Management Action Plan 2011

RecommendationsPriorityResponse and Planned ActionsResponsibilities
(position title responsible for the action)		Timelines
(actual planned dates of implementation)
1) CanNor should develop and implement a financial management framework which includes, but is not limited to, processes and controls over forecasting, PAYEs, and financial reporting. HIGH In 2011-12 CanNor Finance has begun to develop and implement a financial management framework to include a regular monthly process for forecasting allowing Responsibility Center (RC) managers to plan for their requirements for the fiscal year and remain within their budget authorities. The process includes a monthly call and financial templates that include the budgets, actual expenditures to date, and commitments with a requirement to establish a forecast to year-end. Finance has created a Monthly Financial Situation Report Calendar for 2011-12 to help managers understand the timelines to meet regular Executive Committee financial reporting. PAYE procedures were followed at Year End (YE) using AANDC's instructions and timelines. All timelines were met and the 2010-11 PAYEs were properly established within these procedures. CFO-Finance The first monthly financial situation report was May 31, 2011 and was presented to EXCOM on June 15, 2011. This is an ongoing process with a predetermined calendar establishing the reporting timelines.
2) CanNor should revise the Fiscal Year 2009-10 financial statements in a timely manner. HIGH CanNor will restate the comparative figures for 2009-2010 during the preparation of the 2010-2011 financial statements; these financial statements will be posted with the 2011 DPR.  CFO-Finance         October 2011
3) CanNor should obtain all necessary financial system training and access, to FNITP and OSMS. HIGH In May 2011, CanNor Finance coordinated multiple training sessions to be delivered by AANDC to CanNor's corporate services employees. Financial system training has been delivered to CanNor's corporate services staff over a two week period to three AS-3s (general administration and finance), an AS-5 (accommodations and corporate services), an FI-03 (Finance) in the northern regions and FIs in the Ottawa region. The training was specifically focused on FNITP, OSMS and the financial system.  CFO-Finance Completed in May 2011
4) CanNor should design effective business processes for financial management for its head office in Iqaluit. This should include consideration of the most effective MOUs or service agreements with other federal entities to support CanNor's operations. HIGH The CFO, CanNor will contact other Regional Economic Development Agencies and other government departments of similar size to get their documented internal control processes and associated checklists. These documents will be reviewed and customized to CanNor's required business processes for financial management. CFO-Finance October 2011 – March 2012
CanNor is negotiating the 2011-12 Corporate Services' MOU with AANDC and is emphasizing the areas of service in financial management requiring attention that have been noted in the OCG core controls' audit. Our objective is to have a revised MOU in place well before the end of the fiscal year. February 2012
5) CanNor should ensure managers and executives receive the required training and validate their knowledge as required prior to exercising their delegated authority. CanNor should also maintain a record of completion of all training by individuals with delegated authority. HIGH In March-April 2011, CanNor Finance undertook a detailed review of existing CSPS certification for delegated financial authorities.  The RC structure was amended in 2011-12 and as a result, financial delegated authorities were reviewed for all proposed delegated managers to ensure that Finance has an official record of certification (G126-G127 course) and the CSPS' notification of successfully passing the tests. These documents have been compiled in binders by RC and distributed to the 3 regions with a copy in Ottawa. In this context, all signature specimens have also been resigned by both the delegation manager and delegated RC manager and sent to AANDC. CFO-Finance Action completed in April 2011
6) CanNor should ensure that expenditure initiation and individual commitments are approved by an individual with the delegated authority to do so before expenses are incurred and recorded in the financial system. HIGH In March-April 2011, the process supporting FAA section 32 (commitments) and section 34 (payment for the performance of work, supply of goods or the rendering of services) was reviewed by CanNor Finance and corrective action was implemented by ensuring proper delegations and paper trails to support section 32 and 34.  CFO-Finance March-April 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012
7) CanNor should ensure that expenses are certified by an individual with the delegated authority to do so on a timely basis, and by someone who does not directly or indirectly benefit from the expenditure. HIGH In March-April 2011, the process supporting FAA section 32 (commitments) and section 34 (payment for the performance of work, supply of goods or the rendering of services) was reviewed by CanNor Finance and corrective action was implemented by ensuring proper delegations and paper trails to support section 32 and 34. CFO-Finance March-April 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012
8) CanNor should ensure that proof of execution and cost are retained, and if missing, justification for purchase is clearly documented on file. HIGH In March-April 2011, the process supporting FAA section 32 (commitments) and section 34 (payment for the performance of work, supply of goods or the rendering of services) was reviewed by CanNor Finance and corrective action was implemented by ensuring proper delegations and paper trails to support section 32 and 34.  CFO Finance March-April 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. March 2012
9) CanNor should ensure that CFO approval, whether case by case or by approving general limits, is sought prior to distributing acquisition cards to individuals.  HIGH Requests for acquisition cards are now sent to Finance for CFO sign-off. All acquisition cards will be closely scrutinized for spending limits.  CFO Finance April 2011 and ongoing
10) CanNor should obtain written acknowledgement of responsibilities and obligations from acquisition card holders prior to issuing an acquisition card and keep documentation on file. HIGH CanNor Finance has implemented the same acknowledgement form used by AANDC.  All acquisition card holders are required to read and sign the form that presents their responsibilities and obligations.  New card holders are required to sign such a form before receiving their card.  CFO Finance April 2011 and ongoing
11) CanNor should ensure that acquisition cards are used solely for authorized government business related to purchases of goods, services and pre-approved hospitality expenses. HIGH Card holders have been informed and reminded of the specific use of the card. Transactions using an acquisition card will be reviewed on a regular basis in both the regions and Ottawa to ensure appropriate use of the cards.  CFO Finance April 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. March 2012
12) CanNorshould develop business processes and keep documentation to ensure that:
  • bid selection method and evaluation criteria are clearly outlined in the bid solicitation document before the request for proposal is issued;
  • there is justification for non-competitive procurement contracts;
  • 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;
  • a copy of the signed, written contract is on file;
  • contracts are issued before goods or services are received;
  • contract amendments are signed before the original contracts expire; and
  • contracts with a value over $10,000 are proactively disclosed.
 HIGH For 2010-2011, CanNor had an MOU with AANDCfor corporate services. This includes material management services for procurement/ contracts/ assets.

