service and Procurement Canada’s Code of Conduct for Procurement, the Government of Canada has a responsibility to maintain the confidence of the vendor community and the Canadian public when acquiring goods and services for government programs. This responsibility is fulfilled by conducting procurement activities in a manner that is open, fair and transparent, while adhering to regulations such as the Values and Ethics Code for the Public Service and the Directive on Conflict of Interest. Additionally, the government proactively discloses its contracts to ensure accountability.

Audit criteria: The audit examined whether the Department’s professional services procurement activities complied with the associated Treasury Board Directives, AAFC’s internal processes and the Values and Ethics Code.

2.3.1 Fairness, openness and transparency

The Treasury Board Directive on the Management of Procurement requires that “actions related to the management of procurement are fair, open and transparent, and meet public expectations in matters of prudence and probity”.

What the audit found

The audit found that AAFC has implemented processes and tools to facilitate the procurement of professional services that support a fair, open and transparent approach. However, the supporting tools for navigating the procurement process were outdated and not easily accessible, there were inconsistencies in the level of support provided to business owners and processing requirements for procuring professional services were not consistently followed.

Processes and tools for procuring professional services

AAFC’s Guide to Procurement, which was revised in 2023 by the Procurement and Materiel Management Division, serves as the primary resource for procurement professionals who provide support to AAFC business owners. It includes references to the necessary policies, directives and procedures related to procurement, along with best practices and additional resources for consultation. The Guide acts as a reference to support a fair, open and transparent process.

Guidance material designed to aid business owners in managing the procurement process was available in AAFC’s Knowledge Workspace. However, the audit found it was challenging to locate certain materials such as process information and timelines. Additionally, some of the documentation did not include current procurement guides and process documents. Feedback received during interviews with procurement specialists and business owners indicated a lack of awareness regarding the availability of guidance material. Ad-hoc users of the procurement process stated it would be beneficial to have a streamlined guidance document that clearly outlines the essential requirements and timelines.

The absence of appropriate tools and resources for AAFC employees providing procurement services and business owners may limit the ability of both the employees and business owners to effectively and efficiently manage the procurement process.

Procurement services support

The Procurement and Materiel Management Division is responsible for providing procurement and materiel management operational services to business owners. This responsibility is divided between the Corporate Materiel Management Centre, servicing the Central Service Centre, and the Regional Materiel Management Centre which services the Eastern and Western Service Centres. The work outside of these service areas is supported by procurement specialists within Integrated Services offices across Canada.

While AAFC has functional and operational procurement support structures in place, the audit identified a need for additional support for business owners such as improved assistance in determining the most appropriate procurement strategy and obtaining advice and guidance throughout the procurement process. Additional support could help reduce revisions to the Statement of Work and potential delays in obtaining PRB approval.

The audit found that there is a need for improved communication channels to ensure procurement specialists in AAFC research centres are fully-informed about policy and process requirements, as well as any updates or changes. Inadequate support provided to AAFC employees responsible for procurement services and business owners may lead to processing delays, non-compliance with expected practices and ultimately reduce AAFC's ability to achieve its procurement goals.

Recommendation 3: Controls and processes; Fair, open and transparent

The Assistant Deputy Minister, Corporate Management Branch should develop comprehensive and accessible guidance documents and enhanced support for procurement staff and users.

Management response and action plan:

An annual review of the Guide to Procurement for use by procurement staff which contains the relevant procurement policies, directives and procedures, as well as best practices and other resources available for consultation that may further assist an employee in their duties.

A modernized Guide to SAP for use by procurement staff that provides the necessary details on SAP data entry for AAFC procurement activities.

A modernized AAFC SharePoint site dedicated to procurement staff that include all relevant templates, guides and job aids related to procurement activities at AAFC.

AAFC Procurement Community of Practice that will provide an open forum for procurement staff to discuss and collaborate on various topics/issues, exchange ideas/knowledge, and learn about new developments.

Lead(s) responsible:

Assistant Deputy Minister, Corporate Management Branch;

Director General, Real Property and Asset Management Directorate

Target date for completion: March 2024

Professional services processing requirements

Procurement activities within AAFC are subject to regulations imposed by various government acts, directives and policies that govern procurement practices and ensure best value to the Crown. These include the Financial Administration Act, Directive on the Management of Procurement and AAFC’s Departmental Application of Delegated Spending and Financial Signing Authorities, among others. In addition, internal process requirements must be followed, including the PRB approval process.

