Policy 17.4 - Internal Forest Practices Audit

Effective Date: 23-Oct-96
Responsible Branch: Compliance and Enforcement Branch

Resource Management Volume Table of Contents | Amendment Log

Scope

This policy covers internal forest practices audits conducted within the Ministry of Forests.

Policy

The Ministry will conduct regular independent and objective internal forest practices audits that:

1. Examine the adequacy and efficacy of forest practices and standards implemented on the provincial forest resources;

2. Assess forest practices achievements; and,

3. Assess compliance with statutory requirements under the Forest Practices Code of British Columbia Act, the associated regulations and approved operational plans, and with the requirements of Ministry of Forests policies and procedures respecting forest practices.

Role of Internal Forest Practices Audit

Internal forest practices audit is one activity of an integrated quality assurance program meant to provide management with assurance regarding compliance with, and the effectiveness of, forest practice requirements. The other activities are licensing and permitting of companies and individuals to conduct forest practices, and monitoring and inspection of the forest practices conducted.

The mandate of internal forest practices audit is broad, covering all aspects of forest management activities, and may include:

• determining whether the goals and objectives of the forest practices have been effectively met (including cost effectiveness)
• evaluating the adequacy and efficacy of internal controls respecting forest practices; and,
• assessing broad compliance with legislation, policy, and procedures

All internal forest practices audits will be conducted under the direction, knowledge, and guidance of the Chief Forester.

Accountability

Forestry Division carries the primary responsibility for conducting forest practices audits. Forestry Division branches are accountable directly to the Chief Forester, and ultimately to the Audit Committee, for the delivery of an effective internal forest practices audit program.

The Chief Forester will submit annually to the Audit Committee:

• a strategic audit plan identifying scheduled audit activities for the three year audit cycle and a detailed audit schedule for the current year; and,
• an annual report for the past year summarizing audit coverage, major findings, significant unresolved recommendations, and any other matters requiring the attention of the Audit Committee

Operations Division is accountable directly to the Assistant Deputy Minister, Operations, and ultimately to the Audit Committee, for participating in and supporting approved internal forest practices audits.

Responsibilities

Forestry Division, primarily through Forestry Division Services Branch, is responsible for the implementation and maintenance of an effective internal forest practices audit function within the Ministry. Specific responsibilities in this regard shall include, but not be limited to:

• the preparation and implementation of an internal forest practices audit strategic plan and annual audit schedules in consultation with branches, regions, and districts
• the development and implementation of an effective and efficient internal forest practices audit program within the Ministry
• the development, documentation, and distribution of standards for internal forest practices audits within the Ministry
• the development and delivery of internal forest practices audit knowledge and skills training within the Ministry
• providing the Audit Committee with the executive summary of each final audit report, the status of audits in progress, and a summary of the audit results; and,
• conducting of special audits at the request of the Chief Forester

Management is responsible for supporting the internal forest practices audit function within the Ministry. Specific responsibilities for senior managers in this regard shall include, but not be limited to:

• identifying key staff to participate in the preparation of an internal forest practices audit strategic plan and annual audit schedules
• identifying key staff to lead or participate on audit teams
• assisting in the development and implementation of an effective and efficient internal forest practices audit program within the Ministry
• participating in special audits at the request of the Chief Forester

Management is responsible for taking appropriate corrective action to address audit findings and recommendations directed towards their primary responsibility areas. They will prepare and submit to their senior manager a detailed action plan that addresses audit report findings and recommendations within 90 days of the final report being issued.

Planning

All proposed forest practices audits will be identified in an annually updated strategic audit plan covering a three year audit cycle. An annual forest practices audit schedule will be developed for the current year, incorporating input from management across the Ministry.

Audits may also be initiated throughout the year upon request by revising the strategic audit plan and annual audit schedule.

Standards

Internal forest practices audits will be planned and conducted in accordance with the Internal Forest Practices Audit Standards for the Ministry.

Reporting

There will be regular communication between management and the audit teams during a forest practices audit. An entry meeting will be conducted with the appropriate management staff to outline the scope and objectives of the forest practices audit, and to confirm schedules for staff interviews and field work.

An exit meeting to present significant findings and recommendations will be conducted with appropriate management staff at the end of the audit field work. Management staff will be given an opportunity to discuss the findings and recommendations with the audit team, and to provide additional information relevant to the findings and recommendations.

A draft audit report will be submitted to management for review and comment prior to issuing the final audit report. The draft audit report will enable management to assess the implications of findings and recommendations, and to determine appropriate actions.

Draft reports will be submitted within 60 days of the completion of field work, and final reports within 30 days after a designated time for management response to the draft report.

The Chief Forester will provide the Audit Committee with the executive summary of each final audit report, the status of audits in progress, and a summary of the audit results.

Exclusion

This policy does not apply to audits conducted by Audit Services Branch, the Office of the Auditor General, the Forest Practices Board, or other central agencies.

References

• Ministry of Forests Internal Forest Practices Audit Standards (being compiled)
• Ministry of Forests Quality Assurance Framework