1. Administrative Responsibilities and Accountability
Presentation
Administrative Responsibilities and Accountability
May 11, 2006

2. 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
Since we use Governance in the Objective before we define it, please define. Here is a brief example:
Governance is the authority that you must exercise within your given mandate.
Also explain here that the administrative roles that they have in no way diminish the importance of the role they play as leading teachers and researchers.

3. 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.
Since we use Governance in the Objective before we define it, please define. Here is a brief example:
Governance is the authority that you must exercise within your given mandate.
Also explain here that the administrative roles that they have in no way diminish the importance of the role they play as leading teachers and researchers.

4. 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)

5. Chain of Accountability
Community
Board of Governors
Government
Principal
Provost & V-Ps
Deans
Chairs/Directors
Professors
Researchers
Administrators 5

6. 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.
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.”

7. 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

8. 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.

9. Key Administrative Activities for Your Unit (Table of Key Controls)
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

10. University Governance Policies and Best Practices
Johanne Pelletier
Secretary-General
University Secretariat

11. Topics for Discussion Governance bodies RIAL “head office”
Board of Governors
Senate
RIAL “head office”
Dispute resolution (tribunals, harassment policy)
Wordmark, access to information
Tenure and promotion
Convocation
Statutes, Regulations, Policies…

12. 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)

13. 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)

14. 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

15. 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.

16. Navigating Through Governance Bodies
What must go to Senate and or Board?
Governance 101?
Calendars of Business – Board, Senate

17. Secretariat – Other Functions
Dispute resolution (tribunals, Harassment Policy)
Wordmark, access to information
Tenure and promotion
Convocation
Honorary Degrees
Elections
University record-keeping

18. Statutes, Regulations, Policies…
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?

19. Statutes, Regulations, Policies… (Con’t)
Wordmark and Insignia of McGill University, Policy on Use of
Policy on Exterior Signage
Policy on Honorary Degrees
Signing Authority
Tenure Regulations (2006)

20. 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.

21. 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
Administration = policies/guidelines re facilities management, development

22. Governance - Summary Board of Governors Secretariat Senate Principal &
The Board and the Senate’s directionsare administered by the Secretariat which acts as a corporate head office and as an impartial body for dipute resolution.
Reporting to the Board and the Principal, it coordinates, organizes and reports on the Governing Bodies’ activities.
It is also responsible for the Libraries and University archives and the convocations..
Principal &
Vice-Chancellor

23. Questions? 23 Johanne Pelletier 398-3948 johanne.pelletier@mcgill.ca
How does all this work?
James McGill, who as you have probably heard many times is actually buried in front of the Arts Building, left a legacy.
McGiill University was created under an Acr of Parliament… …
And the task,entrusted to a Board of Governors. 23

24. McGill Record-Keeping: Policies and Best Practices
Alex Richmond
Senior Archivist
Records Management
McGill University Archives

25. Topics for Discussion MUA (McGill University Archives) Mandate
Employee Obligations
Records Management Services
digitalpermanence

26. 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

27. 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.
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.

28. 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

29. MUA Records Management Services
McGill University Records Retention Schedule (MURRS)
File Storage & Retrieval Services
Integration of New Record-Keeping Technologies – The digitalpermanence Project

30. 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

31. 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

32. Digital Permanence
digitalpermanence is a McGill University Archives initiative, promoting the collaborative, strategic, long-term management and preservation of McGill University’s electronic records.

33. Digital Permanence Projects
University-Wide Classification Scheme
Scanning Standard
Governance Online
Management

34. Contact Information
Questions?
Alex Richmond
How does all this work?
James McGill, who as you have probably heard many times is actually buried in front of the Arts Building, left a legacy.
McGiill University was created under an Acr of Parliament… …
And the task,entrusted to a Board of Governors. 34

35. 35

36. Controller, Accounting Department
Financial Management
Matthew Nowakowski
Controller, Accounting Department

37. 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.

38. 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.

39. 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.

40. 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.

41. 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*
*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.

42. Scope of Your Responsibility (cont'd)
Endowment Funds
Plant (capital) Funds
Capital and major equipment
Construction and renovation

43. 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

44. 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
Responsibility for design and implementation of controls is often delegated to administrative personnel.

45. 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.

46. 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.

47. 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.

48. 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.

49. 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

50. 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.

