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!
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Purpose
Study Results
Look at what
it participants
takes to get past
Percentage
of study
maintaining
resolutions
over time:
thetheir
Good
Intentions
- after 1 week: 75%
to 2get
to the
Good Results!
- after
weeks:
71%
- after 1 month: 64%
- after 6 months: 46%
Houston, we have a problem.
After you determine there is a problem you…
a. 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.
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!
Effective Corrective Action Plans
1. State the problem clearly
2. Have “owners” who are accountable for results
3. Break the solution into steps (actions)
4. Identify the people accountable for each action
5. Set achievable deadlines & specify measurable results
6. Monitor progress
A journey of a
thousand miles begins
with a single step.
CAP Step #1 –
State the problem clearly
Not Like This:
• Capital Assets 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)
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.
*Internal or external auditor finding may
already be specifically stated.
Oh –
Now I
get it!
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!
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?
How do
you eat
What if there isn’t a list of acquisitions and disposals
from
lasta
ten pound
year?
Hamburger? One
bite at a time.
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!
CAP Step #5 –
Set achievable deadlines &
specify measurable results
When will each step be done?
What does DONE mean?
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?)
CAP Step #6 –
Monitor Progress
Effective Corrective Action Plans
To recap:
1. State the problem clearly
2. Have “owners” who are accountable for results
3. Break the solution into steps (actions)
4. Identify the people accountable for each action
5. Set achievable deadlines & specify measurable results
6. Monitor progress
Put these components together and you get ….
Effective Corrective Action Plans
Corrective Action Plans
Example Templates
Sample Template
ACTION
OBJECTIVES
REQUIRED
PERSON
RESPONSIBLE
TIME
TABLE
MEASURES/
DATA
NEEDED
RESULTS
RASCI Example
Implementation of Student Activities into Visions Enterprise
For the purpose of Centralization and Proper Procurement Procedures
Dir of Finance
Acct Specialist
Purch Coord
A/P Clerk
Sch Secretary
Leadership
Due by
Create new database or incorporate into existing
R
C
C
C
C
I
3/1/2011
Implement Pcards?
C
C
R
C
I
I
3/7/2011
Review implementation and decisions above
R
C
C
C
I
Setup new database and GL defaults
R
S
C
Add new account elements and accounts
C
R
Activity/ Decision
Add new vendors
C
3/8/2011
4/15/2011
I
R
4/30/2011
C
4/30/2011
Add new GL Reports
C
R
Change P&P approval queue
R
C
Review check stock and type
C
R
Update Procedures Manual
C
R
C
C
I
I
5/31/2011
Training
R
S
S
I
I
I
7/15/2011
R A S C I Symbols
R= Responsibility for making it happen. The prime mover.
A=Approval required for inputs, e.g., money, staff, capital equipment
S= Supports "R" in making it happen; accountable to "R" for agreed-upon work and/or resources
C= Consulted by "R" before plans final or decisions taken; has opportunity to influence plans/decisions.
I= Inform; after the fact OK.
Blank means no involvement necessary
I
C
I
4/30/2011
I
4/30/2011
4/30/2011
Effective Corrective Action Plans
Questions?