PACP Committee Report

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APPENDIX F
THE THIRTY-SEVEN POINT ACTION PLAN ISSUED IN RESPONSE TO THE 2000 INTERNAL AUDIT OF CCSB

	PWGSC Management Response	OPI	Due Date	Status	Note
1) Ensure that CCSB contracting processes comply with TB directives, policies and procedures.	Recommendation accepted Completed A working session was held with Sponsorship Communications Agencies, September 2000, to inform them of all administrative, quality control and contractual requirements.		September 2000	Completed	Communications Agencies fully briefed on contractural requirements.
	Selection process for Communications Agencies will state the evaluation criteria set out in Appendix D of the Communications Policy and Appendix Q of the Contracting Policy.	A/Executive Director	August 2000	Completed	All solicitation processes now state evaluation criteria.
	Develop an implementation plan to have a new list of qualified Sponsorship Communications Agencies in place by April 1, 2001. The competitive process will be conducted in accordance with Treasury Board policies.		October 2000	Completed	New Standing Offers issued to competitively selected communications agencies in May 2001.
	Action being taken Internal review committee of senior PWGSC officials will be struck to ensure that all sponsorship procurement solicitations and awards are in accordance with relevant TB contracting and financial policies, directives and procedures.	Deputy Minister	November 2000	Completed New solicitation process implemented on Feb. 27, 2001.	The committee met several times to oversee the new solicitation process. Final meeting held Feb. 20, 2001.
	Ensure that the selection process and the contracts issued to qualified agencies are in accordance with TBS policy.	A/Executive Director	April 1, 2001	Completed	All contracts issued from new solicitation will be in accordance with TBS policy.
	A preliminary report will be submitted to TB Ministers on PWGSC's plan and progress in responding to the audit.	A/Executive Director	December 31, 2000	Completed on Jan. 31, 2001
	Continue to work with Treasury Board Secretariat and procurement policy specialists to resolve the market dominance situation.	A/DG Procurement (CCSB)	3rd quarter 2000-2001	Completed	Market dominance clauses and procedures. Fully applied.
	Ensure that the sponsorship administrative staff has adequate knowledge of relevant financial and contractual policies by completion of appropriate PWGSC training courses in contract and financial management.	A/Executive Director	3rd quarter 2000-2001	Completed	Training completed as required.
	Deliver a written follow-up of the working session held with the Communications Agencies to the Agencies by November 15, 2000.	A/Executive Director	November 2000	Completed
	An Interim report will be submitted to Treasury Board Ministers on progress in responding to the audit.	A/Executive Director	October 2001	Completed on Jan. 28, 2002 * letter sent to President of TBS only
	A review of sponsorship files initiated after the audit will be conducted and reported to Treasury Board Ministers.	Audit & Review Branch	March 31, 2002	Completed March 31, 2002 * no formal letters were sent * Audit published on web
2) Implement appropriate processes and controls over the granting and management of sponsorships to ensure due diligence, consistency in approach, transparency of operations and adequate reporting.	Recommendation accepted Completed Since April 1, 2000 internal sponsorship guidelines have been in place for use in decision making for the Government of Canada's sponsorship initiative.			Completed
	Two new resources have been staffed to support the sponsorship administrative and quality control procedures and the need for additional resources will be periodically reviewed.			Completed	Additional resources are providing documentation and increased quality control of all sponsorship files.
	The Sponsorship Guidelines have been provided to the Communication Agencies.			Completed
	In September 2000 the Communications Agencies were informed that it is a mandatory requirement for them to submit a post mortem report and other relevant evaluation documents for all projects.			Completed	This requirement is mandatory on all sponsorship activities and is duly monitored.
	Immediate Action Following a negotiated agreement the payment schedule for events is to be adjusted from 80% initial / 20% final to 50% initial / 50% final in line with industry practice.	A/DG Procurement (CCSB)	3rd quarter 2000-2001	Completed	New Standing Offers include new payment schedule.
	CCSB has requested a full accounting of sponsorship funds handled by the Agency of Record and a review will be conducted to ensure an appropriate financial process is being followed.	A/Executive Director	3rd quarter 2000-2001	Completed	New payment process in place. AoR contract modified.
	Action being taken To facilitate the review and approval process for a sponsorship proposal, a visibility plan must be provided.	A/Executive Director	3rd quarter 2000-2001	Completed	CCSB monitors compliance for all sponsorships.
	A full review of the sponsorship guidelines and their application will be completed prior to April 1, 2001 for use in approval of future sponsorships.	A/Executive Director	4th quarter 2000-2001	Completed	Sponsorship guidelines updated and in use in approval of Sponsorships.
	Future competitive processes conducted to qualify Sponsorship Communications Agencies will contain the information on the methodology used to select an agency from the list of qualified agencies.	A/Executive Director	3rd quarter 2000-2001	Completed	New RFSO process includes selection methodology.
	Review the management control framework for sponsorships on an on-going basis.	A/Executive Director	Completed	Completed	New Framework in place.
3) Implement management controls to ensure sponsorship amounts are consistently determined (at a minimum level needed to attain expected results) and appropriately documented; and apply effective asset management including: control over the disposition of interest earned on cash advances, the establishment and control of production budgets, control over the inventory of promotional items, and stronger linkages between funds provided and results achieved.	Recommendation accepted Completed Working session held with all communications agencies in September 2000, to inform them of the improved administrative and quality control procedures, and to review contractual requirements.			Completed	See previous note on working session.
	Communications Agencies have been informed that a sponsorship request cannot receive approval until a visibility plan has been received.			Completed	CCSB monitors compliance on all sponsorships.
	In September 2000 the Communications Agencies were informed that it is a mandatory requirement for them to submit a post mortem report and other relevant evaluation documents for all projects.			Completed	Agencies were reminded of post-mortem requirement in follow-up, CCSB officers verify invoices and monitor compliance.
	Appropriate detailed invoices must be submitted by suppliers and these invoices must be verified and duly certified by the manager (section 34 of FAA) prior to being sent to finance for payment.			Completed	Agencies were reminded of requirement in follow-up, CCSB monitors compliance.
	Measures have been taken, and will be reviewed to ensure files are appropriately documented and that appropriate controls are in place for approval of all payments, such as production costs.			Completed	CCSB actively monitors proper documentation for approval of all payments.
	Immediate Action All transactions will be fully documented and placed on file in advance of an approval by a manager or a person with delegated authority. (call-ups, production budgets, etc.)	A/Executive Director	October 2000	Completed	CCSB actively monitors proper documentation for approval by delegated authority.
	Final payments will be made only upon receipt of a post mortem.	A/Executive Director	October 2000	Implemented	CCSB actively monitors receipt of post mortems prior to payments.
	Action being taken Seek advice from PWGSC financial, legal, procurement specialists and Communications Agencies to clarify provisions for dealing with the interest earned on funds paid to the Agency of Record. The current agreement with the Agency of Record does not contain interest provisions.	A/Executive Director	3rd quarter 2000-2001	Completed	New payment processes in place. AoR contract modified.
	Initial commission payments to the Communications Agencies to be made once final visibility plans are approved.	A/Executive Director	3rd quarter 2000-2001	Completed	CCSB only makes initial payments upon receipt and approval of visibility plans.
	Require communications agencies to provide a quarterly inventory status report when they store production items.	A/Executive Director	4th quarter 2000-2001	Completed

Source: Public Works and Government Services Canada