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Management Action Plan – National Crime Prevention Centre: Prostitution Alternatives Counseling and Education Society

1. Audit Qualification
2. Audit Comments
3. Financial Management and Budgeting
4. Project Activity Reports

Audit Qualification

Observations & recommendations

Agency Coordinator’s Wages and benefits – The Agency Coordinator’s time sheets did not specify hours worked on the project thus CAC was not able to confirm the accuracy of the wages.

It is recommended that, in the future, time sheets for non-project dedicated employees’ detail the time spent on projects. It is further recommended that the recipient obtain permission in writing from PSEPC when claiming wages for non-project dedicated staff.

Action

To discuss with PACE why wages of non-project-dedicated staff were claimed, and to ensure that all such future claims are approved in advance. Also, time sheets for non-dedicated project employees to indicate the project on which they are working.

Action by

Senior Program Officer (SPO) of NCPC and PACE

Date

Completed

Comments

SPO/NCPC met with PACE representative to discuss recommendations and followed up with letter to the Board on March 8, 2005.

On May 24, 2005, a board member responded by email to advise that PACE had not intended to use non-dedicated project staff for this project; however, since funding was received late, they needed to use non-dedicated personnel help to meet the project objectives.

Audit Comments

Observations & recommendations

The recipient reallocated expenditures recorded in the books and records to match the cost categories in the approved budget on the quarterly claims. The recipient was unable to reconcile the books and records to the claims for the audit; therefore the audit was based on the recorded amounts rather than the claimed amounts.

It is recommended that, in the future, the recipient organize cost categories in their books and records to parallel the cost categories in the approved budget. In addition, it is recommended that complete documentation be maintained for reallocations from the books and records to the claims.

Action

To discuss with PACE the requirement to organize the cost categories in their books and records in a manner consistent with the cost categories in the approved budget. 

Action by

Senior Program Officer (SPO) of NCPC and PACE

Date

Completed

Comments

SPO/NCPC met with PACE representative to discuss recommendation and followed up with a letter to the Board on March 8, 2005.

On May 24, 2005, a board member responded by email to confirm that PACE had reorganized their cost categories. The changes are reflected in the Financial information currently being forwarded to NCPC.

Financial Management and Budgeting

Observations & recommendations

The recipient receives funding from several sources and operates several programs. The recipient’s staff is, to some extent unclear as to how to allocate expenditures to the various programs in the books of account. Further, the recipient does not fully identify the rationale for allocating administrative expenses to the various programs.

It is recommended that the recipient employ a qualified bookkeeper, on a part time basis, to provide bookkeeping training to staff and ensure that the books of account are correct and complete throughout the year. We also recommend that the Board of Directors perform budget variance, on a monthly basis, for each program.

Action

To provide bookkeeping training to staff and ensure that the Board of Directors perform budget variance analysis on a monthly basis for each program.

Action by

PACE

Date

Completed

Comments

SPO/NCPC met with PACE representative to discuss the recommendation and followed up with a letter to the Board on March 8, 2005.

On May 24, 2005, a board member responded by email to confirm that that training is being provided to the bookkeeper along with assistance in streamlining the bookkeeping process.  Work is also underway to provide monthly project variance reports to the Board.

Project Activity Reports

Observations & recommendations

The contribution agreement required the recipient to submit quarterly activity reports and an interim evaluation report during the period under audit. At the recipient’s offices the auditor was not able to confirm whether the recipient complied with this requirement since the reports were prepared and submitted by several staff members, and copies of the reports were not readily available. The auditor was able to confirm with Department officials however, that the reports were received on a timely basis in compliance with the contribution agreement.

It is recommended that, in the future, that the Agency Coordinator controls the submission of activity reports, and that copies of the reports, as well as proof of the submission date, are retained in one location in the recipient’s offices.

Action

Develop a process that can be maintained in the recipient’s office that tracks the submission of activity reports, and includes the proof of submission date.

Action by

PACE

Date

Completed

Comments

SPO/NCPC met with PACE representative to discuss the recommendation and followed up with letter to the Board on March 8, 2005.
 
On May 24, 2005, a board member responded by email to advise that a process is in place and copies of activity reports are maintained in the PACE office.  It was also noted that PACE has an excellent record of providing timely reports to NCPC.