Transcript Governance - McGill University

Presentation
Administrative Responsibilities
and Accountability
www.mcgill.ca/vpadmin/accountability
May 11, 2006
Presentation Outline
Introduction and Overview
University Governance
Record-keeping Best Practices
Financial Management
Internal Audit
Human Resources Management
Endowment Gifts/Donations
Environmental Health and Safety
Closing Comments
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Introduction and Overview
Objective
To understand and support each other’s roles
in order to ensure effective governance.
To promote awareness of the tools that are
available to help you fulfill your administrative
roles.
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Background
Principal’s concerns list
Vice-Principal’s objectives
Built on departmental objectives
Similar objectives in various groups
Review with Audit Committee of common
observations in audits
Current context (Sarbanes Oxley, Bill 198)
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Chain of Accountability
Community
Board of Governors
Government
Principal
Provost & V-Ps
Deans
Chairs/Directors
Professors
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Researchers
Administrators
Deans, Chairs, Directors and
Administrators’ Roles in Administration
Responsible for exercising “governance” over a
unit of the University. (See next two slides for
definitions and Table of Key Controls)
Accountable and responsible for meeting set
objectives.
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Are able to say: “I have exercised effective
administration and oversight of my Unit(s), and
I am achieving my goals in an ethical manner.”
What is Governance?
A Management Perspective
“Corporate governance is the system by which business
corporations are directed and controlled. The corporate
governance structure specifies the distribution of rights and
responsibilities among different participants in the
corporation, such as, the board, managers, shareholders
and other stakeholders, and spells out the rules and
procedures for making decisions on corporate affairs. By
doing this, it also provides the structure through which the
company objectives are set, and the means of attaining
those objectives and monitoring performance.”
- OECD April 1999
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What is Governance?
A Management Perspective (Cont’d)
“Corporate governance is about promoting
corporate fairness, transparency, and
accountability.”
- J. Wolfensohn, president of the World Bank, as quoted by an
article in Financial Times, June 21, 1999.
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Key Administrative Activities
for Your Unit (Table of Key Controls)
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Properly Designed Committees
Human Resources
Strategy
Codes of Conduct, Conflicts of Interest, and Ethics
Records management
Environment, Health and Safety
Financial Management
Purchasing (including PCards)
Research
Academic/Student Affairs
Communication
Information Technology
University Governance
Policies and Best Practices
Johanne Pelletier
Secretary-General
University Secretariat
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Topics for Discussion
Governance bodies
Board of Governors
Senate
RIAL “head office”
Dispute resolution (tribunals, harassment policy)
Wordmark, access to information
Tenure and promotion
Convocation
Statutes, Regulations, Policies…
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Board of Governors
University’s governing body
25 voting members
Authority/trustee of all University property
and University affairs
BoG = Royal Institution for the Advancement
of Learning (Charters 1821 & 1852)
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Board of Governors - Committees
Executive
Audit
Finance
Human Resources
Building and Property
Investment
Nominating and Governance
Committee to Advise on Matters of
Social Responsibility (CAMSR)
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Senate
“General control and supervision over the
academic activities of the University”
Curriculum and courses of study;
regulations for admission;
changes in curriculum; and
requirements for degrees, diplomas, or
certificates.
107 members
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Senate - Committees
Study issues and formulate policies.
Not responsible for administrative matters,
budgets, or for the appointment of personnel,
although the adoption of policies they
recommend may naturally involve
administrative action by the proper
authorities.
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Navigating Through
Governance Bodies
What must go to Senate and or Board?
Governance 101?
Calendars of Business – Board, Senate
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Secretariat – Other Functions
Dispute resolution (tribunals, Harassment Policy)
Wordmark, access to information
Tenure and promotion
Convocation
Honorary Degrees
Elections
University record-keeping
www.mcgill.ca/secretariat
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Statutes, Regulations, Policies…
Statutes?
