Parks Canada
Symbol of the Government of Canada

Common menu bar links

Internal Audit and Evaluation Documents

Revised Asset Management Evaluation Response 2011

Recommendations Original Management Response and Target Date Revised Management Response Time
line
Under-
stand the asset base
Under-
stand the busi-
ness needs
Write the policy/
plan
Deli-
ver on the plan
Completed Recommendations
Recommendation 2: The CAO should create an Intranet site containing copies of, or links to, the Agency and TB asset policies and standards, delegation of authorities, project management guidance, relevant asset management processes (e.g., for doing condition ratings or determining replacement values) similar to what currently exists for the financial management policies and guidance in the Agency. AGREE – The intranet site was created on December 16th, 2008 and is be updated on a regular basis to ensure it contains relevant and useful information. AGREE – The intranet site was created on December 16th, 2008 and will be updated on a regular basis to ensure it contains relevant and useful information. Com-
pleted
       
Short-Term to be Completed Within One Year – Target Date March
2012
Recommendation 1: The CAO should review the existing framework and identify any gaps and develop a plan and schedule to address the gaps (e.g., see recommendations 3, 4, 7 and 9 for examples of how the framework might be improved). AGREE – This evaluation has identified many of the gaps and provides suggestion on how to close them. The Director General, Infrastructure and Real Property will provide direction to the Director of Real Property on a list of priorities that need to be addressed.
The 2005 asset Management framework is already being fully deployed. A new Asset Management directive with a set of clear accountabilities has been approved and disseminated.
The Agency has committed to a new governance structure for Real Property and is adding $2M for capacity building in Asset Management at national office level.

Target Date: March 2011
AGREE – The CAO will update existing framework and seek EMC approval of the AM framework to serve as reference to provide the Agency with clear asset management policy direction, governance and highest priority directives and standards.

(see the Path Forward)
March
2012
    X  
Recommendation 7: The CAO based on consultations with the operational and functional DGs should confirm the core assets and asset information (e.g., condition, replacement value, link to a facility where relevant, indications of costs of corrective measures, indications of asset or facility importance) to be included in an AM system and outline a process and timelines for updating the inventory and information consistent with the identified requirements (see also recommendations 10 and 16). AGREE – The Director General, Infrastructure and Real Property will confirm the core assets and fields of data that are mandatory in the current asset management system (AMS).
Operational DGs will ensure that the inventory and asset management information are updated in accordance with agreed timelines
Improving asset information was recognized as an important issue and Finance Committee has approved a project to acquire and implement a new national Real Property Management System.

Original Target: June 2010
AGREE – Tombstone data, asset condition and the cost of corrective measures will be entered into existing asset tracking system (AMS) complemented by spreadsheets when necessary, for all high-risk assets (bridges, dams and highways). March
2012
X      
Recommendation 8: The CAO in conjunction with DGs Eastern and Western /Northern Canada should monitor progress by business units in updating information against the timeline and report annually to finance committee on progress (see also recommendation 18). AGREE - The Director General, Infrastructure and Real Property will monitor progress by business units in updating information against the timelines and report annually to Senior Management on progress.

Original Target: June 2010
AGREE – State of Protected Heritage Areas (SOPHA) reports will include information on assets. Overall condition ratings in AMS will serve as the basis for this report. FUS will undertake updating of condition reports for assets that benefitted from EAP funding as well as bridges, dams and highways on a priority basis. March
2012
X      
Recommendation 15: The CAO in conjunction with the DGs Eastern and Western/Northern Canada should review information on asset conditions and life cycle, and asset priorities to determine if the current allocation of resources between asset operations, maintenance and capital investment represents the best investment balance for achieving the Agency’s long-term objectives (see also recommendation 10). AGREE – This is a long-term objective but will require addressing many of the other gaps identified in this evaluation before this can be conducted in a useful way. The allocation of resources between asset operations, maintenance and capital investment will continue to rely on the management acumen of those in the business units until such time as sufficient information and systems exist to allow objective monitoring at a national level.

