An audit of General Relations (GR), International Business Development (IBD), Consular, and Administration Programs was conducted in Jakarta from December 1 to 7, 2005. The Administration and Consular Programs were last audited in March 1997.
The Mission is managed by *** Head of Mission (HOM) ***. The Mission has endured a difficult period following the aftermath of the tsunami, and ***. An area of focus going forward for the HOM will be to ensure the Management/Consular Officer (MCO) more closely monitors the Finance Section. The Audit Team reviewed the requirement for an Honorary Consulate in Surabaya and agreed with the Mission's assessment to close this office. The HOM and General Relations Program have developed an excellent strategic planning framework although, given resource issues, a more focussed approach with less objectives is necessary. In the Summer of 2006 there will be a higher turnover of Canada-based staff (CBS) than normal, which will be a challenge for the Mission to manage. Both Headquarters and the Mission will need in future to monitor extensions closely.
Terrorist acts within the country and the recent tsunami have heavily influenced the priorities and strategic direction of the GR Program. Despite the heavy workload generated by these and other issues in this large and complex country, the Program has achieved very good results. Clarifying the Program's mandate, prioritizing activities and eliminating non-value added duties within the Mission will aid in managing workload concerns, related to the recent loss of the Banda Aceh Political Officer position and the 'fenced' nature of the Global Security Reporting Program (GSRP) position. The creation of Canada House in Banda Aceh was very successful and highlights the excellent work of all involved, particularly the on-site staff. The innovative concept behind the office could be exported elsewhere and should be examined and considered for similar circumstances.
The IBD Program is led by a *** Commercial Program Manager (CPM) facilitating ***. The loss of a senior FS-03 position this past summer has resulted in eight direct reports for the CPM; two junior Foreign Service (FS) officers on their first posting and six Trade Commissioners (TCs). This has made it difficult to maintain the supervisory aspects of his role, while at the same time limiting his availability for regional travel. Work plans for priority sectors are needed to assist TCs in achieving targets and improving performance. Delays in Headquarters finalizing the reclassification of three Assistant positions need to be resolved as it is impacting morale. With the CPM and a junior FS officer departing in summer 2006, it is suggested this junior position be re-classified and staffed at the FS-03 level.
The Consular Program has been particularly busy this past year, dealing with the tsunami crisis and other emergency situations. The Program has responded effectively to these emergencies while maintaining a high level of service to Canadian citizens, exceeding Consular service standards. A more proactive approach to emergency planning is needed as a significant number of the Registration of Canadians Abroad (ROCA) files had expired at the time of our field work. The Deputy Management/Consular Officer (DMCO) closely supervises passport processing but *** when exercising the entitlement function.
All Programs in the Mission, including Administration, have faced many challenges in maintaining normal day-to-day operations given the need to react quickly to changes in the security environment and events such as the tsunami. *** of the Administration Section, but more structure and control is needed over certain functions, particularly in Finance. *** This would include, but not be limited to, the monitoring of transactions within IMS, generating reports within IMS and BI, ensuring that the Accountants are adhering to policies, and following up on requests made by management or Financial Management Services (SMFF). Other priorities include the development of a formalized mentoring program for the DMCO and the roll out of the Performance Management Program (PMP). The Mission is well housed, with a suitable Official Residence (OR), good staff quarters (SQs) and a functional Chancery.
A total of 54 audit recommendations are raised in the report; 53 are addressed to the Mission and one are addressed to Headquarters (HQ). Management has responded to each recommendation indicating action already taken or decisions made, as well as future action. Of the 54 recommendations, management has stated that 46 recommendations have been implemented. For each of the remaining eight recommendations, management has indicated the initiatives in progress or the intended future action.
The scope of the audit included a review of Mission Management and the General Relations (GR), the International Business Development (IBD), Consular and Administration Programs.
The audit objectives were to:
The focus and extent of on-site work is based on an assessment of materiality and related risk. This is done through communication with Headquarters (HQ) bureaux, including briefings by line management and the functional bureaux, review of relevant HQ and mission documentation, and past audit findings, and an analysis of recurring trends and systemic issues.
During the audit, audit issues and lines of enquiry are further refined from information gathered through interviews with the Head of Mission and Program Managers, a meeting with the Locally-engaged Staff Committee, individual interviews with staff, and results of other documentation reviewed.
The level of audit work for a given area is therefore based on issues and information identified and gathered at all levels, HQ, Mission Management, and mission operations. Occasionally, due to time limitations or other factors, it is not possible to provide audit coverage for all areas.
|Assets||Crown Owned||Crown Leased|
|Financial Information 2004/05|
|Operating Budget (N001)||$2,679,203|
|Capital Budget (N005)||176,660|
|CBS Overtime Salaries Budget (N011)||16,300|
|LES Salaries Budget (N012)||797,161|
1.1.1 Overall the Mission is working well, headed by an *** Head of Mission (EX-03). Living and working in Jakarta is challenging with heavy traffic congestion, high levels of pollution and increasing security concerns. The December 26, 2004 tsunami and the establishment of Canada House in Banda Aceh were major events that were handled well by the Mission.
1.1.2 There is an effective Committee on Mission Management (CMM) and the Mission should consider circulating the minutes of these meetings (and the minutes for the Operations Committee meetings) to all staff to keep them informed of decisions and developments. The Mission has a sound committee structure, including Housing, Security and Occupational Health and Safety, a Contract Review Board and appointed co-ordinators for Official Languages and Environmental issues.
1.1.3 Staff indicated that the morale in the Mission is good. While there are generally good communications between management and staff, it would be useful for the Locally-Engaged Staff (LES) Committee to establish a predetermined schedule of meetings with management. Best practices indicate that a minimum of four meetings with management should take place per year, two with the Management-Consular Officer (MCO) and two with the Head of Mission. This ensures regular contact and provides opportunities for issues to be raised and discussed. The Committee should be composed of only LES and the MCO should no longer serve as co-chair.
