Internal Audit Report. Safety and Health Management Information System Audit. July 24, To:

Transcription

1 July 24, 2001 To: K.F. Webb R.K. Switzer B. Gustaspi D.B. Demerse A.T. Morris J.G. Rodford G.N. Sherlock D.A. Harrison M. Costello (Summary) Finance Committee (Summary) Internal Audit Report Safety and Health Management Information System Audit AU0202EXECOPS Audit Services Prepared by: C.D. Eng S. Krogh D. Snow

2 Internal Audit Report Safety and Health Management Information System TABLE OF CONTENTS EXECUTIVE SUMMARY...1 BACKGROUND...1 OBJECTIVE...1 SCOPE...1 CONCLUSION...2 SYSTEM CALCULATIONS...5 OBSERVATION...5 RECOMMENDATIONS...10 MANAGEMENT ACTION PLAN...11 USE OF SHMIS...14 OBSERVATIONS...14 RECOMMENDATIONS...16 MANAGEMENT ACTION PLAN...17 SUMMARY OF RECOMMENDATIONS AND MANAGEMENT PLANS...19 RECOMMENDATION...19 MANAGEMENT ACTION PLAN...19

3 EXECUTIVE SUMMARY Background Safety and health statistics play an important role in safety performance by providing management with information on work injury occurrences, related company costs, and performance trends. BC Hydro implemented the Safety and Health Management Information System (SHMIS) in 1995 as a means to capture and report safety and health information and monitor performance in relation to established safety and health goals. Injuries requiring medical attention is a key safety statistic reported by SHMIS, and was used to determine performance payments to union and management employees for Fiscal For 2002 SHMIS generated statistics continue to form components of management incentive payments. The estimated BC Hydro cost for Safety and Health incidents was approximately $21 million for each of Fiscal 2000 and This cost includes sick leave and personal accidents including Workers Compensation Board claims. Objective The object was to provide the Management assurance that that: SHMIS data is complete, accurate, and reliable. Key safety statistics used to monitor safety performance and determine incentive payments are calculated accurately. Management understands, utilizes, and values the reports produced by SHMIS. The SHMIS information system is managed cost effectively. Scope The scope of our review included: Identification, review and testing of key controls to ensure information inputs from various internal systems such as time capture systems and vehicle services is complete, accurate and timely. Safety and Health Management Information System Audit Report Page 1 of 22

4 EXECUTIVE SUMMARY Review of the program logic to ensure the correct parameters were used to calculate key performance indicators. Testing a sample of salaried and wage employees to ensure time records were accurately accumulated in SHIMIS and related performance indicators were correct. Review of the operating and maintenance costs of SHMIS and management s action for monitoring and assessing cost efficiency. Interviews with various users to determine their understanding, utilization and value on the information generated by SHMIS. Powertech was excluded from the review as they have their own registration with the Workers Compensation Board (WCB) and do not use SHMIS for reporting safety statistics. Conclusion Our review indicates that SHMIS generally provides an effective means for management to monitor safety costs, incidents, and trends and the information is used extensively throughout the company to assess both organizational and individual achievements. We found that in general the controls and related processes provide complete data inputs to the safety and health program, however we identified a significant error in the accuracy of incident frequency measures reported, and timeliness and consistency of information provided to management is of concern. Our testing identified that the SHMIS program does not accumulate and report hours worked correctly. A program logic error overstates the monthly hours recorded by an estimated 10% for both salary and wage hours. For salaried employees only, the program fails to properly exclude vacations and other time off in working hours, resulting in an additional overstatement for salaried hours estimated to be 20%. By our estimates, the 11.9 million hours reported in Fiscal 2001 is overstated by 2.2 million hours or 22%. Safety and Health Management Information System Audit Report Page 2 of 22

