2.0 About the Audit

2.1 Audit Scope and Objectives

The scope of this audit included all Program recipients due for follow-up or renewal between May 1, 2014 and September 30, 2014. The objectives of this audit were:

• To assess the adequacy of the management control framework;
• To assess compliance with applicable policies and processes; and
• To determine performance against the service standard.

The Ministerial communication in February 2015 regarding the frequency of the VIP Annual Follow-up was made subsequent to the audit’s fieldwork being conducted, and was not considered in the scope of the audit.

The audit criteria are provided in Appendix A.

2.2 Methodology

This audit was conducted in conformance with the Internal Audit standards as outlined by the Institute for Internal Auditors, and is in line with the Internal Audit Policy for the Government of Canada, as supported by the results of the Quality Assurance and Improvement Program.

Interviews and direct observation sessions were conducted with staff at VAC Head Office and the third-party contractor to obtain an understanding of Annual Follow-up and Survivor Renewal processes and to assess compliance with relevant policies, guidelines and processes. A documentation review of regulations, policies, guidelines and business processes was also completed.

A file review was completed to assess compliance with applicable policies and procedures, as well as assess the time taken to complete the annual follow-up and renewal activities. A statistically valid random sample^{Footnote 6} of 202 Annual Follow-up transactions and a random sample of 35 Survivor Renewal transactions from a population of 37,588 were tested. Sample data incorporated transactional information from various sources such as Client Screenings, Grant Determination Tool, BA and FHCPS. The period of the files reviewed was May 1, 2014, to September 30, 2014.