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FY 2005/06 NIF PROJECT AUDITS - SUMMARY OF FINDINGS AND MANAGEMENT RESPONSE
| 1. BC Mountain Rescue Task Force - NIF Project no: BC 2/99 |
| Item Number |
Audit Finding |
Auditors Recommendations |
Sponsor Management Response / Action |
NSS Management Response |
| 1 a |
All objectives met |
No recommendations. |
Sponsor fully concurs with the findings of the auditors, with appreciation for their diligence in auditing this substantial and complex project. In Section 7.2 of the audit report, it is noted that the Justice Institute of British Columbia, as project managers, did not fully address the evaluation question: “were the results worth the project costs?” From the Provincial Emergency Program’s perspective the answer would be unequivocally yes. Although the project was demanding, the outcome is a firmly established mountain rescue program that has already resulted in saved lives while increasing safety for volunteers. |
Full agreement with findings. |
| 2. EER Systems R&D - NIF Project no: TC5/02 |
| Item Number |
Audit Finding |
Auditors Recommendations |
Sponsor Management Response / Action |
NSS Management Response |
| 2 a |
The project was to be completed by March 31, 2005. The project is still on-going and Transport Canada has not formally notified the NSS on this delay in the project. |
The project should be formally amended to extend the project to March 31, 2006. As management issues have again been identified with Transport Canada, consider a planning meeting at the start of each project to review responsibilities of the sponsor and to review management issues previously identified. Also, where management problems have been identified by NSS, consider auditing the project while in progress or withholding future funding until performance improves. |
Although it is apparent from this report that the audit procedure focused almost exclusively on the administration of the project rather that the results it should be noted that this project has yielded a number of internationally published reports and papers on the subject of EER and the research and testing carried out by the contractors has been accepted by the Canadian Petroleum Board for inclusion in the new guidelines for offshore operations.
The NSS was informed that the NSS funded portion of the project was completed as of March 2005 and no further invoices or quarterly reports would be forwarded to the NSS.
The NSS acknowledged this situation and asked for a final report to be provided as soon as possible and agreed to the postponement of the post evaluation report until after the project was completed in 2006.
There is no requirement in the MOU to make a formal amendment since this action did not involve any change in scope or cost. The NIF portion of the project was completed and, with the exception of the post evaluation report, it was completed within the time limit described in the annex to the MOU. |
The NSS will contact Transport Canada to determine the status of this initiative and await the submission of the post evaluation report.
Refer to: Overall SAR NIF Management response |
| 2 b |
The final report on the performance based standards has yet to be completed even though the project was to be completed by March 31, 2005. The NSS has not been advised of this delay. |
Refer to objective #1 for recommendations. |
This finding was based on the assumption that the NSS was never informed that the final deliverable of the EER performance standard would be delayed. Since the NSS had been informed that the project would not be completed until 2006, it would be obvious that the final report specified in this milestone would not be available until that time. |
The NSS will contact Transport Canada to determine the status of this initiative and await the submission of the final report.
Refer to: Overall SAR NIF Management response |
| 2 c |
Quarterly reports were incomplete as the Performance Measures column was never completed and the information provided regarding the status of the project was vague. |
NSS must take a pro-active approach to managing NIF projects whereby an internal tracking system should be developed to track project deliverables. Where a deadline has passed, NSS should immediately contact the sponsor and request the required information in the appropriate format. Where a sponsor is not performing to an acceptable level, consideration should be given to auditing the project while in progress and to withholding future funding until performance improves. |
The performance measures contained in the report were related to the project milestones in the annexes to the reports and adequately described the measures achieved and the status of the project. |
Refer to: Overall SAR NIF Management response |
| 2 d |
Transport Canada submitted claims for in-eligible costs of $16,000. |
Immediate steps should be taken to recover the over-claim. Also, before the commencement of any project, the NSS should review with the sponsor those costs that are eligible for re imbursement under the NIF. |
It must be noted that the research and other support services provided by the TDC were considered to be a valid expense when this proposal was made and accepted. Transport Canada understood that the 10% contingency provision could be used to cover these expenses that in this case amounted to 4% of the total NIF funding. |
The NSS will seek reimbursement of the funds that were claimed for in-eligible costs. |
| 3. Methods and Technologies for Man Tracking at Night - NIF Project no: RCMP 4/03 |
| Item Number |
Audit Finding |
Auditors Recommendations |
Sponsor Management Response / Action |
NSS Management Response |
| 3 a |
The amounts claimed by PSAR for equipment and travel included the full amount of GST even though PSAR is eligible for a GST rebate. Also, we identified additional costs that were not claimed in error by PSAR.
