2006 November Report of the Auditor General of Canada

Contracting for the Integrated Relocation Program

5.40 For significant and high-risk proposals, Public Works and Government Services Canada should ensure that more than one person evaluates the financial component of bids.
(5.34–5.39)

Public Works and Government Services Canada's response. Public Works and Government Services Canada agrees with this recommendation.

5.48 When recommending a contract award for significant and high-risk proposals, Public Works and Government Services Canada contract officers should ensure that briefing material prepared for senior management contains sufficient detail to allow appropriate management oversight and review.
(5.46–5.47)

Public Works and Government Services Canada's response. Public Works and Government Services Canada agrees with this recommendation.

Measuring the performance of the Integrated Relocation Program

5.77 National Defence (Canadian Forces) and the RCMP should systematically collect information from members who have been relocated to measure their satisfaction with the benefits and incentives of the Integrated Relocation Program and the performance of the Royal LePage Relocation Services. This information should be used to guide any changes in policy.
(5.70–5.76)

National Defence's response. A comprehensive Performance Management Framework for the Canadian Forces Integrated Relocation Program will be developed and implemented. Feedback from members will be one important element of this framework. As has been our practice, this feedback will be considered in the development of future policy amendments.

The RCMP's response. We agree. The RCMP will work in collaboration with the Treasury Board Secretariat and Public Works and Government Services Canada to develop tools by 15 April 2007 to measure members' satisfaction with the program and the performance of Royal LePage Relocation Services.

5.78 The Treasury Board Secretariat, as project authority, should establish mechanisms to systematically measure and report on the effectiveness of the Integrated Relocation Program.
(5.70–5.76)

The Treasury Board Secretariat's response. The Treasury Board Secretariat agrees with the recommendation. The Secretariat is re-establishing a survey tool (previously suspended in order to address contract re-tendering) to complement other mechanisms in place that assist in measuring performance. The Secretariat plans to launch the survey before the end of 2006. It should be noted that the Secretariat currently has mechanisms in place to monitor performance. The National Joint Council is used for identifying issues and difficulties that transferees may be encountering. The Secretariat also conducts outreach with departmental program coordinators to ensure that there is a solid community of practice to diminish risks and receive feedback on program effectiveness and applicability.

5.81 The Treasury Board Secretariat, National Defence (Canadian Forces), and the RCMP should establish formal mechanisms to measure and report on the contractor's performance.
(5.79–5.80)

The Treasury Board Secretariat's response. The Treasury Board Secretariat will work with Public Works and Government Services Canada, National Defence (Canadian Forces), and the RCMP to establish additional performance mechanisms to measure and report on the contractor's performance. To complement these proposed formal mechanisms, the Secretariat will continue to use other mechanisms already in place to monitor performance.

National Defence's response. As stated in our response to the recommendation at paragraph 5.77, a comprehensive Performance Management Framework will be developed and implemented by National Defence and the Canadian Forces. One aspect of this framework will be the establishment of objectives that will be used to measure and report on contractor performance.

The RCMP's response. We agree. The RCMP will work in collaboration with the Treasury Board Secretariat and Public Works and Government Services Canada to develop tools by 15 April 2007 to measure the performance of Royal LePage Relocation Services.

Controlling the spending of money

5.93 National Defence (Canadian Forces) should take steps to comply with the Financial Administration Act and to develop a plan to ensure that expenditures made under the Integrated Relocation Program are valid and accurate.
(5.84–5.92)

National Defence's response. National Defence and the Canadian Forces are currently implementing an exception reporting approach to certifying transactions under section 34 of the Financial Administration Act. At the same time, we are pursuing a more comprehensive solution that will require an additional investment in personnel as well as enhanced information management and information technology support.

5.94 National Defence (Canadian Forces) should analyze a sample of Integrated Relocation Program transactions from previous years to assess the risk that amounts spent on the program do not comply with the policy or contractual terms and conditions. If amounts identified are significant, the extent of testing should be increased. If necessary, National Defence (Canadian Forces) should develop a strategy to recover funds.
(5.84–5.92)

National Defence's response. National Defence and the Canadian Forces will be reviewing a number of Integrated Relocation Program files from prior years to assess the extent to which payments complied with policy and members received their respective entitlements.

5.95 The RCMP should ensure that it complies more rigorously with account verification policies and procedures for validating expenditures for the Integrated Relocation Program.
(5.84–5.92)

The RCMP's response. We agree. The RCMP will create a standardized procedural guide to assist RCMP relocation reviewers to reconcile Integrated Relocation Program files in a consistent and formal manner, by 15 April 2007, in accordance with the government's account verification policies and procedures.

5.98 National Defence (Canadian Forces) should complete a review of all relocations involving property management services to determine the full extent of overpayment and ensure that Canadian Forces members are reimbursed for property management services paid in excess of contractual rates.
(5.96–5.97)

National Defence's response. National Defence and the Canadian Forces will conduct a complete review and legal analysis of property management fees and expenditures. Once this review and analysis is complete, payments to members will be adjusted accordingly.

5.99 Public Works and Government Services Canada should ensure that all ceiling rates are in accordance with the terms and conditions of the contract.
(5.96–5.97)

Public Works and Government Services Canada's response. Public Works and Government Services Canada agrees with this recommendation and will conduct a detailed investigation to ensure that all ceiling rates are in accordance with the terms and conditions of the contract. Any overpayment will be reimbursed to the Crown in accordance with the audit provisions of the contracts.