writing effective corrective action plans
TRANSCRIPT
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A lighthearted but practical approach to
writing effective A-123 Appendix ACorrective Action Plans
Purpose
Disclaimer:I take credit for all the jokes and illustrations you
enjoy. The rest were slipped in by my staff.
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Hell take
care of it!
After we determine we have a problem, whats next?a. Ignore it. The problem will go away eventually.
b. Blame it on your predecessor.
c. Create a Corrective Action Plan.
Houston, we have a problem.
Answer:
c. Corrective Action Plan
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Corrective Action Plan
What is a Corrective Action Plan anyway?
Corrective A practical strategy to resolve the impediment
Action Active steps we can realistically accomplish
Plan Organized, purposeful, accountable, measurable
+ =
No
solution
without a
CAP
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1. State the weakness succinctly
2. Have owners who are accountable for results
3. Break the solution into discrete actions
4. Identify the accountable office for each action
5. Set achievable deadlines
Effective Corrective Action Plans
A journey of athousand miles begins
with a single step.
6. Monitor progress andspecify measurable results
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Corrective Action Plan Components
1. State the weakness succinctlyAddress a specific problem related to one of the five audit assertions.*The assertions will be on the quiz at the end of this slide show.
DONT: Military equipment is not audit ready (Too vague)
In FY 2007, we reported military equipment of $100M (No problem specified)
This corrective action plan is designed to correct the problem with Accounts
Payable which was that we cannot explain the amount reported on the financial
statements because the transactions dont match up. (Not succinct)
*Completeness, Obligations, Valuation, Existence & Reporting (COVER)
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Corrective Action Plan Components
2. State the weakness succinctlyAddress a specific problem related to one of the five audit assertions.*
*Completeness, Obligations, Valuation, Existence & Reporting (COVER)
Thuccinct
equalththucceth
DO: Accounts Payable transactions do not reconcile to
the amount reported on the MDA Financial
Statements
All military equipment is not reported on MDA
Financial Statements
Military equipment may not be valued accuratelyon MDA Financial Statements
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Corrective Action Plan Components
2. Owners who are accountableThe Comptroller is responsible for Appendix A implementation.
Program Managers write Corrective Action Plans.
So whos in charge? Whos accountable?
Its a joint effort.Well share
the work.
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Corrective Action Plan Components
How do the Comptroller and Program Managers work together?Step 1: Program Managers identify impediments during their day-to-day routine
Step 2: Program Managers write Corrective Action Plans
Step 3: As part of the Appendix A process, the Comptroller requests Corrective
Action Plans from Program Managers
Step 4: The Comptroller ensures the Plan meets Appendix A requirements
Step 5: Program Managers review/approve any
revisions recommended by the Comptroller
Step 6: The Comptroller checks in with Program
Managers in order to report progress as required
by the Statement of Assurance
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Corrective Action Plan Components
Bonus slide!! Bonus slide!! Real MDA experienceTo increase accountability for Corrective Action Plans:
- In the Targets and Countermeasures Corrective Action
Plan, management specified the number of additional
personnel required to implement the Plan.
- Real Property management included property
accountability targets in their NSPS performance
goals.
- Material weaknesses and associated Corrective Action
Plans for Real Property and Environmental Liabilities
were included in the 2007 MDA Statement of
Assurance.
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3. Break the problem into discrete actionsWeakness: All military equipment is not reported on MDA Financial Statements
DONT: E-mail Program Managers with a request for a list of their military
equipment and its value. Add the list of equipment to the financial
statement
Too much is included in a single step. Further, critical details are omitted.
DO: a. The Comptroller works with Program Managers
to inventory assets on handb. Jointly document value/title via Form DD 250
c. The Comptroller updates amounts reported on
financial statements with documented inventory
How do you eat anelephant? One bite
at a time.
Corrective Action Plan Components
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4. Identify the accountable office for each actionDONT: a. MDA issues a data call for Military Equipment
b. MDA reports Military Equipment on its Financial Statements
c. MDA writes an SOP for the new process
DO: a. The Comptroller issues a data call to Program Managers with a request for
Military Equipment asset information
b. Program Managers send a spreadsheet and supporting information to the
Comptroller
c. The Comptroller verifies the information received
d. The Comptroller reports the information on the Financial Statements
e. Program Managers develop SOPs; the Comptroller reviews the SOPs for
adequacy
Corrective Action Plan Components
Many hands make light work in
the kitchen or at the office!