1.1.4 There has been an attempt by management to find work-life balance for the Canada-Based Staff (CBS) on posting. This has generally been a success for senior Officers as they have been able to delegate responsibilities to the junior levels. However, the junior Officers have not been as successful as not all of the LES are appropriately trained or have the required skill set to assume more responsibilities. As a result, junior Officers are being squeezed by delegation from above without adequate support from below. The Mission needs to monitor this situation to ensure that junior Officers' workloads are appropriate and sustainable.
1.1.5 There is an Honorary Consulate in Surabaya currently only staffed by an Assistant as there has been no Honorary Consul since 2003. Given the limited IBD and Consular activity, the Mission had explored the closure of the office prior to the Audit Team's arrival in January 2005 (which was postponed due to the tsunami's aftermath). At the time of the audit in December 2005, the closure was still being explored. The Audit Team agrees with the Mission's assessment to close the office.
1.1.6 A schedule of regular meetings should be formalized between the LES Committee and management, with agendas established in advance and minutes kept and distributed to all staff. The MCO should not be a member of the Committee.
1.1.7 The Mission needs to monitor workload levels of junior officers and adjust priorities as needed to prevent over-extending these officers.
1.1.6 A schedule of regular meetings has been implemented, with agendas prepared in advance. Minutes of the meetings are now being prepared and distributed. The membership of the LES Committee has been changed, with only LES as full members. The MCO will participte in meetings, as required, in an ex officio capacity.
1.1.7 Workload levels are being monitored for staff of all Sections and the issue will be reviewed on a regular basis by the CMM.
2.1.1 Recent events, most notably the tsunami and several terrorist acts, have been the major drivers in shaping the Government's approach to bilateral relations with Indonesia. Reacting to the devastation of the tsunami has created an initial and ongoing heavy workload, particularly for the General Relations Program. The creation of Canada House in Banda Aceh has effectively allowed the Mission to have a Political Officer on site in order to coordinate the numerous visits and programs in the region, from a truly whole of government perspective. The ever-present nature of security related matters has led to a number of objectives which reverberate this theme, such as building counter terrorism capacity and promoting democracy and good governance.
2.1.2 Given Indonesia's size and wide array of complex issues, prioritizing the Mission's other objectives for the country has been a necessity. To this end, the Program has worked with other Mission programs to create a Strategic Advocacy Plan that concisely conveys Canada's priorities in Indonesia.
2.1.3 There is a heavy workload in the Program which can be traced to several contributing factors, one being the type of resources available. The Global Security Reporting Position (GSRP) is "fenced" in nature as it is mandated to perform only certain security and intelligence related activities and the CB position currently in Banda Aceh is handling operations for that region (this position is scheduled to be cut in Summer 2006). This results in all general political, cultural, public/media relations and academic activities falling on the two remaining GR CB staff - the Program Manager and Political Officer.
2.2.1 Canada House (CH) was opened in Banda Aceh on January 17, 2005, three weeks after the tsunami struck, in response to the devastation in western Indonesia. CH was a multi-role facility that, by all accounts, was a tremendous success. It represented Canada's face in this devastated region; living space for two CBS; office space for the CBS, LES and staff visiting from Jakarta, and, a rooming house for clients of the Mission. If one were to enumerate the intangibles expressed by the Canadian and NGO communities that we encountered, the benefits of CH would be even greater. Clearly opening CH was a bold and innovative move and, given its obvious success, is a concept that should be considered for future events. Full credit should be given to all Mission and HQ staff who conceived and delivered on the concept. ***
2.2.2 Some like-minded countries (France, Japan, UK as well as the EU) opened their versions of CH ten months later, recognizing the scale of development assistance would be significant and that basic hotel and office accommodations would not readily be available. Canadian OGDs, CIDA in particular, moved to a different model for service delivery to the region and the need for CH diminished. As a result FAC, the department with the least amount of programming was covering the full costs of CH. While it was unfortunate that CH did not retain the role as a unified base for whole-of-government program delivery, the Department made the right decision to close CH when it did.
2.2.3 A post-event analysis should be conducted of Canada House to determine what worked well with the concept and what could have been improved. Key staff should be fully debriefed.
2.2.4 If the concept is viewed as sound, a guide should be prepared on how to open Canada Houses in the future.
2.2.3 Completed. The Mission conducted debriefings at HQ in March 2006 followed by a complete post-event analysis of Canada House at the mission in May/June 2006. The Mission has submitted its report to HQ.
2.2.4 The Mission forwarded a comprehensive report on Canada House to HQ on July 18, 2006.
2.3.1 The Program is led by an *** EX-01 Political officer, whose team includes three Canada-based (CB) Political Officers (FS-02), two Locally-engaged (LE) Officers (LE-08 and LE-09), and both an LE and a CB Administrative Assistant. Despite this staffing complement, a major theme that surfaced throughout the audit was the heavy workload, specifically for the junior Officers. Nevertheless, the Program has been able to achieve good results on a number of initiatives related to Departmental priorities. ***
2.4.1 The Strategic Advocacy Plan initiative was led by the GR Program and the HOM, in consultation with other Mission programs, resulting in an integrated and whole-of-government approach. Using the International Policy Statement (IPS) as a base, the Mission strategy has been proficiently summarized in a single page document distributed to all staff. This inter-program framework communicates to all employees, even those without direct involvement in carrying out the strategy, the 'raison d'etre' of the Mission and Canada's objectives in Indonesia. The approach the Mission has taken on this initiative should allow for a smooth transition to the Department's new "Country and Regional Strategy" planning process. The Strategic Advocacy Plan has also been the basis for an effective Public Diplomacy Plan for the Mission.
2.4.2 Given the workload issues that the GR Program has been facing, the plan is somewhat ambitious. It is a good approach to planning, but resources and staffing levels are not commensurate with the number of objectives that touch upon the Program. While it provides an excellent snapshot of the Mission's high-level objectives, there has not been a clear workplan developed for each officer that details more precisely what actions they will take to achieve the objectives.
