Audit of Management Practices at Missions - Nairobi

Final Report

Office of the Chief Audit Executive and Special Investigations

May 2026

Table of contents

• Acronyms and symbols
• Executive summary
• Introduction
• Findings and recommendations
• Conclusion
• About the audit
• Annex A: Overview of mission management practices
• Annex B: Recommendations and management response and action plan

Acronyms and symbols

ERT

Emergency Response Team

LES

Locally Engaged Staff

MEP

Mission Emergency Plan

NROBI

High Commission of Canada in Kenya - Nairobi

OHS

Occupational Health and Safety

UN

United Nations

Executive summary

In accordance with Global Affairs Canada’s approved 2024-26 Risk-based Audit Plan, the Office of the Chief Audit Executive conducted an audit of Management Practices at Missions – Nairobi.

Background

Global Affairs Canada manages Canada’s diplomatic, consular, trade, development, and humanitarian objectives through a global platform of 181 missions in 112 countries. Operating and supporting this network requires substantial resources, underscoring the need for strong stewardship and effective controls across all missions. Nairobi (NROBI) is Canada’s largest mission in Africa and a key regional hub supporting a wide range of bilateral and multilateral responsibilities. Its diverse program portfolio, multi partner presence, and substantial operational footprint underscore the need for robust management practices to ensure effective, secure, and accountable operations in a complex regional environment.

Objective and scope

The objective of this audit was to provide assurance that sound management practices and controls are in place to support effective operations and good stewardship of resources at the mission in support of the achievement of Global Affairs Canada objectives. 

The audit assessed management practices and controls in place to support mission operations, specifically governance, procurement, asset management, human resources and duty of care requirements. The audit included an on-site visit.

Findings and conclusion

The audit found that the mission had a strong management foundation, with effective governance practices, clear roles and policies, and core operational structures in place. These provided a solid basis for operations, transparency, and decision making.

However, the audit identified inconsistent application of established processes across programs, which weakens overall control effectiveness and oversight reliability. Procurement practices showed strengths but lacked consistency, with issues such as inappropriate methods, split acquisition card purchases, and insufficient verification of goods and services, creating compliance and oversight risks. These challenges were heightened by reliance on a limited supplier base. Asset management systems were in place but would benefit from clearer roles, better record keeping, and stronger oversight. Strengthening the verification of contractor work is required, and improvements in fleet fuel monitoring and vehicle records would enhance stewardship and reduce risk. Human resources processes were functioning well overall, and robust duty-of-care measures were in place, but emergency plans need updating and clarity on emergency response roles is needed. Overall, improving consistency in daily practices will reinforce stewardship and enhance the dependability of oversight across the mission.

The recommendations focus on strengthening the consistent application of management practices by reinforcing procurement planning, oversight, and managerial accountabilities under the Financial Administration Act; enhancing stewardship of mission assets through improved fleet fuel monitoring and quality assurance of property work; and strengthening emergency preparedness through updated emergency documentation and refresher training to reinforce role clarity and readiness.

Introduction

The High Commission of Canada in Kenya (NROBI) is a strategically significant Canadian mission and the largest on the African continent. Serving as a regional hub, the mission supports eleven programs and carries both bilateral and multilateral responsibilities and accreditations. The Head of Mission accredited as Canada’s representative to Kenya, Uganda and Somalia, and multilaterally to two major United Nations (UN) agencies — UN Environment Program and UN Habitat.  These bilateral and multilateral responsibilities enable Canada to advance foreign policy, development, humanitarian, and security priorities across East Africa.

NROBI is designated as a full-service mission with all departmental programs and essential support services represented, including Common Services, Consular, Commercial, and others. It is also considered a hardship posting, which indicates challenging living and working conditions. As a mission, NROBI manages complex and large-scale operations. Its workforce comprises 171 employees, 52 Canada based staff and 119 locally engaged staff (LES). The mission also hosts five partner departments —Canada Border Services Agency, Immigration Refugees and Citizenship Canada, the Department of National Defence, Public Safety Canada, and the Royal Canadian Mounted Police — underscoring its role as key platform for integrated Government of Canada operations abroad.

