Appendix C: Recommendations and Management Action Plans – Audit of Supply Inventory Management

1. Establish and implement a governance structure, including a management framework and related documents, for managing inventory at the Distribution Centre and election materials. These documents should cover all aspects of material management, including lifecycle management.
2. Review and revise the job descriptions of employees whose responsibilities involve managing inventory and election materials, and include specific material management objectives in the performance review process for senior executives and managers, particularly business owners. These objectives should take into account all associated activities, from the development and procurement of election materials to their disposal.

Management supports this recommendation. The Distribution Centre and the election material management team play key roles in ensuring that EC is prepared to conduct an electoral event at any time. Management will develop a management framework and related documents for managing inventory at the Distribution Centre and for managing election materials; these documents will cover all aspects of material management, including lifecycle management. The framework will set out the roles and responsibilities of senior executives, managers, team leaders and employees, and it will be revised as needed. The documents will be approved by senior management before implementation; they will then be communicated to all staff concerned.

Management will review the job descriptions of employees with responsibilities at the Distribution Centre and of employees responsible for managing election materials to ensure that their job descriptions reflect their actual tasks.

Management will then integrate objectives related to Distribution Centre management responsibilities and election material management responsibilities (business owners) into the performance review process for senior executives, managers, team leaders and employees. These objectives will be consistent with the management framework to be developed.

All actions to be completed by March 31, 2025.

1. Conduct a physical count of the contents of its warehouses so that it can adjust its inventory in a timely manner in accordance with new processes and develop an action plan for future inventory counts.
2. Take all necessary steps to eliminate the many existing discrepancies between the results of the physical counts and the data recorded in the SMS, in order to improve the information in its financial statements and support the best use of resources and sound stewardship.
3. Consider acquiring a modern inventory management solution to avoid recurring inaccuracies.

Management supports this recommendation. Following the inventory count in April 2023, it will conduct periodic counts to monitor operations and eliminate discrepancies.

As well, management will develop and implement an action plan (two-year or three-year) that responds to the recommendations and major issues raised in the audit report. This plan will include objectives that are specific, measurable, attainable, realistic and achievable in a reasonable time frame. It will also establish deadlines, performance indicators and an accountability mechanism. The plan will be reviewed annually.

Management will look into a modern inventory management solution.

All actions to be completed by March 31, 2025.

1. Conduct an inventory rationalization exercise to eliminate surpluses.
2. Ensure that the management framework and related documents on election material management (Recommendation 1) define EC's procedures and obligations for lifecycle management. EC will need to specify how often reviews should take place and create a follow up process. Business owners will need to provide organized, structured instructions on the disposal of surplus items to warehouse staff and the material management team.
3. Provide training to business owners in all branches to remind them of their obligations.

Management supports this recommendation. Under the new management framework, it will work with business owners to conduct an inventory rationalization exercise and eliminate surpluses.

Mandatory training on inventory management will be provided to employees to whom the new management framework applies.

All actions to be completed by March 31, 2025.

EC should take necessary measures to address any gaps detected and report the results periodically to senior management so that appropriate corrections can be made in a timely manner.

Management recognizes the need to implement an oversight mechanism. It is committed to an efficient inventory management system based on clearly documented procedures, so that reports can be made to senior management and necessary corrections made in a timely manner. The inventory management action plan will detail how the oversight mechanism will work.

All actions to be completed by March 31, 2025.