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ARCHIVED - Audit of Overtime Management

Preliminary Survey

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April 2013

Table of Contents




1.0 Introduction

The Canada Border Services Agency (CBSA) operates 24 hours a day, seven days a week (24/7) to ensure the security of Canada by managing the safe access of people and goods to and from the country. This operational requirement creates complex resourcing and scheduling demands for the management of Canadian borders. Overtime is often required to meet the Agency's operational needs and respect service standards.

The Treasury Board Secretariat (TBS) Directive on Terms and Conditions of Employment defined overtime as "Authorized time worked by a person in excess of the standard daily or weekly hours of work and for which the person may be entitled to compensation pursuant to the provisions of the relevant collective agreement or terms and conditions of employment."

The management of overtime in the CBSA is governed by the Public Service Employment Act, the Financial Administration Act (FAA), and a series of TBS policies and directives and collective agreements.

The terms and rates governing overtime compensation, for work performed outside of an employee's regular hours of work at the employer's request, are detailed in the various collective agreements.

The CBSA has a workforce of approximately 14,833 full-time equivalent employees (2011-2012 data) within 32 occupational groups and 16 related collective agreements; consequently, the management of overtime is a complex and voluminous activity. An analysis indicated that 11,466 employees (77%) had incurred some form of overtime in 2011-2012. Compensation within the Human Resources Branch (HRB) oversees the administration and interpretations of the collective agreements and maintains the Human Resources (HR) component of the Corporate Administration System (CAS); the Comptrollership Branch maintains the financial component.

It is the responsibility of cost centre managers throughout the Agency to ensure that the use of overtime is kept to an appropriate minimum and its cost is justified. However, overtime may be used when management determines that the work or service involved are essential to meet operational demands, and that overtime is the most appropriate and cost-effective way of achieving the results. The CBSA spent $88.3M on overtime in 2011-2012, of which $8.3M was incurred at National Headquarters (NHQ) and $80M in the Regions. This represents a $7.9M (9.8%) increase from $80.4M in 2010-2011, of which $9.3M was incurred at NHQ and $71.1M in the regions. Overtime accounted for 8.1% of total Agency salary expenditures in 2011-2012 and 7.7% in 2010-2011. Overtime expenditure included hours paid out and banked as compensatory leave.

The following graph provides a four-year[ 1 ] comparative view of the Agency's overtime usage in hours by quarter.

Four-year Comparative View of the Agency's Overtime Usage in Hours by Quarter

2.0 Significance of the Audit

Overtime is often required to meet the Agency's operational needs and to respect service standards. Overtime expenditures have been increasing in recent years. The operational requirement to operate 24/7 to ensure the security of Canada's border creates complex resourcing and scheduling demands for CBSA management. This audit is of interest to management due to the high number of overtime transactions, the level of overtime expenditures and the decentralized nature of management decision making for overtime.

The audit objective was to determine whether the management processes, practices and controls in place are adequate to support overtime activities including the integrity of financial information.

3.0 Statement of Conformance

This audit conforms to the Internal Auditing Standards for the Government of Canada, as supported by the results of the quality assurance and improvement program.

4.0 Audit Opinion

The Agency has practices, procedures and controls in place for the management of overtime. However, there are some gaps in the design and effectiveness of overtime controls, including documentation to support overtime transactions and demonstrate that the control activity was performed. Without strong internal controls for the overtime process, the Agency is at risk of not preventing and detecting misstatements.

5.0 Key Findings

The control framework for overtime pre-authorization, approval and processing practices has been defined. Management uses collective agreements and the Public Service Terms and Conditions to guide their actions. Specific guidance is good but dated and has not been updated since the issuance of the Canada Customs Revenue Agency (CCRA) Management of Overtime Policy, and many managers are unaware of this guidance. To compensate for this, managers use their own knowledge and experience to guide their processes and some districts have developed their own local guidance to support efforts to manage overtime.

