Audit report

Material management

November 1996

Background

The Materiel Management Unit is responsible for ensuring that materiel management meets the operational requirements of the Agency. This Unit services Headquarters directorates, Central Operations, three regional operations, 29 passport issuing offices across Canada and approximately 100 posts abroad. The unit is centralized in Headquarters.

The audit was conducted in accordance with the 1995/96 Agency audit plan.

Objectives

To assess the Materiel Management Unit in order to ensure delivery of services that meets user needs and supports the overall objective of the Passport Office.

To assess the roles and responsibilities of the Material Management Unit.

To assess the efficiency and operational effectiveness with which the Materiel Management Unit carries out its responsibilities.

To assess whether the processes and systems for purchasing, maintaining and disposing of materiel are effective and efficient.

To determine whether adequate training has been provided.

To determine the extent of compliance with Passport Office and Central Agency prescribed policy and procedures.

Scope

The audit encompassed the materiel management activities of the Materiel Management Unit. The materiel management activities relative to the inventory of capital expenditures were excluded from this audit as these were covered in the Accommodation Management and Fixed Assets audit of 1994/95.

The following were also covered in this audit:

• the filing system maintained by Finance Services and Administrative Services;
• the method of procurement (competitive versus sole source) for high dollar value contracts;
• call-ups against a standing offer; and
• the quality control process over blank passports.

The audit was conducted under the guidelines of the former Treasury Board Review and Internal Audit Policy which was in effect up to March 31, 2001.

Conclusion

The clients' satisfaction survey disclosed that the Materiel Management Unit provides services that meet client needs. The survey revealed that clients have noted a significant improvement in the quality of services provided.

Other emerging issues are outlined under the Audit Results section below.

Audit results

1. The Materiel Management Unit provides services that meet user needs and support the objectives of the Passport Office.
2. The responsibilities of the Materiel Management Unit are well understood within the Passport Office. Key elements of the roles and responsibilities of the Unit should be documented and communicated.
3. Policy and Administrative Manual and procedures and directive publications provide functional direction. There is a need to hold information/discussion sessions with administrative staff on a more frequent basis.
4. The Materiel Management Unit does not formally evaluate its performance. Client-centered service standards have not been established to monitor performance.
5. The current systems and processes for contracting goods and services are generally adequate to meet the needs of the Passport Office. The Materiel Management Unit could operate more efficiently by making better use of the store office supply inventory system and devising a common filing system that can meet the needs of both the Finance and the Materiel Management Units.
6. Opportunities were identified to improve the quality control process over the inventory.

Status of action plan

Management agrees and/or fully agrees with the observations and recommendations included in the audit report.

Action plans will be put in place to correct the following situations:

• A review of this function will be completed in March 1997.
• Conferences for all Administrative Officers on material management are planned as well as participation to information sessions on initiatives such as the Acquisition Card Program and travel card.
• A more formal approach toward the establishment of goals and objectives is currently underway.
• A Materiel Management Advisor position has been created within the Directorate to develop corporate procurement strategies or plans, review current policies and systems, and provide advice to senior management on material management activities.

For some of the audit observations, action plans will be put in place after the introduction and decentralization of the integrated system.