Writing Effective Corrective Action Plans

8/7/2019 Writing Effective Corrective Action Plans

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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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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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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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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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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.



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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


Many hands make light work in

the kitchen or at the office!


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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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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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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 .



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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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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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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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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.





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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.





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Questions?

Writing Effective Corrective Action Plans

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