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Corrective Action Plan Components
5. Set achievable deadlinesDONT:
Tasks Deadline
- Inventory all MDA real property 28 DEC 2007 (too fast)
- Update SOP for new process 29
NOV 2017 (too slow)- Move to new system TBD (no accountability)
Deadlines that are too short or too far off are not realistic. TBD is not acceptable.
Unrealistic deadlines and TBD mean that more detail is required.
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Corrective Action Plan Components
5. Set achievable deadlines
DO:
Task: Deadline
Inventory all MDA real property 30 JUN 2008
a. Determine all MDA locations 28 DEC 2007 b. Obtain POC for each location 11 JAN 2008
c. Meet with all POCs 14 FEB 2008
and request inventory or schedule
property inventory
d. Conduct property inventory 30 JUN 2008
Based on the additional detail, the inventory task can be completed by 30 JUN 2008.
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Corrective Action Plan Components
6. Monitor progress and specify measurable resultsDONT: - Improve the financial reporting process for Accounts Receivable
- Learn how the current system of calculating payroll accrual operates
- Determine if all Military Equipment is reported on Financial Statements
Hint: If you saw these statements on a resume, youd think that person isnt telling
me anything. The same philosophy applies here.
DO: - Establish an allowance for loss on Accounts Receivable if needed
- Verify the payroll accrual is accurate
- Inventory MDA Sensors Directorate Military Equipment
This clip art looks like the guywho created this briefing.Steve, please stand up and
embarrass yourself.
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To recap:
1. State the weakness succinctly
2. Have owners who are accountable for results
3. Break the solution into discrete actions
4. Identify the accountable office for each action
5
. Set achievable deadlines6. Monitor progress and specify measurable results
Put these components together and you get .
Effective Corrective Action Plans
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Effective Corrective Action Plans
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Effective Corrective Action Plans
For my next trick, I will walk you
through two actual Corrective Action
Plans. The first was created weeks ago
expressly for this conference.*
*No animals were harmed during the creation of this Corrective Action Plan
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Example #1 - Straighten the leaning Tower of Pisa*
*Trust me. Im not an architect
but I stayed in a Holiday Inn
Express last night.
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The Leaning Tower of Pisa
DONT
Blow it up and build another
tower in its place.
On three, PUSH!
DO
Ensure the land underneath the
Tower is solid and then straighten
the foundation.
Corrective A practical strategy to resolve the impediment
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The Leaning Tower of Pisa
DONT
Nature created the problem so
nature will cure it.
Tilt your head a bit and its fine.
DO
Assess the foundation and the
land underneath, get the required
permits to do the work, and hire
people to do the work.
ACT! ACT! ACT!
Action The problem wont go away on its own
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The Leaning Tower of Pisa
DONT
No fishing expeditions. (Cast
your line and hope it works)
No mazes. (Keep going until you
stumble, then back up and try a
new path)
DO
Concrete, measurable steps with
realistic milestones that lead to a
solution
1. Assess the foundation (January 1)
2. Obtain permits, hire crew (March 1)
3. Straighten the tower (June 1)
Plan Organized, purposeful, accountable, measurable
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The Leaning Tower of Pisa
Corrective Action Plan (1 of 3)
Weakness: The Tower of Pisa leans1. The AALT* will assess the foundation and land
underneath (January 1)
1a. Hire an independent surveyor experienced
with limestone, lime mortar, and marble. Italiana plus.
1b. The surveyor will assess the tower foundation
and the surrounding land.
1c. The surveyor will write a report stating how
the tower can be straightened. The report willinclude the materials and labor required.
AALT: Architects Against Leaning Towers
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2. The AALT will obtain permits, hire a team, and procure materials (March 1)2a. The AALT government liaison will take the report to the Italian
government and request permission to shore up the foundation (and land, if
needed).
2b. The AALT site manager will use the independent surveyor report to hire a
project team and procure the building materials.
AALT: Architects Against Leaning Towers
The Leaning Tower of Pisa
Corrective Action Plan (2 of 3)
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3. The project team will straighten the tower (June 1)
3a. The AALT site manager will oversee team straightening the tower.
3b. After work is complete, the independent surveyor will re-assess to make
sure the work is acceptable.
AALT: Architects Against Leaning Towers
The Leaning Tower of Pisa
Corrective Action Plan (3 of 3)
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Effective Corrective Action Plans
Questions?