The Agency has established internal controls for the management of overtime, but the requirement to maintain evidence of the control activity for pre-authorization in accordance with section 32 of the Financial Administration Act (FAA), accuracy of transactions and compliance with collective agreements has not been defined. In addition, the policy in place to manage the retention of documentation to support overtime transactions specify short retention periods and do not include retention of all required documentation. During the audit, the retention period for section 34 certifications was extended from one year to five years.

Overall, when sufficient documentation was on file the transactions were generally compliant. However, due to the limitations of the overtime control framework and short and incomplete retention requirements, documentation to support overtime transaction from the audit period was frequently not on file.

Monitoring of overtime expenditures is taking place in the Agency, however it could be strengthened. The reports produced with the Agency's Consolidated Monthly Projection and Analysis System (COMPAS) do not include overtime hours taken as compensatory leave. To compensate, some management teams have developed additional reports to manage their budget available for overtime hours on an accrual basis. As well, overtime reporting and monitoring in 2012-2013 tends to focus on comparing actual expenditures to overtime forecast that had been provided. Comparing overtime usage to operational indicators would provide information on the effectiveness of overtime.

The 2010 and 2011 Summer Action Plans had established restrictions for annual leave and leave with income averaging (LIA) at 30 high-volume ports of entry (POEs) during the peak summer months. Overall, the implementation of leave restrictions was not successful as many border services officers (BSOs) exceeded the established leave restrictions.

6.0 Summary of Recommendations

The audit makes four recommendations to:

  • Review and integrate CCRA and regional overtime policies and guidelines to develop CBSA Overtime Guidelines for both shift and office workers;
  • Update and align the HR Multi-Institutional Disposition Authority (MIDA) with the Compensation Control Framework and the Overtime Guidelines;
  • Update the Compensation Control Framework and establish required documentation for compliance with sections 32 and 34 of the FAA; and
  • Develop standard overtime reports for cost centre managers to monitor their overtime commitments.

7.0 Management Response

The Human Resources Branch is in agreement with the results of the Audit of Overtime Management report and accepts the recommendations.

The Branch has developed a detailed action plan to ensure that the applicable revisions, updates and the appropriate alignment of documents within HRB`s responsibility are conducted to satisfy the recommendations by January 2014. Monitoring mechanisms will be implemented to ensure that all milestones are met and full implementation is achieved.

The implementation of the recommendations will enable the Agency to increase national consistency in the management of overtime.

8.0 Audit Findings

8.1 Control Framework

Audit Criteria:

  • The planning process for overtime is in place and is managed efficiently according to business requirements.
  • Pre-authorization, approval and processing practices for overtime are in place.

The Agency has developed a Compensation Control Framework that includes the management and administration of overtime. This framework includes three key control activities for overtime:

  • Pre-authorization of overtime by a manager;
  • Supervisor approval of timesheet that indicates that the employee did work the overtime in compliance with the collective agreements and Public Service Terms and Conditions of Employment Regulations; and
  • Section 34 manager verification and certification that reported overtime is accurate and complete, and compliant with the collective agreements and Public Service Terms and Conditions of Employment Regulations.

Planning and Budgeting

Section 32 of the Financial Administration Act (FAA) requires government departments to control and record financial commitments. For overtime transactions at the CBSA, there is no requirement in the Compensation Control Framework to exercise section 32. While section 32 commitment control may be difficult to accomplish at the time of individual overtime transactions, a blanket commitment at the beginning of each period could enable the Agency to meet this requirement and monitor actual costs to budgeted commitments. For pre-authorization of individual transactions there are no standard documents or practices that managers should follow to exercise the control activities.

The Agency does not allocate a formal overtime budget to cost centres. Rather, a salary budget is determined and allocated by the Comptrollership Branch to all branches. This budget covers all salary-related expenses including overtime. The budget is allocated to cost centres by branch management based on priorities, objectives and performance expectations. All cost centre managers are responsible for staying within their salary budgets. Comptrollership maintains a database that tracks the Agency budget by branch and cost centre, fund (salary, operating and capital) and program activity. Planning processes for overtime vary among branches, regions and districts. Management in the regions indicated that they:

  • Manage schedules, reassign tasks and move employees when feasible to avoid the use of overtime;
  • Offer overtime on a lowest-cost basis, such as offering one hour of overtime at the end of a shift or calling an employee in one hour early instead of calling someone in on a day of rest for one hour and paying them a minimum of three hours according to some collective agreements; and
  • Manage the use of compensatory time off to not incur additional overtime (cash cost for overtime).