The mission operates within a complex regional environment characterized by strong economic potential in Kenya and parts of East Africa, yet constrained by political instability, security risk, and governance challenges in countries like Somalia and Uganda. The procurement and vendor landscape remains challenging, with risks linked to corruption, inconsistent vendor reliability and uneven regulatory enforcement, necessitating due diligence and continuous vendor oversight. Security considerations are particularly important as high threat levels, including civil unrest and rising crime, directly shape mission operations and protective measures. Frequent power outages, flooding and other infrastructure gaps further influence operational planning and highlight the need for resilient facility support and reliable service providers in high-risk environment.

The mission is responsible for managing a large annual budget, exceeding $12.5 million. Key budget items include $4.75 million for locally engaged staff salaries and overtime, $4.4 million for Operations and Maintenance, and $2.4 million for security. Administrative functions such as finance, procurement, and human resources are supported by the Common Service Delivery Point in Berlin.

NROBI is also responsible for a diverse and extensive property portfolio. This includes the chancery, the official residence, 24 crown-owned and 26 crown-leased staff quarters. The mission also manages a fleet of 36 vehicles. This infrastructure supports the mission’s ability to maintain secure, resilient, and effective operations in a dynamic and challenging region.

Given the scale of operations, regional responsibilities, and exposure to operating risks, it is critical that strong governance, sound financial and asset management, and effective oversight be in place to ensure stewardship and operational resilience.  An audit conducted in 2016 revealed notable control gaps that underscored the need for improved consistency and rigor in core management practices. The arrival of a new Head of Mission and Management Consular Officer in summer 2025 presented an opportunity for the new leadership to make management practice and controls adjustments with the help of timely insights. In this context, the audit was undertaken to provide assurance on the extent to which the mission’s management practices support sound stewardship of resources and prudent operational oversight. The audit assessed current management practices in the context of the mission’s operating environment and examined the effectiveness of controls implemented since the previous audit in 2016. Additional information on the audit objective, scope, criteria, approach, and methodology can be found in the About the Audit section. A comparison of the overall results of this audit with those of the 2016 audit is provided in Annex A.

Findings and recommendations

1. Governance

Effective governance is essential to ensuring clear accountability, informed decision-making, and sound stewardship of mission resources. Accordingly, the audit assessed governance practices at the mission to determine whether they support effective stewardship of mission resources. This included assessing whether accountabilities, roles, and responsibilities were established and communicated, and whether operational guidelines were available to support oversight. The evidence was drawn from interviews, committee documentation, and policies posted on mission platforms.

Overall, the mission’s governance and oversight practices were well established and generally effective. Accountabilities were clearly defined, and policies, guidance, and standard operating procedures were documented and readily accessible on the mission SharePoint, providing a sound foundation for management oversight and operational continuity. Management reinforced this framework through active committees, financial monitoring tools, and regular engagement with the Common Services Delivery Point and functional leads at headquarters. Core governance bodies, including the Committee on Mission Management, Housing Committee, Security Committee, Emergency Management Committee, and the Locally Engaged Staff Management Consultative Board were functioning as intended and offered structured forums for decision making. The separation of the Security Committee and the Emergency Management Committee has further strengthened oversight by enabling more focused mandates.

2. Procurement

Effective procurement practices enable a mission to meet operational needs while ensuring value-for-money, maintaining financial integrity, and supporting timely and sustainable mission operations. NROBI mission practices were assessed to determine whether procurement and payment activities complied with departmental requirements and demonstrated sound stewardship of resources. The review included document analysis, interviews, and targeted transaction testing.

