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A commitment to openness, transparency, and accountability

Collaborative governance

IDRC is committed to incorporating developing-country perspectives into its governance and management. It does so through an international Board of Governors, a Senior Management Committee composed of Canadian and international staff, and six regional offices in Africa, Asia, Latin America, and the Middle East.

This governance structure is one of the factors that allow IDRC and Canada to make a unique contribution in fostering scientific and technological excellence for development in developing countries.

The Board of Governors oversees the Centre’s affairs and works with management to set strategic directions and to ensure that objectives are achieved. The Chairman of the Board reports to the Parliament of Canada through the Minister of Foreign Affairs. The Board has four standing committees to assist it in carrying out its responsibilities.

The Board met three times in Ottawa in 2008–2009: it held its regular meetings in June and October 2008 and in March 2009. The Board also engaged in a two-day retreat in March to debate questions related to the 2010–2015 corporate strategic plan, which management will submit to the Board later in 2009. The Board approved the current Corporate Strategy and Program Framework 2005–2010 in November 2004.

As Chief Executive Officer and an ex officio member of the Board, the President manages and directs the work and staff of the Centre, with the support of the Senior Management Committee.

Accountability and transparency

IDRC is accountable for its use of public resources and has many mechanisms in place to help it operate in a highly accountable manner. In fact, IDRC meets or exceeds the standards set by Treasury Board for transparency and accountability in corporate governance.

Examples of IDRC’s accountability measures include:

• The Board of Governors’ Finance and Audit Committee, which normally meets four times a year, provides financial oversight to the Centre’s operations.
  
  
• IDRC has a rigorous system of internal audits and external audits. IDRC’s financial statements are audited annually by the Office of the Auditor General (OAG). For each of the 39 years of IDRC’s existence, the OAG has issued an unqualified opinion on IDRC’s financial statements.
  
  
• Special Examinations are carried out by the OAG at regular intervals. The last, carried out in 2007–2008 at IDRC’s request, did not find any significant deficiencies in the systems and practices examined. The report notes that in several areas, notably research project funding management and human resources, IDRC’s management systems have contributed to IDRC’s success. The report is available on our website.
  
  
• IDRC presented its annual report to Parliament through the Minister of Foreign Affairs in July 2008. The report is available on our website.
  
  
• IDRC is subject to both the Access to Information Act and the Privacy Act: three requests were received under the Access to Information Act in 2008–2009. None were received under the Privacy Act.
  
  
• IDRC publishes travel and hospitality expenses for senior executives on its website, in keeping with the federal government policy on disclosure of these costs.
  
  
• IDRC submitted reports on its application of the Canadian Multiculturalism Act, the Employment Equity Act, and the Official Languages Act (OLA). Because IDRC was identified as having exemplary performance regarding the OLA, it was exempt from submitting the narrative report for 2008–2009.
  
  
• IDRC submitted its annual report on the Public Servants Disclosure Protection Act to the then Canada Public Service Agency.
  
  
• Under the Financial Administration Act, IDRC is required to conduct internal audits of its records, controls, systems, and practices to ensure that resources are managed economically and efficiently and that operations are carried out effectively. In 2008–2009, IDRC conducted five internal audits. Four internal audits were completed and approved by the Board’s Finance and Audit Committee.

Effective administration

Stewardship under the President and three Vice-Presidents — responsible for Corporate Strategy and Regional Management, Programs, and Resources, respectively — ensures IDRC’s programmatic relevance, and effective resource management and accountability. The position of Vice-President Corporate Strategy and Regional Management was created in 2008–2009 to fulfill three functions: provide leadership in IDRC’s performance management and public accountability functions; communicate IDRC’s value and accomplishments; and provide leadership and guidance to IDRC’s regional directors.

IDRC conducts its operations according to sound management practices with due regard to both efficiency and effectiveness. Despite the challenges associated with forecasting annual expenditures associated with hundreds of multi-year projects conducted in many countries of the developing world, IDRC’s real-time systems and performance tracking at head office and in our six regional offices have enabled us to achieve a variance of less than 1% between our budget and our program expenditures of approximately $140-million.

Information technology (IT) projects are planned carefully and monitored to promote on-time delivery within scope and budget. During 2008–2009, IDRC devoted approximately 85% of our IT budget to run and maintain existing systems, but we were careful to devote 15% to improve our systems and to respond to new business needs. We also manage our travel through a central supplier and preferred airline agreements so that travellers are made aware of potential safety concerns in various countries and to ensure airfares are discounted.

