What we examined (see Focus of the audit)

To meet the needs of members or employees whose jobs require moving to a new location, and to manage the relocation process, the government approved the Integrated Relocation Program (IRP) in 2002. The government contracts out relocation services under the IRP.

We examined whether the Canadian Armed Forces and the Royal Canadian Mounted Police (RCMP) had fulfilled their responsibilities in managing selected requirements of the 2009 Integrated Relocation Program contract in accordance with the relevant government authorities and terms and conditions of the contract. We assessed the extent to which the Canadian Armed Forces and the RCMP had monitored the services provided under the contract and taken corrective action, when necessary, in the areas of financial management and performance measurement.

What we found

Financial and administrative controls

Adequate financial controls are important to ensuring that the work was performed, the goods were supplied, or the services were rendered in accordance with the terms, conditions, and prices set out in the relevant contract. Overall, we found that the RCMP has improved financial and administrative controls for relocation transactions. The process that the Canadian Armed Forces has implemented does not provide enough assurance that the payments are in accordance with the contract and the related policies.

• The RCMP has improved controls for relocation transactions (see paragraphs 4.19-4.33)

  Recommendation. The Royal Canadian Mounted Police (RCMP) should periodically review the design and implementation of its national standard procedures to validate them and to ensure that they are applied consistently across the country. The RCMP should adopt a risk-based approach to selecting files for compliance review, to ensure that it is optimally using its resources.

• The Canadian Armed Forces’ process does not provide enough assurance that the payments are in accordance with the contract and the related policies (see paragraphs 4.34-4.40)

  Recommendation. The Canadian Armed Forces should improve its process to ensure that payments made under the Canadian Forces Integrated Relocation Program are appropriate and meet all the requirements of section 34 of the Financial Administration Act (FAA).

• The Canadian Armed Forces’ monitoring of the status of files helps avoid payment of some cancellation fees (see paragraphs 4.41-4.43)

Performance measurement

Overall, we found that the key elements of performance measurement, which should allow the Canadian Armed Forces to monitor the contractor’s performance, were developed and reported on as required. However, we also found that the Canadian Armed Forces does not leverage the information at its disposal to help ensure that every member receives benefits in accordance with the policy. We also found that low response rates to surveys of members limit their usefulness in assessing member satisfaction and in validating the contractor’s results.

• Tools were developed to measure the Integrated Relocation Program’s performance (see paragraphs 4.47-4.51)

• The Canadian Armed Forces does not leverage the information at its disposal to help ensure that every member receives benefits in accordance with the policy (see paragraphs 4.52-4.59)

  Recommendation. The Canadian Armed Forces 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.

• Low response rates limit surveys’ usefulness in assessing member satisfaction (see paragraphs 4.60-4.69)

  Recommendation. The Canadian Armed Forces and the Royal Canadian Mounted Police should consider other approaches to tracking and determining member’s satisfaction.

Response

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Why we did this audit

In 2006, we examined the financial controls implemented by National Defence and the Canadian Armed Forces and by the RCMP in relation to the administration of the contracts. We concluded that National Defence had yet to establish basic internal controls for the expenditure of public funds for the program, and that the RCMP needed to ensure that it comply more rigorously with the government’s policies and procedures for validating expenditures under the IRP. We also examined the extent to which the government had established appropriate performance measures for the relocation contracts. We concluded that the organizations had not developed the tools or indicators needed to assess the performance of the contractor.

In August 2009, the government announced the awarding of the IRP contract to Brookfield Global Relocation Services (“the contractor”). Under the contract, the contractor provides relocation services to members of the Canadian Armed Forces and the RCMP, and employees of the Government of Canada in accordance with their respective relocation policies. On average, about 15,500 members of the Canadian Armed Forces and 2,200 members of the RCMP, along with their families, have been authorized each year to receive relocation services under the 2009 contract.

Expenditures for the 2012–13 fiscal year included $228.9 million for the Canadian Armed Forces, $49.8 million for the RCMP, and $24.5 million in administration fees paid to the contractor.

Details of the audit

Report of the	Auditor General of Canada
Type of product	Performance audit
Topics	Government Purchasing Public Service
Audited entities	National Defence Royal Canadian Mounted Police
Completion date	15 September 2014
Tabling date	25 November 2014
Related audits	Chapter 2—Procuring Relocation Services, 2014 Spring Report of the Auditor General of Canada Chapter 5—Relocating Members of the Canadian Forces, RCMP, and Federal Public Service, 2006 November Report of the Auditor General of Canada

For more information

Ghislain Desjardins
Manager, Media Relations
Tel.: 613 952 0213, extension 6292
E-mail: infomedia@oag-bvg.gc.ca

Twitter: OAG_BVG