Presentation on theme: "Developing Effective Corrective Action Plans March 2, 2011 Annette Moreno Pendergast ESD Cris Cable & Roger Walter Auditor General’s Office."— Presentation transcript:
Developing Effective Corrective Action Plans March 2, 2011 Annette Moreno Pendergast ESD Cris Cable & Roger Walter Auditor General’s Office
Who Needs Corrective Action Plans? Everyone! Google Search -Almost 2 million hits in less than 1 second -Articles, templates, examples -Related to –Performance Improvements –Audit Findings –Employee Development
Look at what it takes to get past the Good Intentions to get to the Good Results! Purpose Study Results Percentage of study participants maintaining their resolutions over time: - after 1 week: 75% - after 2 weeks: 71% - after 1 month: 64% - after 6 months: 46%
After you determine there is a problem you… a.Ignore it. The problem will go away eventually. b. Blame it on your predecessor. c. Create a Corrective Action Plan. Houston, we have a problem. Our thanks to Carmen Covey, from the Department of Defense, Missile Defense Agency for letting us use her slides as a starting point for our presentation.
What is a Corrective Action Plan anyway? C orrective – A practical strategy to resolve the problem A ction – Active steps we can realistically accomplish P lan – Organized, purposeful, accountable, measurable + = Now we have a Plan!
1.State the problem clearly 2.Have “owners” who are accountable for results 3.Break the solution into steps (actions) 4.Identify the people accountable for each action 5.Set achievable deadlines & specify measurable results Effective Corrective Action Plans A journey of a thousand miles begins with a single step. 6.Monitor progress
Not Like This: Capital Assets List is not audit ready (Too vague) In FY 2010, we reported capital equipment of $10M (Problem?) This corrective action plan is designed to correct the problem with Capital Assets which was that we cannot explain the amount reported on the financial statements because the transactions don’t match up. (Not specific or clear) CAP Step #1 – State the problem clearly
CAP Step #1 – State the problem clearly* *Internal or external auditor finding may already be specifically stated. Oh – Now I get it! Like This: The Capital Assets List is not current as capital acquisitions and disposals were not reconciled to the Capital Assets List last year.
CAP Step #2 – Owners who are accountable for results Business Manager may have general oversight of entire CAP. Area supervisors & district/school level clerks are also involved. So who’s in charge? Who’s accountable? It’s a joint effort, but make sure everyone knows their individual responsibilities!
Weakness: The Capital Assets List is not current as capital acquisitions and disposals were not reconciled to the Capital Assets List last year. Reconcile the Capital Assets List. Solution or Step? What if the CA clerk doesn’t know how to reconcile the list? What if there isn’t a list of acquisitions and disposals from last year? CAP Step #3 – Break the solution into steps (actions) How do you eat a ten pound Hamburger? One bite at a time.
Steps: a. The District will determine if acquisition and disposal (A&D) lists were prepared b. If not prepared, the District will obtain information from A/P and approved disposal forms c. The District will prepare the A&D lists d.The District will reconcile the Capital Assets list to the A&D lists e.The District will resolve any differences. CAP Step #4 – Identify who is accountable for each action Many hands make light work in the kitchen or at the office!
CAP Step #5 – Set achievable deadlines & specify measurable results When will each step be done? What does DONE mean?
Steps: a. By DATE, NAME will determine if acquisition and disposal (A&D) lists were prepared and report back to WHO (MR = @DATE did NAME report back?) b. If not prepared, by DATE, NAME will obtain acquisition information from NAME 2 and approved disposal forms from NAME 3 (MR =@DATE does NAME have Info?) c. By DATE, NAME will prepare the A&D lists and provide a copy to WHO (MR = @DATE is A&D list done?) CAP Step #5 – Set achievable deadlines & specify measurable results (MR)
To recap: 1.State the problem clearly 2.Have “owners” who are accountable for results 3.Break the solution into steps (actions) 4.Identify the people accountable for each action 5.Set achievable deadlines & specify measurable results 6.Monitor progress Put these components together and you get …. Effective Corrective Action Plans
OBJECTIVES ACTION REQUIRED PERSON RESPONSIBLE TIME TABLE MEASURES/ DATA NEEDED RESULTS Sample Template
RASCI Example Implementation of Student Activities into Visions Enterprise For the purpose of Centralization and Proper Procurement Procedures Dir of FinanceAcct SpecialistPurch CoordA/P ClerkSch SecretaryLeadershipDue by Activity/ Decision Create new database or incorporate into existingRCCCCI3/1/2011 Implement Pcards?CCRCII3/7/2011 Review implementation and decisions aboveRCCCI 3/8/2011 Setup new database and GL defaultsRSC 4/15/2011 Add new account elements and accountsCR I 4/30/2011 Add new vendors CRC 4/30/2011 Add new GL ReportsCR I 4/30/2011 Change P&P approval queueRCC II4/30/2011 Review check stock and typeCR 4/30/2011 Update Procedures ManualCRCCII5/31/2011 TrainingRSSIII7/15/2011 R A S C I Symbols R= Responsibility for making it happen. The prime mover. A=Approval required for inputs, e.g., money, staff, capital equipment S= Supports "R" in making it happen; accountable to "R" for agreed-upon work and/or resources C= Consulted by "R" before plans final or decisions taken; has opportunity to influence plans/decisions. I= Inform; after the fact OK. Blank means no involvement necessary
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