5 EXECUTIVE SUMMARY This overstatement results in overly positive performance on indicators that measure incidents as a ratio to hours worked; such as the medical aid frequency and the all-injury frequency. We identified that the error resulting in the inclusion of salaried time off occurred in 1999, when significant changes were made with the implementation of the Pay, Human Resources (PAHR) system. The erroneous frequency indicators are used both as a basis to reward performance and to measure performance. During Fiscal 2001, corporate-wide incentive payments were based on the degree of improvement for medical aid frequency. As the improvement was measured over two years, (e.g and 2001) and consistently used the incorrect hours, we expect that the impact of the error will not be significant. With respect to BC Hydro s overall performance on safety, the program errors are more significant as current performance against the CEA average is significantly worse than has been reported. Based on our calculations, current performance for all-injury frequency will increase to 5.7 incidents per 100 employee years, from the 4.6 incidents originally reported. In comparison the CEA average before BC Hydro restatement is 4.09 injuries per 100 employee years. This change is charted in the following graph. Injuries Per 100 Employee Years Injury Performance Measures # of BCH Incidents BCH Frequency published BCH Frequency (estimated) CEA Frequency published 276 We identified a series of enhancements to improve the reliability of information and the functionality of SHMIS. Furthermore, to ensure that management Safety and Health Management Information System Audit Report Page 3 of 22

6 EXECUTIVE SUMMARY decisions are based on accurate information, controls over the consistency and accuracy of report information should be established. The annual cost to maintain this system is approximately $139,000 per annum. SHMIS management believes this to be reasonable given SHMIS s structure within the Pay Human Resource system. However, no value analysis to support the system cost has been undertaken at this time. Our detailed comments follow in the next section. Safety and Health Management Information System Audit Report Page 4 of 22

7 SYSTEM CALCULATIONS Observation The SHMIS system accumulates a number of inputs such as the number of accidents and hours worked, performs various calculations based on predefined formulas, and reports on both the direct inputs and the calculated metrics. Inputs include employee hours worked, the number of Workers Compensation Board (WCB) inspections and orders, vehicle accidents and costs, sick leave frequency and severity, and public incidents including fatalities and injuries. Our audit reviewed the accuracy, completeness and timeliness of the data inputs, and tested the formulas and calculations used to report key metrics. Accuracy, Completeness and Timeliness of Inputs Data is input by a combination of electronic updates from various time system databases, and manual entry. Area safety administrators use information from the original incident reports to classify different incidents and the type of injury, and prepare the manual input forms. We tested the controls to ensure that Workers Compensation and incident information is input accurately and completely to SHMIS. No exceptions were noted. Our testing of sick leave, medical aid incidents, and disabling injury incidents reported in SHMIS to timesheets and other source documents indicated that all absences were correctly stated The following opportunities for improving the data input exist: Cutoff dates have not been established to ensure manual inputs are captured on a timely basis, particularly at key reporting periods such as fiscal year end. Our tests indicated that although data input was generally timely, there were some instances where vehicle accidents, safety incidents, and income continuance information were not input until months after the actual incident. Some sick leave pay codes established in Construction Business Unit (CBU) were not included in the sick leave calculation. CBU management indicated that the particular codes are not being used and therefore have no impact on Safety and Health Management Information System Audit Report Page 5 of 22

8 SYSTEM CALCULATIONS sick leave costs. However, as the codes are active, future use of the codes is possible which would understate sick leave. There are no control totals to ensure completeness and accuracy of electronic data transferred from Vehicle System to SHMIS. The SHMIS Handbook has not been amended to reflect the most recent factors in use. Frequency Rate Performance Measures Significant errors exist in the calculation of measures that incorporate hours worked such as the all-injury/illness frequency rate, the disabling injury/illness frequency rate and the medical aid injury/illness frequency rate. The SHMIS program accumulates most worked hours from the Wage Time System for IBEW employees and Salary Time System for OPEIU and M&P staff. We identified that hours coming from these sources are not being accumulated in SHMIS correctly. A program logic error has overstated hours by accruing incorrect hours at the end of each month, which are never reversed. In our test sample, SHMIS work hour data was approximately 10% higher than the actual hours reported by the salary and wage source systems due to this error. We also noted that for salaried time, SHMIS programming includes annual vacation, statutory holidays, leave of absence with pay, and other available time off as part of total work hours. This is inconsistent with industry standards established by the Canadian Electricity Association and SHMIS Key Performance Indicators design criteria which define work hours to include only the time the employee is on the job. Based on standard work hours this treatment inflates the value for salaried hours worked by approximately 20%. To determine the overall impact of the errors, we estimated worked hours using employee headcount at the beginning of the fiscal year and standard hours available. Standard hours are a representation of time an employee has been available for work after allowances for vacations and other time off. Safety and Health Management Information System Audit Report Page 6 of 22