2.4.3 The PM, in consultation with Program staff, should develop a work plan for each officer that details work to be performed in support of the relevant strategic objectives stated in the Strategic Advocacy Plan.
2.4.3 Completed. As part of the PMP process, the PM has developed with Program staff work plans which articulate objectives/deliverables, key activities, and performance indicators to support the achievement of the mission's strategic objectives.
2.4.4 The Mission's focus to date on the Strategic Advocacy Plan has been primarily on determining objectives, with less attention to monitoring and evaluation of results. Though many of the objectives are very difficult to measure quantitatively, there are other ways that could be used to measure results, such as examining outcomes, outputs, intermediate steps, etc.
2.4.5 The Mission should examine ways to evaluate desired results, and integrate these mechanisms in the strategic plan and Officer workplans.
2.4.5 Mission will work to align strategic planning, and the evaluation of results, with individual officer workplans through the PMP process on the one hand, and with the regional and country strategic planning and evaluation process on the other.
2.4.6 For a variety of reasons, the workload of officers in the Program, particularly junior officers, has increased to an unsustainable level. Structurally, the Program is less flexible than in the past in terms of the work and tasking it can reasonably manage. With one position dedicated to (and physically in) Banda Aceh, and another Officer part of the Global Security Reporting Program (GSRP) - a fenced position, there is essentially just one junior CBS Officer in addition to the PM for all other activities of the Program. It is well understood that Banda Aceh and GSRP activities are high priorities for the Mission and the Department; nevertheless, the result is less resources for other priorities. Furthermore, since the Audit fieldwork, the position in Banda Aceh has been cut. This demonstrates a need for the PM and staff to focus and prioritize activities to an even greater extent.
2.4.7 Further complicating workload problems are *** and inappropriate tasking of the Program. *** and/or potentially underutilized LE Officers in the Program have caused the CB officers to take on duties that in many missions are capably handled by LES. In addition, some requests that originate from other Programs/OGDs in the Mission are outside the limits of what a GR Program is generally responsible for, indicating that there is confusion over the mandate and role of the Program within the Mission.
2.4.8 For example, one of the Political Officers is the Mission Spokesperson. Rather than she and the LE Officer performing the bulk of the research related to preparing some of the press briefs, the GR Program should be acting in a coordinating role, and leaving the detailed background work to the subject matter experts in the corresponding programs. A Mission Communications Committee, chaired by the GR Program, but with representation from all Programs, would be useful in streamlining and improving communications, in addition to relieving some workload in GR.
2.4.9 Eliminating activities that are not value-added or part of the Program's mandate will also help to ease the workload burden. A striking example of this are the education marketing activities that are being performed by one of the LE Officers. Given that it has not been identified by ITCan as a priority sector this function should no longer be performed by the GR Program. In addition, it is a duplication of services as a Canadian Education Centre is located in Jakarta.
2.4.10 The structure of the Program does not accurately reflect the organization chart and uncertainty exists as to the supervisory responsibilities of a CB Political Officer with respect to the LE-08 Officer. The Program should update the organization chart and clarify reporting relationships for all staff.
2.4.11 The Mission should create a Communications Committee, chaired by the GR Program, to streamline communication functions at the Mission.
2.4.12 The PM should further prioritize work, reduce non-value added activities, and, where appropriate, transfer duties to LE Officers in order to achieve a better work-life balance in the Program.
2.4.13 The Program should ensure that the duties and responsibilities of the LE Officers are well defined and result in a balanced and meaningful job package. Performance should be monitored on an ongoing basis and the PMP process used to set objectives and measure results.
2.4.14 The Program should cease education marketing activities.
2.4.15 The Program should adjust its organization chart to reflect the current structure, reporting relationships and responsibilities and should be clearly communicated to all staff and other Programs at the Mission.
2.4.11 Rather than creating another Committee, of which we have many, the GR Program is developing a forward looking, media relations plan which takes a more pro-active approach to the communications function. The media relations plan involves other sections of the Mission in the process of identifying upcoming events, activities and announcements that the Mission could use for media purposes and integrates communications considerations into early planning. A six-month media relations plan for July - Dec 2006 has been prepared.
2.4.12 Through the 2006-07 PMP objective-setting exercise, the PM has identified GSRP reporting, counter-terrorism capacity building, engagement with Muslim communities, and human rights as the GR Program priorities. Responsibilities have been redistributed to spread the work-load, transferring to the LE officers the lead responsibility for media relations, public affairs, parliamentary relations and domestic political reporting.
2.4.13 The 2006-07 PMP objective setting exercise has defined clearly responsibilities, objectives/deliverables, key activities and performance indicators for LE officers. LE officers' work plans (for the period July - Dec 2006) to deliver on PMP objectives will be monitored and reviewed on an ongoing basis. By transferring to LE officers the lead responsibility for programs, these officers' job packages have been enriched significantly.
2.4.14 Education marketing can at times compliment public diplomacy branding activities, but GR will no longer provide direct support to education marketing activities, as this is a trade promotion activities resources by CEC and the IBD Program.
3.1.1 The IBD Program is delivered by a team of three Canada-Based and four Locally-Engaged Trade Commissioners, and five Assistants. The Commercial Program Manager (CPM) is an EX-02. The Program's principle focus is commercial development in Indonesia, but it is also responsible for Timor Leste. The CPM and one of the CB Trade Commissioners will be departing the Mission this coming summer.
3.1.2 Indonesia is the third largest destination for Canadian investment in Asia at $3.5 billion. Significant Canadian commercial interest includes Inco, Manulife, Talisman, and Sunlife. Indonesia is not a priority country though Canadian exports are approaching $700 million annually. Indonesia is not a destination for Ministerial led missions, but there is a large interest on the part of Canadian companies. The quality of clients is increasing and projects that disappeared during the 1997 financial crisis are now beginning to re-emerge. Indonesia has a US $145 billion five year infrastructure plan that includes roads, airports, power plants, etc., which is to be funded by government and the private sector. The overarching issue which affects Canadian interest in this region is security.
