Case Report Final March 06 PDF

8/2/2019 Case Report Final March 06 PDF

1/22

FindingsofthePublicSectorIntegrity

CommissionerintheMatterofan

Investigationinto

aDisclosure

of

Wrongdoing

HumanResourcesandSkillsDevelopmentCanada

CaseReport

March2012


2/22

TheReportisavailableonourWebsiteat:www.psicispc.gc.ca

ForcopiesoftheReportorotherOfficeofthePublicSector

IntegrityCommissionerofCanadapublications,contact:

OfficeofthePublicSectorIntegrityCommissionerofCanada

60QueenStreet,7th

Floor

Ottawa,ONK1P5Y7

Tel.:6139416400

Tollfree:18669416400

Fax:6139416535

Email:[email protected]

Cedocumentestgalementdisponibleenfranais.

MinisterofPublicWorksandGovernmentServicesCanada2012

Cat.No.:PG41/2012EPDF

ISBN: 9781100203423


3/22

TheHonourableNolA.Kinsella

SpeakeroftheSenate

TheSenate

Ottawa,OntarioK1A0A4

DearMr.Speaker:

IhavethehonourofpresentingyouwiththeOfficeofthePublicSectorIntegrityCommissioner

ofCanadasfirstCaseReportofFindingsintheMatterofanInvestigationintoaDisclosureof

Wrongdoing,whichistobelaidbeforetheSenateinaccordancewiththeprovisionsof

subsection38(3.3)ofthePublicServantsDisclosureProtectionAct.

Thereportcontainsthefindingsofwrongdoing;therecommendationsmadetothechief

executive;theCommissionersopinionastowhetherthechiefexecutivesresponsetothe

reportissatisfactory;andthechiefexecutiveswrittencomments.

Yourssincerely,

MarioDion

PublicSectorIntegrityCommissioner

OTTAWA,March2012


4/22


5/22

TheHonourableAndrewScheer,M.P.

SpeakeroftheHouseofCommons

HouseofCommons

Ottawa,OntarioK1A0A6

DearSpeaker:

IhavethehonourofpresentingyouwiththeOfficeofthePublicSectorIntegrityCommissioner

ofCanadasfirstCaseReportofFindingsintheMatterofanInvestigationintoaDisclosureof

Wrongdoing,whichistobelaidbeforetheHouseofCommonsinaccordancewiththe

provisionsofsubsection38(3.3)ofthePublicServantsDisclosureProtectionAct.

Thereportcontainsthefindingsofwrongdoing;therecommendationsmadetothechief

executive;theCommissionersopinionastowhetherthechiefexecutivesresponsetothe

reportissatisfactory;andthechiefexecutiveswrittencomments.

Yourssincerely,

MarioDion

PublicSectorIntegrityCommissioner

OTTAWA,March2012


6/22


7/22

Page|1

TableofContents

Foreword.................................................................................................................. 3

Mandate................................................................................................................... 4

TheDisclosure.......................................................................................................... 5

ResultsoftheInvestigation...................................................................................... 6

OtherFindings.......................................................................................................... 7

OverviewoftheInvestigation.................................................................................. 7

SummaryofFindings................................................................................................ 8

1. ContraventionofanActofParliament...........................................................8

2.

Misuse

of

Public

Funds

and

Assets

.................................................................

9

3. Grossmismanagement.................................................................................11

Conclusion.............................................................................................................. 12

RecommendationsandDepartmentsResponses.................................................13

AdditionalcommentsprovidedbytheDepartment..............................................16


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Page|3

Foreword

WiththetablingofthisreportofwrongdoingtoParliament,Iwouldliketotakethis

opportunitytosharesomethoughtsregardingtherolethePublicServantsDisclosureProtectionAct,S.C.,2005,c.46(theAct)playsinsupportingandmaintainingtheintegrityandcredibility

of

the

federal

public

sector.

InacceptingthehonourofbeingappointedasPublicSectorIntegrityCommissionerin

December,Ibroughttothispositionmysincereandlongheldbeliefinthehonestyand

commitmentofpublicservantstocarryouttheirimportantdutieswithintegrityand

professionalism.Whenwrongdoingorreprisaliscommitted,publicservantsexpectand

demandthattheseactionsbedealtwithindependentlyandswiftly,reflectingtheirdedication

andprideinservingCanadians.

