Presentation on theme: "Administrative Responsibilities and Accountability"— Presentation transcript:
1 Administrative Responsibilities and Accountability PresentationAdministrative Responsibilities and AccountabilityMay 11, 2006
2 Presentation Outline Introduction and Overview University Governance Record-keeping Best PracticesFinancial ManagementInternal AuditHuman Resources ManagementEndowment Gifts/DonationsEnvironmental Health and SafetyClosing CommentsSince 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 ObjectiveTo 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 objectivesSimilar objectives in various groupsReview with Audit Committee of common observations in auditsCurrent context (Sarbanes Oxley, Bill 198)
5 Chain of Accountability CommunityBoard of GovernorsGovernmentPrincipalProvost & V-PsDeansChairs/DirectorsProfessorsResearchersAdministrators5
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 CommitteesHuman ResourcesStrategyCodes of Conduct, Conflicts of Interest, and EthicsRecords managementEnvironment, Health and SafetyFinancial ManagementPurchasing (including PCards)ResearchAcademic/Student AffairsCommunicationInformation Technology
10 University Governance Policies and Best Practices Johanne PelletierSecretary-GeneralUniversity Secretariat
11 Topics for Discussion Governance bodies RIAL “head office” Board of GovernorsSenateRIAL “head office”Dispute resolution (tribunals, harassment policy)Wordmark, access to informationTenure and promotionConvocationStatutes, Regulations, Policies…
12 Board of Governors University’s governing body 25 voting members Authority/trustee of all University property and University affairsBoG = Royal Institution for the Advancement of Learning (Charters 1821 & 1852)
13 Board of Governors - Committees ExecutiveAuditFinanceHuman ResourcesBuilding and PropertyInvestmentNominating and GovernanceCommittee to Advise on Matters ofSocial 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; andrequirements 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 informationTenure and promotionConvocationHonorary DegreesElectionsUniversity record-keeping
19 Statutes, Regulations, Policies… (Con’t) Wordmark and Insignia of McGill University, Policy on Use ofPolicy on Exterior SignagePolicy on Honorary DegreesSigning AuthorityTenure 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 assetsAdministration = 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 email@example.com 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 RichmondSenior ArchivistRecords ManagementMcGill University Archives
25 Topics for Discussion MUA (McGill University Archives) Mandate Employee ObligationsRecords Management Servicesdigitalpermanence
26 MUA Mandate Terms of Reference, McGill University Archives Executive Committee, Board of GovernorsJanuary 17, 2005To promote good governance and accountabilitythrough 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 GovernorsJanuary 17, 2005Ensure 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 youEnhances administrative decision makingFacilitates information sharing throughout McGillReduces time & labour costsProtects the legal and financial interests of McGillAssists in risk assessment and risk management initiatives
29 MUA Records Management Services McGill University Records Retention Schedule (MURRS)File Storage & Retrieval ServicesIntegration 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 recordWhen to transfer the record to the archivesHow long the Archives keeps the recordMURRS 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 liabilityStorage costs – McGill need only keep 5% of all recordsMust be part of McGill’s every-day course of business practicesWithout authorisation, there is no evidence the destruction was done according to MURRSDestruction requires the joint approval of the University Archivist and the heads of academic or administrative Units responsible for the records
32 Digital Permanencedigitalpermanence 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 SchemeScanning StandardGovernance OnlineManagement
34 Contact InformationQuestions?Alex RichmondHow 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
36 Controller, Accounting Department Financial ManagementMatthew NowakowskiController, 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 AccountabilityThe 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 managementExpenditure 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 FundsOther Unrestricted FundsSelf-financing & special purpose (typically with limited life)Unrestricted donationsRestricted FundRestricted donationsStudent aidIncome 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 FundsPlant (capital) FundsCapital and major equipmentConstruction and renovation
43 Your Primary Financial Management Responsibilities (cont'd) Adherence to policies and proceduresLegitimate, appropriate, and reasonable use of resources to advance academic objectivesNo deficits
44 Your Primary Financial Management Responsibilities (cont'd) Fund Financial ManagerPrimarily 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 departmentsSelf-financing activitiesRestricted fundsResearch grantsResponsibility for design and implementation of controls is often delegated to administrative personnel.
45 Your Primary Financial Management Responsibilities (cont'd) UniversityProvides an overall policy framework which must be adhered to.Provides overall controls in areas of significant institutional risk:Full-time appointmentsOperating budgetsResearch fundsProcurement transactionsVerifies and approves certain transactions.
46 Key Control Activities for Your UnitOrganization StructureEmployees’ 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. recordingEnsure delegation of duties is documented, and all parties involved understand their responsibilities.
47 Key Control Activities for Your UnitOperating BudgetsShould 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 UnitFund StructureFunds 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 UnitFinancial MonitoringFinancial results should be reviewed regularly.Ensure transactions are:LegitimateAppropriateAuthorizedIn accordance with policiesReasonable use of funds in support of the unit’s objectives
50 Key Control Activities for Your UnitFinancial Reporting and ReviewUnit 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 UnitKey PoliciesUniversity regulation on signing authorityP-Card policyTravel expense policyAgreement 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; anddetailed payroll and salary encumbrances information for a fund.
