Transportation Safety Board of Canada (TSB) management accepts the findings of this audit and generally agrees with the recommendations made by auditors. The detailed management response and action plan is described in the following table.
1.The
Director of Corporate Services should ensure that roles and
responsibilities are understood by those with contracting
responsibilities and that the Procurement Specialist be involved in the
planning stages of procurement once the Responsibility Centre Manager
identifies a need to contract services. This control regime will enhance
TSB's ability to be compliant with Treasury Board Contracting Policy and
with the Financial Administration Act (FAA). |
Management agrees on the importance of the Procurement Specialist being involved in the early planning stages of procurement in order to enhance the TSB's ability to be compliant with Treasury Board Contracting Policy. |
The Chief, Finance and Administration, will develop a set of procedures that will be posted on the Intranet to highlight the roles and responsibilities of employees with contracting responsibilities and of the Procurement Specialist. A one-page summary chart of roles and responsibilities will also be developed as a quick reference tool. |
Chief, Finance and Administration |
Implementation of the new procedures by December 1, 2005. |
2. The
Director of Corporate Services should ensure that funds have been
committed on all requests for contracts prior to preparing contracts for
signature to sustain compliance with Section 32 of the FAA through tools
such as contract requisition forms and supporting procedures. |
Verification by management revealed that all contracts were effectively
committed in the departmental financial system. However, contract files
did not reflect these commitments of funds.
The Request for Contract form currently in use includes space to
record the commitment of funds under Section 32 of the FAA.
Management agrees with the recommendation that commitment
documentation should be on the contract files. |
The Chief,
Finance and Administration, will develop a set of procedures that
clearly state the requirement to confirm commitment of funds under
Section 32 of the FAA on the Request for Contract form.
In addition, a checklist will be created for the Procurement
Specialist to ensure that all required documentation is obtained and
placed on contract files. This checklist will be attached to each
contract file.
|
Chief,
Finance and Administration |
Implementation of the new procedures by October 1, 2005.
Use of the new checklist to start by July 1, 2005. |
3. The
Director of Corporate Services should ensure that fairness and due
regard for economy is occurring on all contracts to reflect the
intentions of the Treasury Board Contracting Policy through documented
procurement procedures and appropriate training. |
Management
agrees that better record-keeping is required. |
The Chief,
Finance and Administration, will develop a set of procedures that
clearly state the requirement for good record-keeping in contract files.
In addition, a checklist will be created for the Procurement
Specialist to ensure that all required documentation is obtained and
placed on contract files. This checklist will be attached to each
contract file.
See item 5 for the response on training aspects. |
Chief,
Finance and Administration |
Implementation of the new procedures by October 1, 2005.
Use of the new checklist to start by July 1, 2005. |
4. The
Director of Corporate Services should ensure that TSB expenditure and
contracting procedures reflecting Treasury Board Contracting Policy and
FAA implementation requirements be documented. |
Management
agrees that contracting procedures need to be properly documented. |
The Chief,
Finance and Administration, will develop a set of procedures that
clearly define roles and responsibilities, record-keeping requirements,
forms to be used and monitoring practices. These procedures will be
posted on the Intranet. |
Chief,
Finance and Administration |
Implementation of the new procedures by December 1, 2005. |
5. The
Director of Corporate Services should continue current efforts related
to training on contracting and Treasury Board Contracting Policy to
ensure that those with contracting responsibilities receive an adequate
level of training to sustain compliance with the Treasury Board
Contracting Policy and FAA requirements for the expenditure process. |
Management
had identified the need for increased training prior to the start of the
audit and had taken steps in that regard. Management agrees with the
recommendation to continue to provide increased training to employees
who have contracting responsibilities.
Financial delegation training has been provided to all delegated
managers and employees over the past 18 months. Basic procurement
training was offered in March 2005 to all managers and project leaders.
About half of the managers have been trained on procurement to date. |
Treasury
Board Secretariat has developed a Professional Development and
Certification Program for Procurement and Materiel Management
Specialists. All employees in the Materiel Management Unit will be
required to enroll in this program through the Canada School of Public
Service.
Financial delegation training and basic procurement training will
continue to be provided to managers and selected employees. A minimum of
one training session on financial delegations and one training session
on procurement will be provided each year. More frequent sessions may be
provided as required. |
Chief,
Finance and Administration |
Enrollment
of all specialists in the Professional Development and Certification
Program by October 1, 2005.
At least one training session on financial delegations and one
training session on procurement will be provided before March 1, 2006. |
6. The
Director of Corporate Services should ensure that an amendment template
be developed that sustains compliance to the Treasury Board Contracting
Policy requirements for contracts and amendments to adequately protect
the TSB and the vendor. |
Management
agrees with the recommendation to develop a formal amendment template. |
The
Procurement Specialist will develop a formal amendment template for
review and approval by the Director of Corporate Services. |
Procurement
Specialist |
Use of the
new amendment template to start by July 1, 2005. |
7. The
Director of Corporate Services should consider the development of a
reporting mechanism and an appropriate reporting schedule to monitor
compliance and to provide management with a level of assurance that
compliance to Treasury Board Contracting Policy is occurring. |
Management
agrees with the recommendation to implement a reporting mechanism to
ensure that all contracting is in compliance with Treasury Board Policy.
However, given the small volume of contracting activity, management
believes that reporting and monitoring should be kept simple.
The Material Management Unit currently produces a quarterly
contracting report to comply with the Treasury Board policy on proactive
disclosure. This report is reviewed and approved by the Director,
Corporate Services. |
The
quarterly proactive disclosure report on contracting will be expanded to
capture additional information. This report will be reviewed and
approved by the Chief, Finance and Administration, as well as by the
Director, Corporate Services.
The Chief, Finance and Administration, will also conduct occasional
reviews of contract files to ensure compliance with departmental
procedures.
|
Chief,
Finance and Administration |
The first
expanded quarterly report will be completed by July 15, 2005, with
subsequent reports done every three months thereafter. |