51. Key Control Activities for
Your Unit
Key Policies
University regulation on signing authority
P-Card policy
Travel expense policy
Agreement on internal trade

52. 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

53. 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):
Summary of all funds under your jurisdiction;
detailed transactions for a specific fund; and
detailed payroll and salary encumbrances information for a fund.

54. 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

55. Sources of Information (cont’d)
Accounting department website:
Internal Audit website:
Financial Administration Training Program.
Financial Administrators’ Forum.
Targeted communication and information sessions throughout the year.

56. Senior Auditor, Internal Audit Department
Gracy Pardillo
Senior Auditor, Internal Audit Department

57. 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.

58. Audit Services
Faculty and Administrative Unit Audits, including Information Technology
Follow-up Audits
Continuous Audits
Special Mandates
Board-approved Audits

59. 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

60. Our View
We believe that everyone wants to do the right thing, and that everyone believes they are doing
the right thing.

61. Executive Director, Human Resources Department
Robert Savoie
Executive Director, Human Resources Department

62. Topics for Discussion Department Function Your Role in H.R. Governance
H.R. Governance Framework
Conflict of Interest
Harassment
Key H.R. Control Activities
Additional Resources

63. 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.

64. 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

65. Governance of Human Resources65

66. 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
Recruit quality personnel to meet present and future needs
Interview, evaluate, select and document hiring process
Look for different recruiting pools

67. 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
Ensure compliance with policies, procedures, regulations, collective agreements and legislations
Absence management

68. 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
Provide a safe working environment
Be knowledgeable about crisis/emergency management
Follow fire, environmental safety and health procedures

69. Your Role in H.R. Governance (cont'd)
Management of Termination
Ensure security procedures are followed – removal of keys, codes, I.D. Cards, critical data, etc.
Documentation

70. H.R. Governance Framework
University Policies
Collective Agreements
Civil Code
Labour Code
Employment Standards
Human Rights
Health and Safety
Environmental Legislation
Privacy
Access to Information
Pay Equity
Employment Equity

71. 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.

72. Harassment McGill is committed to:
Promoting personal dignity and fair treatment of all members of the University.
Providing an environment free of harassment.

73. 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.

74. Additional Resources
Area Personnel Officers/Area Personnel Representatives
Academic Personnel Office
Human Resource Specialists
Collective agreements

75. Gifts, Donations, and Endowments
Julie Ghayad
Financial Director
Development, Alumni, and University Relations

76. Topics for Discussion Types of Donations Endowment Gifts/Donations
Key Controls

77. All three conditions must exist.
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.

78. 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

79. Endowment Gifts/Donations
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

80. Endowment Gifts/Donations (cont'd)
Your role
monitoring of income spending
Faculty endowments – Deans/Chairs’ discretion
use judgment; if in doubt, request clearance from donor
Reporting to donor
feedback on stewardship and endowment performance
allows for continual contact with donors
provides evidence of appropriate governance

81. Endowment Gifts/Donations (cont'd)
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

82. 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

83. 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

84. 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
Marc Weinstein, Assistant VP & Director of Campaigns ext: 5807
Lori Yersh, Executive Director, Strategic Stewardship ext: 3567
Julie Ghayad, Financial Director ext: 3558

85. Environmental Health and Safety
Wayne Wood
Manager, EH&S

86. Topics Department Function EH&S legal requirements
Internal Responsibilities and Unit Control Activities
Departments in Laboratory Disciplines

87. Environmental Health and Safety Office
Information
Measurement
Liaison with regulatory agencies
EHS web site:
Environmental projects:
Hazardous Waste Management Program:

88. Legislated Requirements
Provincial:
Health and Safety Act and regulations
Worker’s compensation
Environmental Protection
Civil Code
Charter of Human Rights and Freedoms

89. 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

90. 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.”

91. 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.”

92. Federal Legislation Canadian Nuclear Safety Control Act
Canada Criminal Code

93. Canada Criminal Code
Article 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.”

94. Internal Responsibility Systems94

95. McGill’s IRS
The People in the IRS 95

96. 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

97. 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

98. Health and Safety Committees
Joint Advisory Health and Safety Committee
University Laboratory Safety Committee
Departmental Safety Committees

99. 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

100. Closing Remarks What Happens Now? www.mcgill.ca/vpadmin/accountability
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: