Annex to the Statement of Management Responsibility Including Internal Control Over Financial Reporting

1. Introduction

In support of an effective system of internal control, Library and Archives Canada (LAC) conducted self-assessments of key control areas that were identified to be assessed in the 2022–23 fiscal year. A summary of the assessment results and action plan is provided in subsection 2.

LAC will assess all key control areas over a five-year period. The assessment plan is provided in subsection 3.

2. Assessment results for the 2022–23 fiscal year

LAC completed the assessment of key control areas as indicated in the following table. A summary of the results, action plans and additional details are also provided.

With respect to the key control areas of delegation of spending and financial authority, for the most part, controls related to spending and financial authorities were functioning well and form an adequate basis for LAC's system of internal control. Some issues related to the annual review of the delegation matrix and the 90-day deadline for obtaining the Minister's signature when updating the delegation table were identified and addressed during the fiscal year.

With respect to key transfer payment control areas, for the most part, transfer payment controls were functioning well and form an adequate basis for LAC's system internal control. Some issues related to the timing of the signing of certain amendments and the end date of the agreement were identified and addressed during the fiscal year.

In addition, following the review of its risks, LAC implemented its continuous monitoring plan and assessed the key internal controls of the following processes:

• Budgeting and forecasting 2021–22
• Revenues, accounts receivable and cash receipts 2021–22

No corrective action is required as a result of the continuous monitoring tests carried out on these two processes.

3. LAC’s assessment plan

LAC will assess the performance of its system of internal control by focusing on key control areas over a cycle of years as shown in the following table.

In addition, during 2023–24, LAC will undertake the ongoing monitoring of the entity-level-controls.