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1981 Report of the Auditor General of Canada

The Service

Background

9.1 The Department of the Solicitor General was established in 1966 by the Department of the Solicitor General Act. The Act (now R.S.C. 1970, c. S-12 ), extends to the Solicitor General of Canada the duties, powers and functions relating to:

- reformatories, prisons and penitentiaries;

- parole and remissions; and

- the Royal Canadian Mounted Police.

9.3 Policies on police, corrections and parole are determined by the Solicitor General, on the advice of the Deputy Solicitor General and the heads of the Royal Canadian Mounted Police, the Correctional Service of Canada and the National Parole Board, who together form the Ministry's Senior Policy Advisory Committee.

9.4 The Correctional Service of Canada (CSC) is a combination of the Canadian Penitentiary Service established under the Penitentiary Act ( R.S.C. 1970, c. P-6 ) and that portion of the National Parole Board known as the National Parole Service. The Commissioner of Corrections is appointed by the Governor in Council under the authority of section 4 of the Penitentiary Act and is responsible, under the direction of the Solicitor General of Canada, for the control and management of the Service, including the custody of inmates and the correctional programs aimed at their satisfactory reintegration into society. In addition, the Commissioner is responsible for justifying and supporting the granting of parole and supervising inmates to whom parole has been granted or who have been released on mandatory supervision.

9.5 The primary objectives of the Correctional Service, as stated in the Estimates, are "to administer sentences imposed by the courts and to prepare offenders for their return as useful citizens to the community."

9.6 Under the provisions of the Criminal Code of Canada, individuals sentenced to less than two years are held in a provincial reformatory or jail. The primary role of the CSC is, therefore, to administer the sentence of the courts with respect to offenders sentenced to two years or more. The Service is also responsible for certain provincial inmates who have been transferred to federal institutions under agreements between the Government of Canada and provincial jurisdictions.

9.7 Opportunities for offenders to prepare for their return to society are provided through social programs such as counselling and day parole and a series of academic and vocational training programs. These activities are supplemented by industrial, agricultural, forestry and other in-house work programs. Some offenders are allowed, through the day parole system, to hold outside jobs as part of their correctional program. All of these programs reflect the emphasis placed by the CSC on minimizing the debilitating aspects of incarceration and strengthening family and community ties.

9.8 A characteristic significant to the operations of the CSC is that management must deal with convicted offenders and has no direct control over who is admitted to or released from the system. The CSC had a complement of approximately 10,000 person-years and a budget of $426 million for 1980-81 to operate 58 institutions and 73 parole offices across Canada.

9.9 The Estimates give the following description of the CSC's activities:

- Planning and Management - Headquarters, regional and institutional management; development of policy and plans, and monitoring of performance; promotion of good communications and public awareness.

- Custody of Inmates - Security and custodial care of inmates, to minimize the incidence of offenders inflicting harm to the public, staff, other inmates and themselves.

- Education, Training and Employment of Inmates - Promotion of work and training opportunities in industrial, vocational and scholastic programs designed to develop inmates for useful positions in the community as productive and responsible citizens.

- Offender Case Management - Preparation, direction and counselling of inmates aimed at their satisfactory reintegration into society; supervision of inmates released on parole from both federal and provincial institutions; and provision of rehabilitative assistance to parolees and inmates discharged from federal penitentiaries.

- Health Care - Provision of medical, dental, psychiatric and therapeutic treatment for inmates.

- Technical Services - Provision of food, clothing and institutional services; the maintenance of accommodation and plant facilities; the provision of engineering and architectural services.

- Administration - Provision of personnel, finance and general administration services.

Organization

9.11 The Commissioner is assisted by a headquarters staff that is organized into branches on an activity basis and is responsible for interpreting the Commissioner's directions through developing, communicating and monitoring the implementation of policies, systems and procedures for the regions and providing related functional assistance to regional management. Similar guidance and assistance is provided to the institutions by regional management. Exhibit 9.1 sets out the organization of the Service in summary form.