Overall, the mission had implemented several good practices that supported the planning, initiation, approval, and monitoring of procurement activities. Transaction testing confirmed that many expenditures were generally compliant with departmental requirements. However, the audit identified the following gaps indicating that established processes were not consistently effective in practice:

• Instances were identified where procurement approaches did not align with policy requirements, including sole-source contracts that exceeded approved thresholds and the splitting of acquisition card transactions to remain below transaction limits and avoid more rigorous procurement processes. In these cases, operational expediency appeared to take precedence over risk-mitigating controls and underscore the importance of proactive planning, challenge, and oversight mechanisms.
• In certain cases, expenditures were incurred before financial pre-approval was secured (section 32 of the Financial Administration Act). For example, fleet fuel purchases occurred prior to section 32 authorization. Such lapses weaken pre-commitment controls and increase the risk of unauthorized or unnecessary spending.
• Instances were noted where confirmation of work completion and payment approval (section 34 of the Financial Administration Act) was given despite work not being completed in accordance with contract terms or invoice details. Without effective due diligence in confirming the completeness and quality of goods and services received, the mission is exposed to risks of overpayment, inaccurate charges, and potential financial loss.

Procurement risks are further heightened by the mission’s heavy reliance on a small pool of recurring vendors. The limited availability of local suppliers capable of meeting Canadian standards constrains competitiveness and contributes to repeated use of the same vendors. Over time, this dynamic reduces competitive pressure and increases the risk of higher pricing or diminished service quality. Broadening the vendor base would help mitigate these risks.

Given the control gaps identified, along with local market constraints, the mission would benefit from strengthening procurement processes to better balance operational realities with required control standards.

Recommendation 1

The Head of Mission should strengthen procurement controls by:

• Enhancing procurement planning, initiation, and oversight processes that support the selection of appropriate procurement methods and effective monitoring of goods and services received; and
• Ensuring managers understand their accountabilities under the Financial Administration Act, especially the responsibility for expenditure initiation (Section 32), and confirmation of receipt of goods and services (Section 34).

3. Asset management

Effective asset management is critical to safeguarding resources, supporting operational continuity, and ensuring value for money across the mission network. The mission manages a diverse portfolio of assets, including cash, fleet, real property, and material goods. These activities are underpinned by established policies, planning tools, and systems intended to support stewardship of assets. In this context, the audit assessed whether effective controls were in place and whether asset related activities complied with applicable legislative and departmental requirements.

Cash assets

An on-site review of the mission’s petty cash and Emergency Cash Parcel found they were properly established and securely maintained, with controls generally aligned with departmental requirements. At the time of the audit, petty cash had been consolidated into a single fund under a newly assigned custodian. Review of the records indicated that activity was minimal in this fund, with only one transaction recorded during the review period. Overall, controls supporting cash management were appropriate and functioning as intended.

Fleet management

The mission had established a framework for fleet management, supported by clear policies and guidelines that aligned vehicle use with operational requirements and departmental directives. Recent enhancements to monitoring practices—particularly around vehicle utilization and expenditures—had improved management visibility and oversight.

Despite these strengths, the audit identified the following opportunities to further reinforce operational controls:

• While approximately 85% of mission fuel was procured through the well-controlled UN Fuel Depot, fuel purchased from other sources had weaker controls and oversight. In addition, fuel efficiency analysis revealed unusually low mileage, raising concerns that some fuel purchased by the mission may not be used for its intended purpose. The current management team has recently implemented some additional fuel consumption monitoring practices, although there is a continuous need for close scrutiny of fuel purchase and consumption.
• Vehicle logbooks are maintained daily, by hand, to track trip details (date/time, destination, passengers) and vehicle fueling and maintenance information. A review of the logbooks found they were not always complete or reliable, with multiple instances of unrecorded trips and fuel purchases. Incomplete documentation undermines monitoring efforts and limits the mission’s ability to assess vehicle utilization, detect anomalies, or confirm fuel reasonableness. Strengthening oversight of logbook practices, including routine recording of fuel gauge readings, would improve fuel monitoring, utilization analysis, and accountability.

While the mission had established some good processes for managing its fleet, limited oversight of certain fuel purchases, and incomplete vehicle trip records undermined the effectiveness of these controls. Strengthening these areas will help reinforce accountability and better ensure resources are used as intended.

Recommendation 2

The Head of Mission should strengthen fleet management practices by enhancing oversight of fuel purchases and usage through tighter controls, enforcing consistent logbook practices, and regular monitoring and assessment of consumption and efficiency.

Real property

Real property management was supported by planning tools such as the Strategia plan and a detailed budget tracker, which provided visibility into planned activities, financial allocations, and upcoming resource needs.

At the time of the audit, the mission was adjusting the roles and responsibilities of two key property personnel, which has led to some uncertainty with responsibilities over certain functions and activities. In addition, some interviewees noted that the skillset and expertise of the current property team is somewhat misaligned with the technical needs of the property portfolio. These challenges increase the risk of delays or inconsistent handling of maintenance requests. Once the mission has finalized the adjustments to responsibilities, it would be beneficial to conduct a skill gap analysis to help guide future staffing decisions.

The review of recently completed renovations and repairs also highlighted weaknesses in quality assurance over contractor workmanship and completeness. In several instances, maintenance and repair work was not done according to specifications or quality expectations, yet the mission signed off on the work and approved invoices. Weaknesses in post completion verification expose the mission to overpayment risks and may result in assets not being adequately maintained, leading to higher long-term costs. This issue is compounded by the limited pool of qualified local vendors, leading to overreliance on a small group of contractors who are familiar with the mission’s operations. While this familiarity can support efficiency in planning and coordination, it can also create a risk of complacency that weakens the detection of performance issues. Strengthening quality checks and implementing systematic post-completion verification are essential.

Recommendation 3

The Head of Mission should strengthen property management practices by implementing systematic quality assurance for maintenance and property project work, including clear verification of completeness and quality before authorizing payment.

Material management

The mission had established a well-structured approach to material management, supported by a comprehensive set of material management procedures and the implementation of Sortly as its primary inventory management system. The adoption of Sortly represents a positive step toward centralized inventory control, and overall testing confirmed that the system was functioning effectively, with inventory records generally aligned with physical assets. This reflected the mission’s commitment to strengthening asset stewardship.

While Sortly was still being optimized, the system provided a strong foundation for strengthening lifecycle management and decision-making. Minor opportunities were identified to improve data completeness and consistency, including standardizing data entry practices and refining asset classification. Addressing these areas would enhance the overall effectiveness of material management practices.

4. Human resources

Sound human resources practices such as performance assessment and overtime management, are important to supporting accountability, workload management and compliance with legislative and policy requirements. Accordingly, human resources processes were reviewed to assess if they comply with applicable policies. This included a review of performance assessments and LES salaries and overtime through document analysis, interviews, and targeted testing of high-risk areas.

Performance assessments

Performance agreements were in place for both staff and managers and were completed according to the established departmental cycle. Completion of performance management assessments was tracked manually by the Human Resources team using an excel tool. The department has recently launched a corporate system for managing LES performance, replacing the previous manual process. Once fully implemented, this system is expected to enhance oversight, standardization, and accountability in the performance management process.

LES salaries and overtime

The mission had implemented processes and controls to manage LES salaries and overtime, primarily supported by the WebHR application, which facilitates approvals, reporting, and management oversight. 

Overtime expenditure for LES has remained high in recent years, regularly exceeding the departmental benchmark of 5% of the total salary. While overtime was driven in part by operational pressures during the mission’s relocation period, it highlighted the importance of managing overtime as operational funding decreases. Management has begun taking steps to limit overtime usage by improving operational planning, coordination, and communication.

5. Duty of care requirements

As part of the mission’s broader accountabilities, ensuring duty of care and operational readiness is critical to protecting personnel, safeguarding assets and sustaining operations in complex operating environments. Accordingly, the audit assessed whether duty of care obligations were being effectively managed across security, emergency management, and occupational health and safety (OHS) functions. Audit work included onsite inspections and a review of core program components and elements.

Occupational Health and Safety (OHS) Program

The mission met OHS requirements through an active OHS committee and regular property inspections. An OHS hazard tracker was maintained to document identified issues, and hazards were tasked to relevant mission programs, such as the property team, to address the issue.

Physical and information security

Physical and information security controls were in place at the Chancery, Official Residence, and Staff Quarters, supported by a well-resourced security and readiness team. Recent assessments from headquarters had identified areas for improvement, and mission management was aware of these issues and actively addressing them within its span of control.

Emergency management

The mission maintained several key emergency management elements, including an active Emergency Management Committee, a current Emergency Response Team (ERT), an equipped Alternate Command Post, and a Mission Emergency Plan (MEP). The Mission also had developed several standard operating procedures for specific scenarios in line with the local threat environment and conducts regular emergency and security exercises and drills, including tabletop simulations and full-scale emergency management drills, to support preparedness.

At the same time, opportunities exist to further strengthen readiness. The MEP required updating to ensure essential information remained current, and the development of a concise, easily accessible MEP handbook for all staff would further support awareness and usability. Furthermore, some ERT members, particularly those in supporting roles, reported uncertainty about their roles and responsibilities, indicating a need for ERT refresher training to reinforce clarity and preparedness.

Overall, the mission had established core elements to meet duty of care obligations across security, emergency management, and occupational health and safety programs. While controls were generally in place and supported by active committees and regular exercises, some gaps were noted including an outdated MEP and unclear understanding of ERT roles. Strengthening documentation and ensuring staff clarity will enhance the mission’s capacity to safeguard personnel and maintain operational resilience.

Recommendation 4

The Head of Mission should enhance Emergency Management practices by:

• Updating the Mission Emergency Plan (MEP), and developing an accessible MEP Handbook for all staff; and
• Providing refresher training to Emergency Response Team members to reinforce clarity of roles and responsibilities.

Conclusion

The audit found that the mission has made meaningful progress since the 2016 audit and now has the fundamental structures, procedures, and tools needed to support sound management and oversight. These elements provide a solid foundation and reflect management’s commitment to maintaining effective controls.

At the same time, the audit also observed that the application of control mechanisms varied across operations, which limits their overall effectiveness. This is particularly evident in procurement and asset management, where inconsistent adherence to established processes increases financial and operational risks. While the mission has the necessary frameworks in place, greater consistency in applying them is required to ensure their intended effectiveness and to strengthen the reliability of oversight.

The new management team has demonstrated a high level of engagement and has begun implementing initiatives aimed at further strengthening controls and management practices.

About the Audit

Statement of conformance

The audit was conducted in conformance with the Institute of Internal Auditors' Global Internal Audit Standards and with the Treasury Board Policy and Directive on Internal Audit, as supported by the results of the quality assurance and improvement program.

Objective

The objective of this audit is to provide assurance that sound management practices and controls are in place to support effective operations and good stewardship of resources at the mission in support of the achievement of Global Affairs Canada objectives.

Criteria and scope

The criteria were developed following the completion of the detailed risk assessment.

Approach and methodology

The audit methodology included, but was not limited to, the following:

• Identification and review of applicable acts, policies, directives, and guidelines;
• Review and analysis of relevant documents related to mission operations;
• Data mining and analysis;
• Conducting walkthroughs of mission processes and systems, and identifying key controls;
• Selecting samples of transactions for testing;
• Performing confirmation/reconciliation tests, such as inventory counts and receipt of goods and services;
• Conducting interviews with management and staff at missions and headquarters;
• Conducting physical security walkthroughs and assessment of emergency management; and
• Other relevant methods were included as deemed necessary by the audit team.

Annex A: Overview of mission management practices

This annex outlines the notable control improvements made since the 2016 audit, when foundational controls were missing or inconsistently applied. While many of these controls are now in place and demonstrate clear progress, their effectiveness is limited by inconsistent application, leaving some areas still in need of refinement.

Rating

Definition

Satisfactory

No issues or few minor issues noted. Controls are adequately designed, consistently well implemented, and effective to provide reasonable assurance that the objectives will be met.

Needs Minor Improvement

Multiple minor issues noted. Controls are adequately designed, generally well implemented, but a number of issues were identified that may present a moderate risk to the achievement of the objectives.

Needs Significant Improvement

One or few significant issues noted. Controls have some weaknesses in design or operating effectiveness such that, until they are addressed, there is not yet reasonable assurance that the objectives are likely to be met.

Unsatisfactory

Multiple significant and/or material issues noted. Controls are not adequately designed and/or are not generally effective. The nature of these issues is such that the achievement of objectives is seriously compromised.

Annex B: Recommendations and management response and action plan