Executive Summary 1.0 Introduction Wildland fires are both natural and inevitable and play an important ecological role on the land. These fires have long shaped the composition of forests and grasslands, periodically reduced vegetation densities, and stimulated seedling regeneration and growth in some species. Community Services, Wildland Fire Management (WFM) branch is mandated to protect lives, property and community values while maintaining safe practices, natural ecological processes, fiscal accountability and operational efficiency.1 The Yukon fire season generally runs from April to October, with the peak of activity occurring from mid? May to August. Catastrophic fires tend to occur during periods of extended drought or wind storms. 1.1 Why we completed this review WFM operations perform an essential role in Yukon. Due to climate change and new technologies, wildland fires are changing and adjustments are needed. Wildland fire management in Canada and the United States continues to evolve; BC, Ontario and otherjurisdictions have revised their strategies. The Fort McMurray fire showed us that operations need to change. However, as Yukon WFM does not have a strategy, and the expenditure is approximately $15 million a year, we believe there is an opportunity to look at WFM branch operations to bring value added to Yukon taxpayers. 1.2 Objectives The objective of this review was to lay out options for management to implement procedures, provide standards, improve controls, minimize risk, and to strengthen governance and decision-making. 1.3 Conclusion WFM excels at Initial Attack (lA) (keeping Yukoners safe from wildland fire) the staff is dedicated to their work and provides the highest quality services. conducted 46 interviews of WFM staff, and most indicated they enjoyed theirjob and keeping Yukon safe. However, as per the study performed by Science and Planning, the IA cost varies quite a lot and better used of the system in place can support better data for decision-makers. Many areas have been identified for improvements and there is a reputational risk for YG if these improvements are not put in place as they are link to potential misappropriation of assets. However, GIAS believes that the culture could be changed if actions taken are aligned, employee engaged, and feedback provided by improving communication and being more transparent. It will result in a working environment that is fair equitable and efficient. 1 Yukon Wildland Fire Management Policy March 13, 2015 WFM Operational Review DRAFT 17 January 2017 1.4 Summary of key ?ndings Below are the main Key Findings which were presented to Audit Committee (AC): No governance and accountability No proper controls in place supplies) - Lacking a vision, strategy - No reconciliations completed to - No oversight of operations (logistics, air operations, capital purchases) ensure proper accounting and accuracy of data (fuel, overtime, No proper segregation of duties No clear roles and responsibilities A presentation of the options that need to be put in place in the coming years was given to WFM staff, management, and senior management (see Appendix F). 1.5 WFM actions taken Since September 2016 WFM has concentrated its efforts in these key areas: [To be completed by 1.6 Recommendations, Management Response, and Action Plan The recommendations below represent the high /macro level ones. However, more detailed improvements needed are presented in Appendix and within each section ofthe report. GIAS will monitor their implementation through the WFM Branch Plan that was prepared to address them. Recommendation Management Response [Action Target Position(s) Date Responsible is complete, accurate and done consistently. Ensure fuel reconciliations are conducted at the Whitehorse Business unit (WBU) level and develop a Fuel Usage Policy. 1. Update RFAA manual to include visual Agree. Partially Agree. Disagree. presentation and controls discussed and verified with staff. 2. Review fuel management, ensuring it Agree. Partially Agree. Disagree. WFIVI Operational Review DRAFT 17 January 2017 Review logistic operations to get Agree. Partially Agree. Disagree. controls and structure in place to provide assurance that the resources are used appropriately and information needed is available for decision-makers. Assess the value of creating a Agree. Partially Agree. Disagree. comptroller position to support the Director and the ADM to ensure strong management of WFM resources and operations in delivering their services to taxpayers. I recommend this Management Response and Action Plan for approval by the Audit Committee Chief Audit Executive Government Internal Audit Services I approve the above Management Response and Action Plan Deputy Minister Community Services The Management Response and Action Plan forthe Wildland Fire Branch Management Operational Review were approved by the Audit Committee on [Insert Date]. WFM - Operational Review DRAFT 17 January 2017 2.0 Scope and. methodology The Audit Committee on April 22, 2016 approved a review of WFM operations for completion in the 2016-17 fiscal year. The scope was restricted to the operations of WFM. At the planning stage, GIAS identified two areas of greatest risk and significance that led to the issues needing to be addressed by this review: Governance (oversightf: The internal audit activity must assess and make appropriate recommendations for improving the governance process in its accomplishment of the following objectives: 0 Promoting appropriate ethics and values within the organization; 9 Ensuring effective organizational performance management and accountability; - Communicating risk and control information to appropriate areas of the organization,- and - Coordinating the activities of and communicating information among the board, external and internal auditors, and management. Controlss: The internal audit activity must evaluate the adequacy and effectiveness of controls in responding to risks within the organization?s governance, operations, and information systems regarding the: 0 Reliability and integrity of financial and operational information; - Effectiveness and efficiency of operations and programs; Safeguarding of assets; and 0 Compliance with laws, regulations, policies, procedures and contracts. The audit team reviewed documents, conducted interviews with all levels of staff within the WFM, and visited most of the regional offices. The audit team performed samplingand transaction testing, and looked at control designs in place for some specific tasks that are part of WFM operations, such as management of fuel, equipment, and air operations. The team also collected information from Ontario, Saskatchewan, and BC and researched the internet on work done by similar organizations, such as the Government Auditor Office (GAO) in the United States. All of the audit work in this report was conducted in accordance with the standards for internal audit published by The Institute of Internal Auditors (IIA) in the International Professional Practices Framework. 3.0 Background The Government of Yukon through Community Services Department provides wildland fire management services, which consist ofthree primary components: pre?suppression, suppression and fuel reduction/ FireSmart. 2 HA - International Professional Practices Framework Standard 2110 Governance 3 HA - International Professional Practices Framework Standard 2130 Control WFM Operational Review DRAFT 17 January 2017 Pre-suppression To prepare for a wildland fire season, the branch acquires firefighting assets including firefighters, fire engines, aircraft, and other equipment and stations them either in regions or at centralized dispatch locations in advance of expected wildland fire activities. Suppression When a fire starts, the regional office considers land management objectives identified in zone management and the structures and resources at risk (values at risk) when determining whether or how to suppress the fire. A wide spectrum of strategies is available to choose from; the Regional Duty Officer (RDO) at the affected region with the oversight ofthe Yukon Duty Office (YDO) is responsible for determining which strategy to use from conducting all-out suppression efforts to monitoring fires within predetermined areas in orderto provide natural resource benefits. When a fire is reported, the principle of closest available resources is used, meaning that, regardless of the region, the closest available firefighting equipment and personnel respond. In instances when fires escape initial attack and grow large, the regional office responds using an inter?regional system that mobilizes additional firefighting resources and assets from other regions, as well as private contractors, regardless of which regions have jurisdiction over the burning lands. The regions use an incident command system under which specialized teams are mobilized to respond to wildland fires, with the size and composition of the team determined by the complexity of the fire. If the resources are not sufficient in the territories, the Yukon Duty Officer with WFM Director will get the Assistant Deputy Minister (ADM) approval to import teams from other jurisdiction through the agreement. The RDO needs to estimate the activities and the cost to deal with a specific fire by using the Wildland Fire Management Analysis (WFMA) tool which is part of the Information Fire Management System with the oversight of the YDO and the Director. WFM typically funds the costs ofthese activities from their wildland fire suppression account/fund. Fuel reduction/FireSmart Regional efforts are made to reduce potentially hazardous vegetation that can fuel fires, such as brush and "ladder fuels" small trees and other vegetation that can carry fire vertically to taller vegetation such as large trees). Regions use multiple approaches for reducing this vegetation, including setting fires under controlled conditions prescribed burns), mechanical thinning, herbicides, certain grazing methods, or combinations ofthese and other methods. The regions typically fund these activities from their fire smart account/fund. The FireSmart program supports community safety by reducing the threat of wild fires to communities. The program also supports job creation by utilizing and developing local WFM Operational Review DRAFT 17 January 2017 resources and skills. Annually, between January 1St and April Regional Protection Managers (RPM) accept applications from: not *for-profit organizations, municipal governments, community associations, First Nations, and school councils, for FireSmart projects. WFM has developed policies, directives, manuals and guidelines to provide a framework for implementing its mandate. 