(Exhibit not available)

Environment

9.13 Fundamental to the successful direction of the CSC is a well defined and understood mission. However, confronting the CSC and all correctional agencies here and abroad is the basic question of what the ultimate purpose of corrections should be.

9.14 Until the early 1970s, the concept of rehabilitation dominated the field of corrections. However, because of questions raised about the appropriateness of this approach by various authorities, including several Commissions and study groups in Canada, it has given way to alternative approaches. An opportunities model has been adopted by the Service that emphasizes the role of corrections in administering fairly and humanely the sanctions imposed by the courts and, at the same time, providing inmates with opportunities to better themselves.

9.15 Several major studies have been made of the CSC, usually in response to concerns raised by riots, hostage-takings or other incidents. In 1976, a major report, known as the MacGuigan Report, was submitted to Parliament by the Sub-committee on the Penitentiary System of Canada. The Sub-committee conducted an extensive investigation into the operations of the CSC and concluded that rehabilitation during imprisonment had been largely ineffective and that management processes as well as morale among correctional officers needed significant improvement. The Report's conclusions and recommendations have served as benchmarks for the establishment of priorities and the gradual overhaul of CSC management processes within the limits of resource constraints.

Resources

Audit Scope

9.18 Sources of audit criteria included Treasury Board directives and guidelines, CSC's own policies and procedures, standards of the American Commission on Accreditation for Corrections, to which the CSC refers where there are no Canadian standards, and applicable criteria developed by this Office.

Summary of Audit Observations

9.20 The planning process, comprising strategic and operational planning, has addressed areas of major concern to CSC management and has provided analyses of how these concerns may be resolved and program objectives met. Improvements were still needed, however, in the substantiation supporting annual program work plans.

9.21 The CSC has recently implemented policies and procedures for program evaluation, including effectiveness measurement. Roles, responsibilities and accountability of the program evaluation function were well defined, and satisfactory follow-up procedures relating to program evaluation reports had been approved. At the time of our audit, evaluations of critical areas of the CSC's operations, such as custody of inmates, were just getting under way.

9.22 Security considerations pervade all aspects of the CSC's programs. Procedures governing the operation of the custodial function and the measurement of its effectiveness were well documented and communicated. The CSC has also given high priority in its operational plans to methods by which overtime costs can be reduced.

9.23 In the area of case management, significant progress has been achieved in developing and promulgating policies and procedures through the case management manual. There was still a need, however, to document and implement fully the cascading process for transferring inmates to progressively lower levels of security classification under certain conditions. The lower the security classification, the less the per-person cost of incarceration. Until the CSC implements the process, it will not be able to take advantage of the potential increase in economy and efficiency. The process, moreover, is the means by which the CSC lives up to one of its governing principles, which dictates that no inmate should be kept in a more secure status than potential risk requires.

9.24 There was also significant room for improvement in the identification and documentation of inmates' needs by case management so that the most appropriate available opportunities may be provided. The CSC has done much to develop academic and vocational training and employment programs to promote the acquisition of job skills by inmates and at the same time contribute to defraying the Service's operating costs. However, the CSC had not assessed the degree to which these programs met inmates' needs as identified by case management. Successful measurement will require close co-ordination of the objectives and priorities of the case management and the education, training and employment activities. Cost accounting for products and services of inmate employment programs also needed to be improved to enable the CSC to measure the degree of success achieved in defraying incarceration costs.

9.25 Although improvements have been made in forecasting and planning for accommodation, the process could be further improved by including cost-benefit analyses and feasibility studies for accommodation projects and formulating clearer relationships between long-term accommodation plans and offender related programs. As well, increased costs have been incurred during the construction stage of projects and changes have been made in their scope and design without prior Treasury Board approval.

9.26 Our audit revealed a number of deficiencies in the management of materiel. These were all related to the lack of a formal materiel management system to ensure due regard for economy and efficiency in the procurement, storage, use and disposal of goods and services required to meet CSC needs and objectives. The CSC is aware of these deficiencies and has undertaken several corrective measures; for example, it plans to introduce a new comprehensive materiel management manual during 1981-82.