9 SYSTEM CALCULATIONS Our results are as follows: Headcount Standard Hours Estimated Work Hours Salaried Staff million IBEW Staff million Total million Hours Reported by SHIMIS Difference 11.9 million 2.9 million Based on our test results, 2.2 million hours reported are likely overstated. This can be attributed to: The program error resulting in an over-accrual of hours (10% error on the total 9 million hours for 0.9 million hour overstatement); and Time off for salaried staff being included in work hours (20% error on the salaried 6.5 million hours for 1.3 million hour overstatement). The remaining difference of 0.7 million hours would be reasonably attributed to overtime worked and deferred time off. We reviewed historical total work hours reported by SHMIS, and determined that the error likely occurred in 1999, when the new Pay System was implemented. During 1999 the hours reported increased by 1.8 million hours. Headcount increased by approximately 100 people during this year, which based on standard hours, only supports an increase of approximately 150 thousand hours. Safety and Health Management Information System Audit Report Page 7 of 22

10 SYSTEM CALCULATIONS The following table summarizes our results. Year Headcount Hours worked per per Financial Stmts SHMIS (in millions) , , , , Work hours are incorporated into metrics used to measure frequency of injuries. A number of these measures are used as the basis for employees incentive payments. Management has advised us that no payments were made in 1999 based on safety improvements over 1998 performance. Such payments would have been erroneous. The balance of the incentive payments, including the 2001 gainsharing were based on improvement over 2000 performance, and should not be materially impacted as comparative years were consistently overstated. With respect to BC Hydro s performance on safety, the program errors are more significant. Based on the estimated overstatement of hours, BC Hydro s revised performance is charted as follows: Injuries Per 100 Employee Years Injury Performance Measures # of BCH Incidents BCH Frequency published BCH Frequency (estimated) CEA Frequency published 276 Safety and Health Management Information System Audit Report Page 8 of 22

11 SYSTEM CALCULATIONS Current performance for all-injury frequency is estimated to increase to 5.7 incidents per 100 employee years, from the 4.6 incidents originally reported. In comparison the CEA average is 4.09 injuries per 100 employee years. Data Integrity Work hours are a key input for SBU s performance metrics reported to CMC. Although the SBUs use SHMIS data as the basis for their reports, we noted significant differences between what was contained in SHMIS and what was reported. These differences ranged between 6.1% (112,000 hours) for Power Supply up to +5.43% (269,000 hours) for Transmission and Distribution. We were advised that differences generally arose because of organizational change, ongoing incident adjustments, work hour estimates, and the timing of report preparation. We were unable to verify the reasons for the differences as the preparation date for the SBU reports is not known, and the extent of estimation included in the reports is not documented. The differences in the work hour data reported, raise serious doubt about the accuracy of performance indicators reported to CMC such as medical aid frequency. For example at March 1, 2001 T&D reported an improvement in medical aid frequency of 11.9% (a level 3 improvement), while in fact SHMIS showed their improvement was 7.0% (a level 1 improvement). Control over the integrity of the data reported to senior management is critical to ensure decision making is based on valid information. In a report dated August 30, 2000, SHMIS management identified a number of enhancements to improve system integrity including audit controls to verify certain calculations, and compare key inputs between SHMIS and the source systems. These enhancements will not be implemented until December 2001 due to a freeze on computer work resulting from PeopleSoft payroll upgrade. Enhancements and improved integration of SHMIS with other corporate systems should be reviewed with the involvement of the Business Information Manager for Executive Operations. Safety and Health Management Information System Audit Report Page 9 of 22