TheActwascreatedtoprovideaconfidentialwhistleblowingmechanisminthepublicsectorto

respondto

the

need

to

address

and

prevent

cases

of

wrongdoing.

The

disclosure

regime

establishedunderthisActismeantnotonlytostoptheseactionsfromcontinuingandtotake

correctiveaction,butalsotoactasadeterrent. Foundedcasesofwrongdoingarerequiredby

theActtobereportedtoParliament,whichisapowerfultooloftransparencyandpublic

accountability.

ThedefinitionofwrongdoingintheActisbroadandIamconvincedthatastheworkofmy

Officecontinues,futurecasereportswilltouchonawiderangeofdifferenttypesof

wrongdoingactivitiesthatrangeinscopeandseverity,allofwhichfallwithinmymandateto

respondtoandreport.

IalsobelievethatreportingfindingsofwrongdoingservestoincreaseawarenessoftheexpectationsofParliament,andindeedofCanadians,regardingtheintegrityofourfederal

governmentinstitutions.

Thisfirstreportspeakstotheactionsofaregionalmanager,aswellassomedeficienciesthat

permittedthewrongdoingtooccur.Istronglyencourageallpublicsectoremployeestoread

thisreporttounderstandtheimportanceofrespectingalllegislation,policies,proceduresand

guidelinesinthecourseoftheirdaytodayworkandtoalwaysconductthemselvesinan

ethicalmannerconsistentwiththeirdutiesandwiththeexpectationsofthepublictheyserve.

Ibelieve

that

the

vast

majority

of

public

sector

employees

conduct

themselves

with

honesty

andintegrityintheirdailyoperations.However,itisalwaysusefultoberemindedofthese

fundamentalvaluesandhowtoavoidthewrongdoingsuchasthosedetailedinthisreport.

MarioDion,PublicSectorIntegrityCommissioner


10/22

Page|4

Mandate

TheOfficeofthePublicSectorIntegrityCommissionerofCanadaisanindependentbody

createdin2007toestablishasafeandconfidentialmechanismforpublicservantsormembers

ofthepublictodisclosewrongdoingin,orrelatingto,thefederalpublicsector.Specifically,my

Officehas

the

mandate

to

investigate

disclosures

of

alleged

wrongdoing

and

complaints

of

reprisalinthepublicsector.

Section8ofthePublicServantsDisclosureProtectionAct,S.C.,2005,c.46(theAct)defines

wrongdoingas:

(a)acontraventionofanyActofParliamentorofthelegislatureofaprovince,orofanyregulationsmadeunderanysuchAct,otherthanacontraventionofsection19ofthis

Act;

(b)amisuseofpublicfundsorapublicasset;(c)

a

gross

mismanagement

in

the

public

sector;

(d)anactoromissionthatcreatesasubstantialandspecificdangertothelife,healthorsafetyofpersons,ortotheenvironment,otherthanadangerthatisinherentinthe

performanceofthedutiesorfunctionsofapublicservant;

(e)aseriousbreachofacodeofconductestablishedundersection5or6;and(f) knowinglydirectingorcounsellingapersontocommitawrongdoingsetoutinanyof

paragraphs(a)to(e).

Investigationsintodisclosuresareforthepurposeofbringingthefindingsofwrongdoingtothe

attentionof

the

organizations

chief

executive

and

to

make

recommendations

for

corrective

action.

Undersubsection38(3.3)oftheAct,ImustreporttoParliamentfoundedcasesofwrongdoing

withinsixtydaysaftertheconclusionofmyinvestigation.ThisCaseReportaddressesonesuch

investigationandthefindingsrelatedtothedisclosureofwrongdoingbroughtforwardtomy

Office.


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Page|5

TheDisclosure

OnFebruary22,2010,myOfficereceivedaprotecteddisclosureofwrongdoingthat

encompassednumerousallegationsinrelationtotheactionsoftheManageroffourofficesof

HumanResourcesandSkillsDevelopmentCanada(theDepartment). Thediscloserreported

thatseveral

employees

in

the

Western

Canada

and

Territories

Region

(W

TRegion)

of

the

DepartmenthadseriousconcernsregardingtheactionsoftheirManager.Theinformation

submittedtomyOfficeincludedanecdotalandphysicalevidence.

Atthetimeofthedisclosure,theManagerhadbeenaregionalmanagerformorethannine

years.AlthoughstaffhadconcernsregardingtheManagersbehaviourforsometime,they

expressedfearfortheirjobsiftheycameforwardtocomplaintotheDepartmentor

participatedinaninvestigation.Thediscloserstatedthatmanyofthestaffwerefrightenedof

theManagerwhotheydescribedasanautocratandabullywhothreatenedreprisalagainst

employeeswhoquestionedtheManager.Therewasfearthatinthesmallcommunitiesin

whichemployees

resided

that

retaliation

might

spread

outside

the

office

and

affect

their

family

members.

MyOfficeprovidesaconfidentialprocesstoaddressallegationsofwrongdoing.Assuch,the

employeesfeltitwasappropriatetohavetheirconcernsinvestigatedundertheAct. However,

evenwiththeconfidentialityassociatedwiththedisclosureprocess,manyemployeeswho

participateddidsowithfearandongoingtrepidation.

Afteradetailedanalysisoftheinformationinitiallyprovided,theinvestigationwascommenced

onApril8,2010intothefollowingallegations,asdefinedundersection8oftheAct:

(a)acontraventionofanyActofParliamentorofthelegislatureofaprovince,orofany

regulationsmadeunderanysuchAct,otherthanacontraventionofsection19ofthis

Act;

(b)amisuseofpublicfundsorapublicasset;

(c)agrossmismanagementinthepublicsector;

(f)knowinglydirectingorcounsellingapersontocommitawrongdoingsetoutinanyof

paragraphs(a)to(e).

ThediscloseralsoallegedseriousbreachesoftheValuesandEthicsCodeforthePublicService

undersection

8(e).

It

was

determined

that

these

alleged

breaches

could

be

more

effectively

investigatedaswrongdoingsunderparagraphs8(a),(b),(c)and(f)mentionedabove.There

werealsoallegationsrelatingtostaffingirregularitieswhichwereseveredfromthe

investigationandreferredtothePublicServiceCommission,whichconducteditsown

investigation.However,myOfficedecidedtoconsiderfindingsofstaffingirregularitiesaspart

ofitsevaluationoftheallegationofgrossmismanagement.


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ResultsoftheInvestigation

Theinvestigationfoundthat:

TheManagercontravenedtheFinancialAdministrationAct,R.S.C.,1985,c.F11,byfailing

to

have

properly

exercised

delegated

financial

authorities

under

that

Act.

TheManagermisused,onseveraloccasions,publicfundsandassetsby:o approvinginappropriatepurchasessuchaspersonalmassages;o purchasingequipmentsuchasflatscreentelevisionsthatwerenotused;o payingforlunchesforemployees;o claimingformonetarytravelbenefitswhentheManagerhadnottravelled;o claimingforpersonalvehiclemileagewhentheManagerusedadepartmental

vehicle;and

o usinggovernmentequipmenttoconductpersonalbusiness. TheManagersactionsandomissionsconstitutedgrossmismanagementthroughthe

failureto:

o followTreasuryBoarddirectives;o followdepartmentalpoliciesandprocedures;o respecttheprincipleoffairnessinastaffingaction;o ensuretheprivacyofstaffandclients;o respectthefundamentalrightsofstaff;o protectthesecurityofinformation;ando treatstaffwiththerespectandconsiderationthatareembodiedinthevaluesand

ethicsoftheDepartment.

TheallegationthattheManagerknowinglydirectedorcounselledotherstocommitawrongdoing

was

not

substantiated.

Detailsofthesewrongdoingsareprovidedlaterinthisreport.


13/22

Page|7

OtherFindings

TheresultsoftheinvestigationrevealedseveraldeficienciesonthepartoftheDepartment.

AlthoughthesedeficienciesdidnotamounttowrongdoingasdefinedundertheAct,they

permittedtheManagertopersonallyengageinwrongdoingundetectedforseveralyearsand

untilthe

start

of

the

investigation

into

this

disclosure.