Rules or internal “legislation”
Role of Board, Senate, Officers (Chancellor, Principal,
Provost, Deputy Provost, V-Ps, Secretary-General,
Faculties, Deans, Departments, Degrees, Convocations)
the Visitor?
http://www.mcgill.ca/files/secretariat/statutes-feb05.pdf
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Statutes, Regulations, Policies…
(Con’t)
Regulations?
Wordmark and Insignia of McGill University, Policy on Use of
http://www.mcgill.ca/files/secretariat/wordmark.pdf
Policy on Exterior Signage
http://www.mcgill.ca/files/secretariat/exterior-signage.pdf
Policy on Honorary Degrees
http://www.mcgill.ca/files/secretariat/honorary-degrees.pdf
Signing Authority
http://www.mcgill.ca/files/secretariat/Approval-Contracts-Signing-Authority.pdf
Tenure Regulations (2006)
http://www.mcgill.ca/files/secretariat/regulations-academic-amended2006.pdf
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Signing Authority?
1.1. Any authority or accountability granted under these Regulations is
delegated by the Board of Governors of McGill University and the
Royal Victoria College (RVC), or the Trustees of the Royal Institution
for the Advancement of Learning (RIAL) (collectively, “the Board of
Governors” or “the Board”), which have ultimate responsibility for
conducting the business of McGill University (the “University”),
safeguarding University assets against loss or improper use and
producing reliable financial records for internal use and external
reporting purposes.
1.2. No individual may sign any contract that creates an obligation or
undertaking on behalf of the University unless that individual has
signing authority in accordance and compliance with this Policy.
1.3. These Regulations shall be interpreted restrictively and signing
authority shall not be established by analogy or through historical
practice.
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Governance - - Administration?
Governance: Governance generally occurs in one place, while
administration generally happens at multiple levels and areas.
Governance guides administrative direction. Administration develops
goals/priorities/strategy in collaboration with governance; carries out
day-to-day operations to achieve aspirations agreed on by
governance.
Example?
University Building Committees = principles governing management
of immoveable assets
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Administration = policies/guidelines re facilities management,
development
Governance - Summary
Board of Governors
Senate
Secretariat
Principal &
Vice-Chancellor
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Questions?
Johanne Pelletier
398-3948
[email protected]
www.mcgill.ca/secretariat
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McGill Record-Keeping:
Policies and Best Practices
Alex Richmond
Senior Archivist
Records Management
McGill University Archives
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Topics for Discussion
MUA (McGill University Archives) Mandate
Employee Obligations
Records Management Services
digitalpermanence
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MUA Mandate
Terms of Reference, McGill University Archives
Executive Committee, Board of Governors
January 17, 2005
To promote good governance and accountability
through the protection of the University’s documentary heritage and
records/information assets, in all formats, by combined archives and
records management services.
University’s official custodian of archives and records
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Employee Obligations?
Terms of Reference, McGill University
Archives
Executive Committee, Board of Governors
January 17, 2005
Ensure the security and management of records while in their
care.
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Comply with the policies and procedures of the University
Archives, including the management and transfer of records to
the University Archives in accordance with MURRS.
Records Management Benefits
It’s not just about obligation – Records Management
helps you
Enhances administrative decision making
Facilitates information sharing throughout McGill
Reduces time & labour costs
Protects the legal and financial interests of McGill
Assists in risk assessment and risk management
initiatives
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MUA Records Management Services
McGill University Records Retention Schedule
(MURRS)
File Storage & Retrieval Services
Integration of New Record-Keeping Technologies –
The digitalpermanence Project
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MURRS
Tool to manage records through life-cycle
Provides employees with knowledge of:
● How long to keep the record
● When to transfer the record to the archives
● How long the Archives keeps the record
MURRS helps us understand not only what
we keep, but what we can destroy legally
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Authorized Destruction
Why is it Important?