12 SYSTEM CALCULATIONS Recommendations Request the assistance of the Business Information Manager, Executive Operations, in managing systems and application development, enhancement and maintenance. Determine based on consultation with Business Information Manager, Executive Operations, if the SHMIS program should be modified to obtain worked hours from PeopleSoft Pay, instead of the Salary Time and Wage Time Systems. Work with Westech to correct the program logic for the accumulation of hours worked for both salaried and wage time. Work with Westech to correct the program that calculates work hours for Salaried time staff to exclude non working hours such as annual vacation, flexible days, statutory holidays, and leave of absences for salaried employees. Ensure adequate testing is done prior to moving the program into production. Until systems stabilize, implement a process to review the reasonableness of hours reported based on standard hours and employee headcount by SBU on an periodic basis. Recalculate the frequency indicators based on the corrected worked hours and communicate the changes to relevant stakeholders. Review the impact of the recalculated safety performance measures on the current year s targets. Complete outstanding items identified by management in August 2000 that provide additional data integrity controls. Safety and Health Management Information System Audit Report Page 10 of 22

13 SYSTEM CALCULATIONS The Workers Compensation Board differential factor dollar amount should be reviewed annually for correctness and the amount made consistent in both the SHMIS program and Handbook. To ensure the integrity of the data reported to CMC a formal reconciliation of SHMIS total work hours with SBU reported work hours should be completed before report distribution. Include the two sick pay codes for Construction Business Unit in sick leave cost calculations for consistency with the rest of BC Hydro, or alternately delete the codes. Establish and communicate cutoff dates for data submission of Safety and Health input to meet quarterly and fiscal year end reporting dates. Consider obtaining and matching a control total for electronic input files of interfacing systems and SHMIS processed files to ensure complete processing of data. Management Action Plan The Business Information Manager, Executive Operations has been advised of the system issues and will be involved in current and future application enhancements and development issues. Completed: July 20, The option to extract worked hours from PeopleSoft Pay will be reviewed in consultation with the Business Information Manager, Executive Operations. Completion Date: September 30, The logic problem has been identified and the program language has been revised in the test environment. The revised program will be put into production once testing is complete. Completion Date: October 31, Management will work with Westech and the Business Information Manager, Executive Operations to correct the calculation of Salaried time hours. Completion Date: October 31, Safety and Health Management Information System Audit Report Page 11 of 22

14 SYSTEM CALCULATIONS Management will work with Westech and the Business Information Manager, Executive Operations to ensure the program is adequately tested prior to production. Completion Date: October 31, A comprehensive automated monthly audit report that includes comparison of hours worked to past records and against employee count will be developed and implemented. Effective immediately, management will review reasonableness of the SHMIS generated work hours based on headcount until the automated report is available. Completion Date: January 31, All performance measures impacted by work hours will be re-run after implementation of corrective actions and key stakeholders advised accordingly. Completion Date: October 31, Management will review the impact of the recalculated safety measure on established targets. Any significant changes will be identified and communicated to stakeholders including CMC. Completion Date: October 31, Additional audit and control features that were recommended in 2000 will be implemented. Completion Date: March 31, The factor will be reviewed annually and adjusted if WCB rate changes so dictate. Documentation will be revised annually to reflect any adjustments. Completion Date: February 15 annually. Discussions are underway with SBU s to review and affirm future CMC reporting content. A reconciliation method will be developed and agreed upon between Corporate Safety and the Safety Manager of each major SBU group. Completion Date: October 31, As a precautionary measure, the additional CBU sick leave pay codes will be included in sick leave calculations after the PAHR upgrade freeze is lifted. Completion Date: March 31, Safety and Health Management Information System Audit Report Page 12 of 22

15 SYSTEM CALCULATIONS A comprehensive entry date document, suitable for circulation, will be produced and directed to all system users. Completion Date: September 30, Management will work with the Business Information Manager, Executive Operations and Westech to identify key electronic input files and establish control total provisions where required. Completion Date: January 31, Safety and Health Management Information System Audit Report Page 13 of 22

