Every five years the independent forest audit process is reviewed to ensure that it continues to be efficient and effective.
The most recent review (2011) was undertaken by Ontario Internal Audit Division (OIAD) of the Ministry of Finance. OIAD provided objective assurance and consulting services to the review of the independent forest audit process. The key finding was that the independent forest audit process continues to be effective. However, there are considerations for improvement that could make the process more efficient and effective. These considerations can for example, improve communications between auditors and auditees, reduce redundancy within audit reports, improve feedback opportunities for stakeholders, and give a greater balance to final audit reports. Any changes to the process as a result of this review will be phased in starting in 2013.
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Executive Summary
The Crown Forest Sustainability Act, 1994 (the Act or CFSA) requires that the Minister of Natural Resources conduct a review every five years of the forest management unit to ensure the licensee has complied with the terms and conditions of the licence. The Minister’s review is supported by an independent forest audit (IFA) of the management unit. Ontario Regulation 160/04 (the Regulation) regulates the IFA.
The Regulation requires that at least once every five years the terms of reference that guide the process for the IFAs be reviewed. In 2011 the Ministry of Natural Resources (MNR or the Ministry) asked the Ontario Internal Audit Division of the Ministry of Finance to undertake this review of the IFA terms of reference. This engagement was part of the approved audit plan for the Ministry for the fiscal year 2011-12.
The objective of this engagement was to review the Independent Forest Audit terms of reference, as documented in the Independent Forest Audit Process & Protocol, to assess whether it achieves the requirements of Crown Forest Sustainability Act, 1994; the conditions of the Class Environmental Assessment Approval for Forest Management on Crown Lands in Ontario (2003) as amended; and the requirements of the regulated manuals including the Forest Management Planning Manual; as these pertain to the Ontario Regulation 160/04.
This review examines what aspects of the process are working well, identifies what areas might benefit from possible improvements and provides considerations for possible changes to the IFA program. The review was focused on six key areas:
- Objectives of the Independent Forest Audit
- Managing the Independent Forest Audit Process
- Planning the Independent Forest Audit
- Conducting the Independent Forest Audit
- Independent Forest Audit Reports
- Independent Forest Audit Action Plans
Within each of these key areas OIAD used a consultative approach to develop considerations for improvement by: Identifying and notifying key stakeholders of opportunities for engagement; reviewing legislation, manual, guides and reports; and surveys, interviews, and workshops to gather information from key stakeholders. The information and insight provided through the consultative approach was documented, reviewed, analyzed, and summarized. As a result of the analysis OIAD brought forward 17 considerations to assist the Ministry in the continual evaluation and improvement of the IFA process.
Conclusion
OIAD assessed the IFA terms of reference and concluded that it substantially achieves the requirements of the Regulation under the Crown Forest Sustainability Act. Where appropriate, OIAD has made suggestions for the Ministry to consider.