9.27 The CSC has recognized some major problems concerning the lack of both a Service-wide human resource inventory to determine future availability of existing staff and a co-ordinated human resource planning system to forecast the number and type of staff required. There was also need for improvement in the identification of training needs and analyses of how best to meet them.

9.28 In the area of financial management, projects were being undertaken to address problems in financial control and were generally being conducted and completed in a reasonable manner and time frame.

9.29 The CSC attaches great importance to internal audit reports and follows up promptly on observations raised. Although the mandate, reporting relationships and scope of internal audit appeared satisfactory, the quality of documentation supporting audit conclusions needed further improvement.

Observations and Recommendations

Planning

9.31 The strategic planning process, which has recently been developed, includes an analysis of significant issues likely to confront correctional managers over the long term (up to 20 years) so they can develop the necessary options for medium (5 to 10 years) and short-range (annual) plans. Examples of these issues are the changing characteristics of the inmate population, such as the increased proportion of offenders serving long-term sentences, and the number of inmates with serious drug and alcohol problems.

9.32 Information on these issues is provided by the Strategic Planning Committee, which acts as an independent advisory committee to the Deputy Commissioner, Policy, Planning and Administration. The chairman of the committee is responsible for preparing the strategic plan, which is designed to provide guidance in the areas of policy formulation, operational planning and administration in the CSC. The first report of the Strategic Planning Committee was prepared in January 1981 and, although not approved at the time of our audit, is regarded by the CSC as a first step in the development of a formal strategic plan.

9.33 A key document in operational planning, the CSC Direction , was first published in 1981 and will be revised annually. Results of strategic planning are incorporated in this document, which is a statement of objectives, environmental considerations, management priorities and targets for the next five years. This information is used to develop a detailed five-year operational plan and accommodation plans based on inmate population forecasts for the next ten years.

9.34 Regions use these medium-term plans to prepare annual program work plans for accomplishing the results expected by the Commissioner from each region. The Policy, Planning and Administration Branch at National Headquarters uses the program plans to develop the Main Estimates and reports required by Treasury Board. CSC policy also requires regions and institutions to use program plans to monitor operational performance against stated expectations.

9.35 We found that program work plans were not always based on sufficient quantitative information, such as projected volumes of industrial output and workload standards, to justify resources requested in the budgeting process. For example, although the cost of the Case Management activity was explicitly stated, projections were not made to determine if the performance level expected, according to workload standards, could be attained from resources allocated.

Effectiveness Measurement

9.37 We found that the structure for managing and organizing the program evaluation function met Treasury Board requirements and followed Office of the Comptroller General guidelines. The roles, responsibilities, authority and accountability of the Deputy Commissioner and the Evaluation and Special Projects Director were documented and communicated clearly, and satisfactory procedures were in place to allow the Senior Management Committee to review and approve evaluations and to follow up on findings and recommendations.

9.38 The CSC has recently prepared a program evaluation plan for conducting evaluation assessments and subsequent evaluation studies. The plan satisfactorily addressed the matters of program component profiles, the rationale for selection or exclusion of activities for evaluation, a five year evaluation schedule and estimated resource requirements. Because implementation of the plan was just beginning as we concluded our audit, it was still too early to determine whether it will be put into effect on schedule and in accordance with the policies established for planning, conducting and reporting the results of evaluation work.

Custody of Inmates

9.40 Activities to achieve security objectives include operating and maintaining physical security at institutions, gathering and analyzing intelligence aimed at preventing escapes and disturbances, maintaining inmate records pursuant to Part IV of the Canadian Human Rights Act and advising on the physical location of inmates for the most efficient use of correctional facilities. Our audit focused on the existence of documented criteria and procedures in place for the management of the security function.