Original Target: March 2012
PARTIALLY AGREE – The CAO recognizes the importance of recommendation #15 and concurs that it is a long term objective for the Agency. As an immediate measure, the Agency will focus on high-risk assets to confirm their condition and assess whether or not the current approach represents the best investment balance for the Agency. March
2012
X X    
Recommendation 16: The CAO in conjunction with DGs Eastern and Western/Northern Canada should develop additional tools and guidance (e.g., an API or some other measure) to ensure consistent prioritization of decisions to investment in asset operations, maintenance, renewal, acquisition or disposition and set a timetable for implementation in the Agency. AGREE – The Agency will continue to benchmark best practices. The principal change objective for the foreseeable future is to fully implement the Investment and Portfolio Management Plans to assist with this planning a metric appropriate to Parks Canada will be developed to assist with prioritizing investments

Original Target: March 2012
AGREE – The CAO in collaboration with other EMC members will update the existing framework and seek EMC approval of the AM framework to serve as reference to provide the Agency with clear AM policy direction, governance, highest priority directives and standards.

( see the Path Forward)
March
2012
    X  
Medium-Term to be Completed Within 2-3 Years – Target Date March 2014
Recommendation 3: The CAO in conjunction with DGs Eastern and Western /Northern Canada should define which expenditures currently captured in the financial system reflect asset operations and maintenance (i.e., goods and service expenditures are currently captured as general ledger codes). AGREE – The Chief Financial Officer will develop the Agency protocol to capture expenditures in the financial system for asset operations and maintenance.

Target Date: April 1, 2010
PARTIALLY AGREE – Although it is recognized that the Agency will benefit from better information related to salary costs and G&S, over the short term, a formulaic approach will be developed by the Director of Real Property to estimate asset management related salary and G&S expenditures by PA, until protocols/systems are in place to effectively enable PCA to capture financial information on assets. March
2014
  X    
Recommendation 10: The CAO should develop a methodology to link technical assessments of assets/facilities condition with an understanding of the costs of corrective actions (e.g., a FCI or some other measure of costs of correction action) and provide a target date and plan for implementing the measure (see also recommendation 17). AGREE – The Director General, Infrastructure and Real Property will develop a methodology to link technical assessments of assets/facilities condition with an understanding of the costs of corrective actions by adoption of an appropriate metric.

Target Date: December
2010
AGREE – Although this is an objective over the long term for the Agency, a more targeted approach will be taken by FUs focussing on high-risk assets and using existing systems and methodology to provide condition assessments. Technical inspections to assess condition, risk and cost of corrective measures of bridges and dams will be undertaken as a priority.  March
2014
X X    
Recommendation 11: The CAO should develop an asset management plan (as opposed to a Long-Term Capital Plan) for the Agency. An Asset Management Plan specifies the current condition and life cycle information of the asset inventory, costs of operations, maintenance and past capital investments, and future requirements based on an analysis of needs and future requirements. It would have acquisition, operations/ maintenance, capital renewal and disposal components. Consideration should be given to having business units prepare asset management plans of which Long-Term Capital Plans are one component. AGREE – The Director General, Infrastructure and Real Property will develop a template for an Asset Management Plan, which specifies the current condition and life cycle information of the asset inventory, future costs of operations, maintenance and capital investments based on an analysis of needs and future requirements.

Original Target: March 2010
PARTIALLY AGREE – The CAO will develop a nationaly consistent AM Plan based on policy direction (see the Path Forward).

Implementing the Policy on Investment Planning, Assets and Acquired Services will provide a comprehensive and integrated approach ensuring that future asset investments are linked to the overall Agency AM plan.
March
2014
    X  
Recommendation 13: The CAO should modify the business unit Long-Term Capital Plan template to require that the purposes of the intended investment be shown (e.g., renewal of existing assets, new functionality or capacity, disposal of assets) allowing these projects to be linked to an overall asset management plan. AGREE - The Director General, Infrastructure and Real Property will modify the business unit Long-Term Capital Plan template to require that the purposes of the intended investment be shown.

