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Developing Effective Corrective Action Plans March 2, 2011

Developing Effective Corrective Action Plans March 2, 2011. Annette Moreno Pendergast ESD Cris Cable & Roger Walter Auditor General’s Office. Who Needs Corrective Action Plans?. Everyone! Google Search Almost 2 million hits in less than 1 second Articles, templates, examples

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Developing Effective Corrective Action Plans March 2, 2011

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  1. Developing Effective Corrective Action PlansMarch 2, 2011 Annette Moreno Pendergast ESD Cris Cable & Roger Walter Auditor General’s Office

  2. Who Needs Corrective Action Plans? Everyone! Google Search • Almost 2 million hits in less than 1 second • Articles, templates, examples • Related to • Performance Improvements • Audit Findings • Employee Development

  3. Purpose Look at what it takes to get past the Good Intentions to get to the Good Results! Study Results Percentage of study participants maintaining their resolutions over time:- after 1 week: 75%- after 2 weeks: 71%- after 1 month: 64%- after 6 months: 46%

  4. Houston, we have a problem. After you determine there is a problem you… • Ignore it. The problem will go away eventually. b. Blame it on your predecessor. c. Create a Corrective Action Plan. Our thanks to Carmen Covey, from the Department of Defense, Missile Defense Agency for letting us use her slides as a starting point for our presentation.

  5. What is a Corrective Action Plan anyway? Corrective – A practical strategy to resolve the problem Action – Active steps we can realistically accomplish Plan – Organized, purposeful, accountable, measurable Now we have a Plan! CAP + =

  6. Effective Corrective Action Plans • State the problem clearly • Have “owners” who are accountable for results • Break the solution into steps (actions) • Identify the people accountable for each action • Set achievable deadlines & specify measurable results • Monitor progress A journey of a thousand miles begins with a single step.

  7. CAP Step #1 –State the problem clearly • Not Like This: • CapitalAssets List is not audit ready (Too vague) • In FY 2010, we reported capital equipment of $10M (Problem?) • This corrective action plan is designed to correct the problem with Capital Assets which was that we cannot explain the amount reported on the financial statements because the transactions don’t match up. (Not specific or clear) Huh?

  8. CAP Step #1 –State the problem clearly* • Like This: • The Capital Assets List is not current as capital acquisitions and disposals were not reconciled to the Capital Assets List last year. Oh – Now I get it! *Internal or external auditor finding may already be specifically stated.

  9. CAP Step #2 – Owners who are accountable for results Business Manager may have general oversight of entire CAP. Area supervisors & district/school level clerks are also involved. So who’s in charge? Who’s accountable? It’s a joint effort, but make sure everyone knows their individual responsibilities!

  10. CAP Step #3 – Break the solution into steps (actions) Weakness: The Capital Assets List is not current as capital acquisitions and disposals were not reconciled to the Capital Assets List last year. Reconcile the Capital Assets List. Solution or Step? What if the CA clerk doesn’t know how to reconcile the list? What if there isn’t a list of acquisitions and disposals from last year? How do you eat a ten pound Hamburger? One bite at a time.

  11. CAP Step #4 – Identify who is accountable for each action Steps: a. The District will determine if acquisition and disposal (A&D) lists were prepared b. If not prepared, the District will obtain information from A/P and approved disposal forms c. The District will prepare the A&D lists d. The District will reconcile the Capital Assets list to the A&D lists e. The District will resolve any differences. Many hands make light work in the kitchen or at the office!

  12. CAP Step #5 –Set achievable deadlines &specify measurable results When will each step be done? What does DONE mean? TBD

  13. CAP Step #5 –Set achievable deadlines & specify measurable results (MR) Steps: a. By DATE, NAME will determine if acquisition and disposal (A&D) lists were prepared and report back to WHO (MR = @DATE did NAME report back?) b. If not prepared, by DATE, NAME will obtain acquisition information from NAME 2 and approved disposal forms from NAME 3 (MR =@DATE does NAME have Info?) c. By DATE, NAME will prepare the A&D lists and provide a copy to WHO (MR = @DATE is A&D list done?)

  14. CAP Step #6 – Monitor Progress

  15. Effective Corrective Action Plans To recap: • State the problem clearly • Have “owners” who are accountable for results • Break the solution into steps (actions) • Identify the people accountable for each action • Set achievable deadlines & specify measurable results • Monitor progress Put these components together and you get ….

  16. Effective Corrective Action Plans

  17. Corrective Action Plans Example Templates

  18. Sample Template

  19. RASCI Example

  20. Effective Corrective Action Plans Questions?

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