9.41 The 1981 CSC Direction stated that management's primary concern with operational security in the present climate of fiscal restraint was to rationalize the costs of custody while improving the effectiveness of security, thereby reducing risks to the public and CSC staff. Emphasis was consequently placed on reducing overtime and improving shift schedules, implementing and refining security post standards, and developing new electronic security techniques and an increased crisis management capability.

9.42 The CSC has carried out a number of studies on the causes of overtime and has formed a National Overtime Committee whose objective is to devise methods by which this cost can be reduced. At the time of our audit, these studies had not resulted in a definitive management approach to the resolution of overtime, and our audit of overtime will continue.

9.43 We found that procedures for operational security were documented and well communicated throughout the CSC by means of the Security Manual. For example, it includes procedures for the escort and transportation of inmates, the use of force, firearms and other restraint equipment, control of dangerous substances, and handling emergency situations.

9.44 We also found that the CSC had several indicators to measure the effectiveness of security and that reports were made regularly to the Senior Management Committee. Examples of these performance indicators include the number of escapes, murders, suicides, injuries to staff and inmates, riots, hostage-takings and use of force by staff.

Case Management

9.46 Out of $83 million and 2,773 person-years budgeted for Offender Programs, the share devoted to the case management activity is approximately $60 million and 2,200 person-years. The remainder is for the Chaplaincy and Inmate Affairs activities.

9.47 The case management process is highly discretionary; that is, the Service decides what to do with an inmate in its jurisdiction. Because the placement of an inmate in a specified program and institution has cost implications as well as perceived rehabilitation consequences, it is essential that appropriate inmate information be gathered and used for placement decisions.

9.48 Case management is involved throughout the offender's sentence, and major steps include:

- classifying and placing offenders;

- preparing individual program plans;

- monitoring and assessing offenders' progress against individual program plans;

- recommending transfers and early releases; and

- supervising former inmates who have been released on parole, until their sentences expire.

9.50 Management's expressed objectives in terms of case management are to meet offenders' needs and broaden their contact with society. Contact with society is made through various social activities as well as through day paroles, temporary absences, visits and other programs. The extent to which an offender's needs are met should normally be documented in the inmate files. These files include the individual program plan, progress reports and other information that documents the nature of the crime, the length of sentence, the inmate's behaviour during arrest and incarceration, his education, personal background, interests, rehabilitation needs and like information. The Service uses this information in all decisions on security risk and rehabilitation opportunities.

9.51 Our review of inmate files disclosed weaknesses in management information. In many cases we found the basis for inmate placement to be poorly documented. There were incomplete or unsupported inmate placement reports, needs analyses and individual program plans. Although the CSC has recently introduced changes to the case management process to improve the quality of information in inmate files, we noted that further improvements could still be made in documenting the results of such activities as individual program planning, counselling and performance monitoring.

9.52 As a result of these weaknesses in documentation, case management is unable to determine how many inmates have actually been provided with opportunities to meet their identified needs. This information could serve as a measure of achievement of offenders' individual program plans and hence an indicator of the effectiveness of the case management activity.

9.53 The CSC should implement appropriate procedures to report on the effectiveness of the case management activity in providing opportunities that meet offenders' identified needs.

9.54 One of the CSC's governing principles is to "normalize" the offender's environment by minimizing those aspects of imprisonment that can contribute to physical and mental deterioration and by strengthening family and community ties outside the institution. In recognition of this principle, the Service has adopted a policy known as cascading, which means that inmates who qualify for lower security status should be identified and transferred accordingly. It has direct cost and security implications as well as rehabilitation consequences. For example, in 1979-80, the average annual cost of maintaining a male offender each year was $36,000 in maximum, $23,000 in medium and $18,000 in minimum security institutions. Though the CSC is currently developing reclassification criteria and procedures, it has not yet fully documented the cascading process and associated conditions for its application, and therefore does not know whether all the potential economies of the process are being realized.

9.55 The CSC should fully document the criteria and procedures for progressively reclassifying downward the security status of inmates (the cascading process).