Although

the

Manager

claimed

that

therewaslittleguidanceprovidedbyseniormanagement,itwasdeterminedthatthe

Departmentdidhavepoliciesandproceduresinplacethatprovidedclearandproperdirection

totheManager. Forexample,itwasdeterminedthattheDepartmentsenttheManager

updatesandlinkstoDepartmentalandTreasuryBoardpolicies. However,intheregionin

whichtheManagerworked,therewasinsufficientoversighttoensurethatthesepolicieswere

beingfollowed. Assuch,theinvestigativeprocessrevealedthefollowingdeficiencies,whichI

havebroughttotheattentionoftheChiefExecutiveresponsiblefortheDepartment:

Theoversightoftravelclaimswasproblematicandquestionable. Approvedtravelclaims

were

found

to

be

missing

substantiating

documentation,

resulting

in

ss.

1.5.1(c)

(i)and(e)oftheTreasuryBoardTravelDirectivehavingbeencontravened.

TheDepartmenthadinconsistentcostrecoverypracticesforthepersonaluseofmobilewirelessdevices(BlackBerry).

TheDepartmenthadnotimplementedsufficientchecksofregionalaccountingpracticestoensureadherencetotheFinancialAdministrationAct.

TheDepartmenthadnotimplementedsufficientcheckstoensurethatproperassetcontrol

procedures

were

being

followed

and

that

departmental

inventory

control

policieswerebeingadheredtobytheManager.

TheDepartmentfailedtoensurethatstaffintheregioninwhichtheManagerworkedcompliedwithdepartmentalsecuritypoliciesandprocedureswithrespecttothe

handlingandstorageofsensitiveinformation.

OverviewoftheInvestigation

Aninvestigation

team

from

my

Office

led

by

aSenior

Investigator

was

responsible

for

the

coordinationofallinvestigativeefforts.Theinvestigationfocusedonthelastsixyearsofthe

Managerstenure.Sitevisitsandinterviewswereconducted,anddocumentaryevidencewas

examined.

Uponourrequestandinlightofcertainallegations,anauditwasconductedbythe

departmentalInternalAuditServicesincollaborationwiththeinvestigationteam.Asrequired


14/22

Page|8

undertheAct,theDepartmentreadilyprovidedthenecessaryfacilities,requiredinformation

andfullaccesstotheiroffices.

Itwasdeterminedthattheinitialevidencecollectedsupportedmanyoftheallegations.In

keepingwithourobligationsundertheActtoprovidefullandampleopportunitytorespondto

allegationsof

wrongdoing,

the

investigation

team

provided

the

Manager

and

the

Department

withadetailedReviewofInvestigativeFacts. Theywereallottedsufficienttimetoprovide

commentstotheallegationsandanyothermatterofconcernarisingfromtheinvestigation.

Duringthecourseoftheinvestigation,theDepartmentretainedanexternalauditfirmto

performaforensicaccountingofthefouroffices.Theresultsofthatauditweretakeninto

considerationbytheinvestigativeteam.

AsecondReviewofInvestigativeFactswasprovidedinSeptember2011totheDepartmentand

totheManagerforasecondopportunitytocommentontheevidence.

Inarrivingatmyfindings,Ihavegivendueconsiderationtoalloftheinformationreceived

throughoutthecourseofthisinvestigation,includingtheDepartmentsandtheManagers

responsestothereviewsofinvestigativefacts.

SummaryofFindings

1. ContraventionofanActofParliamentTheManagercontravenedtheFinancialAdministrationActbyfailingtoproperly

executedelegatedfinancialauthorities.TheFinancialAdministrationActsetsouta

numberofobligationsandduties,thebreachofwhichisclearlyprohibited.These

includetheobligationtokeepaccountsinprescribedform;toprovidesupporting

documentation;toensureadequateinternalcontrolsandaudits;andtoensurethat

paymentsmadeoutoftheConsolidatedRevenueFundareauthorized.

Theinvestigationteamfound:

TheManagerfalsifiedtravelclaimsbysubmittingunsupportedexpensesforaccommodation,mealsandincidentals.

TheManagermadeclaimsforreimbursementfortheuseofapersonalvehiclewheninfactnoreimbursableexpenseswereincurred.


15/22

Page|9

TheManagerfailed,inmanyinstancestoensureproperfinancialcodingandrecordingpractices.Forexample:codingmassagechairs,giftbasketsandhospitality

relatedexpendituresasOfficeSupplies.

TheManager,inadditiontoimproperlycodinghospitalityrelatedexpenditures,breached

Treasury

Board

and

departmental

policies

and

guidelines

with

respect

to

hospitalitybynotobtainingpreauthorizationforexpendituresandnotmaintaining

propersupportingdocumentation.

