Archived - Management Practices Review of the Yukon Region

Author: (Audit and Evaluation Sector)
Date: (September 2007)

PDF Version (960 Kb, 16 pages)

Table of Contents

• Review Objectives
• Methodology
• Context
• Observations
  • Grants and Contributions
  • Contracting
  • Financial Payments
  • Human Resources
  • General Management
• Recommendations

Review Objectives

• Provide review level assurance that:
  • Grant and contributions, contracting, financial management and human resources management practices comply with authorities and are delivered consistent with the TB Management Accountability Framework

Methodology

• Onsite work conducted June 25-29, 2007 and July 9-13, 2007
• Interviews with 18 staff including DG, Directors, union reps
• Review of a random sample of 36 human resource, 40 grant and contribution, 21 contracting transactions and the post audited financial payments during the 2006-2007 year
• Further examination of specific transactions where risks were identified in the above activities

Context

• Devolution of Northern Affairs Program in 2003 established different administrative role than in other Northern Territories
• Reorganization of region in 2004
• 11 of 17 First Nations are self-governing; 3 are in B.C.
• First Nations land is not reserve land in the Yukon Region

Observations – Grants and Contributions

• 10 of 38 transactions examined did not comply fully with the policy requirements (2 had more than 1 instance of non-compliance).
  • 4 transactions - audit report received after due date
  • 4 transactions - agreement signed after start date
  • 3 transactions - agreements signed without proper program authority
  • 1 transaction - agreement signed which lacked due process
• Noted surplus in discretionary contributions Capital and Economic Development (budget not fully utilised)
• Working on improving processes in Economic Development and Capital
• Have added staff to track budgets in corporate services
• Indian Affairs Programs are delivered in a different context than other regions because of absence of reserves and extent of self government
• Anomalies exist (e.g. Social Assistance rates, delivery in Whitehorse)
• Training not provided related to the grants and contributions policies as they are affected by First Nations Inuit Transfer Payment system
• 4 transactions identified as a result of interviews were not in compliance with program policies

Observations – Contracting

• 13 of the 21 transactions examined did not comply fully with contracting policies (1 had more than 1 instance of non-compliance).
  • 7 transactions did not comply because the acquisition card was not paid within 30 days
  • 3 were sole source contracts slightly below the $25,000 threshold and had been amended to slightly below the $50,000 threshold. Suggests contract splitting. Region advises it had made headquarters aware in 2 of these cases.
  • 1 invoice was dated before the requisition date
  • 1 air charter did not use the master standing offer
  • 1 contract was a year end purchase and a needs list has not been provided
  • 1 contract may be an employer-employee relation.
• There is a lack of contracting expertise by managers and contracting staff in the region

Observations – Financial Payments

• The post audit review for the first 6 months of the year revealed an error rate of only 8% compared to a national average of 16% and a target of 5%
• Specific issues noted re: personal use of credit card, government vehicles

Observations – Human Resources

• 15 of 36 HR transactions did not comply with authorities
  • 1 transaction - overtime payment was made twice (initially identified by HR recovered)
  • 5 transactions - acting appointments of greater than 4 months without inviting expressions of interest which does not respect the PSMA values
  • 3 transactions - casual appointments of more than 90 days
  • 3 transactions - training authorizations not provided
  • 1 transaction - conversion of a casual to term without competition does not respect the PSMA values
  • 2 transactions did not follow due process
• Less than 5% of performance reviews and learning plans completed per strategic plan (2 of 3 learning plans received in sample); no learning coordinator
• HR function lacks continuity, performed by BC Region of INAC and by Justice HR during 2006-2007
• Lack of knowledge by staff of HR role and responsibilities
• Lack of labour – management activities until recently
• Casual appointments filled exclusively by referrals from staff until 2007-2008 year

Observations – General Management

• RDG was absent from the office more than 50% of time in 2006-2007 (no claims for leave during period)
• Continuous change at director level
• 85% of funds/ issues are Indian Affairs and do not receive adequate attention
• Self Governing First Nations not adequately considered in HQ programming decisions
• No implementation plan was developed in advance of devolution
• Administrative support and financial arrangement functions moved from program to corporate services based on formal plans and moved back to programs with little documented rationale
• No attention to Quality Assurance
• No regional operational, multi-year or strategic plan
• Poisoned work atmosphere
• Concerns about ethics and values (includes HR)
• There are many really excellent people in the region who function well in their jobs

Recommendations

• Strong consistent leadership needed in situation
• RDG needs strategic (outward) and operational (inward) capacities and skills (no ARDG in region)
• Regional strategic, multi-year and operational planning needed; should be linked into HR and financial planning
• Need greater training and skills development in all areas for staff to do the job
• Stronger financial, contracting, Human Resources and Indian Affairs Program functional guidance required
• Need to rebuild trust and respect for people
• Need greater clarity and certainty about roles and responsibilities - HQ / region and within region
• Organization may need to be staffed to reflect a certain amount of continuing change (build extra coverage) because of distance, devolution and current issues
• Need to better understand continuing role of department in devolved Indian and Northern Programs (e.g. $200-$800 million Faro closure)