Effective Transfer Payment Management . Presenter: Indira Ramdhan Office of the Provincial Controller Treasury Board Office [email protected] February 15, 2012. Today’s Discussion. Provide an overview of the current transfer payment (TP) environment.
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TPs as Share of Total Government Expenditures ($121.6B) 2010-11*
* On appropriated basis. Excludes consolidation adjustments and $8.8B Treasury Program (interest on debt).
Source: Government of Ontario Public Accounts, 2010-11
Capacity / Program Effectiveness
DirectiveRevised TP Accountability Directive
Requires a risk-based approach to TP management
Also applies to classifiedagencies that provide TPs
Only legal entities or individuals (entitlement programs) can receive transfer payments according to approved criteria, in amounts not exceeding requirements, and in accordance with ministry RbPs
Ministries and agencies must consider TPR’s capacity for effective governance and controls
Must balance public service accountability and the TPR’s responsibility and capacity to deliver
Ministries must have oversightcapacity to ensure TPRs are providing services for which funds are received
Corrective action is to be in proportion to the risk associated with the degree of non-compliance and be progressive in nature
TB / MBC approval is required for exemptions / exceptionsKey Changes to the Directive
Plan & Take
Ask: Why does this program exist?
Plan & Take
Ask: What are the threats to meeting the program objectives?
Ask: What is being done about the possible threats?
Plan & Take
Ask: How likely are the threats to occur?
Ask: If the threat materializes – what kind of an impact would it have on the objective?
Ask: Which risks do you need to act on? How?
Plan & Take
Risk is both opportunity
and control structures;and
ResourcesWhat is the Organizational Structure?
Board of Directors
Chief Executive Officer/
Some Common Roles ofBoards of Directors
Set strategic direction
Appoint the leaders (e.g., CEO, senior managers, committee members, project manager)
Can delegate responsibilities to sub-committees
Monitor performance & respond as required
Determine or approve the mission & objectives (i.e. what is valued)
Evaluate activity plans and budgets
Provide financial, legal
& ethical oversight
Allocate resources effectively
Poor service and communications amongst clients and/or partners, TPRs and ministry
Excessive turnover of executive directors/CEOs and/or board members
Difficulties in recruiting board members
Lack of (or weak/poor) relationship between ministry / classified agency and TPR
Chronic, persistent deficits
Low attendance at board meetings
Failure to address conflicts of interest
Unclear roles and responsibilities
Irregular reporting practices
Partisan or conflicted boardsSigns of Weak Governance
Volunteer boards partners, TPRs and ministry may not have the range of expertise needed to fulfill fiduciary responsibilities.
Board membership may not be representative of the population served (changing demographic or cultural profiles of clients).
Boards may assume an operational, rather than an oversight role.
Overdependence on key (or long tenured) administrators.
Small organizations can have underdeveloped processes and procedures but deliver tangible “grassroots” results.
Capacity limitations can result in roles and responsibilities being blurred.
Performance management (financial and non-financial) maynot strongly link to decisions.
Established organizations can be wedded to an single or dated method of delivery.TP Organizations: Governance Challenges
Interview select stakeholders
Confirm TPR is legally established
Look at client-satisfaction surveys
Meet the Board
Ask for the Business / Risk Management Plan
Review manuals/other documents
Review annual reports
Look at TPR’s by-laws
Pensions partners, TPRs and ministry
(Fed / Prov.) investment
Assets (land, buildings)
Separation of role /
Flat organizationOrganization Maturity Model
Size ($ / # FTEs / OPs)