TheManagerpaidcasualstafffrompettycashwithoutanyevidencethatarecordofataxreceiptwasissued.

TheManagerclaimedrestaurantexpensesundertheDepartmentsPrideandRecognitionprogramwheninfactsuchexpenseswerenotallowedunderthat

program.Inaddition,nosupportingdocumentationordetailsabouttheeventswere

submittednor

were

there

records

of

tax

receipts

being

issued

for

these

benefits.

2. MisuseofPublicFundsandAssetsOnseveraloccasions,theManagerwasfoundtohavemisusedpublicfundsandassets.

Misuseofpublicfundsincludesexpendituresthataremadewithoutproper

authorizationorthatareillegal,unlawfulorcontrarytoapplicablelegislation,

regulations,policiesandprocedures.Purchasesthatarewastefullyunnecessaryand

thatarenotinkeepingwiththebusinessoroperationalneedsoftheDepartmentalso

constituteamisuse

of

public

funds.

Misuseofpublicassetsincludesmakinginappropriateorunauthorizedpersonaluse

ofgovernmentproperty,andalsoincludesafailuretosafeguardsuchassets.

Theinvestigationteamfound:

TheManagerpurchasednonworkrelatedmerchandisewithpublicfunds,includingitemssuppliedbyaprivatebusinessinwhichtheManagerhadaninterest.

In

2009,

the

Manager

purchased

two

LCD

High

Definition

televisions

which

were

neverusedandwhichwerefoundintheManagersresidence.In2010,theManager

thenorderedthreemoretelevisions,oneofwhichwasnotlocatedintheoffices

whentheinvestigationteamconductedaninventoryofassets.

TheManagerencouragedandapprovedpurchasesofnonworkrelateditemswithgovernmentfundsfromtheManagersownpersonalbusiness.Theseitems

included:waterbottles,massagersandmagnetsformagnetictherapyusedbythe


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Page|10

Managertobalancetheemployeesmagneticfields.Accordingtowitnesses,the

waterbottlesreportedlycost$80.00aunit.

TheManagerpurchasedmassagechairsthatwerelargelyunused,withonestoredinamenswashroomatoneofthesatelliteoffices.

TheManagerapprovedpersonalmassagesforstaffwhichwerealsocodedasOfficeSuppliesandclaimedthatthesewereinsupportoftheDepartmentsWellness

Program.TheDepartmentconfirmedthatthepurchaseofthesegoodsorpersonal

servicesfelloutsidethespendingparametersandspiritoftheWellnessProgramand

werenotappropriate.

TheManagerfailedtokeeporensurethataproperinventoryofgovernmentassetswaskept.Inaddition,theManagerfailedtoproperlyplaceassetstickersonitems

suchasportableprinters,DVDandBlurayplayers,radio/CDplayers,digitalcameras

and

calculators.

TheManageralsooperatedafitnessfranchiseandtookagovernmentprinterandtwopiecesofofficefurnituretothatfranchise.

TheManagerusedgovernmentissuedequipmentsuchasacomputerandBlackBerrytoconductprivatebusinessmatters,contrarytotheTreasuryBoard

PolicyontheUseofElectronicNetworksandtheDepartmentspolicyinregardto

wirelessmobiledevices.

Themanagerusedanemployeesgovernmentacquisitioncreditcardandsignedtheemployees

name

without

her

knowledge

or

consent.

These

actions

contravened

the

DepartmentsAcquisitionCardPolicy.

TheManagerusedalmostexclusivelyaGovernmentofCanadavehiclethatwasintendedforbusinessusebyallemployeesattheofficewhichwasoftenkeptatthe

Managersresidenceonweekends.Thispreventedemployeesfromutilizingthe

vehicleforlegitimatebusinesspurposesandattimesnecessitatingtherentalof

vehicles. TheManageralsotravelledwithnonauthorizedpersonsinthevehicle.

TheseconstitutedcontraventionsofTreasuryBoardpolicies,departmentalpolicies

andtheRegionalFleetGuidelinesHandbook.


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Page|11

3. GrossmismanagementIhavedeterminedthatthebreadth,severityandfrequencyoftheManagers

wrongdoingaresuchastoconstitutegrossmismanagementinthepublicsector.