Time sheets were not provided to substantiate the hours paid to two PSAR members for the majority of the amounts claimed for the research and writing costs. These same two individuals paid for all of the equipment and travel costs for the project and were then reimbursed by PSAR. |
PSAR should be informed that all claims must be exclusive of GST rebates. In addition, PSAR should review their internal records on a claim by claim basis to ensure that all eligible amounts incurred are in fact submitted for reimbursement.
Furthermore, any invoice submitted to PSAR for hourly work should be accompanied by a time sheet in order to substantiate the hours worked on the project. Also, PSAR should obtain competitive quotes for all significant purchases prior to submitting their proposal to NSS. If up front deposits are needed then a request for funding and the reasons therefore should be submitted to the NSS. |
The RCMP recommends that more transparency/ accountability be done by PSAR in processing claims, expenses and time sheets in relation to the Methods and Technologies for Man Tracking at Night project by having a third party e.g. the Board or other party, being at arms length from the project, review and approve all expenditures, time sheets and nature of the work to be compensated. PSAR is a great organization and already has in place all the tools and resources necessary to accomplish this, notwithstanding the access to subject matter experts able to validate the work and expanses to be incurred on this project.
PSAR has passed a motion stating: The Parkland Search and Rescue board, being at arms length from the project, review and approve all expenditures, time sheets and nature of the work to be completed for the Methods and Technologies for Man Tracking at Night. |
The NSS is satisfied with the audit findings and Sponsor response. |
| 4. WESCAM Visual Information system and microwave - NIF Project no: ON 1/03 |
| Item Number |
Audit Finding |
Auditors Recommendations |
Sponsor Management Response / Action |
NSS Management Response |
| 4 a |
The sponsor failed to detect a duplicate invoice submitted by the York Regional Police for re-imbursement |
As management issues have again been identified with the EMO, the NSS should consider a planning meeting at the start of each project to review the responsibilities of the sponsor and to review management issues previously identified with the EMO |
EMO has undertaken a review of the financial transactions associated with this project, with the project manager, per the findings of the NSS auditor.
EMO’s NIF Program Coordinator, along with a financial support staff member, have been tasked with generating internal procedures to cover off project and financial management procedures. EMO management will review these procedures for completeness at which time they will be adopted.
EMO is available to meet with NSS, if required, for the start of the 1) active but on hold projects, and 2) at the start of the FY2007/2008 projects. EMO did send representatives to attend the NSS-hosted NIF training in Ottawa over May 31 – June 2, 2006. The EMO NIF Coordinator has reviewed the newly released FY2007/2008 Guidelines and supporting documents. EMO is looking forward to viewing the outstanding NSS documents, and working examples, once NSS has completed writing them, and posts them to NSS’s website. |
Refer to: Overall SAR NIF Management response
NSS is working with Ontario EMO to prepare them for the management of SAR NIF projects |
| 4 b |
The project costs as reported by the York Regional Police were over-stated by $42,856 resulting in excess NIF funding of $21,428 being provided to the York Regional Police. |
Immediate action should be taken by the NSS to recover this amount. The NSS should consider whether supporting documents need to be submitted with each claim to substantiate the amounts claimed by the recipient organization. |
EMO has submitted, the review findings of our NIF Financial Officer. EMO will await a final letter of instructions from NSS on this matter.
EMO will be developing internal procedures to ensure that future financial monitoring of NIF projects is more efficient. |
The NSS will seek reimbursement of the funds. |
| 5. Water Incident Research Alliance - Providing Injury and Fatality Information - NIF Project no: DFO 4/01 |
| Item Number |
Audit Finding |
Auditors Recommendations |
Sponsor Management Response / Action |
NSS Management Response |
| 5 a |
All objectives met |
No recommendations. |
TC will not be commenting on the WIRA project |
Full agreement with findings. |
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