Slide 1

Report
School Board Audit Committee Training
Introduction
Overview of Provincial Initiatives - Audit
Committees & Internal Audit
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Session objectives
After completing this session you will better understand:
o The Audit Committee and Internal Audit Initiative for the Province of Ontario
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Background
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Province transfers $20+ billion in funding to the school board sector
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Transparency and accountability – key to public confidence
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Ministry identified opportunities to modernize governance in the
sector
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Audit Committees
Internal Audit
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Pillars of Effective Governance
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Role of Audit Committees
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The primary role of the audit committee is to assist the board of trustees in
fulfilling its duties related to governance and oversight
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The Audit Committee is a committee of the board and will report to the
board of trustees, as such all final decisions rest with the board of trustees.
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The Audit Committee duties include reviewing:
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the financial reporting process
internal controls
internal auditing
external auditing
compliance matters
risk management
any other board proposed activity
The Audit Committee is also responsible for recommending approval of the
financial statements to the board of trustees
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Audit Committee Regulation
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Regulation has been drafted in consultation with the 9 district school
board Senior Business Officials and outlines:
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Composition (external members)
Term of service
Appointment of members
Meetings
Duties and powers
Reports to board of trustees
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Sector consultation on the Regulation (March 2010)
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Effective date (September 2010)
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Every board shall establish an audit committee in accordance with
the Regulation no later than January 31, 2011
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The first meeting of an audit committee shall be held no later than
March 31, 2011
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Role of Internal Audit
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Internal audit will support the Audit Committees by providing advice
and recommendations on:
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Financial and administrative policies
Controls
Compliance
Financial reporting matters
Risk management activities
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The internal audit function will report to the Audit Committee through
the Regional Internal Audit Manager
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Internal audit is not responsible for the execution of the school
board’s operational activities. They advise the audit committee and
management regarding how to better execute their responsibilities
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Internal Audit Objectives
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The Ministry’s funding model for internal audit is intended to promote
the following 3 main objectives:
 To promote the efficient use of resources through collaboration
among boards
 Share best practices in internal audit and risk management
using a team approach
 Equitable distribution of resources taking into consideration
board size, language and geographic coverage
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Internal Audit Operational Model
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Regional model
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Based on geography (excluding French region)
Impacted by other boards in your region
Introducing concept of host board
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Funding flowed to host board
BARRIE (9)
Simcoe County DSB (Host)
Bluewater DSB
Bruce-Grey Catholic DSB
Durham Catholic DSB
Durham DSB
Kawartha Pine Ridge DSB
Peterborough V N C Cath DSB
Simcoe Muskoka Cath DSB
Trillium Lakelands DSB
FRENCH LANGUAGE (12)
CSD cath du Centre-Est (Host)
CSD catholique Franco-Nord
CSD cath des Aurores-Boréales
CSD cath des Grandes Rivières
CSD cath du Nouvel-Ontario
CSD du Grand Nord de l’Ontario
CSD du Nord Est de l’Ontario
CSD catholique Centre-Sud
CSD des écoles cath Sud-Ouest
CSD du Centre Sud-Ouest
CSD des écoles publiques
CSD cath de l’Est ontarien
SOUTH (10)
Thames Valley DSB (Host)
Avon Maitland DSB
Brant Hald. Norfolk Cath DSB
Grand Erie DSB
Greater Essex County DSB
Huron-Perth Catholic DSB
Lambton Kent DSB
London Catholic DSB
St. Clair Catholic DSB
Windsor-Essex Catholic DSB
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Internal Audit Operational Model
WEST OF CENTRAL (10)
Waterloo Region DSB (Host)
DSB of Niagara
Halton Catholic DSB
Halton DSB
Hamilton-Wentworth Catholic
Hamilton-Wentworth DSB
Niagara Catholic DSB
Upper Grand DSB
Waterloo Catholic DSB
Wellington Catholic DSB
THUNDER BAY (8)
Thunder Bay Catholic DSB
(Host)
Keewatin-Patricia DSB
Kenora Catholic DSB
Lakehead DSB
Northwest Catholic DSB
Rainy River DSB
Superior North Catholic DSB
Superior-Greenstone DSB
NORTH BAY/SUDBURY (8)
Sudbury Catholic DSB (Host)
Algoma DSB
DSB Ontario North East
Huron-Superior Catholic DSB
Near North DSB
Nipissing-Parry Sound Cath DSB
Northeastern Cath DSB
Rainbow DSB
TORONTO & AREA (6)
Peel DSB (Host)
Dufferin-Peel Catholic DSB
Toronto Catholic DSB
Toronto DSB
York Catholic DSB
York Region DSB
OTTAWA (9)
Ottawa Catholic DSB (Host)
Algonquin & Lakeshore DSB
Cath DSB of Eastern Ontario
Hastings & Prince Edward DSB
Limestone DSB
Ottawa Carleton DSB
Renfrew County Catholic DSB
Renfrew County DSB
Upper Canada DSB
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Pictorial Illustration of Regional Funding Model
SAMPLE REGION # 1
School
Board A
School
Board B
School
Board C
(Host)
School
Board D
School
Board E
School
Board F
Board of
Trustees
Hiring
Panel
Audit
Committee
Audit Manager
Sr Auditor
Sr Auditor
Boards A to C
Boards D to F
Auditors have a
portfolio of
boards
Auditor
Auditor
Auditor
Boards A & B
Boards C & D
Boards E & F
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Internal Audit Funding
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Funding allocation
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$2M for 2009-10
$5M for 2010-11 and onwards
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Funding is part of board administration and governance allocation
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Funding is enveloped – can only be spent to support internal audit
function
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2 components:
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Staffing representing 85% of allocation
Other representing 15% of allocation for professional development,
travel, supplies, etc.
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