Records can be a liability
Storage costs – McGill need only keep 5% of all records
Must be part of McGill’s every-day course of business
practices
Without authorisation, there is no evidence the
destruction was done according to MURRS
Destruction requires the joint approval of the University
Archivist and the heads of academic or administrative
Units responsible for the records
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Digital Permanence
digitalpermanence is a McGill University Archives
initiative, promoting the collaborative, strategic, long-term
management and preservation of McGill University’s
electronic records.
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Digital Permanence Projects
•University-Wide Classification Scheme
•Scanning Standard
•Governance Online
•Email Management
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Contact Information
Questions?
Alex Richmond
398-2955
www.archives.mcgill.ca
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Financial Management
Matthew Nowakowski
Controller, Accounting Department
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Accounting/Finance
Department Function
The Accounting Department is responsible for recording and
reporting information received on the financial activities of the
University’s units, and high-level monitoring of the integrity of
financial transactions. Additionally:
High-level guidance to the University on financial issues and
management.
Preparation and management of the annual operating and
capital budget.
Planning and liaison with government on physical resources
and financial matters.
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McGill’s Environment
Decentralized
Financial management activities occur in
Faculties, with authority and responsibility for
resource allocation, receipts, expenditure
authorization, and requisitioning delegated to
individual departments or budget units.
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McGill’s Environment (cont'd)
With Autonomy Comes Accountability
The discretion to manage affairs independently must be
accompanied by the assumption of responsibility for those
affairs.
Local units must take responsibility for ensuring that controls are
in place and operating effectively at the local level.
Primarily responsible for coordinating with central specialists to
ensure that controls are in place and operating effectively at the
local level.
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Your Role in
Financial Management
You are responsible for your unit’s financial
operations and internal controls.
Revenue management
Expenditure management
(salary and non-salary)
You have authority over resource allocation,
spending, and revenue-generating decisions.
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Scope of Your Responsibility
All fund types within your Faculty or Departmental jurisdiction:
Operating Funds
Other Unrestricted Funds
Self-financing & special purpose (typically with limited life)
Unrestricted donations
Restricted Fund
Restricted donations
Student aid
Income from endowment funds (McGill Investment Pool)
Research grants and contracts*
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*Note: Principal Investigators have authority over their research funds; however, Chairs have overall
responsibility to ensure that grants are well managed and that overspending does not occur.
Scope of Your Responsibility
(cont'd)
Endowment Funds
Plant (capital) Funds
Capital and major equipment
Construction and renovation
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Your Primary Financial
Management Responsibilities (cont'd)
Adherence to policies and procedures
Legitimate, appropriate, and reasonable use of
resources to advance academic objectives
No deficits
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Your Primary Financial
Management Responsibilities (cont'd)
Fund Financial Manager
Primarily responsible for ensuring controls are in place and operating
effectively at the local level.
Must make an assessment of the significant risks existing in each fund’s
situation, as risks vary by type of activity:
Operating departments
Self-financing activities
Restricted funds
Research grants
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Responsibility for design and implementation of controls is often delegated
to administrative personnel.
Your Primary Financial
Management Responsibilities (cont'd)
University
Provides an overall policy framework which must be adhered to.
Provides overall controls in areas of significant institutional risk:
Full-time appointments
Operating budgets
Research funds
Procurement transactions
Verifies and approves certain transactions.
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Key Control Activities for
Your Unit
Organization Structure
Employees’ job descriptions and objectives should properly reflect the
unit’s control objectives and the University’s control and policy
requirements.
Employees must have the appropriate training to execute financial
management responsibilities at their assigned level.
Attention must be paid to segregation of duties:
Separation of custody vs. recording
Ensure delegation of duties is documented, and all parties involved
understand their responsibilities.
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Key Control Activities for
Your Unit
Operating Budgets
Should be kept up to date to reflect current state of
operations.
Must be approved at the appropriate level.
All significant assumptions and changes should be
documented.