At ports of entry (POEs), overtime is more frequent in order to manage the 24/7 nature of the business. Overtime planning is based on the principles from two Canada Customs and Revenue Agency (CCRA) documents: the Operational Efficiency Guidelines and the National Overtime Offering Policy. These documents were developed for the CCRA in the 1990s. While these documents provide good guidance, they have not been updated by the CBSA. As well, some districts have developed their own local guidance to support the management of overtime.

In other branches, overtime is less frequent and complex due to the fixed schedules worked by employees. Planning procedures and guidance have not been formalized at the agency level. Managers rely on their knowledge, experience and collective agreements to guide their actions.

Processing and Recording

POEs and offices across the Agency use various systems and processes to maintain schedules and overtime information. These include paper-based templates, Excel spreadsheets, Computerized Officer Scheduling System (COSS)[ 2 ] and Corporate Administration System (CAS). Furthermore, the comprehensiveness of the systems and extent to which detailed overtime information to support overtime transactions is prepared and retained on file also varies among sites and cost centres.

Management described that overtime pre-authorization, approval and processing practices are not documented, however they are communicated verbally and are generally well known by managers. Various practices have evolved based on local needs and requirements, and the level of scrutiny applied by cost centre managers. Management indicated that the practices include variations of the following activities:

  • Overtime is pre-authorized verbally or in writing by a manager;
  • On a weekly basis, each employee prepares and submits regular and overtime hours on a paper timesheet or an electronic timesheet through the Agency's Employee Self-Service Portal;[ 3 ]
  • Timesheets are reviewed by a supervisor;
  • Once the supervisor is satisfied that the timesheet information is accurate, complete and compliant with relevant collective agreements or the Public Service Terms and Conditions of Employment Regulations, he/she approves the timesheet;
  • Electronic timesheets are automatically loaded into CAS, whereas paper timesheets are manually entered;
  • A section 34 report is produced, reviewed by the cost centre manager for accuracy and completeness, and certified section 34;
  • The overtime is then further processed for payment or credited to the employee's leave balance as compensatory leave with pay.

Audit Trail

The Treasury Board Secretariat (TBS) Directive on Account Verification requires that a sufficient audit trail exist to support the accuracy of overtime hours worked before certifying the transactions under section 34 of the FAA. The Agency's framework does not stipulate what constitutes sufficient documentation to be retained on file to support control activities.

The Library and Archives Act requires that the Agency develop a Multi-Institutional Disposition Authority (MIDA) to govern the retention periods of documentation that supports administrative processes such as overtime. The Human Resources Branch (HRB) is responsible for establishing retention periods for most of the documentation required to support overtime transactions. The Human Resources (HR) MIDA in effect for the audit period identified a one and two-year retention period for the section 34 reports and timesheet respectively. During the audit, the HRB issued a new MIDA that identifies a retention period of two years for timesheets, and five years for section 34 reports and schedules. The new MIDA does not specify retention periods for the documentation required for an audit trail to reconstruct the sequences of events of overtime transactions such as overtime pre-authorization, and accuracy and compliance with collective agreements.

Recommendation 1:

The Vice-President of the Human Resources Branch in collaboration with the Vice-President of Operations Branch should perform a comprehensive review of the existing Canada Customs and Revenue Agency (National Overtime Offering Policy and Operational Efficiency Guidelines) and Canada Border Services Agency regional policies and guidelines for the purpose of updating and integrating these. The updated guidelines and policies should cover both shift and regular office workers.

Management Response Completion Date
The Human Resources Branch accepts the recommendation. The Branch will conduct a review of the existing CBSA policies and guidelines, and update the CCRA National Overtime Offering Policy and the overtime offering component of the Operational Efficiency Guidelines accordingly, to increase national consistency. December 2013

Recommendation 2:

The Vice-President of the Human Resources Branch should update and align the Human Resources Multi-Institutional Disposition Authority with the Compensation Control Framework and the Overtime Guidelines (to ensure retention of documentation to support overtime transactions).