16 USE OF SHMIS Observations SHMIS data is used extensively throughout the organization. Safety performance by SBU, including statistics on the number of medical aid injuries, disabling injuries, and vehicle accidents, is reported to the Corporate Management Committee (CMC) quarterly. For operational management, more detailed and extensive Safety Performance information is available. Others in the organization use SHMIS information to comply with Workers Compensation Board requirements and monitor safety performance indicators, identify trends, and tailor programs to reduce injury and related costs. Managers have on line access to statistics on sick leave frequency, medical aid frequency, and disabling injury severity for staff management purposes, and safety performance metrics are utilized extensively as a component of management incentive pay. While SHMIS is meeting many needs throughout BC Hydro we identified the following issues that should be addressed to ensure that the information is consistent, the reports add value across the organization, and SHMIS computer costs are reasonable: Consistency of Metrics The safety indicators used for reporting should be consistent across SBUs in order to assess and monitor performance on a comparable basis. In the Quarterly Safety Report presented to CMC we noted different treatments of vehicle accidents. Most SBUs reported all accidents, while one SBU reported only preventable accidents. No explanation of this unique treatment is provided to the readers of the report. The corporate safety focus in 2002 is based on reducing the all-injury frequency, a measure of all incidents that result in medical services or lost time after an injury. As this is a new focus, SBUs are establishing their performance goals and objectives related to this measure. With the exception of T&D, the SBUs relied upon performance goals generated by Corporate Safety and CMC. We found the communication to ensure that the goals set were the appropriate targets for the SBU could be improved. Safety and Health Management Information System Audit Report Page 14 of 22

17 USE OF SHMIS User Responsiveness We believe that given the number of users, SHMIS needs to be more responsive to user requirements. Some difficulties currently being encountered include: Managers opinions differ concerning the type of measure that should be used to evaluate safety performance. Some feel the use of medical aid frequency or all-injury frequency is not as meaningful to field personnel as simply identifying the number of incidents. Flexibility to accommodate valid variations in information needs is key to gaining management support to corporate-wide systems such as SHMIS. Some areas have not received SHMIS reports for the last year. Manual efforts are undertaken to derive local Safety and Health statistics. Manual creation of information that is generated by the system is time consuming and inefficient. The current Safety and Health report does not report on the all-injury frequency measure, the most recent corporate safety focus. SBUs are not provided direct access to SHMIS information that they require. Requests are routed through Corporate Safety generate and report the information back to the SBU. This process is unnecessarily time consuming, inefficient, and prone to errors. Computer Costs Computer costs for SHMIS are approximately $139,000 annually. These costs relate largely to the operation and maintenance of SHMIS but also include other application software such as Manager s Online on the BC Hydro Intranet. With a total employee headcount of 5,800, the current operating cost of running SHMIS is approximately $24 per employee a year. Since SHMIS is a PeopleSoft module, it complies with BC Hydro s Information Technology strategy of using a common platform and database. Therefore, SHMIS was a logical fit to the suite of applications used by BC Hydro. A formal business case study was done in 1993 but its implementation and acceptance Safety and Health Management Information System Audit Report Page 15 of 22

18 USE OF SHMIS was based more on strategic fit instead of economic value. As such, we could not determine the SHMIS cost represents good value. Corporate Health and Safety Management believes SHMIS to be a high quality safety and health management information system, and while it feels $24 per employee is a reasonable price to pay, there is no analysis available to support that conclusion. As such, it may be appropriate to undertake a review of the system to assess whether it operating in the most cost effective manner. Such a review could also serve to provide performance and cost indicators for ongoing monitoring and assessment of SHMIS operations. Recommendations Continue to encourage communication and participation among SBUs in assuring that goals established for the organization are appropriate and formally accepted. To ensure that data reported to key stakeholders is comparable among SBUs ensure a consistent definition is applied for all safety indicators. Exceptions to the standard definition should be clearly labeled with explanations for their differences. Ensure report documentation includes the nature of any significant estimates used and the date of report preparation. Develop the means to simplify reporting and extraction of data from SHMIS so that all users can obtain the information they require in the manner that they need it (especially quarterly periods). Follow through on adding the all-injury frequency calculation to the online Safety and Health report to be consistent with current Strategic Business Unit reporting. Undertake a review of SHMIS to ascertain if it is operating in the most effective manner compared to other options. Safety and Health Management Information System Audit Report Page 16 of 22