AANDC provides material management services to CanNor according to Treasury Board (TB) policies and legislation.  In addition, AANDC has an internal policy suite related to procurement policies found on their website "Perspectives".  AANDC has developed business processes that CanNor implements for procurement, contracting and asset management.

CanNor will work with AANCD to clarify the roles and responsibilities for procurement and contracting to ensure that all appropriate documents supporting the procurement process and associated policies and procedures are signed by authorized managers and filed with all required paperwork. Managers will closely scrutinize the process to ensure that appropriate actions are taken and documented according to TB policies and AANDC's internal policies.

CanNor will ensure that all contracts over $10,000 continue to be proactively disclosed on their website.

 CFO Finance April 2011 and ongoing
13) CanNor should ensure that contracting officers are aware of contracting rules so that contract splitting does not occur. HIGH The Agency relies on AANDC for procurement and contracting services
 
CanNor staff will work with AANDC to scrutinize all practices and processes related to contracts to ensure that contract splitting does not occur.		 CFO Finance April 2011 and ongoing
14) CanNor should document and keep on file the purpose of business travel so that it is fully justifiable. HIGH An approved Travel Authorization Form is required prior to any travel being initiated. The form includes the purpose of the travel. A copy / original of the form is kept in the employee's travel file and the original / copy is presented with the travel claim. CFO Finance April 2011 and ongoing
15) CanNorshould develop business processes and keep documentation to ensure that:
  • post-authorized travel has documented justification on file;
  • government suppliers are used when available and justify on file use of other suppliers when not available;
  • employees are reimbursed for meals and incidental expenses when on official travel status, and should do so in a manner consistent with the allowance rates within the National Joint Council Travel Directive;
  • flight arrangements respect the appropriate limits;
  • supporting documentation is on file before paying travel expenses;
  • departmental travel cards are used when possible;
  •  and travel by the deputy head is proactively disclosed in a timely manner on the CanNor website.
 HIGH Completed Travel Authorization forms are required prior to all travel.

The use of the automated Travel Expense Management Tool will be evaluated.

Employees have been informed that government suppliers are to be used.  If not, justifications are required.

Employees traveling are required and/or advised to get a travel card and use it while on travel status.

Travel by the Deputy Head is being disclosed on a quarterly basis.		 CFO Finance May 2011 and ongoing
The above requirements will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012
16) CanNor should ensure that requests for travel cards and card holder agreements acknowledging responsibilities and obligations are kept on file. MEDIUM Requests for travel cards and agreements signed by card holders are now being filed appropriately. New card holders must sign an agreement form before receiving their card.  CFO Finance May 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. March 2012
17) CanNor should ensure that funds commitment for all membership and registration fees are pre-approved by the appropriate delegated authority. MEDIUM As part of the process supporting FAA section 32 (commitments) reviewed by CanNor Finance, corrective action has been implemented to ensure proper authorization by delegated authority is obtained for this type of expenses.  CFO Finance May 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012
18) CanNor should retain written documentation to support that departure procedures have been followed to certify that all money owing to the Crown, or any other assets, and are accounted for before an employee leaves the agency. MEDIUM Corrective action has been implemented. Prior to departure, all employees are required to complete a departure form and get signatures confirming all assets have been accounted for and no money is owed to the Crown. The completed form is kept/filed with CanNor HR departure files in Iqaluit.  CFO Finance May 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012
19) CanNor should take the necessary steps to ensure that all leave requests are pre-authorized by someone with the delegated authority. LOW Regular reminders regarding leave authorization process requirements are sent out to all managers and CanNor-HR will monitor every six months. Corporate Services - HR May 2011 and ongoing
This will be reflected in the documented internal control processes that will be adopted by March 2012. By March 2012

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