Follow-Up of the Office of the Auditor General of Canada’s Audit of Providing Relocation Services

ADM(Fin/CFO)
Assistant Deputy Minister(Finance/Chief Financial Officer)
ADM(RS)
Assistant Deputy Minister (Review Services)
BGRS
Brookfield Global Relocation Services
CAF
Canadian Armed Forces
CFIRP
Canadian Armed Forces Integrated Relocation Program
DND
Department of National Defence
DRBM
Director Relocation Business Management
FAA
Financial Administration Act
FAM
Financial Administration Manual
FY
Fiscal Year
MAP
Management Action Plan
MILPERSCOM
Military Personnel Command
OAG
Office of the Auditor General of Canada
OCI
Office of Collateral Interest
OPI
Office of Primary Interest
RCMP
Royal Canadian Mounted Police
S.34
Section 34 of the FAA
SSE
Canada’s defence policy: Strong, Secure, Engaged
TPSP
Third Party Service Providers
Figure 1 - Pie Chart of Move Type and Cost (FY 2016/2017)

Figure 1. Move Type and Cost (FY 2016/17).
This is a pie chart of move type and cost in FY 2016/17.
 
Figure 1 Details - Move Type and Cost (FY 2016/2017) 
Figure 2 - Bar Graph of Move Type and Top 5 Transaction Categories (FY 2016/2017)

Figure 2. Top 5 Transaction Categories (FY 2016/17). This bar graph shows the top 5 transaction categories by total number and dollar value.

Figure 2 Details - Top 5 Transaction Categories (FY 2016/2017)
Figure 3

Figure 3. Follow-up Criteria. This is a two-column table that links the recommendations made from the 2014 OAG audit to the criteria developed for this follow-up audit. 

Figure 3 Details - Follow-Up Criteria 
Table 1 Details - Management Action Plan Implementation Assessment Summary 

Recommendation 1

Recommendation 2

Recommendation 3


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Management Action Plan

ADM(RS) uses recommendation significance criteria as follows:

ADM(RS) Recommendation 1 (Moderate Significance)

It is recommended that MILPERSCOM develop and implement an ADM(Fin)/CFO approved relocation transaction review methodology for daily and annual monitoring.

Management Actions

With regards to FAA S.34 adherence – DRBM has already engaged and will pursue/collaborate with Director of Financial Business Processes & Transformation to update the methodology regarding the account verification process for transactions reconciled under the Relocation Program. This will be included in DRBM's standard operating procedures and quality assurance program.

Target date: September 2019 (end of annual posting season)

In addition to the previously increased daily verifications from 15 to 30 transactions, the number of daily verifications will further be increased to 45 transactions. Improvements in the statistical data collection will also be pursed to provide better range for trend analysis.

Target date: April 2019

Target date: September 2019 (end of Annual Posting Season)

* Analysis continues but would improve with the filling of the vacant AS-03 position – target: analytics focus.

OPI: MILPERSCOM
OCI: ADM(Fin)/CFO
Target Date
: September 30, 2019

ADM(RS) Recommendation 2 (Moderate Significance)

It is recommended that MILPERSCOM identify performance metrics and leverage available relocation transaction information:

Management Actions

Sample methodology is based on move type. The result of the data collection and analysis will be improved to ensure the consistent application of the Relocation Directive. DGCB/DRBM will utilize four complimentary methods of analysis and the results will identify where efforts are required to ensure consistent provision of service. Analysis will comprise:

Target date: September 2019 (end of annual posting season)

DGCB/DRBM will ensure that the results from these monitoring mechanisms are incorporated into decision-making processes about the CFIRP and/or to improved communication to members, BGRS, Director Military Careers/Career Managers, and other relevant stakeholders.

OPI: MILPERSCOM
Target Date: September 30, 2019

ADM(RS) Recommendation 3 (Moderate Significance)

To help ensure the consistent provision of relocation benefits to CAF members, following the identification of the monitoring requirements (daily and annual), and the performance information/data analytics needed, it is recommended that MILPERSCOM conduct an analysis to determine its long-term resource and capacity needs.

Management Actions

Once account verification requirements and trend analysis processes have been completed, a resourcing strategy will be developed. This will include consideration of military, civilian, and/or temporary resources to meet operational needs. A plan will also be developed to ensure succession to account for normal turnover.

OPI: MILPERSCOM
Target Date
: September 30, 2019


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Annex A – Detailed Action Plan for OAG Report Recommendations

Table A-1. Detailed Action Plan for OAG Report Recommendations. This table outlines the OAG Recommendation, with DND response, and description of final expected outcome/result.
OAG Recommendation DND Response Description of Final Expected Outcome/Result

The CAF should improve its process to ensure that payments made under the CFIRP are appropriate and meet all the requirements of S.34 of the FAA.