The audit examined procurement files for 30 competitive and non-competitive professional services procurements and found the majority were processed in compliance with Treasury Board and departmental requirements including:

• Detailed Statements of Work were provided as part of the contracts;
• Section 32 approvals were appropriate and obtained as required;
• Integrity Verification Services checks were performed for non-competitive contracts;
• Justification and supporting Authority Requests were documented and on file; and
• Task Authorizations were appropriately used in accordance with the established guidelines.

However, audit sample testing identified inconsistencies as follows:

• out of the 20 contracts that required a signed Security Requirements Check List (SRCL), four contracts (20%) did not have the required documentation on file;
• from eight competitive contracts that required an Integrity Verification Services check, three contracts (38%) did not have the necessary verification on file; and
• two out of the five competitive contracts (40%) that required consensus evaluations did not have them on file.

AAFC should improve documentation practices to demonstrate compliance with Treasury Board and departmental requirements and to document that fair, open and transparent procurement processes are in place and followed.

Recommendation 4: Controls and processes; Fair, open and transparent

The Assistant Deputy Minister, Corporate Management Branch should improve documentation practices to demonstrate compliance with professional services processing requirements.

Management response and action plan:

1. Procurement Request Form for use by Business Owner(s) that will capture a comprehensive level of information necessary for Procurement Officer(s) to provide advice and guidance on how to process a procurement requirement.
2. Procurement file checklist to be used by procurement staff to ensure new procurement files carry and maintain an accurate and comprehensive level of information aligning with requirements set out within the Directive on the Management of Procurement.
3. National procurement information management guideline to ensure new procurement files encompass and maintain an accurate and comprehensive level of information to facilitate management oversight and audit needs.

Lead(s) responsible:

Assistant Deputy Minister, Corporate Management Branch;

Director General, Real Property and Asset Management Directorate

Target date for completion:

1. October 2023
2. September 2024
3. September 2024

2.3.2 Values and Ethics, and Conflict of Interest

According to the Directive on the Management of Procurement, business owners and contracting authorities are responsible for adhering to the Values and Ethics Code for the Public Service and the Directive on Conflict of Interest. In summary, they are to act with integrity and in a manner that will bear the closest public scrutiny; never using their official roles to inappropriately obtain an advantage for themselves or to advantage or disadvantage others; and taking all possible steps to prevent and resolve any real, apparent or potential conflicts of interest between their official responsibilities and their private affairs in favour of the public interest.

What the audit found: AAFC provides employees performing procurement services and business owners with access to essential tools and training to promote awareness of the requirements for upholding the Values and Ethics Code and the Directive on Conflict of Interest. The audit observed that professional services procurement practices were adhering to the Values and Ethics Code and requirements for preventing conflicts of interest.

Tools and resources

The audit examined the tools and resources accessible to AAFC employees performing procurement services and business owners. The audit assessed whether adequate guidance was available and accessible to facilitate professional services procurement activities in adherence to the Values and Ethics Code and the Directive on Conflict of Interest. The audit confirmed that AAFC maintains a dedicated intranet site which offers a range of services and information that support desired standards.

Moreover, employees performing procurement services had access to AAFC's Guide to Procurement and accompanying checklists. The Procurement and Materiel Management Division is planning to develop an employee onboarding framework for those responsible for or involved in procurement activities at AAFC to educate them on their responsibilities. The Canada School of Public Service provided a comprehensive set of courses for procurement functional specialists, including training mandated by the Treasury Board for employees in the Procurement Group.

Values and ethics and conflict of interest processing requirements

To evaluate AAFC's compliance with the Values and Ethics Code and the Directive on Conflict of Interest regarding the procurement of professional services, the audit reviewed all non-competitive professional services data from April 1, 2021 to December 31, 2022. The reviewed contracts included non-competitive contracts totaling $100,000 or higher, as well as sole source contracts totaling $25,000 or higher, which required PRB approval. The audit found no evidence of contract splitting.

Additionally, the audit examined the only two professional service contracts that were awarded by AAFC to former public servants within the audited time period in terms of documentation requirements. The examination of the contracts confirmed that all required documentation supporting the decision was provided.