19 USE OF SHMIS Establish cost and performance indicators to monitor and assess the ongoing operations of the system. Management Action Plan The method for targeting and goal setting will be reviewed and reaffirmed annually to provide SBUs the ability to acknowledge expected corporate and SBU performance. A record will be maintained of each year s targeting process and agreed upon targets. Completion Date: Annually in conjunction with CMC goal setting. Corporate Safety will undertake a review of safety measures and definitions being used within the respective business units to ensure consistent use of standards across the corporation. The review will also provide guidance to assure that other conventional indicators are being used appropriately. The related Occupational Safety and Health Standard will be upgraded where necessary, to reinforce the reporting methods and definitions. Completion Date: October 15, All reports will include production dates effective immediately. Management will work with the SBUs to ensure that ad hoc reporting provided to key stakeholders includes notation on significant estimates. Completion Date: September 1, A cross-sbu project team is proposed to review report requirements and address issues relating to: key data extraction requirements; simplification of reports; and access. Completion Date: Team to be established by December 31, 2001, with team recommendations to be implemented by March 31, Special on-line all-injury frequency reporting is proposed at the corporate, SBU and direct report levels. Completion Date: Design by October 31, A comprehensive review of SHMIS from an operational, functional and cost perspective will be conducted in conjunction with the Business Information Manager, Executive Operations and other stakeholders to Safety and Health Management Information System Audit Report Page 17 of 22

20 USE OF SHMIS ensure the optimal operations of the system. Completion Date: January 31, Management will establish indicators to monitor system cost and performance. Completion Date: January 31, 2002 Safety and Health Management Information System Audit Report Page 18 of 22

21 SUMMARY OF RECOMMENDATIONS AND MANAGEMENT PLANS Recommendation Management Action Plan System Calculations Request the assistance of the Business Information Manager, Executive Operations, in managing systems and application development, enhancement and maintenance. Determine based on consultation with Business Information Manager, Executive Operations, if the SHMIS program should be modified to obtain worked hours from PeopleSoft Pay, instead of the Salary Time and Wage Time Systems. Work with Westech to correct the program logic for the accumulation of hours worked for both salaried and wage time. The Business Information Manager, Executive Operations has been advised of the system issues and will be involved in current and future application enhancements and development issues. Completed: July 20, The option to extract worked hours from PeopleSoft Pay will be reviewed in consultation with the Business Information Manager, Executive Operations. Completion Date: September 30, The logic problem has been identified and the program language has been revised in the test environment. The revised program will be put into production once testing is complete. Completion Date: October 31, Work with Westech to correct the program that calculates work hours for Salaried time staff to exclude non working hours such as annual vacation, flexible days, statutory holidays, and leave of absences for salaried employees. Ensure adequate testing is done prior to moving the programs into production. Until systems stabilize, implement a process to review the reasonableness of hours reported based on standard hours and employee headcount by SBU on an periodic basis. Management will work with Westech and the Business Information Manager, Executive Operations to correct the calculation of Salaried time hours. Completion Date: October 31, Management will work with Westech and the Business Information Manager, Executive Operations to ensure the program is adequately tested prior to production. Completion Date: October 31, A comprehensive automated monthly audit report that includes comparison of hours worked to past records and against employee count will be developed and implemented. Effective immediately, management will review Safety and Health Management Information System Audit Report Page 19 of 22

22 SUMMARY OF RECOMMENDATIONS AND MANAGEMENT PLANS Recommendation Management Action Plan reasonableness of the SHMIS generated work hours based on headcount until the automated report is available. Completion Date: January 31, Recalculate the frequency indicators based on the corrected worked hours and communicate the changes to relevant stakeholders. Review the impact of the recalculated safety performance measures on the current year s targets. Complete outstanding items identified by management in August 2000 that provide additional data integrity controls. The Workers Compensation Board differential factor dollar amount should be reviewed annually for correctness and the amount made consistent in both the SHMIS program and Handbook. To ensure the integrity of the data reported to CMC. A formal reconciliation of SHMIS total worked hours with SBU reported work hours should be completed before report distribution. Include the two sick pay codes for Construction Business Unit in sick leave cost calculations for consistency with the rest of BC Hydro, or alternately delete the codes. Establish and communicate cutoff dates for data submission of Safety and Health input to meet quarterly and fiscal year end reporting dates. All performance measures impacted by work hours will be re-run after implementation of corrective actions and key stakeholders advised accordingly. Completion Date: October 31, Management will review the impact of the recalculated safety measure on established targets. Any significant changes will be identified and communicated to stakeholders including CMC. Completion Date: October 31, Additional audit and control features that were recommended in 2000 will be implemented. Completion Date: March 31, 2002 The factor will be reviewed annually and adjusted if WCB rate changes so dictate. Documentation will be revised annually to reflect any adjustments. Completion Date: February 15 annually. Discussions are underway with SBUs to review and affirm future CMC reporting content. A reconciliation method will be developed and agreed upon between Corporate Safety and the Safety Manager of each major SBU group. Completion Date: October 31, As a precautionary measure, the additional CBU sick leave pay codes will be included in sick leave calculations after the PAHR upgrade freeze is lifted. Completion : March 31, 2002 A comprehensive entry date document, suitable for circulation, will be produced and directed to all system users. Completion Date: September 30, Safety and Health Management Information System Audit Report Page 20 of 22

23 SUMMARY OF RECOMMENDATIONS AND MANAGEMENT PLANS Recommendation Consider obtaining and matching a control total for electronic input files of interfacing systems and SHMIS processed files to ensure complete processing of data. Management Action Plan Management will work with the Business Information Manager, Executive Operations and Westech to identify key electronic input files and establish control total provisions where required. Completion Date: January 31, Use of Shims Continue to encourage communication and participation among SBUs in assuring that goals established for the organization are appropriate and formally accepted. To ensure that data reported to key stakeholders is comparable among SBUs ensure a consistent definition is applied for all safety indicators. Exceptions to the standard definition should be clearly labeled with explanations for their differences. Ensure report documentation includes the nature of any significant estimates used and the date of report preparation. Develop the means to simplify reporting and extraction of data from SHMIS so that all users can obtain the information they require in the manner that they need it. The method for targeting and goal setting will be reviewed and re-affirmed annually to provide SBUs the ability to acknowledge expected corporate and SBU performance A record will be maintained of each year s targeting process and agreed upon targets. Completion Date: Annually in conjunction with CMC goal setting. Corporate Safety will undertake a review of safety measures and definitions being used within the respective business units to ensure consistent use of standards across the corporation. The review will also provide guidance to assure that other conventional indicators are being used appropriately. The related Occupational Safety and Health Standard will be upgraded where necessary, to reinforce the reporting methods and definitions. Completion Date: October 31, 2001 All reports will include production dates effective immediately. Management will work with the SBUs to ensure that ad hoc reporting provided to key stakeholders includes notation on significant estimates. Completion Date: September 1, A cross-sbu project team is proposed to review report requirements and address issues relating to: key data extraction requirements; simplification of reports; and access. Completion Date: Team to be established by December 31, 2001, with team recommendations to be implemented by March 31, Safety and Health Management Information System Audit Report Page 21 of 22

24 SUMMARY OF RECOMMENDATIONS AND MANAGEMENT PLANS Recommendation Follow through on adding the all-injury frequency calculation to the online Safety & Health report to be consistent with current Strategic Business Unit reporting. Undertake a review of SHMIS to ascertain if it is operating in the most effective manner compared to other options. Management Action Plan Special On-line all-injury frequency reporting is proposed at the corporate, SBU and direct report levels. Completion Date: Design by October 31, A comprehensive review of SHMIS from an operational, functional and cost perspective will be conducted in conjunction with the Business Information Manager, Executive Operations and other stakeholders to ensure the optimal operations of the system. Completion Date: January 31, 2002 Establish cost and performance indicators to monitor and assess the ongoing operations of the system. Management will establish indicators to monitor system cost and performance. Completion Date: January 31, 2002 Safety and Health Management Information System Audit Report Page 22 of 22