Agreed. MILPERSCOM staff will complete an examination of the management control framework governing the current process in place for the CFIRP to determine where improvements could be made to address all of the requirements of S.34 of the FAA. In particular, the suitability of the sampling plan in place will be examined. The requirements of DND financial policy will also be reviewed to ensure that it provides appropriate guidance with respect to relocation transactions

The FAM has been updated indicating that for the purposes of the assessment of risk, relocation claims are deemed low-risk transactions which will allow account verification to be completed on a post payment basis.

In support and in compliance with the Treasury Board Policy on Internal Control, the ADM(Fin)/CFO will work with MILPERSCOM to document and evaluate the design effectiveness of the internal controls over financial reporting in the relocation program, including manual, compliance, access and application controls. This work, to commence in FY 2015/16 by ADM(Fin)/CFO, will assist MILPERSCOM in assessing and improving the Department's financial controls and processes surrounding S.34 Account Verification and quality assurance in the CFIRP.

The CAF should make better use of the results of its reviews so that there is a consistent provision of benefits to all members in accordance with the policy.

Agreed. The results of the data collection and analysis will be further leveraged to ensure the
consistent application of the Treasury Board Approved CFIRP policy.

The directorate responsible for the CFIRP has changed the methodology for tracking observed discrepancies in relocation files and post payment verifications so that issues can be analyzed by policy application. This will allow for increased oversight and prompt corrective action so as to ensure the consistent application of policy to all CAF members being relocated. Five additional civilian positions have been requested as the directorate is reorganized to address the additional oversight and analyses.

Table A-1 Details - Action Plan for OAG Report Recommendations 

Table A-1 Summary:

The OAG Recommendations are indicated in the left-hand column. For each recommendation read across the row to determine the DND Response and the Description of Final Expected Outcome/Result.


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Annex B – Move Type Definitions

Posting: Regular Force members who are posted, and Reserve Force members who accept a period of Class "B" or "C" service employment, who are also authorized to move their Household Goods and Effects from one place of duty to another only when the new residence is at least 40 kilometres closer to the new place of duty than the current residence.

Release (Move to intended place of residence on release): The place at which a CAF member intends to reside following a release or transfer from the Regular Force. Eligibility of members is based on the period of continuous Regular Force service and the associated release reason. Benefits are generally the same as provided to postings.

Service Couples: Relocation of two spouses or two common-law partners, both of whom are CAF members and both of whom are posted. Benefit application is dependant on whether each member of the service couple is posted to the same geographical area.

Move from Place of Enrollment: Relocation entitlements, limitations and enhancements applicable to Regular Force members on their first authorized move from place of enrolment (after graduation from military or the CAF paid for civilian university/after successful completion of officer/trade/occupation training/qualification).

Imposed Restriction: Intended to be a short-term option to mitigate potential conflict between military service and family obligations. These moves provide an option for members who are posted to proceed unaccompanied to a new place of duty and constitute an approved delay in moving dependants, Household Goods and Effects for a specific period of time.

Other moves:


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Annex C – MAP Assessment Criteria

Status

  1. Obsolete or Superseded. Audit recommendations that are deemed to be obsolete or have been superseded by another recommendation.
  2. No Progress or Insignificant Progress (0-24% complete). No action taken by management or insignificant progress. Actions such as striking a new committee, having meetings and generating informal plans are insignificant progress.
  3. Planning Stage (25-49% complete). Formal plans for organizational changes have been created and approved by the appropriate level of management (at a sufficiently senior level, usually at the Executive Committee level or equivalent) with appropriate resources and a reasonable timetable.
  4. Preparation for Implementation (50-74% complete). The entity has begun necessary preparation for implementation, such as hiring or training staff, or developing or acquiring the necessary resources to implement the recommendation.
  5. Substantial Implementation (75-99% complete). Structures and processes are in place and integrated in some parts of the organization, and some achieved results have been identified. The entity has a short-term plan and timetable for full implementation.
  6. Full Implementation (100% complete). Structures and processes are operating as intended and are implemented fully in all intended areas of the organization.


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Annex D – Potential Data Analysis

Analysis of Departing and Destination Cities

The preliminary information shown could be analyzed further to:

Figure D-1
Source: DRBM Historical Data

Figure D-1. Annual Average Number of Relocations. This bar graph shows the annual average number of relocations from 2010-2015 by province.

Figure D-1 Details - Annual Average Number of Relocations (2010-2015)


Analysis of TPSP Expenditures with Pre-Negotiated Rates

The preliminary information shown could be analyzed further to:

Pie Chart of TPSP Benefit Expenditures with Pre-Negotiated Rates (FY 2016/2017)

Figure D-2. TPSP Benefit Expenditures with Pre-Negotiated Rates.
Pie chart of TPSP Benefit Expenditures with Pre-Negotiated Rates (FY 2016/17).
 
Figure D-2 Details - TPSP Benefit Expenditures with Pre-Negotiated Rates.


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