4.0 Observations and findings The results of this review are presented below. The section is organized under the following themes: 1) process and procedures, 2) assets and supplies, 3) information technology, 4) human resources, 5) planning, 6) training, 7) communications, and 8) operations. These themes correspond to the main areas in which WFM needs to improve, in order to succeed in fulfilling its mandate. An overview of GIAS main level recommendations appear in section 1.6 and improvements in each section below. 4.1 Process and procedures GIAS found that the RFAA manual was very comprehensive and a good tool. There are areas that needed to be updated and controls that should be in place. The additional operational procedures GIAS reviewed are discussed throughout the report. At the start of the review, GIAS prepared flow charts using Visio and documented several operational processes and those outlined in the RFAA manual. This was done with the goal to improve clarity and ensure that the appropriate controls were in place. These processes were reviewed and confirmed during the interviews with all levels of WFM employees. Based on this review, GIAS suggested changes to streamline the process and improve the controls. Recommendation Update RFAA manual to include visual presentation of the process and controls discussed and verified with staff. 4.2 Assets and supplies found that the acquisition of assets could be strengthened; no clear rationale is provided to facilitate decisions regarding the investment needed to deliver the services vs the benefits of various real options. WFM uses a wide variety of supplies, gear, and equipment which are essential to delivering its services. found that there is no rigorous control around their management, no control on what has been purchased, used, or lost and no comprehensive and accurate inventory. Greater accountability mechanisms need to be put in place to eliminate gaps and strengthen senior leadership engagement in logistic operations. Management needs to pay greater attention to Logistics performance, cost, and management. WFM Operational Review DRAFT 17 January 2017 Recommendations #2 Review fuel management, ensuring it is complete, accurate and done consistently. Ensure fuel reconciliations are conducted at the WBU level and develop a Fuel Usage Policy. Review logistic operations to get controls and structure in place to provide assurance that the resources are used appropriately and information needed is available for decision-makers. improvements 1. Improve the procurement and capital process, including: consultation, rationale (cost benefits analysis), and oversight/challenge function. 2. Annual inventory: Regional warehouses conduct a physical inventory at seasonal year end, and Whitehorse Logistics office does inventory spot checks of particularly the higher priced, attractive items. 3. Restrict access: The single most important inventory control is simply locking down the warehouse. Enclose inventory, restricting access into the warehouse. The use of physical prevention techniques such as fenced/gated storage areas, and locked freezers are essential. 4. Removal and relocation of inventory should be tracked: This could be done manually, by tagging all inventory, ideally this would be with a bar code for easy identification and relocation. If bar coding is not available, regional warehouse staff must complete the required paperwork. 5. Reconcile inventory on a basis, on a rotating regions basis: Investigate negative reconciliation of inventory records. Ifthere is missing inventory an investigation should be done. 6. Currently, the Whitehorse warehouse is implementing a new inventory system before the 2017 fire season. With the new inventory management, it will be vital that the processes and system are in alignment. WFM Response Capital Plan/Purchases Background - Capital budgeting starts with a call letter from Management Board. The call letter provides instructions explaining what information is needed, and must include: a description of the project; I- the need forthe project; a the community location ofthe project; WFM Operational Review DRAFT 17 January 2017 the number of years required to complete the project; the total estimated capital cost ofthe project and the financial and human resources required to complete the project, including the resulting impact of the project; . the priority of the project in comparison to the department's other capital projects; - benefits from and beneficiaries of the project; and 0 economic impacts ofthe project number ofjobs created in the private sector by the project). 4 The plan is reviewed by Management Board Secretariat to ensure that projects are consistent with established departmental objectives. After this review the Minister of Finance submits the 5 year capital financial plan to Management Board for consideration. GIAS reviewed the capital submissions for various projects across WFM: Cold Storage in Dawson City; Fire Truck; Mobile Retardant truck; and the Dawson City Staging Camp. Cold Storage - Dawson We found the rationale for the cold storage weak. The 2012/13 HPW Klondike Wildland Fire Cold Storage states that it is required because of their new mandate ?to reposition material and resources to key positions outside of the move to an ?All Risk model?, the program is preparing for additional supplies such as sand bags, pumps, vehicles, boats, etc. to be able to respond quickly to emergencies.? In 2014 ?the purpose is to keep all their equipment in one central location for quicker response and easier inventory tracking.? During our 2016 site visit we did not see any indication that it was a repository for emergency supplies; instead we found they were still using the old storage buildings, and the cold warehouse was used for storing kitchen equipment. The 2013 Highlight Sheet, states that the cold storage will have a concrete slab floor we noted that it was gravel/sand. Unsure if shelving can be built to take advantage of the height of the building e.g. shelving for equipment. Fire Truck Currently, spending on water tender/trucks is typically through partners at FMO from the water tenders from the for short assignments. They are hired under the HPW Third Party Rental Agreements, depending on the size of the truck it ranges from $135/hr - $165/hr plus mob/demob costs ranging from $135/hr, standby hours and fuel in general a 12 hour days costs $1,860/day. 4 Financial Administration Manual Section 2.4.5.3 5Project Charter: Capital Maintenance Projects - 2014 WFM Operational Review DRAFT 17 January 2017 GIAS did a cost-benefit analysis and determined that the amounts paid out (because there was no truck) do not warrant the purchase of the truck. The truck purchased cost $327,000 $1,860 (?cost per day to hire truck) need to hire a truck (5) for 175 days to recoup. The maximum used in one season is 15 days. 2007 - 2,500 2 days 2011 - 7,500 4 days 2013 - 28,000 15 dayss The truck was on the capital list for years but the submission did not provide an update on why it was needed. For example it should have provided information on what was done over the years without the truck and why was it needed now? Staging Camp Dawson The purpose of the staging camp is to ?provide temporary housing and eating facilities for fire management crews that are staged from other parts of the Yukon or imported from external agencies.? The goal is to ?provide non-local YG seasonal auxiliary staff suitable living accommodation during the fire season.?7 GIAS was expecting to find a cost benefits analysis of the option presented. However, some financial figures were provided of the cost and potential saving without any analysis supporting the decision to go ahead or not as an economic decision or other rationale Risks/impacts Efficiency; management approved the purchase without proper rationale/oversight, not requesting real options, cost-benefit for each option and full analysis. See Accommodation in operations section of this report. Fuel Background WFM owns and maintains let A bulk fuel systems, and where available, commercial fuel suppliers are also used. By owning and maintaining these fuel systems, is responsible to ensure the fuel meets the applicable regulations. Fuel samples are taken from all WFM bulk tanks each spring and lab tested to ensure they meet the required standards. On?site weekly testing is also completed. In addition to the bulk fuel tanks and the Air Tanker Base (ATB), 3 regions (Dawson, Watson Lake, and Carmacks) also have bulk fuel at their helipad stations. The tank levels (inventory) are submitted to Whitehorse Air Ops on a weekly basis by the regional mixmaster, and/or warehouse staff. 