Original Target: April 2010
AGREE – Implementing the Policy on Investment Planning, Assets and Acquired Services will provide a comprehensive and integrated approach ensuring that future asset investments are linked to the overall Agency AM Plan. The CAO will propose a more focussed and streamlined template for business planning purposes at the FU level. March
2014
    X  
Recommendation 14: The CAO should clearly define and communicate what types of assets should be included in business unit LTCPs and therefore what types of asset expenditures will be counted toward meeting investment targets. DGs Eastern and Western/Northern Canada should follow-up to ensure that LTCPs only include projects that are relevant to the purposes of the plan. AGREE – The Director General, Infrastructure and Real Property will clearly define and communicate what types of assets will be included in business unit LTCPs and therefore what types of asset expenditures will be counted toward meeting investment targets. Operational DGs will follow-up to ensure that LTCPs only include projects that are relevant to the purposes of the plan.

Original Target: Prior to 2010/11 Business Plan Call-up
AGREE – The CAO in collaboration with the CFO and DG ops will examine current directives related to the allocation of capital funds. Consideration will be given to including maintenance and operating costs directly related to the assets to be funded out of the capital program. March
2014
  X X  
Recommendation 17a: The CAO in conjunction with the DGs Eastern and Western/Northern Canada should conduct an immediate review of all its current targets for assets (i.e., 13 targets as per Table 2) and confirm which targets are still relevant and useful for the Agency. For those targets that remain relevant, the systems and process for monitoring and reporting on performance should be identified and target dates established for when the information will be available. 

Particular focus should be on developing information and targets related to reach and outcomes rather than inputs (e.g., asset conditions as expressed by target FCI ratios, risk reduction, compliance rates with inspection and code compliance regimes, results of investment on asset condition).
AGREE – The Director General, Infrastructure and Real Property, in conjunction with the DGs Eastern and Western/Northern Canada, will conduct an immediate review of all its current targets for assets to refine and recommend relevant and useful targets for approval by the CEO.

Original Target: March 2010
AGREE – The CAO will lead the review all asset management program related targets and recommend to EMC an integrated performance measurement framework using existing corporate planning and reporting tools.

A first priority will be to examine PA5 related targets
March
2014
    X  
Recommendation 17b: The CAO should develop and communicate direction on what sources of funds count to meeting minimal investment targets and what are the precise targets for all relevant business units. Policy or guidance should be developed and communicated on if, and under what circumstances, business units can opt out of minimal investment target. AGREE - The 65% of 1997 capital investment target applies to the Management Unit A Base and does not include supplemental funds. The Director General, Infrastructure and Real Property in conjunction with the DGs Eastern and Western/Northern Canada will develop guidance on if, and under what circumstances, business units can request an exemption from the 65% investment target.

Original Target: March 2010
AGREE - The CAO in collaboration with the CFO and DG ops will examine current directives related to the allocation of capital funds. Consideration will be given to including maintenance and operating costs directly related to the assets to be funded out of the capital program. March
2014
    X  
Recommendation 18: The CAO and DGs Eastern and Western/Northern Canada jointly prepare and report annually a complete picture of asset conditions, life-cycle information, actual and planned expenditures for operations, maintenance and capital, and results from previous investments and intentions for future investments. Reporting should also include information on the actual consequences of the asset investment decisions relevant to the potential harms identified by the Agency (i.e., loss of irretrievable cultural assets, decreased visitor satisfaction, potential health and safety or legal risks). AGREE – The Director General, Infrastructure and Real Property jointly with the Operational DGs will prepare and report annually a complete picture of asset conditions and all other pertinent information related to asset investment decisions.

Original Target: June 2010, and every subsequent June
PARTIALLY AGREE – The Agency AM Plan will confirm priority asset investments. The Agency AM Plan will be developed and updated in sink with the investment planning cycle.

