Identification and Tracking of Trade Devices
MC’s Online Reporting Application (ORA) is aweb-based application used by MC inspectors as well as ASPs’ Recognized Technicians to report the results of measuring device inspections and issue device examination certificates as applicable. The application is also used to update data pertaining to trade devices such as their location, status, and trade sector usage.
It was found that ORA has automated controls to support the identification and tracking of trade devices and related mandatory training is delivered to ORA users. Guidance material and ORA help desk support is also available to support the appropriate identification and tracking of trade devices.
Monitoring of Authorized Service Providers
Through the Agency’s Alternative Service Delivery (ASD) program, an Authorized Service Provider (ASP) can be accredited or registered through the delegation of specific legal authorities. The main differences between these two programs are as follows:
An accredited organization must have a quality management system in place which meets the requirements of MC’s accreditation standard. Inspection services provided by Measurement Canada has key controls in place to help ensure the identification and tracking of trade devices in use to support the administration of the Weights and Measures Act and regulations.
Measurement Canada has key controls in place to monitor Authorized Service Providers and Recognized Technicians as part of the Agency’s Alternative Service Delivery Program.
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7 accredited organizations can be performed in all marketplace sectors for electricity and natural gas and weights and measures.
A registered organization is not required to have a quality management system. As a result, there is more frequent MC monitoring of RTs working for a registered organization.
The scope of the inspection services which registered organizations can provide is limited to certain marketplace sectors pursuant to the Weights and Measures Act and
regulations.
MC’s ASD program for accreditation and registration meets the requirements of the International Standard of Organization 9001 2008 Quality Management Systems, where MC is to carry out the ASD program through the use of formal processes in compliance with the quality objectives defined for the program.
Furthermore, MC evaluates ASPs on a regular basis to ensure they carry out their duties in
accordance with legislation and maintains an oversight function for the inspection process. Key activities of MC’s monitoring approach include on-site audits and meetings with ASPs and their RTs; audits and follow-ups on inspections carried out by RTs; and enforcement actions of ASPs and RTs when necessary, which may include suspension.
MC’s oversight activities of ASPs and RTs are documented, available to MC staff, and include roles and responsibilities, process flows, and supporting forms and templates to be used. MC also monitors its own progress pertaining to ASP oversight at both a regional and national level. The ASD standing committee is a key decision-making mechanism for the ASD program, where status and results of ASP oversight activities are reported, and performance indicators for the ASD program, including ASP oversight, are in place.
Marketplace Monitoring Program
Measurement Canada’s Marketplace Monitoring Program (MMP) provides information on the state of industry compliance in the marketplace with respect to measurement-based financial transactions. This allows MC to contribute to a level of confidence for businesses and consumers by evaluating the overall status of accuracy and equity in the marketplace, detecting problems and taking appropriate corrective action, including enforcement.
MC inspectors carry out MMP activities, which comprise nationally directed unbiased device examination and specific projects. Unbiased device examination involves MC inspections of a pre-determined percentage of device populations in trade sectors where mandatory inspection frequency exists as well as where it does not. Specific projects vary from year to year and may involve MC inspectors carrying out targeted device inspections in certain trade sectors, monitoring of non-compliant devices for enforcement, data collection for MMP planning, and
MC has a Marketplace Monitoring Program (MMP) in place to monitor industry compliance with laws and regulations. However, there is a lack of program documentation supporting the design and operation of MMP activities and not all planned MMP activities took place. Further, performance indicators have not been established and reporting and monitoring of MMP activities is informal and ad-hoc.
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8 trader education. MMP activities can also lead to enforcement actions against traders and device owners.
Plans for MMP activities were provided by MC headquarters to the regions at the beginning of each fiscal year and were made available to MC management and staff via MC’s intranet.
These activities took into consideration the mandatory inspection frequencies prescribed by the Weights and Measures Act and related regulations.
It was found that for fiscal year 2015-16, MC planned to carry out their unbiased device inspections by geographical area to avoid situations where devices due for mandatory inspection would also be examined by MC. As well, MC planned to reduce the target
percentage for unbiased device examinations in trade sectors subject to mandatory inspection frequency, and conversely increased emphasis on unbiased device inspection in trade sectors not subject to mandatory inspection frequency.
