Presentation to OASBO Finance & Internal Audit Committee Workshop. February 25, 2016

Transcription

1 Presentation to OASBO Finance & Internal Audit Committee Workshop 1 February 25, 2016

2 Audit Committees & Internal Audit Update 2

3 Changes to Ontario Regulation 361/10 In July 2015, technical amendments were made to Ontario Regulation 361/10, Audit Committees : Allows any audit committee member to be chair (previously only trustee members) Audit committee is now required to make recommendations to the Board on the content of the external audit plan and on all proposed major changes to the plan Amendments were made to reporting requirements to bring the annual report to the Ministry in line with the Ministry s information requirements and what was already being requested 3

4 Audit Committee Training Province-wide training sessions held in early 2015 Provided new audit committee members and senior management with a solid understanding of key principles, while providing experienced attendees with refreshed training reiterating main points Training covered: A background on the initiatives Overview of the regional internal audit approach, internal audit as a profession, benefits of internal audit Overview of audit committees, including regulation, member roles and responsibilities and leading practice Trustee Professional Development Program module Based on earlier training Module 19 on ontarioschooltrustees.org website Includes interviews with trustees and superintendents of business, as well as informational slides 4

5 Audit Committees Other Updates Deloitte Report Open vs. closed sessions of audit committee meetings Guidance document Each board should develop a policy on the criteria for opening or closing an audit committee meeting When in doubt, seek legal advice Presentation at Public Education Symposium RIAM overview on audit committees and internal audit Ministry update on initiatives 5

6 Feedback on Regional Internal Audit Initiative 2015: SB12 requested SBO feedback on regional internal audit Feedback received from 17 individuals boards, collectively from French Language boards, two RIAMs and one trustee association Some key themes in feedback and measures implemented to address: Theme Gaps in sector knowledge Sharing of best practices Issues with the risk assessment How Addressed Sector training for RIATs Creation of the Leading Practice Repository Committee Strategic Enterprise Risk Management project (a COSBO E&E project) 6

7 Regional Internal Audit Coordinator Dan Duszczyszyn on second year of two-year contract with Council of Ontario Directors of Education Key roles and responsibilities: Mediating issues related to regional internal audit Identifying and addressing gaps in subject matter expertise: Internal Audit Professional Development Conference Education sector training Supporting regional internal auditor recruitment Facilitating the RIAM performance review process Current projects: Developing the performance review process Regional internal audit branding 7

8 Leading Practice Repository Sharing of best practices identified through internal audits a common suggestion in sector feedback Volunteers sought for committee to develop a repository (overwhelming response): 24 volunteers from 15 boards, 6 RIATs, RIAC Mix of Senior Business Officials, Finance Managers, regional internal auditors and board internal auditors To be hosted on a password protected website, accessible only by SBOs and internal audit Template in development, to be filled out by auditors and approved by SBO Will go back as far as Expect to pilot by end of school year 8

9 Regional Internal Audit Performance In , RIATs across the province executed approximately 130 audits and 40 follow-up audits, including the following processes: Instruction & Schools Special Education & High Needs Enrolment Continuing Education Education Quality Coordinating Field Trips Suspensions & Expulsions Plan and Deliver Programs Facilities Facility requirement forecasting/capital planning Health & Safety Construction Monitoring & Management Repairs & Maintenance Facility Procurement Accommodation Review Custodial Services IT & Communications IT Strategy Network & Application Access Mgmt Data Management Backup and Disaster Recovery Privacy & Records Management Manage IT Security Business Services Payroll Budget planning, development & control Treasury Purchasing Cards Expense Reporting Procurement & AP Fundraising Ministry Reporting Budget Management Grant & Non-Grant Revenue Mgmt Risk Management Petty Cash Human Resources Recruitment, Hiring & Retention Succession Planning Teacher Staffing, Non-teacher Staffing Absences & occasional teachers HR Policy & Effectiveness Other BPS Procurement & Expense Directive Compliance Review Energy Management & Environmental Sustainability Education Assistant Utilization 9

10 Shared Services Update 10

11 Shared Services - COSBO E&E Funding Since 2006, the Ministry has provided COSBO with funding for Efficiency and Effectiveness projects. In April 2015, $750,000 in seed funding from the COSBO E&E funding allocation was provided for school boards to support shared service feasibility studies and to establish local and regional shared services delivery models. Shared services applications were due September 30, This funding supports two streams of shared services applications: Feasibility Studies exploring ideas to support local and regional options for shared service delivery models Implementation Projects projects where feasibility analysis/business cases have been developed and the project is ready to be implemented This funding was provided to projects beginning in school year and was capped at: 50% of the cost of a feasibility study up to a maximum of $25,000 per study Up to a maximum of $100,000 per project for the implementation of a shared service initiative but not to exceed 50% of the total project costs 11

12 Shared Services - COSBO E&E Funding The COSBO E&E Advisory Committee approved 21 shared services submissions. Successful applicants were notified in November Since then, these applicants have: Received an advance of 50% of their approved funding Provided an initial update on the status of their projects to the COSBO E&E Coordinator and Ministry staff All successful applicants have agreed to: Share the results, findings and lessons learned from their projects with the Ministry of Education and/or education sector Return funds for projects with lower than anticipated expenditures and/or for projects that do not proceed 12

13 Shared Services - COSBO E&E Funding School boards submitted a variety of shared service applications covering a range of functions, as shown below: Project Type Approvals Disaster Recovery 5 Procurement and Purchasing 4 Human Resources (Shared Department, Planning Capacity) 2 IT Solutions 2 Financial Management (Data Discovery & Reporting) 2 Work Order Management 2 Records Management 1 Data Centre 1 Accounts Payable 1 Community Learning Centre (Shared Adult Education / Alternative Education) 1 Total 21 13

14 EE029-3: Niagara Catholic School Board Data Relocation Project Niagara Catholic DSB requires a new data centre and the school board did not want to bear the expense of building, managing and operating a new data centre. The board explored several options and decided to lease space in the Regional Municipality of Niagara s new, state-of-the-art data centre. This data centre is currently under construction and will be ready by Fall The COSBO E&E allocation for this shared services project is $100K. This funding will be used for professional services (i.e. a project manager) for the development of engineering plans during the preinstallation phase of the project. Niagara Catholic DSB plans to drive down overall costs through the purchase of discounted hardware, exploring cloud computing options and staging equipment in order to accelerate implementation. 14

15 EE029-5: Waterloo Collegiate Institute (WCI) / Northdale Project Waterloo Region DSB is exploring the feasibility of establishing a disaster recovery site that can be shared with the City of Waterloo and Wilfrid Laurier University. All three partners currently administer their own disaster recovery sites, which are at various stages of development and operation. The COSBO E&E allocation for this shared services feasibility study is $25K. The funding is being used to engage a consultant to examine the feasibility of sharing a disaster recovery site and the costs associated with operating the site. 15

16 EE029-11a: Data Discovery & Reporting Project (Proof of Concept) Catholic School Boards Services Association (CSBSA) and a number of public school boards are examining the use of Business Intelligence software. The software solution allows data to be consolidated from multiple sources into a single application. The goal is to improve access to rich data and insightful analytics to support evidenced-based decision making. The COSBO E&E allocation for the feasibility study is $25K. This will assist in funding professional services to develop a proof of concept and provide software training to member boards. The initial software demo of the application will focus on Pupil Accommodation Reviews based on York Catholic DSB s data. 16

17 Shared Services COSBO/ECNO IT Project In addition, to the Shared Services initiative, COSBO is also supporting: A shared services IT project, in partnership with the Educational Computing Network of Ontario (ECNO), to streamline the delivery of software or imaging to computers on staff and student-owned devices o This central cloud-based approach may save time and resources and could serve as a model for future shared services model across the province o This project is currently in its second year 17

18 Energy Management Initiative 18

19 Mandate of the Energy Management Initiative Promote energy management across Ontario s education sector by developing dedicated resources, sharing operational best practices and creating tools to support school board efforts to reduce energy consumption 19

20 Energy Conservation Officer (ECO) Purpose To provide the sector with a dedicated resource who is a technical expert in energy management Role provide interested school boards with technical support and advice in energy management provide the Ministry with advice on how to implement specific energy projects in the education sector, and work with energy managers across the sector to identify best practices in energy management within the sector and to promote them Key Takeaways The ECO s services are available to all boards for free EDU is partnering with the sector to ensure that boards have access to the resources that they need 20

21 Incentive Programs Advisor (IPA) Purpose To significantly increase the sector s use of incentive funding to support energy efficient capital projects in school boards Role of the IPA Provide information and advice on energy incentive programs to interested school boards Liaise with senior plant officials to identify appropriate incentive programs for specific schools Assist individual boards in completing applications for government, utility or agency energy-incentive funding Document best practices/lessons learned about incentive programs and promote them to the sector Identify existing barriers to boards accessing incentive programs Develop strategies to maximize the number of schools that participate in incentive programs to ensure boards access as many as possible. 21

22 Incentive Programs Advisor (IPA) Achievements (as of January 31, 2016) 813 applications on behalf of boards $7.3M in incentive funding applied for to date $5.2M in incentive funding paid out to boards $2M+ pending approval Key Takeaways Boards can stretch their capital funding by leveraging incentives The IPA is a valuable resource Service is free to all school boards Upfront cost of installing equipment is offset by incentive Annual operating/maintenance costs are reduced due to efficiencies Less energy consumed Lower demand 22

23 Utility Consumption Database (UCD) Purpose To provide school boards with an energy management tool that will allow them to analyze the energy consumption of all facilities in their asset portfolio and make informed decisions on energy management strategies Role An analytic tool that evaluates consumption data Weather normalized data Allows comparison of year-over-year consumption determine the effectiveness of specific energy management strategies at a site Allows comparison of consumption between sites of similar features in other geographic areas Determine performance benchmarking to set realistic conservation goals 23

24 Utility Consumption Database (UCD) Current Status Sites: 5,492 Electricity meters: 7,245 Natural gas meters: 5,779 Alternative utility accounts: 228 Water In 2015 the UCD was expanded to include water consumption (metered municipal water main; well/aquifer; and trucked in) Water Opportunities and Water Conservation Act, 2010 Regulations have not been drafted yet Ministry of Environment looking at feasibility of mirroring Green Energy Act reporting requirements If this happens, the sector is positioned to be able to use the UCD to meet via an automated process 24

25 Utility Consumption Database (UCD) Key Takeaways The UCD is the largest database of its kind in North America The UCD is a valuable energy management tool for facility managers The education sector has had the highest compliance in meeting the reporting requirements of the Green Energy Act regulations every year since 2013 due to the UCD UCD is free for all boards Each school board can have up to 5 users Each board determines who has access to their data 25

26 Student Transportation 26

27 Auditor General s 2015 Annual Report The Ontario Auditor General s 2015 Annual Report included a valuefor-money audit on student transportation. The reports includes 15 recommendations directed at the Ministry of Education, Ministry of Transportation and student transportation consortia. The recommendations address four main observations: Oversight processes for safety can be improved. Eligibility for busing and funding formula needs updating. Opportunities exist for efficiency gains. Procurement of student transportation services needs improvement. 27

28 Auditor General s 2015 Annual Report The ministry takes all of the recommendations seriously as student safety is a top priority. We will work and collaborate with school boards and consortia on these recommendations. We met with the Ontario Association of School Business Officials (OASBO) Transportation sub-committee on January 19 th to discuss the recommendations and how to potentially address them. Where appropriate, the ministry will collaborate with the Ministry of Transportation. 28

29 Student Transportation Competitive Procurement Review Report The review was chaired by the Honorable Colin Campbell, retired Justice of the Ontario Superior Court. The two members of the Expert Panel were Leo Gotlieb and Paul Emanuelli. The Review Team was contracted to review current competitive procurement practices and student transportation Requests For Proposals (RFPs) that have been issued since December 31, They were asked to identify best business practices and opportunities for improvement, as well as explore alternative BPSPD-compliant competitive procurement options for school boards consideration. 29

30 Student Transportation Competitive Procurement Review Report The Review Team conducted extensive stakeholder consultations. Stakeholders included: Independent School Bus Operators Association (ISBOA), Ontario School Bus Association (OSBA) and Unifor Council of Senior Business Officials (COSBO) Ontario Association of School Business Officials (OASBO) Prior to the submission of the final report to the Minister of Education, the Treasury Board Secretariat (TBS) reviewed all opportunities that are addressed by BPSPD and confirmed their compliance. The STCPR Report was released to the sector on January 28,

31 Student Transportation Competitive Procurement Review Report The report acknowledged that exempting student transportation services from the Broader Public Sector Procurement Directive (BPSPD) would not promote competition or transparency. The report acknowledged that the use of RFPs is a viable option for acquiring student transportation services. The report did not identify a BPSPD-compliant alternative competitive procurement option for student transportation. The report outlined 29 opportunities for competitive procurement under four main categories: Opportunities to sustain and enhance a competitive marketplace Opportunities to increase economy, efficiency and flexibility Opportunities to increase the effectiveness and defensibility of evaluation and selection Opportunities to improve industry relationships 31

32 Student Transportation Competitive Procurement Review Report The Review Team provided two information sessions on their findings to the sector: Durham Feb 9 th Peel Feb 11 th On Feb 12th, 2016:SB04 was issued detailing the ministry s support for school boards and operators in proceeding with a three-phased approach to collaboratively review and address, where appropriate, the opportunities detailed in the report. Phase 1 to set up a Phase 1 STCPR Advisory Committee to support OASBO s deliverable of a leading practices document on standardization opportunities. Phase 2 to review and address more complex opportunities identified that may require extensive consultation, analysis and likely legal and/or procurement advice Phase 3 to consider the establishment of formalize structures to support opportunities to improve industry relationships 32

33 Student Transportation Competitive Procurement Review Report Phase 1 STCPR Advisory Committee membership: Meeting Chair - Dean Currie OASBO Transportation Committee representatives Maureen Cosyn Heath, Wendy Dobson, Renée Boucher, Lori Powell, David Frier (alternate) OSBA representatives Chris Harwood, Leslie Cross, Jim Switzer (alternate) ISBOA representatives Greg Hammond, Frank Healey, Eric Hochgeschurz (alternate) Special Advisor Wayne McNally Assistant to the Meeting Chair Nancy Huynh (Ministry of Education) The Advisory Committee had its kick off meeting on February 18 and agreed to the terms of reference: Guiding principles Roles and responsibilities Deliverables: OASBO will release a leading practices document on standardization of competitive procurement of student transportation service that takes into consideration the input from the STCPR Advisory Committee Timeline: February - June

34 E&E Review Summary Report A summary report of the E&E reviews conducted to date (all 33 original reviews and 18 follow-up reviews) has been posted on the SBSB website. Reports.aspx?Link=Trans This report details the progress and significant operational and management improvements that been made in student transportation across the province since