Management Response Completion Date
The Human Resources Branch accepts the recommendation as it relates to the HR Multi-Institutional Disposition Authority. The Branch will ensure that the Multi-Institutional Disposition Authority aligns with the revised National Overtime Offering Policy and the Compensation Control Framework. November 2013 (Five months following the update of the Compensation Control Framework)

8.2 Overtime Transactions

Audit Criteria:

  • Overtime transactions are pre-authorized, accurately recorded and approved.
  • Delegations of authority are appropriate to pre-authorize and approve overtime transactions.
  • Overtime transactions are in compliance with applicable collective agreements and terms and conditions of employment and other relevant TBS policies and directives.

A sample of 245 overtime transactions was selected from CAS that covered all seven regions and Headquarters employees. Audit testing was performed for pre-authorization, accuracy of hours worked, approval of timesheets and section 34 reports, section 34 certification, compliance with collective agreements. Overall, the availability of documentation was a shortcoming in the ability to complete the audit tests. While no one region stood out in terms of results of testing, in general the Regions did fair better than Headquarters. Regional documentation was better with the availability of shift reports, COSS reports, overtime logs, training schedules and approved travel forms. The results of each test are provided below.

Pre-Authorization

With respect to the pre-authorization of overtime, 146 files of 245 had evidence at the time of the transaction of pre-authorization. This evidence included COSS reports, shift reports, overtime logs, e-mails, training schedules and approved travel forms. For the other files with no supporting documents, some managers did indicate that verbal pre-authorization was provided. A good practice was observed at Pearson International Airport Passenger District. Management had implemented an overtime justification log that identifies, for each overtime shift, the employee's name, scheduled shift, number of overtime hours, type of overtime, area scheduled, justification for the overtime, pre-authorizing superintendent and authorizing chief of operations.

Accuracy

With respect to the hours recorded on the timesheet, 116 files of 245 had documentation to substantiate that the overtime hours worked were accurate as pre-authorized. The timesheet information was consistent with the COSS reports or other documentation to ensure that the hours were worked as pre-authorized.

Regarding the recording of overtime hours into the CAS, in 240 cases these were recorded accurately. For the other five files, the timesheets were not available for review by the auditors.

Approvals

In the Agency, there are key controls to ensure that overtime is approved for hours that were worked. This is a combination of:

  • approval of timesheets; and
  • approval for payment by a cost centre manager, under section 34 of the FAA.

At the POEs, the timesheets should have evidence of review by a manager to attest that these hours were worked. This control is important since the manager signing and approving the timesheet at the end of the week is not always the same as the daily shift manager. Outside of the POEs, the manager that pre-authorizes overtime is usually the one who approves the timesheet at the end of week. In 146 of 245 transactions there was evidence that a manager reviewed the timesheet.

The section 34 cost centre manager approves the payment of overtime by signing the section 34 report. The expectation is that the section 34 manager would perform some form of verification for accuracy and occurrence against the accompanying timesheets, COSS reports or shift reports before approving the payment. In some cases, the section 34 manager had completed some form of checking and matching as demonstrated by auditable evidence. However, this audit trail was not consistently maintained. When interviewed, some managers indicated that they perform this control but did not have supporting documentation on the file. The cost centre manager's review of the section 34 report is an important control in the process as it is the confirmation that the services were performed. In 181 of 245 transactions there was evidence that the section 34 report was reviewed.

Without exercising the proper due diligence to approve timesheets and section 34 reports, the Agency could be making payments for services that were not provided.

Certification

The audit verified the certification by reviewing the section 34 on the Overtime and Extra Duty Compensation reports with corresponding specimen signature cards and validating that: the signatures match; the incumbent is authorized to approve overtime transactions for the cost centre; the delegation of authority was valid when it was exercised; and the specimen signature card was signed by an authenticator. The section 34 report was available for 193 transactions of 245, and certified for 191. For two transactions, the audit was not able to verify the certification due to missing cost centre information. For the remaining 52 transactions, the audit team did not receive a complete section 34 report to verify the certification.

