2007 May Report of the Auditor General of Canada

Policies and procedures

1.19 The Treasury Board Secretariat should update the policy with respect to acquisition cards including whether "corporate" acquisition cards should be permitted. (1.15–1.18)

The Treasury Board Secretariat's response. The Treasury Board Secretariat agrees with the recommendation. As part of the renewal of Treasury Board's financial management policies, the Directive on Acquisition Cards is being updated. The revised directive will not permit the issuance of acquisition cards in the name of an organization or asset, such as a vessel, as it would have an impact on the government's ability to monitor and control the usage of the card as well as on the merchant's ability to accept the card as payment. Forecasted completion for the updated directive is 31 March 2008.

1.24 The Treasury Board Secretariat should complete and issue its directive on travel cards. (1.20–1.23)

The Treasury Board Secretariat's response. The Treasury Board Secretariat agrees with the recommendation. As part of the renewal of Treasury Board's financial management policies, the Directive on Travel Cards and Travellers Cheques is being updated. Forecasted completion for the updated directive is 31 March 2008.

1.25 Public Works and Government Services Canada should provide departments and agencies with operational guidelines pertaining to the provisions of the contract with the travel card service provider, including guidelines pertaining to the responsibility of the government for unpaid travel card balances. (1.20–1.23)

Public Works and Government Services Canada's response. Public Works and Government Services Canada agrees with this recommendation and will provide departments and agencies with operational guidelines pertaining to the provisions of the contract with the travel card service provider.

1.31 Fisheries and Oceans Canada, Health Canada, and National Defence should formalize training for regional and departmental coordinators and quality assurance personnel to ensure that information about all issues related to acquisition and travel card management within a department is understood by those personnel, and that the information is disseminated to program managers. (1.26–1.30)

Fisheries and Oceans Canada's response. Fisheries and Oceans Canada agrees. Over the next 12 months, the Department will implement a training program for card coordinators and quality assurance personnel, and will improve the departmental coordination of card management and of the quality assurance function. In addition, the Department will take the necessary steps to inform card coordinators of the availability on the website of training material and tools accessible to them.

Health Canada's response. Health Canada agrees that training should be available for these groups and will explore alternatives for the delivery of training in respect of departmental coordinators, including the possible provision of this training through central agencies or the Canada School of Public Service.

National Defence's response. National Defence agrees. The Department is developing a range of training packages for all personnel involved in the use of acquisition and travel cards. It is expected that the formal training program will be implemented through regional coordinators over the course of 2007.

Verification and monitoring of card transactions

1.48 Fisheries and Oceans Canada, Health Canada, and National Defence should ensure that, on a timely basis, all acquisition card transactions are properly verified and certified, according to section 34 of the Financial Administration Act and as stated in the Treasury Board Policy on Account Verification. (1.32–1.47)

Fisheries and Oceans Canada's response. Fisheries and Oceans Canada agrees. Since the period covered by the scope of the audit, the Department has required that the cardholder's supervisor or manager, who has the appropriate delegated signing authority, sign section 34 of the Acquisition Card Register. This practice will be monitored regionally.

Health Canada's response. All Health Canada acquisition card transactions are properly verified and certified in accordance with section 34; however, Health Canada will strengthen its acquisition card policy to not permit cardholders to verify and certify, under section 34, transactions that the acquisition cardholders have processed.

National Defence's response. National Defence agrees. The Department has increased the level of post-payment compliance reviews to reinforce the importance of section 34 FAA verification and certification. This point is being emphasized as part of the formal training packages currently under development.

1.53 National Defence, taking into account the risk of default, should more actively monitor its overdue travel card accounts. (1.49–1.52)

National Defence's response. National Defence agrees. The Department is taking steps to increase the early review of delinquent designated travel cards centrally and through regional travel card coordinators. We will be proactive in determining the cause for delinquency and suspending cards at risk for default as they are identified.

Information for managing card programs

1.67 The Treasury Board Secretariat and Public Works and Government Services Canada should monitor developments regarding the evolving practices of acquisition and travel card programs to identify the benefits versus the incremental costs. (1.54–1.66)

The Treasury Board Secretariat's and Public Works and Government Services Canada's response. The Treasury Board Secretariat (TBS) and Public Works and Government Services Canada (PWGSC) agree with the recommendation. Consistent with our business practices, the TBS and PWGSC monitor current and evolving practices related to the acquisition and travel card programs through regular discussions with financial institutions, industry leaders, and other jurisdictions; attendance at conferences and workshops; and review of current periodicals and articles. The TBS also plans to update the Report on Review of the Cost of Various Methods of Payment, which was originally issued in January 1998, to identify the costs related to the Government of Canada payment methodologies, including acquisition cards. The update of this report will provide departments with common information from which to develop their business cases and identify which payment options will result in the best benefits and savings to them. Forecasted completion of this update is 31 March 2009.

Sharing of best practices

1.75 Departments should make better use of best practices, such as data mining, quality assurance, restricted use, and central billing in managing and monitoring their acquisition card transactions and outstanding travel card balances. (1.68–1.74)

Fisheries and Oceans Canada's response. Fisheries and Oceans Canada agrees. The Department has already developed and implemented best practices related to central billing and quality assurance. The Department's outstanding travel card balances are closely monitored, and delinquent accounts are minimal.

The Department is open to participating in any forums, including interdepartmental sessions to improve on its practices. In 2007–08, the Department will gather additional information on best practices related to data mining and restricted use, and implement these practices, where practical.

Health Canada's response. Health Canada will continue to make use of best practices, where possible.

National Defence's response. National Defence agrees. The Department will continue to expand the use of best practices by building on the monthly reports already in place for the Senior Full-Time Financial Officer. This will include enhancing the level of real-time transaction information available to cardholders through increased access to the online portals for data mining. In conjunction with the implementation of revised standing offers for common goods and services, regional coordinators will also be provided with more information on their authority to restrict card use, where appropriate, to particular commodities and potentially to particular vendors.

1.76 The Treasury Board Secretariat and Public Works and Government Services Canada should establish a forum for sharing best practices for acquisition cards across government. (1.68–1.74)

The Treasury Board Secretariat's and Public Works and Government Services Canada's response. The Treasury Board Secretariat (TBS) and Public Works and Government Services Canada (PWGSC) agree with the recommendation. The TBS and PWGSC recognize the importance of sharing best practices and will examine ways to share and communicate leading practices for acquisition cards across the government. For example, PWGSC held its banking colloquium on 5 March 2007, which included a workshop on best practices related to acquisition card programs. An update of PWGSC's Receiver General Manual, set for 31 March 2008, will contain a chapter on acquisition cards that will include leading practices.