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Key Control Activities for
Your Unit
Fund Structure
Funds should be structured to properly support financial
management requirements.
Employees with financial responsibilities should be
aware of the funds in their unit, and each fund’s
purpose.
Fund structure should be reviewed periodically.
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Key Control Activities for
Your Unit
Financial Monitoring
Financial results should be reviewed regularly.
Ensure transactions are:
Legitimate
Appropriate
Authorized
In accordance with policies
Reasonable use of funds in support of the unit’s objectives
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Key Control Activities for
Your Unit
Financial Reporting and Review
Unit leaders should receive regular reports
summarizing operations and status of funds.
Be aware of significant over-expenditures, both existing
and potential.
Review status of operating funds, project to year-end
versus budget.
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Key Control Activities for
Your Unit
Key Policies
University regulation on signing authority
P-Card policy
Travel expense policy
Agreement on internal trade
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Key Control Activities
Summary
Your signature matters! Do not sign anything you do
not understand and/or agree with.
What your signature means:
transactions are: legitimate, appropriate, and properly
authorized.
Responsibility can be delegated in certain
circumstances, but you are ultimately responsible.
Need help? Contact Matthew Nowakowski at extension
2310 or at [email protected].
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Tools for Success
Budgets.
Financial Information System (FIS) specialists at the
Faculty and departmental level.
Monthly financial statements are readily available on
the web (Minerva):
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Summary of all funds under your jurisdiction;
detailed transactions for a specific fund; and
detailed payroll and salary encumbrances
information for a fund.
Sources of Information
Your Faculty Budget Office
Departmental Administrative Assistant/Officer
Financial Services staff:
Infrastructure and Reporting group;
Fund Administrators; and
Department Managers.
FIS specialists
Information Systems and Technology Customer
Services (ICS) helpdesk
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Sources of Information (cont’d)
Accounting department website:
www.mcgill.ca/accounting
Internal Audit website: www.mcgill.ca/internalaudit
Financial Administration Training Program.
Financial Administrators’ Forum.
Targeted communication and information sessions
throughout the year.
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Internal Audit
Gracy Pardillo
Senior Auditor, Internal Audit Department
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Internal Audit’s Role
We report to Audit Committee of the Board.
We corroborate whatever internal controls
exist and are effective.
We make recommendations with respect to
policy and internal controls.
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Audit Services
1.
2.
3.
4.
5.
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Faculty and Administrative Unit Audits,
including Information Technology
Follow-up Audits
Continuous Audits
Special Mandates
Board-approved Audits
Examples of Recommendations
Monitoring and reconciling of fund activity
“Blind” signing
PCard transactions, expense reports, POPS
(all subject to continuous audit)
Hardware and software purchasing controls
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Our View
We believe that everyone wants to
do the right thing, and that everyone
believes they are doing
the right thing.
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Human Resources
Robert Savoie
Executive Director, Human Resources Department
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Topics for Discussion
1.
Department Function
2.
Your Role in H.R. Governance
3.
H.R. Governance Framework
4.
Conflict of Interest
5.
Harassment
6.
Key H.R. Control Activities
7.
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Additional Resources
Department Function
A University resource that:
Develops H.R. strategies and practices to ensure the successful
implementation of the University’s mission.
Builds performance and competencies to support institutional
capabilities.
Responsible for the staffing and recruitment of administrative and
support staff.
Manages design and delivery of Staff Development.
Develops policies affecting the working conditions of administrative
and support staff.
Negotiates and implements collective agreements.
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Department Function (cont'd)
A University resource that:
Develops remuneration and benefits programs for all University
staff.
Manages Health and Safety programs.
Area Personnel Officers/Area Personnel Representatives are local
specialists who perform human resource functions, report to
individual Faculties, and have responsibility for ensuring the proper
application of University policies and procedures.