Compliance with Collective Agreements

Overtime rates are defined for each classification in the collective agreements. In addition, the Border Services (FB)Administrative Services Group (AS) and Clerical and Regulatory Group (CR) collective agreements define different rates for day/shift work and variable shift scheduling agreement/compressed schedule. The overtime rates and day and shift compensation codes are set in the CAS to compensate employees according to their collective agreement and hours of work. The audit reviewed schedules and records of usual hours of work to determine if employees were compensated according to their collective agreements. The audit examined 179 transactions for which sufficient documentation was received. Of the 179, one was paid at a higher rate.

Recommendation 3:

The Vice-President of Comptrollership, in collaboration with the Vice-President of Human Resources Branch, should update the Compensation Control Framework and establish required documentation for compliance with sections 32 and 34 of the Financial Administration Act.

Management Response Completion Date
The Vice-President of Comptrollership will review the Agency's Compensation Controls Framework with a view to ensuring that overtime expenditures required documentation is adequate to demonstrate compliance with sections 32 and 34 of the Financial Administration Act. The framework will foster an environment of value for money and responsiveness to operational needs. January 2014

8.3 Reporting and Monitoring

Audit Criteria:

  • Managers have access to complete, reliable and timely information on overtime to monitor and manage overtime work.
  • Overtime reports and trend analyses are regularly prepared for review and action by management.
  • Processes for monitoring are in place to detect and communicate problems, excessive use, issues and risk of fraud and error, and subsequent reporting to management is conducted in a timely manner.
  • The leave requirements specified in the 2010 and 2011 Summer Action Plan have been implemented.

The Agency currently requires all budget managers to use the Consolidated Monthly Projection & Analysis System (COMPAS) as the main system to report how they are spending their allocated funds and to also forecast any potential deficit/surplus situations in a timely manner. COMPAS integrates information from CAS, Salary Management System as well as the cost centre manager`s forecasts for each period. Although COMPAS displays overtime expenditures that have been paid up to the current period, it does not include information about overtime hours that have been banked as compensatory leave nor their potential cash-out value. As a result, COMPAS may not accurately report the cost centres' actual overtime expenditures and future liability.

During 2012-13 at the National Headquarters (NHQ) branch level, overtime reports have been prepared on a monthly basis. These reports monitor overtime expenditures and compare to forecasted amount. In addition, in the Agency Performance Summary produced quarterly, management has started to track overtime hours by region for FB employees.

Management indicated that it requires reports that provide more detailed information to explain how overtime was used to better manage their operational budgets. To compensate, some managers prepare additional overtime reports and analyses. However, the format, frequency of preparation (weekly, monthly and ad hoc) and communication, source information (CAS and COSS) and unit of measurement vary among sites and branches. Practices in the regions include:

  • The Northwestern New Brunswick District prepares a roll-up of daily shift reports for each POE which are then rolled up weekly and monthly at the district level, and provide the approximate financial value of the overtime incurred during the month.
  • The Northwest Ontario District prepares an overtime usage report that identifies all major causes of overtime at one of their sites. The report also reviews staffing levels and provides a comparative analysis of salary and overtime dollars by traffic volume for this port and 12 other similar ports in Quebec and Ontario.
  • The Niagara Falls District prepares a comprehensive document for each major long weekend that includes an analysis of traffic patterns, border wait times, city and regional events that attract cross-border traffic, U.S. currency rates and fluctuations that influence cross-border shopping, gas prices, historical numbers of cars and primary inspection lanes open for each hour, and historical staffing for a comparison against projections and actuals.

In 2011, the Operations Branch implemented a periodic overtime monitoring practice. The practice identifies the top 10 employees by region with the highest overtime balances for a period of time. The balances are then sent to the employee's district director to identify any discrepancies, provide the reason for the overtime, and validate and attest to the number of hours. Management indicated that they validate the overtime balances by reviewing the operational documentation used to review the timesheets. This acts as awareness to management of the magnitude of overtime expenditures and provides an opportunity to validate operating assumptions.