5 WFM indicated that this is the only information available 72015 Wildland Fire Management Staging Camp plans WFM Operational Review DRAFT 17 January 2017 Regions also have a drum fuel inventory. This is typically Jet A fuel, but it can also include gas, and diesel. These drums are stored either at the Air Tanker Base (ATB), or at remote fuel cache locations throughout the region. In accordance with the Canadian Standards Association (CSA) regulations - drum fuel expires. The fuel must be used within one year from the fill date which is indicated on the drum. WFM bulk and let A drum fuel is used exclusively by the contract aircraft companies. Pilots track their fuel usage on the Daily Flight Report. Aircraft carriers may also use their own fuel which is billed back to WFM. Contracts require the carriers to provide WFM with the quantity, type (bulk or drum) and location of the WFM fuel they used. Findings/Obsermtions Bulk fuel inventory we received is inconsistent We received two different sets of inventory sheets for 2016 bulk fuel inventory: one inventory sheet indicated that the (Dawson) DA fuel levels did not change between May 11, 2016 and May 25, 2016 the bulk fuel was at Another set of inventory documents from DA recorded the May 11th inventory at and the next inventory was recorded on June 9th at a difference of However, aircraft invoices indicated that the following companies used bulk Jet A fuel: Canadian Helicopter invoices May 20th and May let - was taken from Dawson Fire Centre; and Fireweed Helicopters invoices May 14th 21St was taken from Dawson Fire Centre. That is a total of used, and only a difference of in bulk fuel inventory (unable to determine if fuel was purchased). No bulk fuel reconciliation We requested evidence of bulk fuel reconciliation. Air Operations ATB perform a weekly inventory, although reconciliation between usage, purchases and levels is not done. Whitehorse Air Operations indicated they do review aircraft invoices by estimating the amount of fuel that should be used, ensuring the invoices do not exceed this estimate. Ineffective reconciliation of drum fuel usage, aviation, gas, and diesel Logistics attempts to track the purchase and return of drum fuel. Regions are required to complete a drum fuel inventory reporting sheet. We found that regions are not consistent in completing and sending the form. We received the drum tracking documents for 2015 and 2016; with these documents we attempted to reconcile the purchases with the returns and inventory levels. Drum Inventory: 2015: Purchased 854 and 148 returned to provider(s) 706 drums outstanding WFM Operational Review DRAFT 17 January 2017 10 2016: Purchased 161 and 314 returned to provider(s) {153) drums in deficit 553 drums outstanding We did receive information later regarding the 553 barrels: 109 were disposed of in 2016 ?'34 disposed of in 2015 6 or 8 missing in Carmacks area Waste drums were returned to NOrth 60, no papertrail unsure how many 816 drums were returned (from 2015 binder). 553 drums (109+34+8+816) (414) This means that there were at least 414 drums drums returned to North 60) purchased from prior years that Logistics was unaware of. Risk/impact WFM has two major risks associated with its fuel inventory: a) waste/inefficiency; b) misappropriation of goods Waste/ inef?ciency: Without an accurate inventory of drum fuel, there is a potential for waste/ inefficiency (expired fuel which cannot be used). Part of this risk could be mitigated if management approves the use ofJet A in the diesel trucks. This will still require careful management of fuel to ensure there is no "over" purchasing of barrel fuel it is more expensive than purchasing diesel (Jet A SBOO/barrel vs Diesel $215/barrel). Not having therprOper level of fuel needed could mean an aircraftmay have to divert and limit flight flexibility. Misappropriation of goods: in the midst of continuing high fuel costs, government fleets have become the target of fuel theft.8 Without an accurate inventory management and reconciliation over the fuel it is difficult to ensure there is no theft. As there is no accurate inventory system and reconciliation process to track fuel usage, WFM does not know the true cost of operations and fires, and is exposing itself to potential misappropriation of goods. WFM is required to present inventory levels in the Public Accounts, however without proper inventory processes these figures may not be accurate. 8 reconciliation/page/2.aspx WFM Operational Review DRAFT 17 January 2017 11 i. ng isti 4:3 8a cirg noun The broad goals and general guiding principles of WFM are articulated in the Yukon Wildland Fire Management Policy 2015, which states that: Logistics: WFM will provide and maintain territorial and regional warehousing facilities and services for the Protective. Services Division with the goal of providing a coordinated, efficient and cost effective emergency response support.9 This includes: WFM, Fire Marshal?s Office, Building Safety Standards, EMS, EMO, and Safety Resources Office. Currently WFM Logistics does provide some services for their primary ?client" is WFM. Logistics purchases the type and amount of supplies needed to support the fires using the pre? determined supply/cache levels. Typically, all supply orders are placed through Logistics. They receive, distribute, and maintain the inventory of supplies and equipment. They have developed processes for ordering, shipping/receiving and write-offs. Logistics also co-ordinates the servicing of non-expandable equipment such as: small pumps, and Chainsaws (1 full-time staff and a seasonal person). Logistics have acquisition cards with a maximum $1,000 spending limit ?this limit is reviewed annually and with management approval it was increased to $5,000 for 2016/17. Regional Managers have also been provided with the increased limit during the fire season, in 2016/17 the Manager, Southern region had increased spending. Fl] 3 'jffiili rvartiens Weak inventory system The Logistics does attempt to track inventory. This attempt is hampered by the use of an antiquated inventory system (MP2). The MP2 program is on one desktop computer in Whitehorse,- making it difficult to track and update inventory on a consistent basis. GIAS has been informed that MP2 has been retired and they start using a new computerized system (iMlS) which will allow for better tracking and reporting. Ineffective regional inventory tracking WFM lacks effective coordination between Logistics and regional warehouse staff. GIAS found that the process for handling inventory in Whitehorse is tracked and documented. Once 9 Yukon Wildland Fire Management Policy 2015 page 5 WFM Operational Review DRAFT 17 January 2017 12 delivered to the regions, not all of the paperwork accepting/verifying the order was signed and completed, particularly when items were transferred between regions, bypassing Whitehorse. The inventory control process standards across the regions are weak and not consistently enforced. Annually, Logistics updates regional inventory by comparing what the data for each region should be as per the HQ report, against the data provided by the region and using the more accurate level/data. GIAS attempted to reconcile the inventory, using a standard inventory reconciliation template (existing inventory purchases used/written off/lost ending inventory). It was impossible. Much of the information was missing or not tracked in a timely manner. Regional warehouse staff rotation means that they are finished one week before the crew leaders/members, depending on the fire season inventory is not counted or maintained until after they leave and then completed by other staff, e.g. RPM. During site visits GIAS noted that regional warehouses are storing outdated inventory. Excessive levels of inventory come with carrying costs. This space could be better utilized, or even allow for downsizing of the warehouses. Currently, the regional warehouse staff report to the RPM. This impedes Logistics from getting inventory information and enforcement of control and consistency. See Section 4, Human Resources for further discussion. Inconsistent use of Write-off forms The Whitehorse office attempts to track personal gear and clothing write-offs and the associated costs. This effort is hampered by write-off forms that are not filled out accurately, completely, and/or consistently. We reviewed 2 years of write?off forms and found that 100% of forms were not completed properly (missing information), nor completed on a timely basis. The compilation ofwrite-off costs is done manually, for each individual form. This is completed during the winter, after any chance of recovery import/export recovery). With the information available, Logistics provided GIAS with the cost of personal gear and clothing that was written?off. Of note regarding personal gear costs: 177 fires - 2013 VG Crews - $27,507; Contract Crews $28,714 34 fires - 2014 VG Crews - $23,628; Contract Crews $19,081 Information was not yet compiled for 2015 and 2016. Of note regarding clothing costs: There were 34 fires in 2014 and the cost of clothing is almost the same as 2013 when there were 177 fires. (2014 vs 2013 No comprehensive costs of Logistic spending Logistics spending is typically recorded in 3 different financial object codes (214 Program Materials, 211 Supply, 208 The information provided in Quest does not identify them as WFM - Operational Review DRAFT 17 January 2017 '13 only logistic codes the information received is recorded in pre-suppression with the equipment and gear that is used to fight fire - suppression. GIAS looked at the type of expenditure recorded in these accounts and found that it was not possible to know the cost of any specific services performed by Logistics, such as fleet vehicle, gear, equipment. This means that management does not have an accurate picture of the total logistical cost for the year, as well as the value of equipment and supplies at year end. There is no formal information provided to management on the roll-up of the costing of write?offs or items/ inventory purchased. The Public Accounts provides information on the inventory supplies for the end of each year. As of March 31, 2016 WFM reported a closing inventory of Fuel Retardant Inventory of When questioned how these numbers were calculated, WFM was unsure of where the numbers originated. GIAS questions the accuracy of this information. 'iiskfimpoct lnefficiency Ineffective management of logistics has major implications on both costs and service delivery. Without a complete and consistent, accurate logistics inventory tracking system the government is susceptible to theft and/or mismanagement of assets. it is important that the new system include an improvement in the controls and processes a new system will not be effective without first ensuring there are proper logistical processes. The new system must also ensure the current logistics inventory is complete and accurate. Re- entering the ending inventory levels from MP2 will be of no use it means the same inaccurate information in a new system. Starting with a complete and accurate inventory of all the equipment and gear used for WFM operations will ensure logistics inventory purchases can be accurately planned, tracked and costed. Misappropriation of goods The lack of an integrated logistics inventory system, training on inventory practices and principles, and insufficient attention to oversight can lead to possible theft, fraud, and misuse of government assets. As well, there could be significant safety issues as the amount of equipment could differ of what is expected to be ready to be used. 1" Schedule 7 of Public Accounts 2015-16 WFM Operational Review DRAFT 17 January 2017 14 4.3 Information Technology WFM uses a hodge-podge of disconnected systems which causes bottlenecks and employee productivity issues. Having an integrated software program would increase e??iciency and allow WFM to make real-time decisions. However, (FMS is not used to its full benefits and GIAS was not able to know the total cost of the various software being used. Furthermore, operations, section 4.8, also need to be improved to get full benefits of any new systems that will support WFM operations. lmgrovements 1. Investigate how to integrate the various software programs taking into consideration operations, possibly better using the components within This may require working closely with Jaguar to ensure the components are usable or to look at other alternatives. WFM Response Over the years, Canadian forest fire management agencies have demonstrated that information technology (IT) has an essential place/key role in all aspects of fire management, e.g. tracking fire weather, predicting fire behavior, monitoring fire occurrences and tracking fire-fighting resources 11 WFM is no different technology is employed in daily operations. GIAS reviewed the use of the two major systems: integrated Fire Management System and Dispatch. captures data, display and reports on information such as: weather; personnel; aircraft; equipment; fires; costs; equipment; values at risk and Fire Permits. Dispatch is a web-based resource tracking and decision-support computer application that sits on a digital map interface and is the platform WFM has adopted to track fires and aviation/engine resources. The program is a resource allocation tool that provides up to date situational awareness. It includes geographic information systems (GIS) data layers such as land ownership, values at risk, fire history, fire zonation, and lightning occurrence can be displayed.? 11 :desz 1142.3ij 12 WFM Duty Officer Manual WFM Operational Review DRAFT 17 January 2017 15 Lack of an integrated system Over the years, WFM has evolved its systems by using ?homegrown" independent systems. For example: fire costing is done with and duplicated with individual regional spreadsheets; personnel tracking is done with days of rest (DOR) tracking on spreadsheets; weather and tracking done with complex spreadsheets. This tangled web of silo systems, a ?software hairball? 13, inhibits flexibility, productivity and ultimately slows down resources. IT costs are unknown is operated under a service contract with Jaguar Solutions at a cost of $2,080/month. The cost of Dispatch is included within the aircraft contracts. GIAS was not able to determine the cost of Dispatch and found that WFM does not own nor have access to historical information within the program. Furthermore, there is no way of using Quest to have an idea of IT total cost for WFM branch, as it is not recorded specifically and GIAS was unable to track it. Risk/impact Inefficient use of resources The evolution of homegrown, independent systems means that WFM finds itself with a poorly planned architecture that handles the short?term tactical needs sub-optimally while holding WFM back from scaling efficiently over the long term. This means wasted employee a productivity; employees are bogged down with inefficient and disjointed processes, which also increases errors and takes time away from core duties. IT costs also increase by being required to maintain and acquire new versions of all the different software. Real-time costing It is important for WFM to have up-to?date, real-time information on their operations, e.g. fire costs, resources, etc. When the systems are not integrated or used properly, and information is spread over multiple spreadsheets and databases, it is difficult to get an accurate picture of costs and it is difficult to make well-informed decisions. 4.4 Human Resources It takes many different types of people with a variety of skills to manage a fire. These include fire?ghters with diverse skills, as well as people behind the scene who support the ?refighters in their efforts.14 GIAS reviewed: a) the use of overtime b) RFAA and Regional Stores Person job descriptions; c) the use of EFF positions; and d) the fitness testing for the fire?ghters, including safety 1" WFM Operational Review DRAFT 17 January 2017 16 and code of conduct. GIAS found that accountability and values are negatively impacted for all staff when equity, fairness and integrity are not prevalent throughout WFM daily operations. Improvements 1. Overtime: Review current approval process for OT and ensure there is information available to support decision maker. Overtime reports need to be developed to ensure management is aware of the costs in a timely manner. Consider salary versus overtime costs; this could help shift some overtime costs to regular salary costs (known/controllable costs). Consider hiring more crews/staff,- such as Emergency Fire Fighters (EFF). 2. Review WFM Branch organizational chart; look at management positions and their contributions to WFM operations and look at the reporting relationship (see details below, 3,4, and 5) to strengthen accountability. 3. RFAA: Review the RFAA job description consider only financial roles and responsibilities and changing the i'eporting relationships. RFAAs reporting administratively to the RPM, and functionally to the Whitehorse Business Unit. 4. Regional Stores person: Consider reorganizing the reporting relationships,- regional store persons report administratively to the RPM, and functionally to the Whitehorse Logistics Centre. Revise job descriptions, if necessary, to reflect capacity and process to fit with iM IS. 5. EFF: If additional staff is required in the warehouse, other hiring options should be assessed. 6. Fitness testing: Consider changing the timing of fitness testing prior to hiring can'didate and earlier in the season. 7. Safety: Management must ensure that regions have safety meetings as required. Keep up? to-date training records and annual review (as per Chapter 16 of the safety Management Plan). 8. Code of Conduct: WFM employees/contractors are provided training/refresher of the Code of Conduct; consider a session during the Spring with employees, providing practical examples of what each clause means. Also include potential consequences of non- compliance. WFM Response Over-time WFM Operational Review DRAFT 17 January 2017 17 Employees work a substantial amount of overtime - OT costs15 average annually between the years 2010/11 2016/17. ls overtime being used as a short-term solution or a long-term strategy? The widespread and persistent use of overtime across the years has been costly. Although hiring staff does carry a one-time upfront cost, there are benefits: controlling overtime costs; budgeting personnel expenditures more accurately; reducing the potential for fatigue and improving safety; having a larger workforce available for deployment in the case of an emergency; and importing less (see Section 4.8 operations, import/export of resources). 0 In 2016 - $1,005,542 was paid out in some form of OT. GIAS found that the average employee received 60% of their regular pay in OT. Indeed there was an export in the 2016 fire season, but we were unable to determine the OT costs for these exports. - In 2015 - $1,799,618 was paid out in OT. We found that the average employee received 72% oftheir regular pay in OT. The minimum was 1% to a maximum of 253%. For 2016/17 Comp-time: As to August 31, 2016, the total was 1,078 hours which translates to 143 days between 9 employees. 148 days is the average number of seasonal days worked.16 Two employees made up 48% of this comp?time. Difficult to get a true picture of overtime costs Overtime cost reports include the amount paid when a crew is on export. As these costs are recovered, the existing reports do not easily provide a true picture of the overtime cost to WFM. No proof of challenge function regarding overtime authorization We received a memo prepared in March 2009 regarding procedures of overtime and standby authorization. It requires: - YDO and R00 review preparedness levels and ensure requirements are made to meet the fire demands - The alert worksheet is completed daily and submitted to YFFC - Rational for amendments must be noted and approved - DO is authorized to initiate any action necessary within the pre-established guidelines and in many instances is the final authority in wildfire emergency situations. DO given this responsibility because in emergencies time is of the essence (no time to consult) - 00 is assigned functional line authority for all matters directly related to fire control - YDO has the delegated authority of the director in dealing with Wildland fire activity and resourcing levels across the territory. 15 Includes: OT, Standby and Shift. 