Management Action Plan: Core Control Audit - June 2013

Transportation Appeal Tribunal of Canada (TATC)'s Opinion of the Audit Report

The TATC has reviewed the findings and recommendations and, as far as the scope of this audit is concerned, these accurately reflect the state of control over financial management, contracting, travel & hospitality and human resources.

Audit Entity Sign Off on the Management Action Plan

J. Richard W. Hall
Chairperson & Chief Executing Officer
Transportation Appeal Tribunal of Canada

Overall Management Response

The Director, Corporate Services position is responsible for the management and oversight of all items reviewed in this audit. Documents from the 2011-12 fiscal year were reviewed during the course of this audit. The current Director, Corporate Services entered the position in September 2011 and identified several deficiencies in the Corporate Services processes upon his arrival at the Tribunal. Although improvements in the processes can be noted since the arrival of the current director, deficiencies, as noted in audit report, still exist and the Tribunal is committed to addressing these issues. 

Recommendations Priority Planned Actions Responsibilities
(position title responsible for the action)

Timelines
(actual planned dates of implementation)

1. Ensure that signed acknowledgement of acquisition card responsibilities and signed acquisition card application form are on file for all acquisition cards.

Low

Planned Actions:

Review and ensure that both the acknowledgement and the application forms are signed for all acquisition card holders.

Director, Corporate Services

March 2013

2. Ensure that acquisition cards and accountable advances are used solely for authorized business-related purchases of goods or services.

High

Planned Actions:

  • Through the monthly financial forecast review, ensure that all purchases and commitments are reviewed and approved by a manager with the appropriate delegated financial authorities.
  • Issue guidelines to acquisition card holders on the approval process for planned and unplanned acquisition card purchases.
  • Revise section 34 checklist to include a review that acquisition cards and accountable advances are used solely for authorized business-related purchases of goods or services.

Director, Corporate Services

June 2013

3. Develop business process to ensure that:

  • Appropriate procurement vehicles are chosen and used in compliance with their terms and conditions;
  • Statements of work are developed and documented prior to the contract award;
  • Non-competitive contract files contain justification for sole source in accordance with section 6 of Government Contracts Regulations;
  • Supporting documentation for best value analysis is kept on file;
  • Security requirements are assessed and respected prior to the start of work;
  • Bid selection method and evaluation criteria are clearly outlined in the bid solicitation document for competitive contracts before the request for proposal is issued;
  • The evaluation of proposals and contractor selection are conducted in accordance with the pre-established criteria as stated in the request for proposal and in an open, fair and transparent manner;
  • The bid evaluation is documented on file, along with an evaluation report signed by a minimum of two clearly identified evaluators;
  • Approval of contracts is performed prior to the receipt of goods and services;
  • A copy of the contract signed by someone with appropriate delegated authority is retained on file;
  • Supporting evidence of receipt of goods or service is on file; and
  • Proactive disclosures of contracts over $10,000 are posted on TATC's website.

High

Planned Actions:

  • Review the types of purchases made by the Tribunal
  • For each type, determine the most appropriate procurement vehicle.
  • Develop procedures manual for Tribunal procurement activities that will address the:
    1. Chain of activities in the procurement process
    2. Roles and responsibilities of employees in the procurement process
    3. Required documentation required for each procurement transaction type
    4. Information requirements for the statement of work, sole source justification, best value analysis, bid selection method, evaluation criteria and other documentation required to process a procurement transaction

Director, Corporate Services

December 2013

4. Develop business processes to ensure that:

  • Justification for government business related travel is documented on the authorization to travel form;
  • Employees are reimbursed for meals and incidentals at applicable limits while and only when no meals are provided for the period related to government business;
  • Employees select hotels from the pre-approved government supplier list where applicable and justification is kept on file for cases where the limit identified in the Travel Directive is exceeded or when the hotels is not included on a list; and
  • Travel related expenses are within the appropriate limits and are properly documented.

High

Planned Actions:

  • Have the limits and reimbursable meals documented on the authorization forms prior to having them approved. When verifying the expense claim, ensure that the limits and reimbursable meals are respected or that appropriate documentation is provided to justify the limit being exceeded.
  • Develop and issue a manual on travel procedures that will address:
    • Chain of activities in the travel process
    • Roles and responsibilities of employees in the travel process
    • Reasons for which business travel will be authorized
    • Conditions that must be met for employees to be reimbursed for meals and incidentals
    • Allowable types of accommodations and limits
    • Required documentation to process a travel expense claim

Director, Corporate Services

June 2013

5. Ensure that designated senior level Government of Canada travel and hospitality expenses are proactively disclosed.

High

Planned Actions:

Incorporate the drafting of the proactive disclosure as part of the accounts payable process.

Director, Corporate Services

June 2013

6. Ensure proper documentation of justification when average cost limits identified in the Directive on the Management of Expenditures on Travel, Hospitality and Conferences are exceeded.

Medium

Planned Actions:

Have the limits documented on the authorization forms prior to having them approved. When verifying the expense claim, ensure that the limits are respected or that appropriate documentation is provided to justify the limit being exceeded.

Advise employees of changes at a staff meeting and make documents available to them on the TATC shared drive.

Director, Corporate Services

June 2013

7. Ensure that leave are approved by someone with the appropriate delegated authority prior to the leave being taken or immediately after leave is submitted in situation where the leave could not be planned.

Medium

Planned Actions:

Review leave entries at minimum on a weekly basis by someone with appropriate delegated authority.

Director, Corporate Services

March 2013

8. Ensure that terms and conditions for casual employees are administered correctly.

Medium

Planned Actions:

Review terms and conditions for casual employees and develop checklist to ensure that they are administered correctly

Director, Corporate Services

June 2013

9. Ensure that proper departure report and checklist process to sign off are completed and documented on file.

Medium

Planned Actions:

Develop and issue procedures manual documenting the employee departure process.

Advise employees of the procedures at a staff meeting and make documents available to them on the TATC shared drive.

Director, Corporate Services

December 2013

10. Ensure that expenditure initiation are properly documented and performed by an individual with the delegated authority before expenses are incurred.

High

Planned Actions:

During monthly budget review, ensure that upcoming expenditures are approved by a delegated authority and are committed in CDFS.

Director, Corporate Services

June 2013

11. Ensure that account verification is supported by complete documentation and that payment and settlement are carried out on a timely basis.

High

Planned Actions:

Use checklist to ensure documentation is complete. Review monthly budget and hearing schedule to ensure that payments are carried out on a timely basis.

Director, Corporate Services

June 2013