As part of the audit, management requested a review of the effectiveness of the directive control for leave entitlements under the 2010 and 2011 Summer Action Plans. The Agency implemented a Summer Action Plan to support its vision of service excellence. It was designed to ensure that sufficient border services officers (BSOs) were available to process high traffic volumes expected at 22 land and eight air POEs during the peak summer months from Victoria Day to Labour Day weekend. To manage the use of additional overtime, the plans imposed restrictions on the amount of annual leave and leave with income averaging (LIA) that BSOs working at POEs could take. This was a good directive control from senior management designed to produce positive results and service to clients.

The audit examined the effectiveness of the directive control surrounding leave entitlements for 30 POEs. The test compared the approved annual leave and leave with income averaging for BSOs working at the 30 POEs to the leave restrictions in the Summer Action Plan. No non-discretionary leave such as sick leave or family-related leave was included in this test.

The 2010 and 2011 Summer Action Plan specified that BSO annual leave should be limited to 75 hours. For the BSOs who took annual leave, 33% exceeded the 75-hour limit by an average 32 hours in 2010 and 35% exceeded the limit in 2011 by an average of 31 hours.

The 2010 Summer Action Plans specified that no Leave with Income Averaging would be granted. The 2011 Summer Action Plan described that Leave with Income Averaging would be restricted, but did not prescribe those restrictions. The review indicated that during the peak period, 80 BSOs were on Leave with Income Averaging in 2010 with the average number of hours of 184, and 68 BSOs in 2011 with the average number of hours of 175.

Given these results, the audit concluded that the implementation of leave restrictions was not successful. However, management in different areas of the CBSA had different interpretations on the implementation of the leave restrictions. Some managers had the view that the leave restrictions were mandatory while others had the understanding that management had some flexibility. While this post-analysis can assist in the development of similar initiatives in the future, a more effective approach would be to do real-time, ongoing monitoring and share the results with branch and cost centre managers so corrective actions can be taken.

Overall, monitoring and reporting of overtime is generally taking place across the Agency, however it is mostly examined in isolation; it does not generally examine salary and overtime usage in relation to other indicators such as leave and volume of traffic. Also, the results are not comparable between districts and branches. In terms of financial reporting, the standard CBSA overtime report from COMPAS includes overtime hours that have been paid, however it does not include the liability of hours that are banked as compensatory time with pay.

In conclusion, while some overtime reporting and monitoring practices are in place, management could strengthen reporting and monitoring. Quantitative reporting could be standardized and rolled out to various levels of cost centre management, to provide complete and timely information for monitoring purposes.

Recommendation 4:

The Vice-President of Human Resources and the Vice-President of Comptrollership, in collaboration with the other branches, should develop standard overtime reports for cost centre managers to monitor their overtime, including the potential liability of compensatory leave.

Management Response Completion Date
The Human Resources Branch accepts the recommendation as it relates to the usage of overtime (hours of overtime). The Branch will ensure that standard overtime reports be made available to all branches by cost centre on a quarterly basis. July 31, 2013

Appendix A – About the Audit

Audit Objectives and Scope

The objective of the Audit of the Management of Overtime was to determine whether the management processes, practices and controls in place are adequate to support overtime activities including the integrity of financial information.

The audit scope covered the overall process in place for the planning and management of overtime activities. The audit included all overtime transactions for employees working at NHQ and in regional offices for the period from April 1, 2010 to March 31, 2011 and the period from April 1, 2011 to August 31, 2011.

The Agency's Audit Committee approved an audit of Overtime Management as part of the Risk-Based Audit Plan 2011-122013-14.

Risk Assessment

The risk assessment conducted during the planning phase identified the following key risk areas:

Control Framework

There is a risk that:

  • overtime is not managed efficiently according to business requirements; and
  • overtime processes, practices and controls may not be clear and consistently performed across the Agency.