Education, Training and Employment of Inmates

9.57 Several unique characteristics affect the achievement of education, training and employment objectives. Security, for example, is a primary consideration. The type and level of activities carried out are limited by the overriding need to control the movement of inmates, maintain a safe environment for employees, and to protect inmates from other inmates. There are restrictions on competition with industries in the private sector and also frequent interruptions during the normal working day for counselling, socialization and medical treatment.

9.58 Industries. The Industries Division manufactures goods at 24 institutions in 122 different shops. Major products include upholstered and modular office furniture, mail transfer boxes, mail bags, shoes and clothing, which are sold mainly to governmental and non-profit organizations. It employs approximately 1,200 inmates.

9.59 Automated document processing. The Automated Document Processing Division operates six shops in five institutions and employs approximately 25 inmates. This group provides services such as data capture, microfilm and preparation of printed matter for distribution to federal government organizations and others. Fees to client organizations are calculated on a cost-recovery basis.

9.60 Agricultural operations. The Agribusiness Division operates 15 greenhouses and 5 farms producing poultry, pork, fish, beef, vegetables and dairy products for the CSC's food services. The CSC estimates that approximately 25 per cent of its food needs are met by agricultural operations, which employ approximately 175 inmates.

9.61 Special employment programs. The Special Employment Programs Division identifies new opportunities for inmate employment, assessing their feasibility and assisting in project implementation. Projects have been conducted in construction, forestry operations, inmate-operated businesses and private sector employment. Control of these projects is usually transferred to the Industries Division once they have been implemented. Opportunities for employment depend on the size and nature of the programs in existence at any given time.

9.62 Education and training. The Education and Training Division provides academic education and vocational training in 22 schools in medium and maximum security institutions. Academic education is provided through services ranging from literacy training to university programs, and vocational training is given in various skills in a number of trades. The number of inmates enroled in academic and vocational training programs is approximately 1,700.

9.63 The achievement of the objective of providing education, training and employment opportunities for inmates can easily be measured in output terms such as the number of jobs and courses provided in different trades or skills. It is, however, more difficult to measure in terms of whether the opportunities provided meet the needs as defined by case management. Only a joint and co-ordinated approach by the case management and the education, training and employment functions could produce such measurement, and at the time of our audit these two major programs had not fully co-ordinated their activities. More co-ordination was needed in selecting opportunities and establishing their underlying rationale, monitoring an offender's performance, and assessing how successful the education, training or employment program was in meeting the offender's needs.

9.64 The CSC should co-ordinate the activities of case management and education, training and employment and develop and implement procedures to measure the degree to which opportunities provided meet the offenders' needs.

9.65 The objective of achievement of full employment is stated as an intended outcome. Performance standards have recently been established against which this objective can be measured.

9.66 The contribution to cost of incarceration is measured by several financial systems. However, because of deficiencies that are now being corrected in the cost accounting systems, the CSC was unable to determine the net contribution of those programs to the operating costs of the Service.

9.67 We found that the CSC did not have adequate cost accounting and unit production data for its manufacturing activities, including analysis of variances between planned and actual results. These limitations made it difficult for management to direct employment activities to reduce costs and maximize profits. Decisions concerning product pricing, use of idle plant capacity and so on were hampered by inadequacies in the current accounting systems. For example, there was:

- no planned or actual unit cost information included in reports to management;

- no provision for including overhead expenditures in product costs, even though the capital cost of equipment used is substantial; and

- no accurate matching of revenues with expenses for the same period.

9.69 There was no formal system to measure and report on the utilization of plant capacity. Statistics on plant utilization would be useful to managers in deciding, among other things:

- where to manufacture a product, if more than one location is available;

- special or bargain pricing at plants having idle capacity;

- plant expansion or shut-down; and

- production scheduling for new orders.

9.71 We found that products of agricultural operations, except for beef cattle, were transferred to institutions at prices set in 1950 that were far below current market value and below cost. As a result, costs recorded for the operation of institutions were understated in the Public Accounts. This understatement of the cost of agricultural products distorts the true cost of operating institutions and the measurement of achievement of the cost-recovery objective.