3.1.3 The Program's financial resources are reasonable. It has a budget of $50,000 for travel, $20,000 for hospitality, $27,000 for operations and $34,500 for the Client Service Fund (CSF). The Program estimates that trade development consumes 60 percent of its human resources, policy/market access 30 percent, Investment 5 percent and Science and Technology 5 percent.
3.2.1 The IBD Program is active and led by a *** CPM *** by the HOM. The loss of a senior FS-03 position this past summer has forced the Program to reorganize, resulting in a flatter organization with eight team members, including the six Trade Commissioners, reporting directly to the CPM. This has made it difficult to provide the supervision required, particularly as two Trade Commissioners are new to the Service, and there are a *** LE Trade Commissioners ***.
3.2.2 The Program has an effective planning process which ensures participation of all staff. A retreat at the beginning of the year is held at which time the previous year's Business Plan is reviewed and an outline of the new Plan is developed. The Plan is drafted, discussed internally, and presented to HQ. At mid-year it is reviewed and adjustments are made. Individual responsibilities and objectives are set at the beginning of the year for each trade commissioner and assistant and are linked to the Business Plan.
3.2.3 The Program also participates in the development of the Mission's Strategic Advocacy Plan led by the HOM. Usually three or four issues affecting the Program and faced by Canadian investors are identified for high level and regular intervention by the HOM. In the past year these have included commercial issues such as BSE, Aceh reconstruction, and the expansion of the Inco mining operations.
3.2.4 Communications within the Program are good. There are weekly team meetings for which minutes are circulated. The CPM maintains an open door policy and ***. The CPM meets regularly with each Trade Commissioner to discuss development in the priority sectors, provide coaching and ensure that objectives are being met. The CPM encourages staff participation by assigning each trade commissioner responsibility to champion a specific issue such as training, outcalls, WIN, Corporate Social Responsibility, reporting, CSF and S&T. Each Trade Commissioner is assigned a priority sector and receives a CSF and a hospitality allocation. The CPM places a heavy emphasis on training. WIN is well utilized by staff, tracking notes are generally informative. Targets have been established for outcalls. Program hospitality allocations are well used and diaries are well documented. The purpose and evaluation for each function are clear and in-line with Program objectives.
3.3.1 Although responsibilities and objectives have been set for each trade commissioner, individual Work Plans for each priority sector have not been developed. Such plans, with a focus on establishing objectives, activities and expected results, linked to a strategy for outcalls would assist the trade commissioners in achieving targets and improving performance management. The Performance Management Program (PMP) is currently not being used for the objective setting process. (See paragraph 5.2.2).
3.3.2 Develop work plans for each priority sector identifying objectives in the sector, activities/initiatives and the expected results. The plans should include a strategy for outcalls that identify why projects/contacts are being targeted and how they link to the set objectives.
3.3.2 Fully implemented April 1, 2006. PMP is fully implemented for FY 06-07. All staff PMPs include sectoral objective setting, activity plans and expected results. Outcall plans developed for all officers including reason for outcalls and link to set objectives.
3.4.1 An InfoCentre is staffed by an Assistant who receives incoming enquires, not directed to a specific trade commissioner. The CPM estimates that the Centre is receiving approximately 30 percent of the incoming enquiries. The CPM places a strong emphasis on the need to meet the Trade Commissioner Service's five day acknowledgment standard. The current system, however, provides no assurance that this standard is respected.
3.4.2 For enquiries to be effectively tracked against service standards, the Centre needs to play a more central role. To ensure all information requests flow through the Centre, business cards for all Trade Commissioners should reflect the Centre`s e-mail address. This change will also apply to the InfoExport country specific site and to the Virtual Trade Commissioner. All replies to enquiries must be copied to the InfoCentre. All in-coming and out-going correspondence with clients can then be tracked, and the CPM will be able to ensure that standards are being met.
3.4.3 Additionally, the Centre would act as a filter by responding to general enquiries and would forward problematic enquiries to the Post Support Unit. Trade commissioners could then focus more on relevant issues and would have more time to provide core services to clients. Other missions within the region have implemented effective InfoCentres which the CPM can contact to review their operations.
3.4.4 Develop the InfoCentre to more effectively track and deal with all business development enquiries.
3.4.4 At Audit Team's suggestion (see 3.4.3), CPM deployed one LES to Bangkok to review its InfoCentre model. Her report recommended roll out of InfoCentre in Jakarta. HOM asked CPM to review in person Bangkok model to ensure seamless roll out from TCS client perspective. However, Yogyakarta earthquake crisis management duties forced cancellation of CPM visit to Bangkok. Therefore final implementation will fall to new CPM in the Fall 2006 in order to provide leadership in the transition to the new InfoCentre
3.5.1 The Program lost a senior FS-03 position this past summer, reducing the number of CBS Trade Commissioners in the Program to three. Two of these positions are junior FS positions staffed by officers on their first posting. The loss has had a significant impact on the operation of the Program. The span of control is now much wider for the CPM, and all Trade Commissioners have had to assume greater responsibilities with less oversight. The travel of the CPM outside of Jakarta has been reduced due to his requirement to stay and manage the Program without the assistance of an experienced Trade Commissioner. Previously, the FS-03 position managed a team that focused on the sensitive sectors of mining and agrifood, in which advocacy plays a prominent role. The CBS incumbent filling the FS-01 position is departing the Mission this coming summer. The Audit Team strongly supports the reclassification of this position to FS-03 to fill the void left by the redeployment of the FS-03 position.
3.5.2 Three of the trade commissioner assistants are currently classified at the LE-04 level. The positions were reviewed by the Mission Classification Review Committee in August 2004 and it was recommended that they be reclassified to LE-05. This is consistent with other positions carrying out similar duties at other missions. Reclassifications, however, are on hold pending budgetary negotiations in Headquarters. In the interim, the Program has lost a very capable Assistant who has accepted a LE-05 position elsewhere in the Mission.
3.5.3 The WMB should consider the re-classification of the FS-01 position in Jakarta to the FS-03 level and staff it with an experienced officer.
3.5.3 An FS-03 position (#409916) was created February 1, 2006, to replace the FS-01 position. A trade officer with previous posting experience will assume the post in the Summer of 2006.
Mission comment: Completed.
4.1.1 The Consular Section is managed by the Deputy Management-Consular Officer (DMCO) (AS-04), who is on his first overseas assignment, assisted by a Consular Officer (LE-08) and a Passport Assistant (LE-05). The Section is focussed on providing a high level of service to clients, more than meeting and surpassing the Consular service standards. In the case of passport processing, the focus on providing timely service may be occurring ***. As such, the Section should ensure that data entry is complete and accurate on all services, even if it results in extra processing time. The Section was under considerable stress in 2005, with the tsunami response and the maternity leave of the Passport Assistant also impacting service delivery.
4.1.2 The work pertaining to passport processing and consular caseload is reasonably low. However, significant time must be spent on updating Travel advisories given the unstable local security situation. The high incidence of natural disasters and terrorist activity in Indonesia dictates that emergency planning must be made a priority. At the time of the Audit, approximately 90 of 1500 Registry of Canadians Abroad (ROCA) registrations had expired. Staff seemed reluctant to contact registrants, indicating that they responded negatively to being contacted by the Embassy. The Mission is planning to hold another warden conference, and could take advantage of this opportunity to ask wardens to update their registration lists prior to the conference. Maintaining a strong warden network and updated ROCA database are extremely important in this environment. Good contact is maintained with the Australian Consulates in Bali and Dili which provide consular services to Canadian citizens.
4.1.3 While the DMCO and Passport Assistant have had consular specialist training within the past five years, the Consular Officer has not taken this course since 1996. As found at other missions, there is a need for mid-career consular training for experienced staff. However, as such training has not yet been developed, the Mission needs to request that the Consular Officer receive the specialist training as a refresher.
4.1.4 The DMCO exercises good oversight on the passport function, personally checking all passport applications at two points during processing. However, the current practice of the DMCO approving passports based on copies of citizenship documents must be changed so that the DMCO *** prior to approving entitlement. Passports should be held for a minium of one working day to allow the HQ database to reconcile and alert the Mission to any problems before the passport is handed over to the client. This would be facilitated by establishing pre-determined days when passports will be picked up by the public.
4.1.5 The DMCO completes the monthly inventory reconciliation, and quarterly is accompanied by the HOM. The monthly reconciliations, however, are not completed in the presence of one other CBS. Two CBS should always be present when the monthly reconciliation is performed. Passport stock is stored in the same safe as the Emergency Cash Parcel (ECP) (USD 50,000, reconciled at the time of the Audit) and visas. To limit the number of people with access to passports and visas it is recommended that the visas be stored in a different safe from the passports and ECP, both of which are controlled by the DMCO.
4.1.6 Copies of passport applications are retained at the Mission dating back to 2000. The Mission is not required to retain copies of passport applications once Headquarters confirms receipt of the monthly passport returns.
4.1.7 Signage in the consular booth needs to be improved as fees and service standards were not displayed. The Mission also has an informal process of using courier services to send passports to clients, whereby the client leaves extra money to pay for the courier with consular staff. No receipt is issued for this extra money, and the Section now has excess cash on hand as a result of overpayments from clients for courier services. This excess cash should be turned over to the accounting section for processing, and the practice of receiving cash for courier services should be immediately discontinued and alternatives explored (such as the client purchasing prepaid courier services).
4.1.8 Specific days should be established for the turnover of completed passports to clients.
4.1.9 The ROCA database should be updated.
4.1.10 The Consular Officer should receive consular specialist training.
4.1.11 The DMCO *** when approving passport entitilement.
4.1.12 Visas should be stored separate from passport blanks and the ECP.
4.1.13 Old passport applications should be shredded.
4.1.14 Two CBS should be present for all passport reconciliations.
4.1.15 Fees and service standards should be posted in the consular booth.
4.1.16 The Mission should not accept cash from clients to pay for courier services.
4.1.8 No longer required as Mission switched to COSMOS NG. Passports now printed in Canada.
4.1.9 Mission continues to update ROCA as required. New CNE measures to clear records for long-standing expired departure dates should reduce workload on the Consular Program and improve registration statistics.
4.1.10 The Mission has requested training for the LES Consular Officer, but unfortunately the 2005 Consular training was cancelled and the Mission was not permitted to register the employee in 2006 training offerings due to priority being given to officers who have not yet received training. We will continue to request training as opportunities arise.
4.1.11 Noted and implemented.
4.1.12 Noted and implemented.
4.1.13 Noted and implemented.
4.1.14 The recommendation is being implemented; two CBS will be present for all passport reconciliations.
4.1.15 Noted and implemented.
4.1.16 Noted and implemented. Mission is investigating alternatives.
5.1.1 The Program is managed by an *** MCO (AS-06) who directly oversees the Finance, HR, IT and Security functions. The DMCO (AS-04) manages daily the Property function as well as Consular. Staff indicated that the Program was client service oriented and are satisfied with the services provided. The Mission has developed service standards but they have not yet been submitted to SMC (Common Services Abroad Planning and Coordination).
5.1.2 *** The Audit Team's assessment is that more oversight is not only desirable but necessary, particularly for the financial function and in preparing the DMCO to assume some of his responsibilities during absences.
5.1.3 The DMCO is on his first posting and, while he is being coached by the MCO, a more formal mentoring plan is needed. This plan should include exposure to processes given that he will need to assume the role of MCO in the future. By formalizing the mentoring process, training can be more proactive and allow the DMCO to work with the MCO on tasks prior any absences of the MCO. *** The first time the DMCO performed a bank reconciliation was during the annual leave of the MCO, ***.