Overtime Transactions

There is a risk that:

  • overtime transactions are not pre-authorized, accurately recorded and approved;
  • overtime transactions have not occurred;
  • delegations of authority are not appropriate to pre-authorize and approve overtime transactions; and
  • the CBSA is not in compliance with applicable collective agreements, terms and conditions of employment and relevant TBS policies and directives.

Reporting and Monitoring

There is a risk that:

  • managers do not have access to complete, reliable and timely information on overtime to monitor and manage overtime work;
  • overtime reports and trend analyses are not regularly prepared for review and action by management; and
  • monitoring processes are not in place to detect and communicate problems, excessive use, issues and risk of fraud and error, and subsequent reporting to management is conducted in a clear and timely manner.

Approach and Methodology

The examination phase of this audit was performed using the following approach:

  • Selected a random sample of 245 transactions by performing relevant audit tests on accuracy, pre-authorization and approval for the period April 2010 to August 2011;
  • Performed an analytical review of the data for the period of April 2010 to August 2011 and identified trends by regions and sectors;
  • Interviewed managers and identified, obtained and reviewed any analytical reports available for monitoring purposes to determine which corrective measures are taken to address any identified issues; and
  • Visited seven regions for a total of nine districts.

The random sample was selected using an audit database extraction and analysis software tool. The following is the methodology:

A database of the 531,329 overtime transactions was obtained for the audit period, of which 47,138 (8.9%) occurred at NHQ and 484,191 (91.1%) in the regions. A statistical random sample of 245 transactions was calculated using a 95% confidence level, 5% margin of error and 20% expected deviation rate.

Of the 245 overtime transactions, 19 (7.8%) were distributed among the NHQ branches. The remaining 226 (92.2%) transactions were distributed among the regions.

Due to retention issues identified during the audit testing, sufficient documentation was not available to test all 245 overtime transactions. Therefore, the audit results cannot be extrapolated to the population of overtime transactions.

Audit Criteria

"The audit criteria were derived from the Office of the Comptroller General's Audit Criteria Related to the Management Accountability Framework: A Tool for Internal Auditors, the Assertions from the CICA Handbook and the CICA Criteria of Control Framework (CoCo), as well as the criteria stated in the CBSA Summer Action Plan."

Lines of Enquiry Audit Criteria
Control Framework

1.1 The planning process for overtime is in place and is managed efficiently according to business requirements; and

1.2 Pre-authorization, approval and processing practices for overtime are in place.

Overtime Transactions

2.1 Overtime transactions are pre-authorized, accurately recorded and approved;

2.2 Delegations of authority are appropriate to pre-authorize and approve overtime transactions; and

2.3 Overtime transactions are in compliance with applicable collective agreements and terms and conditions of employment and other relevant TBS policies and directives.

Reporting and Monitoring

3.1 Managers have access to complete, reliable and timely information on overtime to monitor and manage overtime work.

3.2 Overtime reports and trend analyses are regularly prepared for review and action by management;

3.3 Processes for monitoring are in place to detect and communicate problems, excessive use, issues and risk of fraud and error, and subsequent reporting to management is conducted in a timely manner; and

3.4 The leave requirements specified in the 2010 and 2011 Summer Action Plan have been implemented.


Appendix B – List of Acronyms and Abbreviations

BSO
Border services officer
CAS
Corporate Administration System
CBSA
Canada Border Services Agency
CCRA
Canada Customs and Revenue Agency (former)
COMPAS
Consolidated Monthly Projection & Analysis System
COSS
Computerized Officer Scheduling System
FAA
Financial Administration Act
FB
Border Services
HR
Human Resources
HRB
Human Resources Branch
LIA
Leave with Income Averaging
MIDA
Multi-Institutional Disposition Authority
NHQ
National Headquarters
POE
Port of entry
TBS
Treasury Board Secretariat

Notes

  1. Note: The overtime data for 2012-2013 is for the period April 1, 2012 to December 31, 2012[Return to text]
  2. The COSS is a "real-time" system that provides superintendents with information on each employee's scheduled shifts, registered leave of absence and availability and eligibility for overtime. Note that COSS is not used at all POEs. [Return to text]
  3. The Agency's electronic timesheet entry system that interfaces with CAS[Return to text]