9.72 The price of products transferred to institutions from Agribusiness operations should reasonably reflect the actual cost of production and/or current market prices, quality and delivery terms considered.

Accommodation

9.74 Planning. Accommodation planning is comprised of two distinct functions: the identification of needs and the development of an action plan for meeting the needs. We found that the CSC, through the development of an inmate population forecast, is able to define needs very precisely, given the numbers and types of inmates likely to be incarcerated over the next several years. Although significant progress had been made through the development of the ten-year accommodation plan and the statement of institutional performance specifications, further improvements are necessary. For example, we found that the on-going capital projects were not reviewed in conjunction with the ten-year accommodation plan. Such reviews should include a systematic analysis of the life-cycle costs and benefits based on documented construction cost estimates for maintaining existing institutions or constructing new facilities. Several institutions - Dorchester, Laval, Kingston and Stony Mountain - are more than 100 years old and others are more than 50 - the Prison for Women, Collins Bay and Prince Albert. These institutions require substantial upgrading and ongoing maintenance. A feasibility study has been made to determine whether to renovate the Kingston facilities. This study focused on initial capital costs only; it did not include an analysis of operating and maintenance costs over the life cycle of the renovated institution versus those to be incurred in a new institution.

9.75 The CSC should carry out full studies on the life-cycle costs of existing and planned facilities prior to deciding whether to renovate existing facilities or acquire new institutions.

9.76 Cost disclosure. Our review of recently completed projects at three institutions revealed that the CSC did not obtain program approval from the Treasury Board for the supply and installation of electronic and telecommunication systems. Program approval received for these institutions was for construction costs only and did not include electronic and telecommunications systems worth $2.6 million paid out of capital funds and not authorized for these projects.

9.77 In addition, the full costs of completing these projects were not disclosed to Treasury Board or to Parliament. For example, certain costs relating to the construction and fit-up of the Kent Maximum Security Institution were not adequately disclosed. These costs were to cover deficiencies, additions and modifications and included such items as furniture and equipment ($1.7 million), electronic security systems ($1.0 million) and minor works ($.3 million). Similar modifications and additions for the Edmonton and Mission facilities were financed through the on-going capital program and not included as part of the total costs for these projects.

9.78 These additions, including design and scope changes to the Kent facility, were made without the prior approval of Treasury Board and increased project costs for the Kent, Edmonton and Mission facilities by $8 million, $3 million and $2 million respectively, or 20 per cent of the total reported costs of the projects.

9.79 Full costs of capital projects should be disclosed to Treasury Board and to Parliament, and design and scope changes, resulting in higher project costs, should not be made without prior Treasury Board approval.

Materiel Management

9.81 Our audit revealed a number of deficiencies in the management of materiel. These were all related to the lack of a formal materiel management system, including standards and procedures to ensure due regard for economy and efficiency in the procurement, use and disposal of goods and services required to meet the CSC's needs and objectives. The CSC was aware of these deficiencies and plans to introduce a new comprehensive materiel management manual during 1981-82.

9.82 We found needs to be adequately defined and related to objectives for materiel items such as food, machinery, clothing and vehicles. However, the analysis of alternatives to meet the need for services was not always adequate. For example, vehicle requirements were determined by each institution without reference to systematic cost-benefit procedures. Requirements in terms of the quantity and type of vehicles for institutions were not supported and co-ordinated on a service-wide basis, and there were no objective criteria and standards for institutions to follow.

9.83 The CSC should implement procedures to ensure that materiel needs are satisfied with due regard to economy.

9.84 We found that the inventory management systems were different among institutions and regions, and there were no national policies and procedures on the procurement, storage, utilization and disposal of materiel. There was also a need for standardized procedures to determine safety stocks, re-order points, re-order quantities, order costs and carrying costs. As a result of the lack of such procedures, there were several instances of overstocking items for which there had been little, if any, demand during the past two years.

9.85 The CSC should develop and implement an inventory management system and monitor its application throughout the Service.

Payroll Costs Management

9.87 Human resource planning. We found that the CSC did not have a co-ordinated system to determine the number or types of staff required to accomplish its objectives. The Service has recognized this deficiency, however, and plans to use the operational planning process that is now being implemented to provide information for human resource planning. Work standards have also been developed in a number of activity areas to convert projected workloads to person-years. For example, an analysis has been conducted of all security posts in institutions, and standards have been developed which will be used to determine human resource needs.

9.88 We also found that the CSC did not have a human resource inventory capable of supplying information about the future availability of existing staff. The Service intends to remedy this deficiency by implementing the Personnel Administration Reporting System described in paragraph 9.97.

9.89 Training. There was no overall training policy or plan and no analysis, on a service-wide basis, of training needs. However, a National Training Council had recently been appointed to develop, implement and monitor training policies, plans and practices. The CSC training program was carried out in five staff training colleges in the five regions; it is now proposed that the majority of recruit training will be conducted at the colleges in Montreal and Kingston.

9.90 Line managers had very little input into the training process. They were not sufficiently involved in analyzing needs, developing evaluation criteria for the training carried out, or reviewing and approving training plans for their staff. As a result, there was a good possibility that the training needs of staff may not have been adequately identified, let alone fulfilled. During the design of the new recruit program, however, input was requested from managers and this approach should be continued in the future.

9.91 We also found that there was no central control over training costs, as required by Treasury Board policy, and as a result, the true costs of training were not known. The report submitted to Treasury Board for 1979-80 showed an expenditure of $5.2 million for training. Our analysis indicated that actual training costs were approximately $7 million, with nearly another $4 million to be added for trainees' salaries while on course. We also found that there were a number of inconsistencies in the way training expenses were accrued. Although training budgets were identified, many training costs were assigned to other line objects, such as travel and accommodation.

9.92 The delegation of responsibility for training budgets varied from region to region; in Quebec it was delegated to the institutions, while in Ontario it was the responsibility of regional headquarters. However, neither the regions nor Headquarters monitored training budgets. The CSC did not identify and record the costs of designing and implementing in-house programs. For example, the design of the new 12-week program for recruits was a major undertaking that took 5 years to complete, yet no budget was prepared for this project.

9.93 The CSC did not have a national policy and procedures for evaluating training and determining whether it was having the desired effect of increasing job skills and knowledge. The Prairie Region was the only region that formally reported the results of training, along with an assessment of the trainee.

9.94 Some directors of Staff Training Colleges recognized that they were frequently unable to obtain the best instructors for courses. Nor were there any achievement standards against which to assess the quality of training being given and, therefore, insufficient information to judge whether training programs were effective.

9.95 The CSC should ensure that line managers have adequate input into the identification of training needs and the development of training courses and plans. The CSC should also develop and implement the necessary procedures to control training costs and evaluate the effectiveness of training programs.

9.96 Human resource information systems. The CSC has recognized the need for a human resource information system and has, as an interim measure, adopted the existing Official Languages Information System (OLIS) by adding on-line terminals at regional and national headquarters. The system does not, however, contain historical information, training and performance appraisal data, data on turnover rates or retirement profiles. Furthermore, OLIS was not accompanied by procedures to ensure confidentiality of information. There was no directive on who had right of access to information from it. Many manual systems were being maintained throughout the Service to supply managers with current information for their day-to-day personnel activities.

9.97 At the time of our audit, the decision had been made to implement a new human resource information system in mid-1981. The Personnel Administration Reporting System (PARS) had been chosen for this purpose. A study was conducted in 1978 which included a functional statement of requirements and outlined the necessity for a complete human resource information system.

Financial Management and Control

9.99 Regional headquarters are responsible for financial administration within their territorial jurisdiction. They also provide financial and accounting services for CSC facilities whose size or location does not warrant a complete financial function and control all capital projects under $50,000 in the region.

