Site MenuExecutive Summary – Audit of Supply Inventory Management
Election Canada's (EC) core responsibility is to prepare for, deliver, and report on federal elections, by-elections and referendums in accordance with the legislative framework, while ensuring integrity throughout the electoral process and promoting regulatory compliance.
In order to be in a position to deliver an electoral event at any time, EC must maintain a certain level of readiness. This includes being ready to provide the necessary material inventory required for poll administration during a general election or by-election.
The Distribution Centre and the electoral material management team have distinct roles and responsibilities in the management and administrative control of electoral materials, from needs planning, procurement and production to receipt, assembly, distribution, recovery and disposal following a general election or by-election. Both use EC's Supply Management System (SMS), which has been in place for over 20 years.
We conducted an internal audit between June and November 2022 to determine how Elections Canada is meeting its supply inventory management obligations.
What We Examined
The objectives of this audit were to:
- Ensure that effective governance mechanisms are in place to support the management of supply inventory.
- Ensure that the internal control over supply inventory counts is effective, achieves operational results, and demonstrates good stewardship and value for money.
- Ensure that material management decisions are based on risk management practices, such as acquisition, lifecycle costing, and divestment.
- Ensure that effective oversight mechanisms are in place to support the management of supply inventory.
What We Found
At the conclusion of this audit, we are unable to state that supply inventory is managed sustainably and cost-effectively throughout its lifecycle.
In general, there is no governance structure in place to manage supply inventory at EC. As such, the organization will need to build an inventory management framework that includes a policy and procedures or guidelines covering all components of effective and efficient inventory management.
EC will need to assess the job descriptions of staff involved in inventory management, including business owners, and incorporate specific targets into the performance review process.
The audit further concluded that EC will need to adjust its internal control over supply inventory counts to achieve operational results, good stewardship and value for money. It will need to base material management decisions on risk management practices, such as acquisition, lifecycle costing, and divestment.
Moreover, it was determined that a formal oversight mechanism, applicable to all sectors of activity, is needed to ensure that supply inventory management is based on sound management practices for the control and protection of assets.
Finally, there are opportunities to strengthen the roles and responsibilities associated with inventory and electoral material management, including those of business owners. Specifically, EC senior management will need to demonstrate leadership and commitment to implementing an inventory management governance structure to address identified and recurring weaknesses in a timely manner.
Based on these facts, we have made four recommendations on how to improve the management of EC's supply inventory.
Management Response
Management agrees with the findings of the audit, has accepted the recommendations made in the report, and has developed an action plan to follow up on the recommendations. We applaud management, which has already taken measures to implement Recommendation 1. Management's action plan can be found in Appendix C of this report.