Recommendations And Management Response And Action Plan

From: Transport Canada

It is recommended that the ADM , Corporate Management and Crown Corporation Governance with the support of the DG , Finance and Administration:

#	Recommendation	Detailed Management Action Plan	Completion Date (for each action)	OPI direct report for each specific action
1	Recommendation Rating – Medium Conduct a full risk assessment, keeping in mind the results of this audit, to determine the Department’s acceptable risk tolerance, and to guide decisions regarding THS delegation, contracting authority and controls required to support that delegation.	A risk assessment on departmental contracting activities will be completed based on the life cycle of the procurement process: from requirements definition through to contract close-out. This assessment will include THS contracting, as a specific category of contract. The outcome of this assessment will be used to determine the appropriate delegation of THS contracting authority. The department’s delegation instrument will subsequently be amended. A report of this risk assessment will be presented to the Department’s Executive Management Committee (TMX) for discussion and direction on appropriate controls to support delegation.	December 2012	DG F&A
2	Recommendation Rating – Medium Determine the appropriate level of ongoing oversight and monitoring over the use of THS contracting, commensurate with the level of risk identified in the risk assessment and accepted risk tolerance, to ensure proper usage of THS contacts and adherence to the various controls.	The appropriate oversight and monitoring will be determined based upon the outcome of the risk assessment and direction from the Department’s Executive Management Committee. Refer to action item #1	March 2013	DG F&A
3	Recommendation Rating – Medium Develop clear data collection and entry procedures and perform effective quality control to ensure complete and accurate reporting.	Data collection and data entry procedures will be revisited, communicated and implemented to ensure effective reporting.	March 2013	DG F&A
4	Recommendation Rating – Low Update directions and guidelines to address gaps identified in this audit, including the need for appropriate record keeping, and ensure managers are made aware of these.	Directions and guidelines will be developed or up-dated. The approach will be determined once the question of delegated contracting authority for THS is determined. Refer to action items #1, 2, 3, and 5.	September 2013	DG F&A
5	Recommendation Rating – Low Ensure that those exercising THS contracting authority have access to a central area of expertise where they can obtain necessary advice and guidance.	Employees exercising THS contracting authority have access to PWGSC guidance on how to use the tool. TC Contracting staff will complement this expertise in-house by completing the mandatory PWGSC training on how to use the THS tool and will then be in a better position to provide guidance on both contracting policy and the tool.	March 2013	DG F&A
6	Recommendation Rating – Medium Ensure that those exercising THS contracting authority have the appropriate training.	TC Contracting staff will complete the mandatory PWGSC training on how to use the THS tool. Training beyond the Contracting staff will be determined based on the outcome of the review of the delegated contracting authority for THS . If authorities are delegated beyond the contracting staff, in house basic contract training will be mandatory before being able to exercise this delegation. Refer to action item #1.	March 2013	DG F&A

Recommendation

Detailed Management Action Plan

Completion Date
(for each action)

OPI direct report for each specific action

Recommendation Rating – Medium

Conduct a full risk assessment, keeping in mind the results of this audit, to determine the Department’s acceptable risk tolerance, and to guide decisions regarding THS delegation, contracting authority and controls required to support that delegation.

A risk assessment on departmental contracting activities will be completed based on the life cycle of the procurement process: from requirements definition through to contract close-out. This assessment will include THS contracting, as a specific category of contract.

The outcome of this assessment will be used to determine the appropriate delegation of THS contracting authority. The department’s delegation instrument will subsequently be amended.

A report of this risk assessment will be presented to the Department’s Executive Management Committee (TMX) for discussion and direction on appropriate controls to support delegation.

December 2012

DG F&A

Recommendation Rating – Medium

Determine the appropriate level of ongoing oversight and monitoring over the use of THS contracting, commensurate with the level of risk identified in the risk assessment and accepted risk tolerance, to ensure proper usage of THS contacts and adherence to the various controls.

The appropriate oversight and monitoring will be determined based upon the outcome of the risk assessment and direction from the Department’s Executive Management Committee. Refer to action item #1

March 2013

DG F&A

Recommendation Rating – Medium

Develop clear data collection and entry procedures and perform effective quality control to ensure complete and accurate reporting.

Data collection and data entry procedures will be revisited, communicated and implemented to ensure effective reporting.

March 2013

DG F&A

Recommendation Rating – Low

Update directions and guidelines to address gaps identified in this audit, including the need for appropriate record keeping, and ensure managers are made aware of these.

Directions and guidelines will be developed or up-dated. The approach will be determined once the question of delegated contracting authority for THS is determined. Refer to action items #1, 2, 3, and 5.

September 2013

DG F&A

Recommendation Rating – Low

Ensure that those exercising THS contracting authority have access to a central area of expertise where they can obtain necessary advice and guidance.

Employees exercising THS contracting authority have access to PWGSC guidance on how to use the tool. TC Contracting staff will complement this expertise in-house by completing the mandatory PWGSC training on how to use the THS tool and will then be in a better position to provide guidance on both contracting policy and the tool.

March 2013

DG F&A

Recommendation Rating – Medium

Ensure that those exercising THS contracting authority have the appropriate training.

TC Contracting staff will complete the mandatory PWGSC training on how to use the THS tool. Training beyond the Contracting staff will be determined based on the outcome of the review of the delegated contracting authority for THS . If authorities are delegated beyond the contracting staff, in house basic contract training will be mandatory before being able to exercise this delegation. Refer to action item #1.

March 2013

DG F&A

Note: Each recommendation has been assigned a rating based on the rating scale found in Appendix E.

List of Appendices

Note. Appendices have been removed and are available upon request

Appendix A - Conclusion Scale
Appendix B - Audit Criteria
Appendix C - Senior Procurement Review Committee Terms of Reference
Appendix D - Bulletin 2009-1 – Acquisition of Temporary Help Services in the National Capital Region
Appendix E - Audit Recommendations Priority Rating
Appendix F - Acronyms
Appendix G - THS Expenditures by Organization
Appendix H - Capital vs Operating THS Expenditures
Appendix I - Profile of THS Contracts by Value Range
Appendix J - Comparison of THS expenditures vs Professional Services
Appendix K - Potential Improvements to departmental financial system

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Recommendations And Management Response And Action Plan

Table of Contents

List of Appendices