Theterm

gross

mismanagement

is

not

defined

in

the

Act.

The

factors

that

my

Office

considersininvestigatinganallegationofgrossmismanagementunders.8(c)oftheAct

include:

o mattersofsignificantimportance;o seriouserrorsthatarenotdebatableamongreasonablepeople;o morethandeminimuswrongdoingornegligence;o managementactionorinactionthatcreatesasubstantialriskofsignificant

adverseimpactupontheabilityofanorganization,officeorunittocarryoutits

mandate;and

othe

systemic

nature

of

the

wrongdoing.

IndeterminingwhetherthemisconductoftheManagerisseriousenoughastobe

deemedgrossmismanagement,thefollowingfactorshavebeentakenintoaccountin

thissituation:

o thedeliberatenatureoftheactions;o thefrequencyoftheproblembehaviour;o thatthepersonwhoengagedinthewrongdoingwasamanagerresponsiblefor

fouroffices;

o theimpactofthewrongdoingonthewellnessofotheremployees;o thesufficiencyofthemanagementresponse;ando theimpactofthewrongdoingonthepublicinterestandtrustinthepublic

service.

Inaddition,theinvestigationteamfoundthatthefollowinginstancesconstitutedgross

mismanagement:

TheManagerselectedaclosefamilyfriendwhowaslivingintheManagershometofillapositioninasatelliteofficeover200kmawaywhentherewasaqualified

candidatealreadyresidingincloseproximitytothatoffice.Asaresult,unnecessary

expenseswere

incurred

and

the

Manager

did

not

respect

the

principle

of

fairness

in

astaffingaction.

AninvestigationconductedbythePublicServiceCommissioninregardtothisstaffingactionfoundthatthemanager:committedimproperconductwithher

involvementwiththeappointmentprocessThisimproperconductaffectedthe

selectionof(namewithheld)fromthepool.


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Page|12

Underthepretenseofoperationalrequirements,theinvestigationteamfoundthatthechildoftheManagerwasprovidedwithopportunitiestocollectsignificant

overtimeandincurredcoststhatincludedmileage,mealsandincidentals,private

accommodationallowanceandovertimeclaims. TheManagersconductwasfound

tohavebeenunreasonableandunacceptable.

TheinvestigationteamfoundconsiderableanecdotalevidencethattheManagerwrongfullydisclosedindividualspersonalinformationtootheremployeesrelating

tomatterssuchashealthanddisciplinaryproceedings.

TheManagerfailedtofollowtheDepartmentandGovernmentofCanadastandardsinregardtosecurityofinformation.TheManagerfailedtokeepsecuresensitive

governmentdocumentsthatwerecollectedduringthecourseofbusiness.For

example,informationmarkedProtectedB,suchasmedicalleaveforms,employee

testresultsandClient/WorkerBenefitCalculations,werenotsecuredinaccordance

with

the

standards.

TheManagercreatedaworkenvironmentrifewithfear.ManystafftoldourinvestigatorsthattheManageryelledatthemandusedoffensivelanguage.

TheManagerbreachedtheTreasuryBoardPolicyontheUseofElectronicNetworksandcompromisedtheaccountabilityofthefinancialentryprocessbyusingthe

passwordsandaccesscodesofemployeeswhoworkedindifferentofficestomake

financialentrieswithouttheirknowledgeorconsent.

Conclusion

Basedontheforegoing,IhaveconcludedthattheManagercommittedseveralwrongdoingsas

definedundersection8(a),(b),and(c)oftheAct,namelycontraventionsoftheFinancial

AdministrationAct,misuseofpublicfundsandpublicassets,andgrossmismanagement.

TheresultsoftheinvestigationalsorevealedseveraldeficienciesonthepartoftheDepartment

regardingthelackofoversightmechanismstoensurethatdepartmentalandTreasuryBoard

policiesandprocedureswererespectedinthatregion.

Inaccordancewithsection22(h)oftheAct,Ihavemaderecommendationstothechief

executiveconcerningthemeasurestobetakentocorrectthewrongdoing.Iamsatisfiedwith

thechiefexecutivesresponsetomyrecommendationsandwiththemeasurestakentodateby

theDepartmenttoaddressthewrongdoingidentifiedinthisreport.Myrecommendationsand

theDepartmentsresponsefollow.


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RecommendationsandDepartmentsResponses

Asaresultofmyfindingsandpursuanttomyauthorityundersection22(h)oftheAct,the

followingrecommendationsweremadetotheDepartment.Theissuesonwhichthe

recommendationsarebasedwereallpreviouslydiscussedintheReviewsofInvestigativeFacts

andthe

Department

has

already

taken

measures

to

address

the

majority

of

them.

1. ItisrecommendedthattheDepartmentimplementtighterfinancialcontrolsandoversightoffinancialexpendituresinregionalofficestoensurecompliancewiththe

FinancialAdministrationAct.TheDepartmentrespondedthattheissuesofconcerninthisinvestigationaroseina

localizedareawithinaspecificregionandthatitactedproactivelytoinitiatecorrective

actions intheWesternCanadaandTerritoriesRegion(WTRegion),including:

Theimplementation

of

new

organizational

structures,

adopted

by

the

W

TRegioninJune2010toimproveleadershipandoversight;

ThecreationofaregionalFinancialManagementCommitteetoimprove

managementoversight;

Theimplementationofregionaltraininginseveralareasincludingacquisition

cardsandhospitality;and

Theimplementationofmultipleimprovementstoseveralbusinesspractices,

including:

acquisitioncards; travel; procurement; delegationofauthority; financialcontrolsrelatedtosections33and34oftheFinancial

AdministrationAct;

physicalandinformationtechnologyaccess; computersecurity; hospitality; informationmanagementwithregardtofiling;and financialmanagement.

2. ItisrecommendedthattheDepartmentundertakeasecurityreviewoftheofficesthatwereundertheManagerscontrol,toensurethatgovernmentassetsand

informationareprotectedinaccordancewithpoliciesandprocedures.


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TheDepartmentreportedthatitundertookasecurityreviewoftheofficesandtookthe

necessarystepstoensurethatgovernmentsecuritystandardsaremet. The

investigationteamconfirmedwiththeDepartmentthatitnowmeetstherequirements

oftheTreasuryBoardPolicyonGovernmentSecurity.

3. ItisrecommendedthattheDepartmentinitiateactiontoretrieveallgovernmentassetsfromtheManager.

TheDepartmentreportedthatithasretrievedallgovernmentassetsfromtheManager,

includingthetelevisionsandotheritemskeptattheManagersresidenceandplaceof

business.

4. ItisrecommendedthattheDepartmentuseitsCorporateManagementSystemtoaccountaccuratelyforallphysicalassetsinthefourofficesinquestion.

TheDepartmentreportedthatithasinventoriedassetsintheofficesinquestionandhas

enteredtherequiredinformationintheDepartmentalcorporatemanagementsystem.

5. ItisrecommendedthattheDepartmentconductonsiteinventoriesinallregionalofficestoensurethatthephysicalassetsonsiteineachofficeareaccountedforand

recordedintheCorporateManagementSystem.

TheDepartmentreportedthatitconductedareviewofkeymanagementcontrolsfor

ServiceCanadacentersacrossallregionsandthatithasimplementedtighterinventory

controls.

TheDepartment

has

initiated

full

inventories

in

all

regions,

which

will

encompass

approximately426locationsacrossCanada(4regionsandNHQ).Todate,thisexerciseis

approximately45%completed,withaphysicallistingofallinventory,attractiveassets

(ex.TVs)andassets(value$10,000orgreater)conductedinall123sitesinthe

DepartmentsWesternCanadaandTerritoriesRegion(WTRegion)andaswellas79

locationsinourAtlanticRegion.TheearlyresultsfromtheWTRegionportionofthe

nationalexercisehavenotidentifiedanymajordiscrepanciesthusfar.Asimilarexercise

willsoonstartintheQuebecandOntarioRegions.Itisexpectedthatallregionalphysical

inventorieswillbecompletedbyOctober2012.

Innovation,

Information

and

Technology

Branch

(IITB)

collects

information

on

IT

and

Telecomassetsonaregularbasis.IITBhasworkedwiththeChiefFinancialOfficer

Branchtoorganizeitsinventorylistingsinamannerwhichisconsistentwiththeregional

inventoryexercise.Thiswillfacilitateassetcontrolandassetvalidationexercises.