5.1.4 While the Program is run overall well, there is a need for more focus on the Finance function. Given the security environment, the MCO's role as the Mission Security Officer (MSO) occupies a great deal of time. The Mission may wish to review the roles and workload of the MCO regarding Security to determine if changes can be made to allow the MCO time to more closely monitor Finance.
5.1.5 The Mission should develop a mentoring plan to expose the DMCO to activities outside his normal duties.
5.1.5 A mentoring plan for the DMCO is being developed and will be finalized by the new MCO in consultation with the DMCO and the HOM.
5.2.1 The Human Resources function is managed by the MCO, with the assistance of the Secretary (LE-05). The LES Handbook was up-dated in 2004 with only a few issues, such as the severance benefit, left to resolve. A new separate pension plan was effectively rolled-out to employees in October 2005.
5.2.2 There are still a few outstanding appraisals that need to be completed. The Mission has not yet rolled out the PMP (Performance Management Program). This should be done as soon as possible so that objectives can be set for each employee which will aid performance reviews and in assessing training requirements. This also provides a good opportunity for supervisors and employees to review and up-date job descriptions, some of which have not been reviewed for a number of years.
5.2.3 The Mission takes advantage of training opportunities made available locally and through HQ, but there is no formal Mission training plan linked to objectives. A Mission-wide annual training plan would assist in prioritizing and co-ordinating training requirements.
5.2.4 The Secretary provides leave reports to Program Managers on an ad hoc basis. It would be a good practice if these reports were distributed on a monthly basis to the Program Managers to allow for consistent monitoring.
5.2.5 *** for assistance with this matter, prior to taking appropriate action.
5.2.6 Outstanding appraisals should be completed.
5.2.7 The Mission should implement the PMP process.
5.2.8 Job descriptions need to be reviewed, updated and signed by both the supervisor and the employee.
5.2.9 Develop a formal Mission-wide annual training plan.
5.2.10 Provide leave records to Program Managers on a monthly basis.
5.2.11 ***, and if so either regularize the position, eliminate the situation, or else turn it into a third-party contract.
5.2.6 The recommendation is being actioned.
5.2.8 The recommendation is being actioned.
5.2.9 Completed and in the process of being implemented.
5.2.11 All contracts at Canada House and the Consulate in Surabaya expired at the end of March 2006 when these two identities were closed out. ***
5.3.1 The Property and General Services function is overseen by the MCO but managed on a day-to-day basis by the DMCO. A team of sixteen LES support the delivery of services at the Chancery, Official Residence (OR) and 18 Staff Quarters (SQs).
5.3.2 The Mission moved into the Chancery in 2001 and has a lease until 2011 (with an option to extend for 2 five year terms). The Chancery functions very well. One point noted by the Mission during the tsunami crisis was that conference room space was tight during meetings with large groups. The Mission has raised the need to expand the boardroom with the Physical Resources Bureau (SRD).
5.3.3 The OR is a newly constructed house, occupied by the current HOM since 2004, which functions well for both family and representational needs. The Mission has a lease for the property until 2014 (with an option to extend five years). Given the quality of construction and its layout, the Mission should consult with SRD about the feasibility of purchasing the property.
5.3.4 In consultation with SRD, the Mission should evaluate the feasibility of purchasing the OR.
5.3.4 The current OR is situated on a small lot on a noisy corner and, while a very good house, may not be optimal for purchase. In any case, the owner has been contacted and does not wish to sell. The Mission will explore the possibilities of purchasing land and, with SRD, building a Canadian designed demonstration house.
5.3.5 The CBS indicated that housing was good and that the Section is service oriented. The Housing Committee's Staff Quarter (SQ) strategy is to house families with school-aged children in the south of the city near the international schools. With traffic conditions, this can result in over an hour commute for the CBS. Singles or couples are located closer to the Chancery to reduce commuting time. Security concerns are a key factor in the selection of SQs. SQs are generous as building styles in the country mean that foyers and living rooms are larger than those normally found in Canada. The Mission has used space in an oversized SQ to establish an alternate office for use in emergency situations. The location and size of this office will need to be monitored as changes in occupants, the function of the office and security requirements may affect its potential use.
5.3.6 The Mission owns two recreational cottages, both of which are being used by CBS to find relief from the city's pollution, traffic congestion and heat. The cottages had been run down and required significant maintenance to return both to operational standards. The Mission has an established charge that CBS pay when using these facilities.
5.3.7 While processes and procedures within the Program are considered good, improvements can be made by implementing the recommendations below.
5.3.8 PRIME data should be verified to ensure fields and files are complete as there were certain items missing, such as Canada House.
5.3.9 The distribution account for the Chancery should be completed.
5.3.10 The Fax-Registry Clerk should be provided with an official receipt book so that receipts are provided to staff for telephone payments.
5.3.11 The Mission should keep all lease contracts on file, including Canada House in Banda Aceh.
5.3.8 PRIME was updated following the Audit to include Canada House. As Canada House and Consulate in Surabaya ceased to exist March 31, 2006, properties are now listed as disposed.
5.3.9 Noted. Should be completed by Fall 2006.
5.3.11 Mission has original leases on file of all properties, including Canada House in Banda Aceh.
5.4.1 Finance is managed by the MCO, assisted by an LE-07 Senior Accountant and a LE-04 Junior Accountant. Section 34 signing authorities are properly exercised, however, *** request of the MCO, by either the Senior Accountant or the Junior Accountant. ***
5.4.2 The MCO should take a more proactive role in the Finance function at the Mission. This would include, but not be limited to, the monitoring of transactions within IMS, generating reports within IMS and BI, ensuring that the Accountants are adhering to policies, and following up on requests made by management or Financial Management Services (SMFF).