For more information, visit www.mcgill.ca/hr/
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Governance of Human Resources
Management
of
Compensation
Management
of Working
Conditions
Management
of
Performance
Management
of
Hiring
START
Management
of Health and
Safety
Management of
Organizational
Planning
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Management
of
Termination
Your Role in H.R. Governance
Management of Organisational Planning
-
Define future unit needs and objectives
Understand the roles and responsibilities of staff
Understand occupational categories
Understand reporting structure
Management of Hiring
-
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Recruit quality personnel to meet present and future
needs
Interview, evaluate, select and document hiring process
Look for different recruiting pools
Your Role in H.R. Governance
(cont'd)
Management of Compensation
-
Management of salaries
Review your internal equity
Ensure information to generate payroll is processed
accurately and on time
Verify benefits enrolment
Management of Working Conditions
-
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Ensure compliance with policies, procedures,
regulations, collective agreements and legislations
Absence management
Your Role in H.R. Governance
(cont'd)
Management of Performance
-
Performance dialogue process
Document
Plan staff training and development, taking into account
Unit and University needs
Management of Health and Safety
-
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Provide a safe working environment
Be knowledgeable about crisis/emergency management
Follow fire, environmental safety and health procedures
Your Role in H.R. Governance
(cont'd)
Management of Termination
-
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Ensure security procedures are followed – removal of
keys, codes, I.D. Cards, critical data, etc.
Documentation
H.R. Governance Framework
1.
2.
3.
4.
5.
6.
7.
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University Policies
Collective Agreements
Civil Code
Labour Code
Employment Standards
Human Rights
Health and Safety
8.
9.
10.
11.
12.
Environmental
Legislation
Privacy
Access to Information
Pay Equity
Employment Equity
Conflict of Interest
Unauthorized use of privileged information.
Use of University services and resources.
Employment, supervision or evaluation of
persons or family to whom they owe a
personal or legal obligation.
External commitments.
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Harassment
McGill is committed to:
Promoting personal dignity and fair treatment
of all members of the University.
Providing an environment free of
harassment.
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Key H.R. Control Activities
Management of hiring process.
Management of compensation.
Performance management process.
Ongoing training and development of staff.
Management of health and safety/working conditions.
Review of hiring, appointment form, payroll and
benefits information.
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Additional Resources
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1.
Area Personnel Officers/Area Personnel
Representatives
2.
Academic Personnel Office
3.
Human Resource Specialists
4.
www.mcgill.ca/hr
5.
Collective agreements
Gifts, Donations, and
Endowments
Julie Ghayad
Financial Director
Development, Alumni, and University Relations
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Topics for Discussion
1.
2.
3.
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Types of Donations
Endowment Gifts/Donations
Key Controls
Types of Donations
What constitutes a donation:
Transfer of property (usually cash)
Transfer is voluntary
Transfer is made without expectation of return (no
direct benefit to donor)
All three conditions must exist.
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Types of Donations (cont'd)
Cash/equivalent
Securities
Gifts in kind
Items that do NOT qualify as donations:
Sponsorships
Membership fees
Payments for services
Benefits from special events
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Endowment Gifts/Donations
1.
2.
3.
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Capital protected in perpetuity
memorandum of agreement
Fund administration
creation of endowment capital fund
purchase of units
use of endowment module
Spending power
income account is a restricted fund; spending
must be consistent with the donor’s wishes
allocation of income; monthly distribution
Endowment Gifts/Donations
(cont'd)
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4.
Your role
monitoring of income spending
Faculty endowments – Deans/Chairs’ discretion
use judgment; if in doubt, request clearance from
donor
5.
Reporting to donor
feedback on stewardship and endowment
performance
allows for continual contact with donors
provides evidence of appropriate governance
Endowment Gifts/Donations
(cont'd)
6.