Workingwiththedepartmentsassetmanagementcommunity,andwithsupportfrom

InternalAuditServicesBranch,Investment,Asset,andProcurementManagementis

initiatinganassetmanagementactionplan,whichincludesareviewofcurrent


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Page|15

departmentpolicyandassociatedmonitoringframeworks.Thiswillincludedevelopinga

riskbasedframeworkthatwillrequirethirdpartyverificationorassets.

IASBundertookareview,fromDecember2010toMarch2011,toprovidemanagement

withassuranceonthecorecontrolsinplaceintheServiceCanadaCentres.Thekey

managementcontrols

refer

to

controls

implemented

by

management

to

mitigate

risks

in

theareasoffinancialmanagement,assetmanagement,andhumanresources

management.Asitpertainstothisrecommendation,thereviewincludedtheareasof

inventorymanagementandfleetmanagement.

ThisreviewwasinitiatedinparttodetermineiftheissuesraisedinthePSICinvestigation

weresystemicorspecifictothefourlocalofficesinNorthernManitoba.Thefindings

revealedthattheissuesraisedwerenotsystemicbutwerespecifictothefourlocal

officesinNorthernManitobathatwerepartofthePSICinvestigation.

Inresponsetothefindingsofthereview,aNationalWorkingGroup(NWG)was

establishedinNovember2011.TheNWGislookingateachoftheareasidentifiedinthe

ReviewandexaminingeachRegionscurrentprocesswiththeaimofdevelopingone

process,acrossallregionsthatincorporatesbestpractices.TheNWGwillfinalizethe

actionplanontheareasofinconsistencybytheendofMarch2012.

6. ItisrecommendedthattheDepartmentreviewitspoliciesandproceduresfortheuseofmobilewirelessdevicesandrepaymentofcostsrelatedtotheirpersonaluse.Itis

alsorecommendedthatthedepartmentimplementoversightmechanismstoensure

thatcostrecoveryisachieved.

TheDepartment

reported

that

it

has

initiated

cost

recovery

with

respect

to

the

personal

useofwirelessdevicesbytheManager.

TheDepartmenthasaMobileDevicePolicyDirective(Policy)thathasbeeninplacesince

2004andwasamendedin2005toaddthepersonalusecomponent.ThePolicyrequires

thatusersreimbursetheDepartmentonamonthlybasisforthepersonalcallsthat

exceed$5.00intotalinagivenmonth.Monthly,theDepartmentdistributescalldetail

recordstoeachuser.Usersarerequestedtoidentifypersonalcallsandreimbursethe

DepartmentaccordingtothePolicy.In200910and201011,theDepartmentrecovered

$10,664.84and$12,059.62,respectively,fromemployeesforpersonaluseofwireless

devices.

Aprocessforgreatermanagementoversightoftheuseofwirelessdevicesisbeingputin

placebytheDepartment.


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Page|16

AdditionalcommentsprovidedbytheDepartment

TheDepartmentreportedtakinganumberofadditionalactionsinordertoaddressthese

findingsof

wrongdoing,

including:

TheestablishmentofaVacancyManagementTransitionCommitteetoreviewallindeterminatestaffingactionsandrelocationrequestsagainstacceptedpolicies.The

Committeemustreviewandapprovetermappointmentsof4monthsorgreater,casual

appointments,anddeploymentrequests;

TheorganizationofaworkplacewellnessstaffmeetinginDecember2010fortheemployeesofallfourofficestowhichtheinvestigationrelates;

Theimplementationofcommunicationchannelstosupportthestaffonanongoingbasis:o theExecutiveHeadServiceManagement(EHSM)alongwiththeCitizenServices

BranchExecutiveDirector,theAreaDirector,andtheServiceManagermet

personallywithstaffatallfouroffices;

o theAreaDirectorholdsweeklycontactwitheachoffice;o theCitizenServicesBranchAreaDirectorandtheExecutiveDirectorvisitregularlyin

personinthenorthernoffices;

TheDepartmentreportedthatitcontinuestoimplementitsValuesandEthicsProgram.AccordingtotheDepartment,employeesareroutinelybeingremindedoftheir

obligationsundertheValuesandEthicsCodeforthePublicService;and RegularremindersaresenttoallemployeesfromtheSeniorDisclosureOfficerandthe

OfficeofValuesandEthicsrespectingthePublicServantsDisclosureProtectionAct.

Documents

Case Report Final March 06 PDF