5.4.2 The MCO is more directly involved in all aspects of the Finance function including reviewing financial reports, outstanding claims, etc. and working to ensure policies are being followed. The MCO has also been exchanging correspondence with Financial Management Services (SMFF) staff to ensure there is an ***
5.4.3 Day-to-day responsibilities are handled by the Senior Accountant who has 17 years of experience. While being organized, it is the Audit Team's opinion that the ***
5.4.4 *** .
5.4.4 This is being done ***, as well as being done Mission wide.
5.4.5 During discussions with the Junior Accountant it became apparent that he spends a significant portion of his time assisting Mission staff in understanding and keeping them abreast of the various administrative rules and regulations. These rules, regulations, as well as service standards of the Finance Section should be adequately documented and accessible to Mission staff.
5.4.6 Documented accounting policies, procedures and service standards should be drafted by the Finance Section, presented to the CMM, approved by the HOM and communicated to all staff.
5.4.6 Noted. Much is already available but it must be collated into one place so that it is more readily available, for completion in the Fall 2006.
5.4.7 On an ad hoc basis, the Finance Section provides all Program Managers with a report that compares actual expenditures (relating to travel, hospitality and LES overtime) to those originally budgeted.
5.4.8 Financial reports relating to budget variance analysis for all Mission budget lines should be distributed to the CMM on a regular basis.
5.4.8 Noted and implemented.
5.4.9 The monthly bank reconciliations are prepared by the Senior Accountant and reviewed and approved by both the MCO and the HOM. Generally, there is sufficient segregation of duties to ensure an appropriate level of control. However, the Senior Accountant enters transactions in IMS and also performs the bank reconciliations. These are incompatible duties and should not be performed by the same person. Ideally, the Junior Accountant should be tasked with the responsibility of data entry into IMS, while the Senior Accountant tasked with the reconciliation process.
5.4.10 The Junior Accountant's job description should be revised to include the responsibility of data entry into IMS. Furthermore, the Senior Accountant should only enter transactions into IMS as required and as approved by the MCO.
5.4.10 The job descriptions are being revised to reflect that the Junior Accountant has the responsibility of data entry in to IMS and the Senior Accountant has been informed that any entries into IMS by him need the MCO's approval.
5.4.11 *** For instance, ***
5.4.12 ***, a variance occurred between the IMS Cheque Register and the IMS Shadow Account during the month of August 2005. This variance was caused by the accumulation *** reviewed all transactions entered into the IMS bank reconciliation module and ensured that they were correctly posted. At the time of our field visit, the reconciliation was completed and the variance was corrected. The reconciliations, however, had not yet been reviewed by the MCO, the HOM or SMFF.
5.4.13 Bank reconciliations for the months of August, September, October and November 2005 should be reviewed and approved by the MCO and the HOM. Once approved, these reconciliations should be forwarded to SMFF for review.
5.4.14 *** Furthermore, adjustments made by the Senior Accountant should be adequately explained in the bank reconciliation and the settlement of these adjustments should occur on a timely basis. Greater scrutiny of the bank reconciliations should be conducted by the MCO.
5.4.13 All reconciliations up to and including May 2006, are in SMFF. No longer any problems or delays.
5.4.14 Noted and discussed with ***.
5.4.15 The Audit Team further examined the bank reconciliations for the months of September, October and November and found that the ***. As previously stated, it is not clear to the Audit Team why ***. SMFF explained to the Audit Team that they are performing a detailed review of all transactions entered into IMS by the Mission since the beginning of May 2005. Based on this, the Audit Team examined a sample of transactions for the period from June 2005 to August 2005 to ascertain that these funds were used as intended. The results of this limited review indicated that there appeared to be no errors or irregularities cited. During this review, the Audit Team did observe that Section 34 signing authorities were properly exercised, however, ***.
5.4.16 The Senior Accountant should participate in the following CFSI training courses: "LES Accountants and Assistant Accountants" and "IMS for Accountants and Assistant Accountants".
5.4.17 The MCO should ensure that Section 33 is appropriately exercised for each and every payment.
5.4.16 Training Plan proposes Accountant for recommended training. Pending this, we have taken a highly proactive, three phase approach under HOM leadership. In phase one,***. Training was also provided immediately following the Audit by bringing in the Accountant from Bangkok. This addressed the immediate problems. In phase two, a Financial Officer was brought out from HQ for a further three week training period. We await the written report on that visit six months later, which will be needed as part of the ***. Phase three, ***.
5.4.17 Noted. Others with signing authorities have also been so instructed.
5.4.18 In addition, the following procedures have not been implemented by the Finance Section:
5.4.19 Implement the following procedures:
a) prior to being entered into IMS, the MCO should review and approve all SA documents;
b) on a monthly basis, the MCO should review all PAYEs;
c) prior to being entered into IMS, the MCO should review and approve the creation of all new vendor accounts or changes made to previous vendor accounts; and
d) official receipts should be given to employees upon settlement of their personal telephone calls.
5.4.19 The MCO is reviewing and approving SA documents before entry into IMS; he is reviewing on a monthly basis all PAYEs, and prior to entry in the IMS system, he is reviewing and approving vendor changes. Procedures have been in place for several months now to ensure receipts are given to staff for reimbursement of their personal phone call charges.
5.4.20 The Mission has two bank accounts, one denominated in US dollars and the other denominated in Indonesian rupiahs. Payments are made by way of cheque and electronic funds transfers (EFT), with an approximate ratio of 60% to 40%, respectively. Funds are transferred from SMFF to the Mission in US dollars on an as-needed basis. Financial instruments are taken to the bank, ***, a few times a week by the ***. Although this is not the ideal situation, deposits consist primarily of bank drafts, as the Mission does not encourage payment by cash.
5.4.21 There are four petty cash accounts at the Mission; the first account is maintained by the DMCO and is used for Consular related transactions; the second account is maintained by the Honorary Consulate in Surabaya and the remaining two are maintained by the Property Assistant and are used for property related purchases and/or daily requirements of the Drivers.