16 Wildland Fire Management Seasonal recall dates 2016 (not including the Emergency Response Officers) WFIVI - Operational Review DRAFT 17 January 2017 18 Following these provisions would provide an oversight and the ability to review decisions made, i.e. to enforce the control in place. Risk/impact Financial risk Control of overtime needs to be strengthened, and taking into consideration the WFM culture that exists, WFM needs to pay more attention to overtime hours required. This could lead to higher operations cost and other areas asking for OT when it could be managed without. Safety risk Excessive OT hours might also indicate that there are not enough resources. Stretching firefighters to their limit could represent a safety risk due to exhaustion. Productivity can also suffer with increased overtime hours. jab ?es-trip tions Fin dingsg??bsermtions -- Conflicting reporting relationship Currently, the RFAA positions report to the Regional Protection Manager (RPM) in their region, although their principal duties and responsibilities are a wide range of financial and administrative tasks assigned and directed by the Whitehorse Business Unit. Conflicting duties In addition to financial and administrative tasks, theirjob description requires them to operate and maintain radio logs, track aircraft in Dispatch, and assist the RDO. reviewed the Incident Command System (ICS) finance and administrative section, which states that the ?Finance/Administration Section is established when there is a specific need forfinancial and/or administrative services to support There is hb?ihdic??t'ibh that they are responsible for anything other than finance and administration. See Appendix A. Risk/impact RFAIJ Reporting relationship creates inefficiencies 1? ICS 2012 pages 45-46. WFM Operational Review DRAFT 17 January 2017 19 It is important to have supervision over the financial and administrative work being done, as this will ensure consistent and accurate treatment of financial transactions across the regions. This could be facilitated if RFAAs report administratively to the RPM and functionally to the Whitehorse Business Unit. Distraction from core business The RFAA is solely responsible for the financial tracking and recording of all operations at the regional level; whereas the radio duties are transferrable to other positions in the regional office. During the fire season it is imperative that the financial requirements/tracking are kept up to date; by adding the requirement to operate the radio and maintain the log, it may cause a conflict in time management, increased overtime, and could put the safety of firefighters at risk. Findings/Observations .. regional stores person The regional stores person is responsible for the overall warehouse of the regional area. Principal duties and responsibilities include: ordering, receiving and distributing equipment and supplies; ensuring overall safety in the warehouse; hiring, training, and supervising warehouse staff; monitoring and maintaining cache standards; ensuring timely maintenance and cleaning of all equipment; and conducting physical annual and semi?annual inventory including lA Base bulk Jet A fuel daily product checks, testing fuel and inventories. Conflicting reporting relationship There is a separation in the reporting relationship and the requirements of Logistics. The regional store person(s) currently report to the RPM whose views can differ from logistics in HQ. Risk/impact regional stores person Reporting relationship creates inefficiencies it is important to have relevant supervision over the warehouse duties as this will ensure consistent warehouse procedures and processes across the regions, and better management of logistics. This could be facilitated if regional stores reported administratively to the RPM and functionally to Logistics. Finding; - Emergency Fir-e Fighters (EFF) During periods of high fire danger WFM supplements its staffing levels through the EFF employment program. EFF may be engaged to fight the fire directly, or to perform other administrative and operational duties associated with an emergency fire suppression response.18 18 GAM 3.58 WFM Operational Review DRAFT 17 January 2017 20 Generally the EFF conditions are maintained in their hiring, although we question the use'of EFF for the entire summer in the Whitehorse warehouse this is stretching the use of ?emergency fire suppression response.? Risk/impact EFF Management does not know the real costs of logistic operations. By using EFF as long-term positions it is difficult to know the true picture of fire costs and warehouse costs. Also by hiring EFF long term, it becomes an employer-employee relationship. WFM is hiring a casual/auxiliary employee and should be providing him or her with the pay and benefits as such. Findirigs/{Jbservotions Fitness resting Firefighter testing follows a nationwide standard testing regime. There are two standards of fitness testing in the Yu kon; the "Pack Test? and the Test.? The pack test is conducted for officers and Incident Command Team members and is easily executed at any field, track, or tarmac. It consists of a two mile walk with a 25 lb. pack in 30 minutes or less. To be ?lnitial Attack? certified, WFM utilizes the test to be compliant with the Canadian Forest Fire Centre (CIFFC) as a national requirement and a bona fide occupational requirement. The hardware to conduct the test consists mainly of a specialized ramp that meets CIFFC specifications and simulates the conditions found in a wildland fire environment. WFM has two ofthese ramps and they are kept one in the north (Dawson) and one in the south (Whitehorse). Participants must meet a national time threshold to be eligible for operational work assignments within otherjurisdictions and/or a less intensive Yukon time threshold as a component of being certified for Initial Attack in the Yukon. Results are obtained and recorded at WFM headquarters. These results are also sent to CIFFC for a national database. 19 WFM develops the quali?cations The essential qualifications for these specialized positions are developed by WFM (the subject expert), in compliance with PSC requirements. This is important for WFM to ensure its employees are qualified as it is also a requirement for exporting crew. Timing for testing Depending on the fire season, testing has to be completed during the fire season. 19 Email rec?d from WFM September 19, 2016 WFM Operational Review DRAFT 17 January 2017 21 . (did/:34; Testing may interfere with fire?ghting efforts Testing is done annually for each firefighter, requiring travel to either Whitehorse or Dawson taking them away from firefighting efforts. Efficient use of resources Testing after being hired could be a financial/resource burden if the candidate does not pass the fitness test - the hiring process has been completed in vain. rife at}? Eacirground Wildland fire fighting is a dangerous occupation. As an employer WFM is responsible for the safety and health of its workers and for providing a workplace consistent/ compatible with these goals. ., Employers are required to protect workers from the anticipated hazards associated with the response and recovery operations for dealing with wildfires. The Wildland Fire Management Mandate: The mandate of WFM is to protect lives, property and community values while maintaining safe practices, natural ecological processes, fiscal accountability and operational efficiency. indin gs/ Observations Unsure if safety issues are reported to management During the fire season, the daily morning fire briefings include a safety component. GIAS was unable to determine if/when and how the safety issues raised at these briefings were provided to management. Mayo lA Trailer safety issues minutes since 2014 have raised concerns over the hazards in the Mayo IA trailer. Responses in the 2015 minutes state that management ?is aware ofthe issue and there has been a promise of a new facility.? Mayo IA trailer continued to be used, and this remains a concern as PMD (Property Management Department) and Yukon Workers' Compensation Health 8: Safety Board will not conduct an inspection because the building has been written off. GIAS noted in the November 17, 2016 WFM Managers' Meeting "that WCB orders 1 84 2 have been implemented for the Mayo iA trailer. Notices of No Entry have been placed on the locked doors to prevent access by staff.? We are concerned that it took at least two years to ensure the trailer was not used. WFM Operational Review DRAFT 17 January 2017 22 Incident Log - missing information The Record of Incidents and Near Misses from the Regional meetings minutes are reviewed by the Territorial Occupation Health Safety (TOHS) when they meet. The incidents and near misses are recorded in a log/spreadsheet. The Log is a comprehensive listing of the location, source of injury, description of injury, TOHS committee comments, and the review date. The log is missing information: who is responsible, the timelines, and a date when the tasks have been completed. GIAS has also noted that the accidents and injury worksheets in the spreadsheet were not used. Inconsistent safety committee meetings expected to see that these committees would meet on a basis, with minutes recorded and made accessible to everyone. We noted that all 7 areas did have meetings over the fire season. One region had meetings in May, June, July and August. This was not the case for the rest of the regions. In August, the TOHS recognized that regions were sporadic with submissions to committee. There is no indication of how this was followed up/enforced or will be rectified. Safety management plan In 2011, WFM hired a safety auditor to ?review and internally audit the Safety Management Program to ensure it remains consistent with Regulations and current C5 branch operational practices". By March 2012, WFM had completed 71% ofthe Action Plan. To date there has been no further update on this audit. Also there have been no further internal audits or reviews a requirement of Chapter 16 of the Safety Management Plan. Chapter 16 states, are two types of document reviews required, an annual general review undertaken by the branch of their operational documents; specific, undertaken by the branch to address significant changes in legislation or operational procedures.? On paper, in policy and procedures, WFM does consider the safety oftheir employees as vital and important. All firefighters are provided personnel protective equipment (PPE). GIAS would like to see the safety management policies followed, e.g. regular meetings. Risk/impact Underestimating safety issues Sociologist and former firefighter Matthew Desmond explains that, ?firefighters do not think theirjob is dangerous, they think they can control their exposure to risk by being smart and maintaining situational awareness.?20 2? land-firefighting?dangerous/ WFM Operational Review DRAFT 17 January 2017 23 Besides the fact that safety meetings are a requirement under regulations, routine safety meetings provide a chance to present new safety training and information. They also offer a chance for workers to review previously learned infarmation. Without safety meetings, workers can be lulled by routines and slowly decrease their alertness and attention to safety as they perform the same tasks