During 2008–2009, IDRC also instituted a new process for handling international wire payments to increase the efficiency of transactions with our many grant recipients around the world. We also automated the handling of donor funding to facilitate the allocation of donor funds to projects and our reporting to donors. Improvements were also made to the Centre’s purchase requisition system.

Treasury Board’s strategic review of IDRC, completed in 2007–2008, recognized IDRC’s management style as “exemplary.”

Sound performance management

IDRC’s performance management system includes strategic planning, integrated risk management, internal audit, and evaluation. Performance indicators are being used for the Centre’s five resource management sectors — finance and administration, grant administration, human resources, information technology, and information management. Annual performance reports have been produced for each of these five sectors during the last four years.

As noted in the OAG’s 2008 Special Examination, “Overall we found that IDRC has a good structure and processes in place to measure its performance. The Centre has developed an elaborate set of mechanisms over the years to gather and assess the result of its activities.We also noted that IDRC is continually seeking ways to improve the measurement of its programs’ outcomes and impacts.”

The Special Examination Report provided direction for IDRC to improve its external reporting to better show to stakeholders and Parliament the extent to which the Centre is meeting its objectives, managing its resources efficiently, and managing its key risks. IDRC is committed to improving its external reporting and is acting to do so.

Strategic planning

IDRC’s Corporate Strategy and Program Framework 2005– 2010 (CS+PF) is the Centre’s strategic plan. It describes how the Centre intends to implement the IDRC Act within that five-year period.

The plan, based on a careful assessment of the international and domestic contexts for the Centre’s work, continues to guide IDRC’s activities. Planning for the IDRC Strategic Plan 2010–2015 began this year with the preparation of three background papers on the development and donor environments and on IDRC’s business model. Consultations with researchers and development practitioners were held in four developing regions to inform IDRC’s discussions. The Board of Governors held a retreat in March 2009 to provide direction to management on these issues.

In the coming year further consultations will be held with IDRC’s partners in the Canadian foreign policy and research communities, with grant recipients and other donors, and with IDRC staff.

Informed risk management and internal audit

Proactive risk management

The Centre operates in an environment full of risks — scientific, geographic, political, environmental, and financial. IDRC takes these risks knowingly, and relies on the professional expertise of ts staff to effectively mitigate these risks to a manageable level. It does this by applying high ethical and accountability standards, following sound project management techniques, relying on on-the-ground expertise of regionally based staff, and employing strong financial stewardship.

Through close to 40 years of support to researchers and institutions in the developing regions of the world, IDRC has developed a strong, adaptive risk management approach that allows it to capitalize on opportunities, enhance predictability, and protect corporate assets.

Key elements of risk management include our regional offices, the professional staff who assess the environments in which projects will be carried out, and the sharing of strategic intelligence with other donors and organizations in Canada and elsewhere.  Among actions taken is a risk assessment of countries in which IDRC operates, as well as a well-developed system to assess key recipient institutions based on the amount of funding provided, the institution’s capacity to administer IDRC grants, and the conditions in the country and region. At March 31, 2009, 774 institutions were working with the Centre.

IDRC is committed to implementing a continuous, proactive, and systematic approach to risk management that is effected by the Board, management, and staff. The integrated Risk Management Policy and the Corporate Risk Profile outline the key risks that have to be addressed by management. This year, IDRC created a project risk management working group, which is addressing questions raised in the OAG’s 2008 Special Examination.

Business continuity plans are in place and continue to be reviewed to ensure that IDRC can operate under difficult conditions while ensuring staff safety.

Internal audit

Internal audit provides independent assurance and advice on the effectiveness and efficiency of IDRC’s risk management, control, and governance processes. It objectively examines specific areas of Centre operations approved in the annual Internal Audit Plan of Work. These assessments are evidence-based and examine the extent to which IDRC’s systems and practices operate effectively to achieve objectives; Centre resources are managed efficiently; and assets are appropriately controlled and safeguarded.

Internal audit has long been a part of IDRC. In June 2006, IDRC’s Board of Governors approved a new Internal Audit Charter that allowed the Centre the flexibility to outsource all or part of its internal audit function. At the end of 2007– 2008, IDRC management, with the support of the Board’s Finance and Audit Committee, designated an internal management position as the Centre’s Chief Audit Executive. The actual conduct of IDRC’s internal audits are co-sourced with external service providers.

Each year, the Senior Management Committee reviews the Internal Audit Plan of Work, which is approved by the Board’s Finance and Audit Committee. In 2008–2009, work completed under the approved plan included internal audits of the regional offices for South Asia and China (New Delhi) and for Southeast Asia (Singapore), an audit of controls over revenue, and an audit of travel health and safety. Additionally, a risk assessment and audit strategy for IDRC’s information technology was carried out.

An ethical organization

IDRC adheres to the highest ethical standards. For example, all IDRC grants require that the recipient adhere to internationally recognized ethical standards: grant recipients must report on their compliance with standards to protect the dignity and privacy of individuals, participants’ health, and their living conditions.

IDRC supports the objectives of the 1992 Convention on Biological Diversity, in particular that of promoting the fair and equitable sharing of the benefits arising from the use of genetic resources.

Ethics in the workplace

IDRC’s Code of Conduct — adopted in 2006–2007 — fosters a work environment that is supportive and encourages creativity, innovation, competence, and teamwork, as well as fair and equitable management. Employees report on their achievements in promoting and adhering to the Code of Conduct as part of their annual performance appraisal.

The Code of Conduct meets the requirements of the Public Servants Disclosure Protection Act. IDRC’s policy on harassment and discrimination in the workplace implements the principles of the Canadian Human Rights Act.

Environmental stewardship

IDRC aims to be a green organization. Our environmental commitments are met most clearly through the activities of the Environment and Natural Resource Management program area, which supports grassroots action and policy research that offer viable alternatives to or improve on current practices and institutions. We also consider environmental impacts when evaluating all potential projects.

In 2008–2009, IDRC offset its carbon footprint with the purchase of 10 000 tonnes of carbon dioxide equivalent credits associated with wind energy projects in India.

Other environmental actions in 2008–2009 included

• a recycling program at the Ottawa head office where paper, water, and energy conservation are promoted
  
  
• energy, water, and resource conservation measures in all IDRC regional offices
  
  
• the use of recyclable, recycled paper, or paper from responsibly managed forests in IDRC publications 
  
  
• the promotion of the use of public transit: in its Ottawa office. The Centre participates in OC Transpo’s ECOpass program. A secure bicycle storage area is available to staff who cycle to work.

Human resources management: Supporting staff excellence

IDRC’s highly qualified and diverse workforce is key to our success. The varied perspectives brought by staff with different cultural backgrounds enriches the Centre’s approaches, enables us to better understand issues affecting local populations around the world, and helps us make more effective policy and program decisions. A survey last year showed that staff in Ottawa and the regional offices used 27 languages at work, enabling IDRC to provide support to research partners around the world.

In the last year, IDRC continued its efforts to ensure a representative workforce and a welcoming organizational culture of respect, trust, and competence. For example,

• we introduced a number of policies and guidelines, including on official languages and on the management of people with disabilities
  
  
• policies were developed on pre-retirement leave and leave with income averaging
  
  
• alternative language learning programs were introduced for staff who frequently travel
  
  
• several initiatives were launched to improve staff wellness and a new program was implemented
  
  
• during the lengthy public transportation strike in Ottawa last winter, flexible work arrangements were encouraged
  
  
• the annual Performance Review and Appraisal System was simplified.

Given the challenges associated with having a workforce that travels extensively in some of the more difficult regions of the world, the health and safety of staff are of particular importance. IDRC has a travel health unit, as well as a Security and Emergency Planning Team and a Travel Advisory Committee that monitors potential and ongoing concerns. Up-to-date travel advice is provided on the Intranet and a 24-hour emergency telephone number is available to all staff. An internal audit carried out in 2008–2009 found that IDRC had an effective governance and management control framework for managing traveller health and safety.

Through its travel management services contractor, IDRC has access to a database that shows the itineraries of all staff and IDRC-sponsored travellers. This allows us to easily identify who may be headed toward travel “hot spots,” allowing management to react quickly to ensure the safety of travellers.

IDRC’s salary and benefits package is adjusted annually. Comprehensive reviews are undertaken every three years: a review for Ottawa-hired staff salaries was carried out in 2008–2009, as well as a review of benefits specific to Ottawa-hired staff working overseas.

Employee satisfaction is gauged through regular consultation with the Staff Association and annual meetings with staff. An all-staff Quick Pulse Survey carried out in 2008–2009 to seek employee perceptions of various aspects of the IDRC work experience obtained a response rate of 82%. Overall findings were positive, with 96% of staff indicating that they are proud to say they work for the Centre. We are following up on areas where improvements can be made.

Document(s) 3 of 5