A biennial SOPHA report will include a section on asset condition.
March
2014
      X
Long-Term to be Completed Within 3-5 Years – Target Date March 2016
Recommendation 4: The CAO in conjunction with DGs Eastern and Western /Northern Canada should develop a reasonable and consistent national approach to allocating salary costs to asset operations and maintenance based on approaches already in use at the business unit level.  AGREE – The Agency will review its current practices allocate salary expenditures to assets operating and maintenance, and inherently to capital projects. The Chief Financial Officer will develop a reasonable and consistent national approach to allocating salary costs to asset operations and maintenance based on approaches already in use at the business unit level.

Original Target: April 1, 2010
PARTIALLY AGREE –Although it is recognized that the Agency will benefit from better information related to salary costs and G&S, over the short term, field units will capture all salary expended against assets, beginning with high-risk assets. A formulaic approach will be developed by the Director of Real Property to estimate asset management related salary and G&S expenditures on assets. The CAO will explore with the CFO and CHRO the feasibility of adjusting systems to capture this information. March
2016
      X
Recommendation 5: The CAO should modify the structure of the Asset Expenditure Reports so that they include information on the program activity to which the expenditure is directed (already captured at input) and the intended purpose of the expenditure (see also recommendation 13). AGREE - The Chief Financial Officer will modify the structure of the Asset Expenditure Reports so that they include information on the program activity to which the expenditure is directed (already captured at input) and the intended purpose of the expenditure.

Original Target: April 1, 2010
AGREECFO will modify the structure of the Asset Expenditure report. The CAO will provide national direction on proper coding of AM activities. March
2016
  X   X
Recommendation 6: The DGs Eastern and Western/Northern Canada should inform business unit managers of the importance of coding expenditure data correctly so that they link to the Asset Expenditure Reports. They should monitor information in the reports and hold managers accountable for ensuring it is accurately completed. AGREE – The operational DGs will continue to stress the importance of coding, through training and discussions with business unit managers. Furthermore, coding will be reviewed and where necessary challenged at the project approval stage to ensure accurate coding and data integrity. Project progress will continue to be monitored periodically through quarterly variance reporting and project progress reports. Where necessary business unit managers will be held accountable through the Agency’s performance management system.

Original Target: On-going
AGREE – The operational DGs will continue to stress the importance of coding, through training and discussions with business unit managers. Furthermore, coding will be reviewed and where necessary challenged at the project approval stage to ensure accurate coding and data integrity. Project progress will continue to be monitored periodically through quarterly variance reporting and project progress reports. Where necessary business unit managers will be held accountable through the Agency’s performance management system.

Original Target: On-going
March
2016
       
Recommendation 9: CAO should provide direction for reporting on acceptable sources of valid replacement value information in LTCPs (e.g., the AMS, in-house system, an Asset Data Integrity Report) and a consistent national approach for adjusting these estimates over time. AGREE – The Director General, Infrastructure and Real Property will develop a nationally consistent approach to estimating Current Replacement Value and maintaining this value over time.

Original Target: May 2010
AGREECRV is an important metric for effective AM in the Agency however it is not a priority at this time and will be undertaken following an assessment of the portfolio and development of a corporate AM plan. March
2016
      X
Recommendation 12: The CAO in conjunction with the DGs Eastern and Western/Northern Canada should establish the appropriate percentages of CRV for the asset portfolio or for particular categories of assets, to guide investment in asset operations, maintenance and capital renewal. They should ensure that process and systems are in place that captures these expenditures in the financial system (see also recommendations 3 to 6). AGREE – The Director General, Infrastructure and Real Property will establish appropriate percentages of CRV for the asset portfolio or for particular categories of assets to guide maintenance and capital investments. Process and systems will be put in place to ensure that these expenditures are captured in the financial system.

Original Target: April 2010
PARTIALLY AGREE – This is a long-term objective which requires capturing pertinent financial and asset data over an extended period. This data is not currently captured in existing asset systems or STAR. Delivering on this recommendation will depend mainly on PCA’s ability to implement a more robust asset information & management system, such as RPMS, and effect any required changes in STAR in collaboration with the CFO, to enable efficient and effective capturing of pertinent data. March
2016