day after day. People benefit from being reminded how to stay safe and why safety is needed. Annual review will also improve early warning of potential safety issues and better knowledge of the current situation. Awareness of risks reduces accidents. Safety minutes should be provided to management to ensure they are aware and can take action as required. Corie of Conduct Eackproond A code of conduct is a set of rules outlining the social norms and rules and responsibilities of, or proper practices for, an individual, party or organization.21 GIAS eXpected that WFM would have a code of conduct to protect the organization and inform the employees of expectations and consequences. GIAS was provided with a Code of Conduct dated May 2016. i tlii i peers/o ti as GIAS reviewed the Code of Conduct signed by all WFM employees. The Code is well done, and comprehensive including what we would expect in a Code of Conduct, e.g. carry out duties safely, efficiently and with integrity, to be courteous and profession and never engage in activities involving alcohol, and/or drugs. We compared the WFM code of Conduct with the BC code and found that WFM is more "progressive" including a section on the use of Social Media in a manner that does not discredit, dishonour or embarrass WFM. GIAS noticed that bullet #5 ?recognize that I serve in a position of public trust that requires stewardship in the honest and efficient use of publicly owned resources, including uniforms, facilities, vehicle and equipment and that these are protected from misuse and theft?, is not enforced and there is no indication of the consequences if the Code is not followed. Risk/impact Not enforced] consequences The code of conduct does not include a section/statement to indicate the consequence if the code is not followed. 21Wikipedia Operational Review DRAFT 17 January 2017 24 4.5 Planning found that WFM does not have a strategy in place which articulates their vision, nor an operational plan to share what the branch is expecting to deliver and achieve. However, the Science and Planning Unit has prepared two studies to look at the cost of Initial Attack, and at Performance measures. Improvements 1. Continue the development of a risk assessment and complete it for the 2017/18 fire season. This could be facilitated by using the report from Yukon College, in particularthe information contained in the opportunities/recommendations section. 2. Develop a WFM Strategic Plan, complete with KPls. Reporting on progress should be done annually to all staff and made available to the public, i.e. on external website. 3. WFM needs to ensure the Forest Protection Act, Regulations, and policies are aligned to permit the achievement of their Strategic Plan. WFM Response Risk/ Contingency Finn Background Risk is an inherent element of wildland fire management. Risk management should be applied to all levels of wildfire decision-making, from the individual firefighter on the ground facing changing environmental conditions, to WFM management. YG GAM Policy 2.25 Enterprise Risk Management states that Deputy Ministers shall integrate risk management into departmental business processes, decision-making, and planning at an appropriate level as determined by the deputy minister.22 The goal is to employ a structured and disciplined risk management approach that considers all elements of strategic risk with the ultimate outcome of appropriately evaluating, managing and mitigating these risks. This approach ensures that the program?s outcomes address the needs of the branch, are aligned to wider organizational and government goals and objectives and provides a consistent framework for the program?s managers and planners.23 Firitiin gs/Obss motions 22 GAM 2.25 section 3.2 23 Wildfire Management Branch Strategic Risk Assessment 2015 Government of Saskatchewan WFM Operational Review DRAFT 17 January 2017 25 Yukon College contracted a study (Yukon Fire Risk Assessment) in April 2016. An observation from the report is as follows: "It is apparent that more emphasis and education is needed around fire in the terms of risk to communities and the ecological benefits across the broader landscape". The report provides ten key points on moving forward with a fire risk assessment and changing climate in Yukon which could be incorporated in the WFM risk assessment. WFM is currently working on and is at the very preliminary stages of a Wildland Fire Management Strategic Risk Assessment?. A WFM Business Continuity Plan (BCP) was completed in 2015. The plan fed into the larger BCP led by EMO, following their template and expectations for the YG BCP. We noted several areas to consider: - The BCP indicates in IT to establish satellite web services (page 6, 7, and 12_ of 31), but it is not listed in the equipment as resources needed on page 15 of 31. WFM will need to ensure that what is planned to be used is there when it will be needed. - What has been done regarding preparedness (page 16 of 31)? a Minimum Resource Needs to Deliver on Services 1 and 2 (page 23 of 31). Does WFM have these resources? Risks/impacts Without a risk assessment, WFM is not aware of the potential risks. This means that something could happen to impact WFM operations, for which the branch is totally unprepared. If something happens that could have been mitigated it could have safety and monetary consequences for WFM Branch that could have been avoided or mitigated. WFM Strategic Planning Background Strategic planning is an organizational management activity that is used to set priorities (typically 5 years), focus energy and resources, strengthen operations, ensure that employees are working toward common goals, establish agreement around intended outcomes/results, and assess and adjust the organization?s direction in response to a changing environment.25 Together with the strategic plan, Key Performance indicators (KPI) are an important aspect of the strategic planning process and play a major role in the measurement of progress of an organization towards the attainment of its planned goals. From the strategic plan, an annual operational plan is developed. The operational plan is a detailed plan used to provide a clear picture of how a team, section or department will 24 Email from WFM Risk Management Specialist 25 WFM Operational Review DRAFT 17 January 2017 26 contribute to the achievement ofthe organizations strategic goals.26 An operations plan will bring the strategic plan down to the current year. From the operations plan a work plan is developed. In order for a work plan to function effectively, it is essential for all staff to have a clear understanding of overall strategic direction. This direction, or work plan, provides the basis for empowering staff members to participate in planning how their work is best accomplished with available capital and human resources. Findings/Observations GIAS was provided a draft WFM Strategic Plan, from 2012, which included a work planning document for 2013. As well, a benchmarking case study was developed, 2015 Wild/and Fire Season. As the draft strategic plan was not completed to feed into the department?s goals, there is no way to measure progress to goals e.g. KPls. The 2015 benchmark study provided by Science and Planning includes valuable information. WFM does not have an operations plan. WFM does prepare an annual winter work plan, developed at the end ofthe fire season. The plan lists activities to be done, timelines and responsible positions. It is unclear how results are measured, and also how WFM staff is updated and feedback provided. There are no criteria used to decide what they are to do or to set priority. Some of the items have been on the list for years with no progress. Risks/impiibations Efficiency and effectiveness WFM does not have a strategic plan. Without it WFM will continue to react and will just ?put out fires?, as the branch does not have a long term vision changes in technology, and fire management) and no communication tools with the public and staff. With a strategic plan in place, the branch will be able to move in a single cohesive direction, and provide a vision for long term planning. It will ensure that all differences of opinion are ironed out and there is one consistent course of action - no silos. By setting objectives and completing a strategy, WFM will be better suited to develop a meaningful annual operational plan and to communicate it with staff members. A work plan without any accountability has little value. The operational plan needs to be linked to the goals of the strategic plan and provide staff with updates on the results achieved from its implementation to feed the next round of decision? making and planning. 2?5 WFM Operational Review DRAFT 17 January 2017 27 4. 6 Training Training is important to ensure that all staff at the various levels meet requirements and have the opportunity to develop themselves and progress in their careers. As per the interviewees, training has been identified as a weakness by the Regions and HQ, and to contribute to make employee life easier by HQ. Improvements 1. Review training based on merit and look at opportunities for employees to get new experience and skills, such as rotating positions and/or assignments. 4. 7 Communication Communication plays an important role in engaging the people in the operations. Communication reassures employees and taxpayers. GIAS found that communication roles and responsibilities were clear during Initial Attack; however, as there are no specific projects, operational and strategic plans, when there is no fire unfortunately the message will differ from one region to another. No document is available to use to communicate vision with taxpayers and staff. No feedback is provided and a region can work in isolation from the others without consequence. Furthermore, as per the interviewees, communication has been identified as a weakness and that better communication would make life easier in the Regions and at HQ. Improvements Develop and put in place mechanisms to collect information and provide feedback, such as: strategic plan, operational plan, implementation of recommendations and improvements. WFM "Response 4.8 Operations GIAS looked at the main operations performed under the WFM branch. Many areas have been identified below as potential for improvements and to increase equity, fairness and efficiency. Recommendation #4 4. Assess the value of creating a comptroller position to support the Director and the ADM to ensure strong management of WFM resources and operations in delivering their services to taxpayers. WFM Operational Review DRAFT 17 January 2017 28 Improvements 1. Consider reviewing contracts and use of aircraft; possibly lowering the mins and look at other new technology options such as drones. Change the Occupancy Agreement to ensure it includes all the requirements under the Accommodation Policy and address properly or mitigate YG liability. Ensure there is an MOU signed with BC regarding the Watson Lake base facilities, this will protect and ensure the money spent is cost worthy. Consider looking at import/export options available for busy fire seasons. Review the need for 2 locations (in the regions) to issue burn permits and the need to be issued after working hours. Sign an MOU with EMR ensuring the permitting process is clearly defined. Where it is important to have ?eyes? over the communities high risk zones recommends that WFM conduct cost benefits analyses of various options; staffed look-out towers, camera, fix wings, towers, drone, etc. WFM Response stir Operations Background As part of wildland fire management, WFM relies on aircraft including fixed-wing airtankers, and helicopters ?to assist in wildland fire monitoring and suppression activities. Aircraft are used to conduct surveillance, deliver supplies, and drop retardant and water to extinguish or slow the growth of fires. Also, they deliver crew members to fires. In using aircraft, WFM relies on private Vendors that own and operate the aircraft under contract with WFM. Air Operations, within WFM, has delegated authority from HPW for the acquisition of aircraft for the Protective Services (PS). Every wildland fire that is detected and reported requires an assessment, determining which Fire Management Zone the fire falls into and the risk, if any, posed to nearby infrastructure or other values. Fires may receive any ofthe following responses dependent upon an evaluation by fire managers: WFM - 9 Initial attack (IA) - Delayed action . Sustained action I Limited or modified action I Site protection I Monitoring. Operational Review DRAFT 17 January 2017 29 The science and planning unit within WFM Branch has done a report which examines the cost of IA components from 2006 to 2015. Below is a figure of the IA costs from 2006-15: Percentage of costs, as tracked by associated with each Initial Attack Wildland Fire 2006-2015." As indicated in the report, aviation resources constitute the largest percentage of expenditures this requires careful management by all levels of the organization, including duty officers, to have a clear understanding of their roles and responsibilities in ensuring safe, efficient, and effective management of aviation resources on contract. Below is a table of recent annual costs of air operations compared to total suppression costs: Year 2012 2013 2014 2015 2016 Air Craft Cost $1,201,589 $5,258,341 $504,390 $5,194,873 $1,272,094 Suppression $6,370,390 $15,260,184 $4,508,893 $13,489,761 19% 34% 11% 39% Aircraft is hired using two methods: a) short?term contracts: for periods ranging from one flight (casual hire) up to 18 days (multiple day hire), or longer if mutually agreed, and b) long?term contracts: air tanker groups Hiring is recommended by the RDO approved by the YDO, and forwarded to Air Operations who action the aircraft request. Air Operations contract the carrier, negotiate the terms and conditions of the hire and process the appropriate paperwork. Typically WFM provides the fuel for the contract aircraft (see Fuel Section). Pilots must report fuel taken on both the daily flight reports and bulk fuel inventory forms. In the case of drum fuel, pilots must also notify the ROD when drums are taken and the location.28 27 Benchmark cost 2005?16 WFM Operational Review DRAFT 17 January 2017 30 Findings?lhservetions No reconciliation between invoice and fuel usage When GIAS requested the aircraft tracking spreadsheets, we were informed that the spreadsheets were used to track mins, although not always accurate or completed. We did receive a spreadsheet with the total invoice costs for aircraft. Although Dispatch shows the air operations activities, there was no indication that reconciliation was completed between invoices time flight and Dispatch. Use of rotary wing (RW) vs ?xed wing (FW) The analysis of aircraft use'dshow the preferred method is RW, Over the paSt 4 years the average hours for RW is 76% 0f total hours Over the past 4 years the costs for RW is 91% ofthe air craft costs 2016 Unused mins (hours paid for but not used) RW - highest region is SLAKES at 47.9 hours of their total hours) FW highest region is also SLAKES - over by 10.2 hours (52% of their mins) Rotary Wing Region with highest mins 2016 SLAKES 47.9 unused mins 26% of SL mins 2015 Tintina 107.4 unused mins 9% of TN mins 2014 NO DATA 2013 Tatchun over mins 132 hours 10% of mins 2012 Tintina 35.2 unused mins 32% of TN mins Fixed Wing Region with highest over mins 2016 SLAKES over mins by 10.2 52% of SL mins 2015 Tatchun over mins by 22.7 15% of TA mins 2014 NO DATA 2013 Tatuchun 6.8 unused mins 28% of TA mins 2012 Tintina over mins by 17.6 26% of TN mins Risk/imp act Given that aircraft is the largest cost driver for fire suppression, there is substantial financial risk when reconciliation is not completed. ?Air Operations Manual 2015 WFM Operational Review DRAFT 17 January 2017 31 We question if rotary wing is always required, and if WFM operations could use the mins of fixed wing before starting another contract of rotary. Also could the work of WFM air operations be more efficiently achieved by drones? Accommodation Policy WFM approved an Accommodation Policy in April 2016. The policy applies to all employees and contractors staying in accommodation provided by WFM. The intent of the policy is to allow for secure basic accommodation in the event of unavailable shelter and/or prohibitive costs in Yukon communities. (See further information under Planning Staging Camps Dawson). The occupants are required to conduct an inspection with a WFM representative at the beginning of the occupancy and are required to sign an inspection and code of conduct form. Pinriings/?bservntions GIAS noted that there are areas in the policy about which we have questions: 0 #4 No alcohol, drugs or narcotics are to be used, who will verify and enforce it? #14 of policy, WFM designate will carry out regular inspections of the grounds." Who will do this, and how often? 0 #19 in policy says the RPM must approve the satellite dish, in the Agreement #20 it states that the Director must approve. I #27 of Agreement, states that the agreement ?will be kept on file at the Fire Center?, who is responsible? - Agreement should include reference to the Code of Conduct that must be signed. - Agreement does not inform the occupant that WFM will not be held liable for any damages to or loss of personal items while on the is information that should be included in the signed agreement . Find out about guests included in agreement? In the review ofthe policy we questioned what is the YG liability for a camp? We were unsure if WFM understands their liability in providing accommodation. YG is the employer and therefore responsible for any ?work related" incident at the camps, even if employees are not directly engaged in firefighting application of Policy Arising out of and in the course of employment, there is an exception; ifthe employee removes themselves from the course of em ployment.29 29 Dependent on adjudicators decision WFM Operational Review DRAFT 17 January 2017 32 Risk/impact Financial Risk - It is important that the "occupants? are aware of all conditions in both the Occupancy Agreement and Code of Conduct, particularly the damages to or loss of personal items while on the premises. This represents a financial risk. Does WFM understand the liability/risk to YG if something should happen? There could be unexpected costs to WFM. Accommodatian Lease Agreements Background WFM is party to several agreements, reviewed the following three: 0 land lease agreements with Aviation and Marine Branch of HPW - land use agreement with Lands Branch in draft Memorandum of Understanding (MOU) with British Columbia, Wildfire Management Branch Findings/Oasemn titans WFM does not have all required agreements in place. The Interim YG Reserve of Land document, November 23, 2007 states that ?it will be required for an indefinite term for the use of a fire and attack air base?. Does this include a staging camp at the Klondike River property? Section 10 ofthe same agreement (Erection and Maintenance of Buildings or Structures) states that, "The tenant shall not construct or erect any buildings or structures on the Land without first obtaining the written approval of Aviation?. GIAS is unsure if this approval was requested for the cold storage at the Dawson Base. No MOU with BC There is no MOU with BC. The agreement which was drafted in 2012 was not signed and there was no indication of the state of buildings at the beginning of the agreement. Despite the fact that WFM is spending money to Upgrade the base as crews and others are using it, it is actually owned by British Columbia. Risks?rnpact Liability issues WFM_?Operational Review DRAFT 17January 2017 33 Being unable to find a signed version of the MOU calls into question the responsibilities and liabilities ofthe parties involved, as BC owns the building and WFM uses the building. As there is no indication as to the state of the buildings at the beginning of the agreement, WFM could be liable if there is a dispute of condition of building 3 years later. Import/Emory: oj'iiesources Backgraimd WFM supports and participates in mutual aid resource sharing (MARS) of resources through agreements with national and international fire agencies. Resources can include: air tankers, rotary wings, air attack officers, crews, overhead personnel and equipment such as pumps and hoses. Two primary MARS agreements are currently implemented thrOugh the Canadian Forest Fire Interagency Centre (CIFFC) and the Northwest Compact Agreement. There are also cross border agreements (Quick Strike) signed between WFM and all adjacent jurisdictions (BC, Alaska, and MARS agreements provide members access to resource sharing within Canada. The Northwest Compact Agreement facilitates assistance between members, including: Alberta, BC, NWT, Saskatchewan, Alaska, Idaho, Montana, Oregon, and Washington. The Agreement includes a daily rate to cover salaries, wages, overtime and benefits. This facilitates the fair exchange of resources and ease in invoicing and cost estimates. Cost reporting is necessary to help both the lending and receiving agencies to proceed with the cost recovery after an incident. Findings," Observations Imports: We received a spreadsheet of invoices sent out for the import of resources over the past 5 years. Imports costs were over 4 fire years (2011/12 2015/16). 