5.4.22 The Audit Team counted the petty cash accounts maintained by the DMCO and the Property Assistant and the following observations were noted:
5.4.23 Furthermore, it was unclear why the Property Assistant maintained two separate petty cash accounts. During the petty cash count, it was evident that the Property Assistant was not treating them as two separate and distinct petty cash accounts. Based on the Audit Team's observations, it would appear that payments are made randomly from both accounts. In addition, the individual petty cash accounts did not reconcile, however, they did reconcile once combined.
5.4.24 The monthly reconciliation of the petty cash accounts that are maintained by the DMCO and the Property Assistant, should include the counting of the petty cash on hand. The count should be conducted by the Finance Section.
5.4.25 On a periodic basis, the MCO or DMCO (or other Mission staff member travelling to the region) should count the petty cash account maintained by the Honorary Consulate in Surabaya.
5.4.26 Surprise petty cash counts should be periodically performed by the MCO.
5.4.27 The petty cash accounts maintained by the Property Assistant should be consolidated into one account.
5.4.24 Noted and implemented.
5.4.25 No longer applicable as Surabaya has closed.
2.5.56 Noted and implemented.
5.4.27 Noted and implemented.
5.4.28 Hospitality diaries for the HOM and a number of Officers were reviewed. The Mission has an official hospitality policy and officers maintain hospitality diaries for each function and submit quarterly Hospitality and Expense reports. The review revealed no major observations.
5.4.29 It was brought to the Audit Team's attention that the Mission maintains an inventory of alcoholic beverages. A former CBS had paid for the bulk purchase from personal funds and is being reimbursed as stock is being consumed.
5.4.30 The bulk purchase of alcoholic beverages should not be undertaken with an individual's personal funds. The Mission should purchase the remaining stock from the individual and manage the inventory in accordance with section 9.9.4 of the Protocol Manual.
5.4.30 Implemented, May 1, 2006. The individual who organized this of his own initiative has been fully reimbursed. As of June 30, 2006 there is no remaining stock.
5.4.31 The Contract Review Board (CRB) assesses all contracts that are greater than $3,000 CAD. The CRB is composed of four CBS and the DMCO acts as the Chair. All submission packages are submitted to the DMCO. The DMCO then attaches the CRB checklist to the submission and forwards it to each member of the CRB for their review. Once reviewed, the members are required to sign off on their evaluation form and return it to the DMCO. If a CRB member does not approve a contract, a meeting is called between all members and the issues are discussed. A contract is approved if 3 of 5 members approve it. In December 2004, missions were instructed by HQ to enter all contracts greater than $5,000 into the Automated Contracting System (ACS), part of the Materiel Management (MM) module in IMS. The Mission is not complying with this requirement.
5.4.32 All contracts greater than $5,000 CAD should be entered into the Automated Contracting System.
5.4.32 Noted and implemented.
5.4.33 There are effective controls in place over the receipt of funds. Consular and passport funds received, as well as refunds issued, are recorded in a single cash register on-site at the Mission. Receipts include Canadian or Rupiah financial instruments, postal orders, certified cheques, etc. The Audit Team reviewed the reconciliation process with the responsible Consular Assistant. Consular revenues are provided to the Finance Section on a daily basis (the Junior Accountant provides the Consular Assistant with an official receipt) and are deposited in the bank on bi-weekly basis. The Consular Section completes EXT-119 (Record of Fees Received) and issues official receipts for all services. The weekly reconciliation of the consular/passport revenues is reviewed and approved by the DMCO.
5.4.34 It would appear that the Senior Accountant created a separate one-time vendor account for the processing of Right of Landing Fee (ROLF) payments. Each time a refund was to be paid, the Senior Accountant would change the name of the designated one-time vendor account.
5.4.35 The processing of ROLF payments should be coded to the SMFF designated one-time vendor account.
5.4.35 All visa refunds being handled this way now.
5.5.1 Information technology is managed by a Locally Engaged Information Technology Professional (LEITP), with oversight provided by the MCO. The function is well managed and provides good support to the Mission. The Regional Manager (RM) is based in Singapore and the Foreign Service Information Technology Professional (FSITP) is in Kuala Lumpur. The FSITP has recently visited the Mission.
5.5.2 In light of the increase in users at the Mission, a request was made for a second LEITP position, which was recently approved by HQ. The Mission will soon begin the competition process to fill the new position and will request the RM's participation in the recruitment process. This will be a good opportunity for the RM to visit the Mission as visits have not been conducted in the last three years.
5.5.3 The Mission has developed a Business Resumption Plan and an Avian Influenza Contingency Plan which both include specific IT measures to be taken in the event of a disruption in operations or a disaster. An Alternate Command Post (ACP) has been established and the Mission has conducted two simulations to test the effectiveness of this temporary work space.
5.5.4 The Mission has four satellite telephones, one at the OR, two at the Chancery and one at Canada House in Banda Aceh, which were used during the tsunami. At the time of the Audit, the satellite telephones had been last tested in January 2005. The Mission should ensure they are regularly tested.
5.5.5 Unused IT equipment is stored in a room at the Chancery. At the time of the Audit, the door was found to be unlocked. It is recommended that the storage room be locked at all times and that limited access be established.
5.5.6 The Mission has been experiencing difficulties over the past few months with the receipt of messages from external organizations. These include legitimate e-mails from CIDA and Trade clients, in particular NGOs and UN organizations, who's messages were blocked by the Department's spam filtering system. Other missions have been experiencing similar problems and the issue has been raised with HQ. Information Technology Planning, Consultation and Application Services (SXE) and Information Technology Client Support (SXS) are currently conducting a survey amongst all missions regarding the effectiveness of the spam filtering measures in SIGNET, the results of which will enable HQ to take further action.
5.5.7 The Mission should ensure that the satellite telephones are tested regularly.
5.5.8 The storage room should be locked at all times and limited access be established.
5.5.7 Noted and implemented.
5.5.8 Noted. Staff advised.