2.3.3 Open government reporting

The Government of Canada, under the Directive on the Management of Procurement, requires departments to proactively disclose contracts exceeding $10,000 and all positive and negative amendments exceeding $10,000 in value.

What the audit found: The audit findings confirmed that AAFC had followed the proactive disclosure requirements. Regular reviews of procurement data were being conducted by the Corporate Materiel Management Centre to validate contract information within the departmental integrated financial and materiel management system (SAP) and correcting any inaccuracies found.

To test AAFC's compliance with the proactive contract disclosure requirements included in the Directive on the Management of Procurement, the audit examined a sample of 25 competitive and non-competitive professional services contracts and amendments, from April 1, 2021 to December 31, 2022. All 25 contracts were found to be properly disclosed in the Open Government portal.

The audit found that the Corporate Materiel Management Centre performed regular reviews of procurement data within the SAP system to ensure its alignment with the contract information. The procurement specialists associated with the contracts were notified of any required adjustments to SAP.

3.0 Conclusion

Overall, the audit found that while AAFC had key elements of a management control framework for the procurement of professional services, improvements are required to address gaps in the following areas:

• Revising the Procurement Review Board’s processes so that members can effectively perform their challenge role when evaluating submissions, that Records of Decision include sufficient detail and that procurement activities for professional services are reported to senior management at least annually;
• Revising the decision-making process for the procurement of professional services to include adequate risk management practices that align with the Directive on the Management of Procurement;
• Developing comprehensive and accessible guidance documents and enhanced support for procurement staff and users; and
• Improving documentation practices to demonstrate compliance with professional services processing requirements.

Annex A: About the audit

Statement of conformance

The audit conforms to the Institute of Internal Auditors' International Professional Practices Framework, as supported by the results of AAFC’s internal audit quality assurance and improvement program. Sufficient and appropriate evidence was gathered in accordance with the Institute of Internal Auditors' International Standards for the Professional Practice of Internal Auditing to provide a reasonable level of assurance over the findings and conclusion in this report. The findings and conclusion expressed in this report are based on conditions as they existed at the time of the audit and apply only to the areas included in the audit scope.

Audit objective

To determine whether the procurement of professional services had an adequate management control framework in place.

Audit scope

The scope of the audit included the assessment of AAFC activities for the procurement of professional services. Both competitive and non-competitive contracts, including amendments and task authorizations were examined, as well as those with former public servants.

The audit examined the adequacy of AAFC's governance structures and mechanisms that support the procurement of professional services. It also examined the risk management processes used to identify, escalate and report risks associated with procuring professional services. In addition, the audit evaluated the compliance of AAFC's related procurement activities with Treasury Board directives, the Values and Ethics Code and AAFC’s internal processes and control frameworks.

The definition of professional services included material groups associated with information processing and related telecommunications services, professional, administrative and management support services and financial and related services

The audit did not assess the following areas:

• Employer/Employee Relationships;
• Procurements made using acquisition cards; and
• Procurement Strategy for Indigenous Business.

Period Covered by the Audit

The audit focused on professional services procurement processes and practices during the timeframe of April 1, 2021 to December 31, 2022. However, to gain a more complete understanding of professional services procurement activities, the audit examined prior year activities and processes where applicable.

Audit criteria

The audit examined the following criteria during the audit’s conduct phase:

• Governance: Oversight structures and mechanisms were in place to support the contracting of professional services;
• Risk management: Processes were established and applied to identify, escalate and report risks associated with contracting activities; and
• Controls and processes: Professional services procurement activities complied with the associated Treasury Board directives, the Values and Ethics Code and AAFC’s internal processes and control frameworks.

Audit approach

The audit approach was risk-based and consistent with the Institute of Internal Auditors' International Professional Practices Framework. These standards require that the audit be planned and performed in such a way as to conclude against the audit objective. The audit was conducted in accordance with an audit program, which defined audit tasks to be performed to obtain and examine sufficient and appropriate evidence to assess each audit criterion.

The audit team performed the following work to complete the engagement:

• Reviewed key documentation, such as Treasury Board and AAFC policies and guides, committee materials and written procedures and processes;
• Performed interviews with AAFC management and employees involved in the procurement of professional services; and
• Reviewed a judgmental sample of professional services procurement files for competitive and non-competitive processes, including contracts with former public servants.