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Risk to reputation
our ability to attract future gifts rests in part on
our capacity to demonstrate strong and effective
governance
any dissolution of perceived confidence will
affect our ability to attract future gifts
Key Controls
Approval of development fundraising plan (annually)
Donations are adequately documented
Donations forwarded to Faculty Development Office
for prompt processing, receipting, and recognition
Donations are allocated to purposes as agreed
upon by the donor and the University
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Key Controls (cont'd)
Timely and accurate reports are produced to keep
donor apprised of the use and impact of funds
Contact information on alumni/donors is forwarded
to Faculty Development Office to ensure accurate
and current data
Solicitation and alumni events are coordinated
through the Development, Alumni & University
Relations Office
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Contact Information
Ann Dowsett Johnston, Vice-Principal, DAUR
ext: 3529
Farhana Mather, Sr. Exec Director, Development
ext: 2873
Susan Reid, Director, Bequests & Planned Gifts
ext: 8286
Honora Shaughnessy, Sr. Exec Director, Alumni Relations ext: 3555
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Marc Weinstein, Assistant VP & Director of Campaigns
ext: 5807
Lori Yersh, Executive Director, Strategic Stewardship
ext: 3567
Julie Ghayad, Financial Director
ext: 3558
Environmental
Health and Safety
Wayne Wood
Manager, EH&S
[email protected]
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Topics
Department Function
EH&S legal requirements
Internal Responsibilities and Unit Control
Activities
Departments in Laboratory Disciplines
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Environmental Health and
Safety Office
Information
Measurement
Liaison with regulatory agencies
EHS web site: http://www.mcgill.ca/ehs
Environmental projects: www.mcgill.ca/rethink
Hazardous Waste Management Program:
http://www.mcgill.ca/wmp
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Legislated Requirements
Provincial:
Health and Safety Act and
regulations
Worker’s compensation
Environmental Protection
Civil Code
Charter of Human Rights and
Freedoms
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Health and Safety Act
Employer Duties of Care:
Inform workers of risks and
related safety procedures
Provide adequate supervision,
instruction or training
Systematically identify,
evaluate, and control risks
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Charter of Human Rights
and Freedoms
Article 46 provides that every
person who works has a right
“…in accordance with the law
to fair and reasonable
conditions of employment
which have proper regards for
his health, safety and physical
well-being.”
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Civil Code of Quebec
Article 2087 provides that
the employer is required to
“… take any measures
consistent with the nature
of the work to protect the
health, safety and dignity of
the employee.”
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Federal Legislation
Canadian Nuclear Safety
Control Act
Canada Criminal Code
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Canada Criminal Code
Article 217.1 provides that
“everyone who undertakes
or has the authority to direct
how another person does
work or performs a task is
under a legal duty to take
reasonable steps to prevent
bodily harm to that person
or any other person arising
from that work or task.”
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Internal Responsibility Systems
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McGill’s IRS
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The People in the IRS
Internal Responsibilities:
Chairs, Unit Heads
Require evidence from direct reports that H&S
functions well
Work with direct reports to solve unresolved
issues
Bring unresolved H&S issues to senior
management
Appoint and support Department/Unit Safety
Committee
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Internal Responsibilities:
Deans and Directors
Hold direct reports accountable for H&S
responsibilities
Require evidence that H&S functions well
Respond promptly to reports by Chairs,
Directors & Unit Heads
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Health and Safety Committees
Joint Advisory Health and
Safety Committee
University Laboratory Safety
Committee
Departmental Safety
Committees
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Departmental Safety Committees
Mandatory in laboratory
disciplines + Farm + Facilities
Valuable compliance and IRS
monitoring tool for Chair
Internal Responsibilities for
Laboratory Safety
• Lab Directors
• Students and Staff
• Other
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Closing Remarks
What Happens Now?
We would ask you to use the Table of Key Controls to
evaluate your Unit and ensure that they are in place.
Our internal auditors will use the Table of Key Controls
for the first audit of every Faculty/Unit.
Visit our web site for copy of presentation and all related
documentation:
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www.mcgill.ca/vpadmin/accountability