Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting – Fiscal 2015–2016 (Unaudited)

1. Introduction

To support an effective system of internal control, Library and Archives Canada (LAC) assesses the performance of its financial controls every year to ensure that

  • Financial arrangements and contracts are entered into only when sufficient funding is available;
  • Payments for goods and services are made only when the goods/services are received or when the terms of the contract or other agreement have been met;
  • Payments are properly authorized.

LAC will leverage the results of the periodic Core Control Audit performed by the Office of the Comptroller General. The date of the first LAC audit has yet to be determined. A summary of the results of the monitoring exercise carried out by LAC during the 2015–2016 fiscal year appears below.

2. Assessment results for the 2015–2016 fiscal year

By and large, the assessments found that the main controls were in place, worked well and provided an appropriate basis for LAC’s internal control system. When appropriate, an action plan was developed to implement corrective actions and potential improvements identified for these controls in a timely manner.

The following progress was made during the fiscal year.

2.1 Tests on the design and operating effectiveness of key controls

In 2015–2016, LAC completed tests on the design and operating effectiveness of key controls for the budgeting and forecasting process.

2.2 General IT controls

The assessment of general IT controls will continue in 2016–2017. LAC is continuing its involvement as an active member of working groups on the HRIS/PeopleSoft, FreeBalance and Shared Travel Services (HRG). When applicable, the recommendations made in conjunction with these respective groups are implemented at LAC.

2.3 Ongoing monitoring of key controls

During the 2015–2016 fiscal year, LAC completed ongoing monitoring tests of entity-level controls and business-process controls for procurement, salaries, benefits, capital assets, payables and sales.

3. Assessment plan

LAC will continue to monitor the performance of its internal control system, with a focus on the core controls related to financial transactions. LAC applies a risk-based, cyclical ongoing monitoring plan to reassess the performance of controls.

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