Disclosure of internal audits 2008-2009

TSB Management Response and Action Plan

Internal Audit of Overtime Expenditures

December 2008

TSB management accepts the findings of this audit and generally agrees with the recommendations made by auditors. The detailed management responses and actions planned are described in the following tables.

Recommendation 1

The Manager Human Resources should initiate pay adjustments where warranted.

Management Response

We agree that corrective action should be taken where errors have been identified.

Actions Planned

The list of errors will be reviewed and appropriate measures will be taken where required.

OPI

Manager Human Resources

Timeline

February 29, 2009

Recommendation 2

Managers should approve all overtime requests and maintain documentation to substantiate instances where authorization was not possible (i.e. emergency responses to accidents or incidents).

Management Response

Managers currently approve all overtime requests. However, we recognize that documentation could potentially be improved.

Actions Planned

Procedures and forms will be reviewed and updated. A bulletin will be prepared and issued to clarify the approval procedures. The bulletin will be posted in the Reference Centre for easy retrieval.

OPI

Manager, Human Resources

Timeline

June 30, 2009

Recommendation 3

Directors and managers should review periodically the approval practices of overtime to ensure they are compliant with the procedures governing this activity.

Management Response

We agree that approval practices are not always clear and that procedures could be better defined.

Actions Planned

Procedures and forms will be reviewed and updated. A bulletin will be prepared and issued to clarify the approval procedures. The bulletin will be posted in the Reference Centre for easy retrieval. An annual reminder will be issued afterwards.

OPI

Manager, Human Resources

Timeline

June 30, 2009

Recommendation 4

The Director General Investigation Operations should ensure that all exceptions to TB Policy on Maximum Hours of Work are properly documented and present evidence of management approvals.

Management Response

We agree that current practices need to be reviewed and clarified in this area.

Actions Planned

The draft TSB policy will be reviewed and modified to comply with TB requirements.

OPI

Acting Director, Marine Investigations

Timeline

April 30, 2009

Recommendation 5

The Manager Human Resources should ensure that staff is appropriately trained on use of HRIS, particularly to sections that relate to past years' data on compensatory time-off.

Management Response

We agree with the provision of additional employee training.

Actions Planned

HRIS training and systems support will be provided and a network of HRIS users to share tools and practices will be developed.

OPI

Manager, Human Resources

Timeline

March 31, 2009

Recommendation 6

When certifying under section 34 of the FAA pay documents that relate to overtime, TSB managers should ensure that they have taken into consideration the dispositions of the following TB policies:

  • the terms and conditions of the respective collective agreements;
  • the TB Policy on Terms and Conditions of Employment; and
  • the TB Comptrollership Policy on Pay Administration.

Management Response

Managers already take TB policies into consideration when reviewing and approving overtime. However, managers cannot be expected to become experts in this area. We have other steps in our business processes where compliance to policies is verified.

Actions Planned

A bulletin will be issued to remind managers of their responsibilities.

OPI

Manager, Human Resources

Timeline

June 30, 2009

Recommendation 7

The Manager Human Resources should ensure that deficiencies are corrected.

Management Response

We agree that deficiencies should be corrected.

Actions Planned

The Manager, Human Resources will remind Pay and Benefits employees of the internal control requirements.

OPI

Manager. Human Resources

Timeline

December 31, 2008

Recommendation 8

The Manager Human Resources should develop some written instructions on how to fill out the EDPRA form (use of codes, etc...) and provide it to any new employee within TSB.

Management Response

Such instructions were developed and communicated to managers and employees in the past. We agree that instructions should be better communicated to new employees.

Actions Planned

Instructions will be reviewed and updated. They will be issued in a bulletin to all employees and posted in the Reference Centre for easy retrieval. They will also be included in the new employee orientation program.

OPI

Manager, Human Resources

Timeline

June 30, 2009

Recommendation 9

The Director General Corporate Services should ensure that the Comptrollership Policy on Pay Administration is complied with in regard to the process for verifying accounts, which requires auditable evidence of verification.

Management Response

We agree to review our account verification process to ensure full compliance to TB policies.

Actions Planned

The internal controls will be reviewed and appropriate changes will be made where required.

OPI

Manager, Human Resources

Timeline

March 31, 2009

Recommendation 10

The Director General Investigation Operations, in conjunction with Branch Directors and the Senior Financial Officer, should investigate cost-effective alternative solutions to the present stand-by system to mitigate the need for overtime expenditures.

Management Response

We agree it would be appropriate to explore the alternatives to the current stand-by system.

Actions Planned

A detailed review of the stand-by system has been identified as a Business Plan project for 2009-2010. The review will be undertaken in the new fiscal year.

OPI

Director, Rail/Pipeline Investigations

Timeline

March 31, 2010