2011/12 192,982 2012/13 653,350 2013/14 $3,374,990 2014/15 - 0 2015/16 - $1,813,426 TOTAL $6,034,748 3? Yukon Wildland Fire Management Policy 2015 WFM - Operational Review DRAFT 17 January 2017 34 The types of resources imported were: Resources Crew members 469 88% Command 12 2% Operations 18 3% Logistics 11 2% Planning 12 2% Tech Support - . 8 2%7 Coordinator 2 0% 532 100% This shows that crew members are the main imported resource. is not aware of analysis done to assess the threshold regarding cost of importing crew members versus cost of having more crew members which should also decrease overtime cost. Exports: WFM determines the export crew using the WFM Export Selection Guideline. It states that is committed to the concept of resource sharing in terms of personnel, equipment and aircraft, but exchanges are discretionary and not a right for personnel?. Using the billing spreadsheet, the following were the export recoveries for the past six years: 2011/12 $892,230.56 2012/13 $1,075,148.68 2013/14 $354,186.08 2014/15 $1,553,035.08 2015/16 $1,287,082.80 2016/17 55298 595.79 TOTAL $5,460,278.99 Discussions with management indicated that there is typiCally a cost benefit to Yukon for exports. These include a financial benefit for the crew members if it?s a slow fire season in Yukon. Yukon is considered a "good neighbour? between the CIFFC partners. However, there are costs not considered in the invoicing process, such as lost personal gear - write?off requests finally received two fire seasons later that could have been recovered. There is also the mobilization and demobilization, and the administration costs which are over and above paying crew members. WFM Operational Review DRAFT 17 January 2017 35 H5 3: Efficiency Before importing crew members, could Yukon resources be hired? EFF or other options? Export costs are recorded and invoices, we question if WFM invoices cover the true costs of exports e.g. full cost recovery. Fire Perm its Background WFM is mandated with the protection of life, property, and identified resources. Responsibility for the issuance of permits, and the monitoring and enforcement of the Forest Protection Act and Regulations is shared between WFM and Energy Mines Resources Neither WFM nor EMR have jurisdiction to issue permits within the City of Whitehorse. Permits issued outside of Whitehorse are for the fire season April 1St Sept 30th. Fin dings/Observations GIAS received documentation outlining the WFM fire permitting process. It may vary in regions; but the consistent process is that permits are issued either by WFM (at the regional fire centres) or EMR (regional offices). EMR issues permits only during normal office hours, WFM issues permits 24/7 through a Manager who is on call/standby. All permits issued are forwarded to the regional office where they are entered into and the paper copy filed in the WFM office. The partnership betWeen EMR and WFM seems to be working effectively, although we do not know if there is a reconciliation of bu rn permits ?to ensure that WFM receives all the issued permits. Burning Permits issued: Fire Year WFM 9'6 EMR '36 Total 2015 297 6? 14? 33 444 2015 141 38 228 52 369 2014 148 48 3 10 58 458 Information collected from Guidelines for the Issuance of Burn Permits 2014 3'2 EMR does not officially track the number of permits they issue WFM Operational Review DRAFT 17 January 2017 36 Typically the majority ofthe burning permits are issued by EMR during normal office hours except for 2016. We also noticed that there is no current MOU between EMR and to cover permit operations. Risk/impact Efficiency and effectiveness Resources are available at two places during the day. Do Y6 and the taxpayer require this? How many are issued after regular hours? We also question if/why WFM regional managers (RDO, RPM) are on call/standby 24/7 to issue burn permits? Could the service be provided during normal working hours? It is important to ensure that all permits issued are recorded in to provide accurate and complete information in case of incidents, which will direct the proper action necessary. Lookout Towers I Boakgi'oun fixed detection mandate is to discover and report all fires as quickly as possible with the goal of reporting all fires close to communities. One of the ways this is done is with look-out personnel who locate and report wildfires. These towers are strategically placed to provide coverage for communities and infrastructure as well as transportation routes. Findings/Observations We examined several documents reviewing the effectiveness of look-out towers: - Indian and Northern Affairs Canada (A review of the Yukon forest fire detection program) November 1990 The rationale in using the lookout system is to ensure rapid detection of fires with the potential to threaten communities,- 0 In 10 years look-outs reported 14% ofthe fires, public reported 49% 0 Report concluded that, based on observations and comments made during the exercise, the closure of look-outs which need major improvements seems to be the most realistic option because of financial constraints. - Yukon Lookout Detection 2011 Review 2004-2010 fire seasons 0 costs of look-outs, cost for the 9 active 8: 3 dormant sites 0 Study raises question: With increased technology, worker safety, aging infrastructure, etc. sites should be decommissioned, possibly sold. - 5 Year Capital Plan (2015-2020) 0 The Plan provides $30,000 for 15/16 and $150,000 in the next 3 fiscal years for "Lookout Upgrades/Remote Detection Camera? 0 They are currently operating 6 remote fire look-outs WFM Operational Review DRAFT 17 January 2017 37 I "Overall detection plan will be reviewed in the next year with plans to augment our fixed detection with a state of the art Remote Detection Camera System.? I Sask. and Alberta have recently converted over to this system Arguments against closing the towers: the option of shutting down the towers is not acceptable as that would compromise our ability to respond effectively to fire while they are small. Detection costs would be increased if the lookout were closed due to the requirement to augment the closure with fixed wing patrols. - W0 7.1 I?m-suppression Lookouts Guidelines (May 14, 2014) 0 Generally lookout staff work a regular 8 hour day; however during periods of moderate or higher fire danger the lookout hours are extended to cover the majority of the burning period. This period is associated with Alerts. 0 WFM provides: transportation, lookout is maintained, training, providing food and water, communications equipment, supply admin, first aid, etc. Look?out staffing between the year52012-2016 cost approximately a year. GIAS was unable to determine the costs. Row Labels o_.f p.ay_to_.t Klondike $119,746.67 Northern Tutcnhone $107,228.06 Southern Lakes $144,250.69 Tatchun $110,102.29 Tintina $71,541.19 Grand Total $552,868.90 Taken from personnel cost spreadsheet rec?d from 03 The 1990 review questions the benefits vs the cost and the efficiency of look-out towers. The 2011 review recommends the sites be decommissioned and possibly sold. Based on the findings above, look-out towers do not appear to be the most effective way to report fire. There are also safety issues to consider, with the towers structurally aging, and with look-out staff required to occupy the towers for extended periods of time, their ability to stay alert must diminish with the long hours. We question the rationale/expense of staffing look?out towers, when the majority of fires are reported by the public and not the towers The use of cameras/drones could be a more efficient use oftaxpayers? money with probably the same or better results. Over the years at least three look?outs have been closed what was the impact? What was the response time to fires? WFM Operational Review DRAFT 17 January 2017 38 Public outcry - GIAS recognizes that the public will not be in favour of closing the look-out towers; they have always been there, and are seen as a valuable service to the communities. Risk/Impact Efficiency and Safety GIAS does not know the full cost of operating Yukon?s loak-out towers. Based on the findings above, they do not seem to be the most effective way of reporting fires. Keeping this approach to reporting fires has financial ramifications for taxpayers and a safety impact for the look-out staff. 5.0 Conclusion WFMB operations are commendable in their ability to extinguish fire (Initial Attack). However, as per the study performed by Science and Planning, the Initial Attack cost varies quite a lot and better used of the system in place can support better data for decision-makers. Many areas have been identified for improvements and there is a reputational risk for YG ifthese improvements are not put in place as they are link to potential misappropriation of assets. However, GIAS believes that the culture could be changed if actions taken are aligned, employee engaged, and feedback provided by improving communication and being more transparent. It will result in a working environment that is fair equitable and efficient. The results of the interviews show that WFM employees take pride in the work and have developed camaraderie. Also there are no real disparities between regions and HQ. These provided a solid ground to achieve better results. WFM Operational Review DRAFT 17 January 2017 39