9.100 The financial management and control processes in the CSC were basically good. We noted that considerable positive action had been taken in response to recommendations made by this Office, the Office of the Comptroller General and CSC internal audit. Since our Financial Management and Control Study in 1975, the senior financial group has taken on a significantly more important role, and the present Commissioner demonstrates a keen interest in systems and processes for financial control. The financial function is an integral part of the overall management process at all levels, and policies and procedures are systematically reviewed and communicated. As a consequence, the CSC reacts promptly to observations made and issues raised, both externally and internally, and as a matter of course initiates corrective action in the form of identifiable projects.

9.101 Work plans in the area of finance are monitored as financial projects. The Senior Management Committee approves all financial projects and receives progress reports on them. We found that financial projects were meeting identified needs in the area of financial control and were generally being conducted and completed in a reasonable manner and time.

9.102 In 1977, the Treasury Board authorized the transfer of responsibility for control over pay from DSS to departments and agencies. Draft procedures for control over pay input and output had been developed in the CSC, but they had not been published or introduced. As a result, some of the control features required by the Treasury Board were either not in place at all locations or were not operational. Staff in personnel, finance and activity centres had, however, instituted control procedures to offset some of these deficiencies as payroll procedures were being amended to comply with Treasury Board requirements.

9.103 Satisfactory procedures were in operation to comply with the requirements of the budgeting cycle. However, there was no formal variance analysis system in operation at present to explain discrepancies between actual and budgeted results. The CSC was aware of this deficiency, and corrective measures were being taken to relate operational outputs to CSC objectives and priorities and resource inputs. A pilot project had been initiated in the Atlantic Region, and plans called for national implementation in 1982-83.

Internal Audit

9.105 An audit plan for the period 1980-85, which has been approved by the Senior Management Committee, calls for a review of all major operations of the CSC at least once within a three-year period, and more often if required.

9.106 We noted significant improvements in the internal audit function since our previous review in 1978 and now conclude that the Service is getting good value from internal audit. Further improvement should be evident when the change to a systems-based approach, where appropriate, is completed, and the audit scope, work and findings are better documented.

9.107 Aggressive follow-up of observations in each internal audit report and the rapidity with which corrective action is taken indicate the importance attached by the Commissioner to internal audit.

Information for Parliament

9.109 In this regard, action on some of the observations in this chapter would provide additional valuable information for the Estimates. For example, the CSC should include more documentation to support the build-up of work plans and accommodation plans, more information on program effectiveness measures and performance indicators for each activity. As the CSC further develops procedures to measure and report effectiveness, additional information should be disclosed in the Program Expenditure Plan to supplement the recidivism measure now used of "the percentage of inmates released from and re-admitted to federal institutions within five years".

Summary of Recommendations and the Service's Comments

Case Management

Recommendation

The Service's Comments

The offender information system in CSC currently lacks sufficient information pertaining to inmates' identified needs and work and training placements to allow rapid analysis of the effectiveness of CSC in meeting identified inmate needs. Specific data requirements are currently being developed through a joint project between Offender Programs, Inmate Employment and the National Parole Board. The anticipated result of this project is the expansion within the next year of the offender information system to allow for appropriate analysis of program impacts.

Recommendation

The Service's Comment

Education, Training and Employment of Inmates

Recommendation

The Service's Comment

Recommendation

The Service's Comments

- implementing training programs to improve the awareness and motivation of the field staff regarding the availability of and the use of shop scheduling methodology;

- moving more to longer run batch production which increases the shop utilization, makes scheduling easier and enables more accurate determination of capacity and productivity. Target date for implementation is May 1983.

Recommendation

The Service's Comment

Accommodation

Recommendation

The Service's Comment

Recommendation

The Service's Comment

Materiel Management

Recommendation

The Service's Comment

Recommendation

The Service's Comments

The MIS study - a draft has been received and will be presented to the Systems Review Committee in November 1981. Physical Distribution system proposals are being obtained for an implementation plan.

As a result of both studies, the implementation of a new system should be started in 1982.

Payroll Costs Management

Recommendation

The Service's Comment