54 Sources of Information Your Faculty Budget OfficeDepartmental Administrative Assistant/OfficerFinancial Services staff:Infrastructure and Reporting group;Fund Administrators; andDepartment Managers.FIS specialistsInformation 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 PardilloSenior 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 ServicesFaculty and Administrative Unit Audits, including Information TechnologyFollow-up AuditsContinuous AuditsSpecial MandatesBoard-approved Audits
59 Examples of Recommendations Monitoring and reconciling of fund activity“Blind” signingPCard transactions, expense reports, POPS (all subject to continuous audit)Hardware and software purchasing controls
60 Our ViewWe believe that everyone wants to do the right thing, and that everyone believes they are doingthe right thing.
61 Executive Director, Human Resources Department Robert SavoieExecutive Director, Human Resources Department
62 Topics for Discussion Department Function Your Role in H.R. Governance H.R. Governance FrameworkConflict of InterestHarassmentKey H.R. Control ActivitiesAdditional 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
66 Your Role in H.R. Governance Management of Organisational PlanningDefine future unit needs and objectivesUnderstand the roles and responsibilities of staffUnderstand occupational categoriesUnderstand reporting structureManagement of HiringRecruit quality personnel to meet present and future needsInterview, evaluate, select and document hiring processLook for different recruiting pools
67 Your Role in H.R. Governance (cont'd) Management of CompensationManagement of salariesReview your internal equityEnsure information to generate payroll is processed accurately and on timeVerify benefits enrolmentManagement of Working ConditionsEnsure compliance with policies, procedures, regulations, collective agreements and legislationsAbsence management
68 Your Role in H.R. Governance (cont'd) Management of PerformancePerformance dialogue processDocumentPlan staff training and development, taking into account Unit and University needsManagement of Health and SafetyProvide a safe working environmentBe knowledgeable about crisis/emergency managementFollow fire, environmental safety and health procedures
69 Your Role in H.R. Governance (cont'd) Management of TerminationEnsure security procedures are followed – removal of keys, codes, I.D. Cards, critical data, etc.Documentation
70 H.R. Governance Framework University PoliciesCollective AgreementsCivil CodeLabour CodeEmployment StandardsHuman RightsHealth and SafetyEnvironmental LegislationPrivacyAccess to InformationPay EquityEmployment 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.
75 Gifts, Donations, and Endowments Julie GhayadFinancial DirectorDevelopment, Alumni, and University Relations
76 Topics for Discussion Types of Donations Endowment Gifts/Donations Key Controls
77 All three conditions must exist. Types of DonationsWhat constitutes a donation:Transfer of property (usually cash)Transfer is voluntaryTransfer is made without expectation of return (no direct benefit to donor)All three conditions must exist.
78 Types of Donations (cont'd) Cash/equivalentSecuritiesGifts in kindItems that do NOT qualify as donations:SponsorshipsMembership feesPayments for servicesBenefits from special events
79 Endowment Gifts/Donations Capital protected in perpetuitymemorandum of agreementFund administrationcreation of endowment capital fundpurchase of unitsuse of endowment moduleSpending powerincome account is a restricted fund; spending must be consistent with the donor’s wishesallocation of income; monthly distribution
80 Endowment Gifts/Donations (cont'd) Your rolemonitoring of income spendingFaculty endowments – Deans/Chairs’ discretionuse judgment; if in doubt, request clearance from donorReporting to donorfeedback on stewardship and endowment performanceallows for continual contact with donorsprovides evidence of appropriate governance
81 Endowment Gifts/Donations (cont'd) Risk to reputationour ability to attract future gifts rests in part on our capacity to demonstrate strong and effective governanceany dissolution of perceived confidence will affect our ability to attract future gifts
82 Key Controls Approval of development fundraising plan (annually) Donations are adequately documentedDonations forwarded to Faculty Development Office for prompt processing, receipting, and recognitionDonations 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 fundsContact information on alumni/donors is forwarded to Faculty Development Office to ensure accurate and current dataSolicitation and alumni events are coordinated through the Development, Alumni & University Relations Office
85 Environmental Health and Safety Wayne WoodManager, EH&S
86 Topics Department Function EH&S legal requirements Internal Responsibilities and Unit Control ActivitiesDepartments in Laboratory Disciplines
87 Environmental Health and Safety Office InformationMeasurementLiaison with regulatory agenciesEHS web site:Environmental projects:Hazardous Waste Management Program:
88 Legislated Requirements Provincial:Health and Safety Act and regulationsWorker’s compensationEnvironmental ProtectionCivil CodeCharter of Human Rights and Freedoms
89 Health and Safety Act Employer Duties of Care: Inform workers of risks and related safety proceduresProvide adequate supervision, instruction or trainingSystematically 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 QuebecArticle 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 CodeArticle 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.”
96 Internal Responsibilities: Chairs, Unit Heads Require evidence from direct reports that H&S functions wellWork with direct reports to solve unresolved issuesBring unresolved H&S issues to senior managementAppoint and support Department/Unit Safety Committee
97 Internal Responsibilities: Deans and Directors Hold direct reports accountable for H&S responsibilitiesRequire evidence that H&S functions wellRespond promptly to reports by Chairs, Directors & Unit Heads
98 Health and Safety Committees Joint Advisory Health and Safety CommitteeUniversity Laboratory Safety CommitteeDepartmental Safety Committees
99 Departmental Safety Committees Mandatory in laboratory disciplines + Farm + FacilitiesValuable compliance and IRS monitoring tool for ChairInternal Responsibilities for Laboratory SafetyLab DirectorsStudents and StaffOther
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: