Audit of the Lunar Exploration Accelerator Program

Conclusion about the criterion

We found strategic and operational activity planning is carried out based on the priorities and expected results for the LEAP. One opportunity of improvement was identified in regard to the documentation of the thought and decision-making process for integrating the corporate risk profile (CRP) into activity and project planning.

Activity planning

At the beginning of the planning process, a consultation was conducted with stakeholders in order to identify the needs of the space industry and academia. An analysis was done based on expected results, costs, implementation, capacity, risk and heritage. Various options were identified in the analysis and some were selected for the LEAP's activity portfolio.

A large proportion of the budget, that is approximately $136 million, is split among six activities under a science and technology component, and the remainder, that is $14 million, is allocated to the health component. The six elements of the science and technology component include the following:

• Approximately $65 million is allocated to developing a Canadian lunar rover.
• Approximately $20 million is allocated to a scientific instrument that will eventually be used on the moon.
• Approximately $20 million is allocated to a contribution for a partner's mission to return a sample from Mars.
• Approximately $31 million is awarded in contracts, grants and contributions to the space industry and academic community, to increase the market potential of Canadian businesses and to support various scientific research initiatives that will help develop key capabilities in research areas sought after for future lunar missions.

In line with this, we found that the areas of expertise targeted by the program (artificial intelligence, robotics, science and health) are integrated into the implementation of portfolio activities. More precisely, the themes are taken into consideration for the evaluation used to select procurement contracts, as well as grants and contribution agreements. We have also found that the program remains open to opportunities. For example, we found that two new activities were added in August 2022 for the purpose of allowing the CSA to obtain experience in developing and implementing deep-space health care. In our opinion, the LEAP's objectives are in line with the Space Strategy for Canada. The LEAP's activities support the Canadian commercial sector in order to spur economic growth and job creation, support Canadian leadership in scientific excellence and help inspire the next generation.

We paid special attention to the Canadian lunar rover development project, considering the scope of this activity. We found that effective planning is carried out for this activity. Various concepts were studied in collaboration with two companies during the project planning phase. Although this approach required a heavier work load, it presented an opportunity for properly identifying the advantages and disadvantages of each option. Following a request for proposals, one of the concepts was chosen, and a fixed-price contract was awarded for developing and manufacturing the rover. The fixed-price contract limits the risks of cost overruns.

In terms of risk management, we found that the project risks are identified and analyzed through risk registers, and are followed up monthly through dashboards. A monetary risk reserve was established for unforeseen events. Some deadline-related risks materialized and had an impact on the LEAP. The completion of the LEAP, which was originally scheduled for 2025 under initial planning, is now expected in 2027. This can be explained by the realignment of activities with those of international partners, such as the delay to 2027 of the lunar rover's launch. The proposal to develop a Canadian science instrument under an international competitive process was not selected and required some adjustments. Alternatives were identified ahead of time so the program could quickly adjust and reduce the impact of the identified risk.

Financial planning

Our review of LEAP activities showed that financial resources planning is based on planned activities and expected changes. Financial resources planning was revised following the deadline adjustments previously mentioned, and the funds were carried over to 2027. On March 31, 2023, the program will have spent approximately $51 million. The graph below shows the evolution of the financial planning between the Treasury Board submission in 2019, the approval of the CSA governance committee in 2020 and current data for 2023.

Monthly financial forecasts are approved for the LEAP as a whole in accordance with the CSA's Financial Resources Management Guide. Some funds are released or added based on needs throughout the year. Requests for financial changes to the portfolio's activities are analyzed to identify impacts on costs and timelines. Some requests for changes are submitted to the Integrated Investment Review Board (IIRB) for approval when required under the CSA governance framework. Tracking documents were created using Excel spreadsheets. They are updated according to need and reflect the differences between actual and forecasted expenditures.

We also found that the portfolio management strategy makes it easier to reallocate the program's available funds to its internal projects in progress. However, stakeholders have mentioned that portfolio management may present monitoring challenges for financial authorities and lead to cumbersome governance because each activity is run by the IIRB twice. The first time is for the portfolio as a whole and the second is for the individual approval of each activity.

Human resources planning

The audit found that effective human resources planning has been carried out. The program maintains a human resources management plan for the LEAP as a whole, which details the level of effort and skills required to deliver the portfolio's projects. The plan is based on a detailed analysis of the level of effort required that was carried out with consideration for internal capacity and availability of human resources to ensure that allocated resources are enough to meet the program's objectives. Generally, the program has depth of talent. However, one risk was identified under the science component at the start of the program and an additional resource was hired to mitigate this risk. The LEAP's manager also changed during the audit, and we saw the transition unfold quickly and efficiently.

We noted that the entity considered the impact of the LEAP on diverse population groups, especially the composition of the science, technology, engineering and mathematics (STEM) space-related workforce. Concretely, the Gender-based Analysis Plus (GBA Plus) carried out during program planning has demonstrated how the LEAP facilitates job creation for women and under-represented groups in the STEM sector. We also found that diversity reporting requirements were included in the program's procurement approaches and that an assessment criterion was added under grants for science research in order to encourage universities to establish equity and diversity plans.

1. For the CSA as a whole, properly document the thought and decision-making process for integrating the corporate risk profile into activity and project planning.

Conclusion about the criterion

Effective controls are in place and facilitate adequate monitoring of activities.

Activities are monitored and controlled effectively.

Our projects review found that effective controls are in place and facilitate adequate monitoring of LEAP activities. Project management practices are consistent with the IGMF. The CSA's project management office (PMO) is also consulted during decision and review points under the governance process. We found that a manager is assigned to each LEAP project and is responsible for monitoring and controlling it. The project managers report to the portfolio manager on a monthly basis to report the progress of their respective activities and discuss all issues and actions to be taken, if necessary.

We have selected a sample of procurement contracts and reviewed the controls applied. We found that the controls in place make it possible to adequately monitor contractors, and ensure deliverables meet the expected deadlines and comply with established specifications. Payment requests and any documentation relevant to the request (activity reports, time sheets, purchase invoices, consultant invoices) are verified. Should an issue arise, a more in-depth verification is carried out. With respect to grant and contribution agreements, a recipient risk assessment is carried out in order to determine which level of control to apply. Tours of recipient facilities were planned and, despite challenges brought on by the pandemic, at least one audit visit to a recipient's facilities took place in November 2022.

Contracts and contribution agreements are awarded and administered in accordance with CSA program terms and conditions and applicable acts, regulations, policies and directives.

We found in a review of sample awards for six (6) contracts that the monitoring process meets the requirements of the Policy on the Planning and Management of Investments. We also found that lessons learned are written down after contracts are issued. Managers can refer to them for future contract awards with a view to continual improvement.

We also reviewed the awarding of a sample of two (2) grants and five (5) contributions. In our review, we found that the award process for grants and contributions complies with the CSA's grant and contribution program terms and conditions. Announcements of Opportunity (AOs) are prepared, and proposals are received, analyzed, evaluated and selected in accordance with procedures. We also found that the CSA's Grant and Contribution Centre of Expertise is consulted for advice and management tools when AOs are issued. This also ensures that proper funding mechanisms are used and decision making for scientific study initiatives is supported.

We reviewed a sample of contract, grant and contribution payments. We found that adequate monitoring is done before payment is authorized. Expenditures are approved and incurred in accordance with the Financial Administration Act (sections 32 and 34). We also found that expenditures are recorded properly.

Conclusion about the criterion

The audit found that program activities are reported.

Reporting

We found that the LEAP complies with internal directives on reporting and, more specifically, with the CSA's Investment Governance and Monitoring Framework (IGMF). We found that reporting is carried out at several levels for all program activities. For example, a LEAP coordination committee has been in place since the start of the program, making it possible to plan, prioritize and report the status of each project.

We also found that reliable and complete information on the status of the program's activities is presented in a timely manner to the Space Exploration Management Committee and the IIRB. For example, monthly dashboards are completed for the program's projects, which present key facts and indicators (deadlines, costs, scope, risks). Generally, this information provides an overview of the project's status and supports informed decision making. Furthermore, LEAP updates, including changes to the budget, risks, timelines, outputs and expected results, are periodically presented to upper management.

The expected program results were clearly defined during planning. They are revised and updated annually, as well as during governance milestones. Contractors must supply information for the CSA's Performance Information Profile at the end of each fiscal year, throughout the term of the agreement, thus allowing the program to assess output and the results of CSA-financed projects and to make changes as needed. Finally, our audit demonstrated that the program complies with the Treasury Board of Canada Secretariat's Guidelines On The Proactive Disclosure Of Contracts.