Although plans for MMP activities existed, there was a lack of clearly defined and documented program policies, methodologies, and processes to demonstrate how these activities were established and prioritized, as well as how MMP activities were to be carried out in support of a national approach. Further, not all of the planned MMP activities were fully carried out during fiscal year 2015-16, namely due to MC’s focus on the implementation of mandatory inspections under the Fairness at the Pumps Act and ASP oversight. As a result, MC’s MMP may not have been as effective in detecting problems and taking appropriate action, including enforcement, to contribute to a level of confidence in the marketplace for both businesses and consumers.
Furthermore, there were no defined processes for monitoring and reporting on MMP activities, which could result in the untimely detection of issues, particularly given that unbiased device examination targets were not all met and specific projects were not fully carried out. Lastly, there are no performance indicators for MMP activities, hindering MC’s ability to assess the program’s performance in strengthening overall compliance in the marketplace.
Recommendation 2
MC should document and communicate the processes and methodology for its Marketplace Monitoring Program (MMP). In addition, monitoring of MMP activities should be performed to better assess industry compliance, and performance indicators should be developed and reported on.
New Enforcement Measures
In order to promote trade measurement compliance in the marketplace, MC uses a legislated escalation approach to enforcement. This approach consists of using a number of enforcement tools, such as education, warning letters, device seizures, Administrative Monetary Penalties (AMPs), and court-imposed fines.
Measurement Canada is in the process of updating its enforcement framework. However, no guidelines or procedures have been developed to facilitate the interpretation and
application of the new enforcement measures, including Administrative Monetary Penalties, and associated training material has not been developed.
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9 The Fairness at the Pumps Act (FAPA), which came into force on August 1, 2014, enhanced MC’s enforcement capability by enabling the use of higher and new court-imposed fines as well as AMPs. As such, if the instance of non-compliance found is listed as a violation in the Weights and Measures Regulations or the Electricity and Gas Regulations, an AMP may be considered.
MC’s enforcement framework is in the process of being updated, as the current framework does not include the new enforcement tools enabled by FAPA. It was found that there was a lack of defined guidelines and procedures, as well as defined roles and responsibilities, for MC’s new graduated enforcement measures. In addition, there is no central repository for enforcement measures taken by MC and no mechanisms are in place to track, report, and monitor
enforcement at an Agency-wide level. Finally, an implementation plan has not been developed.
An interim informal escalation model is in place with respect to MC’s use of AMPs, and decisions to proceed with an AMP are centralized at HQ, with regions being responsible for collecting information that will inform the decision-making process. To facilitate the implementation of AMPs, MC launched an AMPs pilot phase. With no official start or defined end date, this pilot phase was anticipated by some MC staff to be completed by summer 2016 with lessons learned to be considered in an updated framework.2
With respect to awareness, while MC management and staff were generally aware of the new enforcement authority as a result of FAPA, their understanding varied regarding MC’s plan and approach to implement AMPs as a new enforcement tool, guidance and tools to be used, and how non-compliance matters outside of the AMPs pilot phase were to be addressed. Further, no training material has been developed for MC inspectors on the new enforcement measures.
Having documented roles, responsibilities, tools and procedures would help ensure consistency in the understanding and timely application of these new measures. Furthermore, by enabling the timely issuance of AMPs, the deterrent character of this enforcement measure is enhanced, which could lead to a decrease in non-compliant trade devices in the marketplace. Finally, training for MC inspectors on new enforcement measures enabled by FAPA could result in more instances of non-compliance being identified and reported to MC in a manner and timing that supports the application of MC’s new enforcement authorities.
Recommendation 3
Measurement Canadashould finalize its enforcement framework, which should include:
- Roles, responsibilities, and authorities for enforcement activities;
- Policies, procedures, and supporting tools to interpret and apply new enforcement measures; and
- Tracking, reporting, and monitoring requirements for enforcement activities.
Recommendation 4
Measurement Canada should develop and deliver training for MC inspectors on the new enforcement measures enabled by the Fairness at the Pumps Act.
2 From August 1, 2014 to May 31, 2016, two AMPs were issued by MC in the precious metal trade sector.
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3.4 CHANGE MANAGEMENT