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CES Conference 2003

In the Public’s Best Interest:Evaluation,

Accountability, andTransparency

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Panel Discussion – PublicPerformance Reporting:

Principles to Practice• Jay Chalke, Public Guardian & Trustee of

British Columbia• Errol Price, Senior Principal, Office of the

Auditor General of British Columbia• Michael Weir, Research Associate CCAF

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Discussion Agenda• Objectives,

– Introduce “Reporting Principles”– Share lessons learned from using Reporting Principles in :

• Development, finalization of statutory report• Provision of audit assurance on same

• Structure– Presentation– Discussion

• Principles• Application• Moving forward

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CCAF’s Reporting PrinciplesA key element of Multi-Faceted Program to

Improve returns Address “human”

dimensions of reportingReflects the input andperspectives of three keycommunities:

AuditorsManagersLegislators

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Reporting PrinciplesCCAF recommendations: an

integrated set of Principles– Support for disciplined reporting

judgments– Influence on “next generation”

of performance reporting– a common reference point for:

– reporting guidance;– audit criteria; and– (ultimately) standards.

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Putting Principles into Practice

Realization requires• Integrated, holistic approach• Shared Leadership:

By: Auditors, Executives, Legislators,Opinion leaders, Standard setters

In respect of: Relationships;Incentives; Capacity to use;Agreeing reasonable expectations;Continuous learning

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A Real Life Case Study

• Public Guardian & Trustee

• Office of the Auditor General

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PGT OverviewClients• Children• Incapable adults

• Deceased Estates

Dimensions• 210 employees• >$18 operating budget• > $600 million in trust assets• > 23,000 clients

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PGT RoleForty different specific services of two generaltypes:

• Fiduciary property management roles:• Managing children’s trusts• Managing financial affairs of incapable adults• Securing assets and distributing to heirs of deceased

persons• Protective and substitute decision making roles

• Monitor and investigate private fiduciaries wherebeneficiaries under legal disability

• Health care decisions

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• Historically PGT had a low profile, was under-resourcedand largely ignored by government and public

• Resulted in inadequate staffing, major backlogs and poorreputation

• Office was poorly understood and considered secretive

• Clients largely powerless and without ability to takebusiness elsewhere

Context for PGT’s New StatutoryTransparency Regime

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• Act proclaimed in 2000• Contains prospective and retrospective aspects of transparency and

accountability.• Rolling 3 year Service Delivery Plans which include goals, objective and

performance targets• Annual self-assessment of performance• A unique requirement in BC law - the Auditor General must comment

on the PGT’s performance report• This third party assurance is included in the public Annual Report

The New Transparency RegimePart 3 of the 1993 Public Guardian and Trustee Actenacted to change profile and provide publicassurance that society’s most vulnerable areproperly cared for:

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Office of the Auditor General

• Primary goal: that the Legislative Assemblyand the public receive the best informationpossible for assessing the performance ofgovernment and its organizations

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Context for OAG Involvement

• Support managing for and accountability forresults

• Actively promoted in recent years• Supported CCAF-FCVI work• Welcome legislated requirement

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OAG Role re: PGT

• “Report on” PGT report• Unique legislation in BC• Allows assurance without full audit opinion• Big challenge: credibility vs. support

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Implementing Part 3 of the PublicGuardian and Trustee Act

Challenges• Little capacity for research, strategic planning and related activities• “0 to 60” in one year (no corporate history, limited MIS, little internal awareness)• No external comparators

Development of 3 Year Plan• External consultation• All staff input• Senior management finalization

In Year Managing for Results• Strict tracking and reporting structure developed• Quarterly Executive Committee review• Final quarter – focus on marginal targets

Retrospective Reporting• Used CCAF principles for reporting• Looked for best of other performance reports• Worked cooperatively with Auditor General on report design

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Criteria for Choosing AuditApproach

n Enhance value of informationn Defensible standards and methodologyn Establish assurance as value-addedn Reasonable stresses on OAG capacity

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Learning Model – What It Is

• Foundation in CCAF reportingprinciples

• Focus on stage of development• Objective assessment of where PGT

is, not where it should be• 5025 assurance engagement

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Matrix for Assessing Report

– Elaboration on each principle– Four stages of development

• Start-up• In Process• Fundamentals In Place• Fully Incorporated

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Conduct of Engagement

• 3 Phases• 3 member team• Primarily a desk review• Foreshadowing

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Reporting

Start-up phase

In process

Fundamentals in place

Fully incorporated

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Reporting Principles

.. . .

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STAGE OFDEVELOPMENT

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Impact of Performance Targets• Corporate performance culture well underway• Sharpened sense of mission• Have a baseline and can start to learn from our own performanceOngoing Challenges• Lack of comparators – historic, private sector, other jurisdictions• Incremental project nature of change in public sector versus

value of consistency in year over year reporting• Attribution of service to outcomes given small size and multi-

factor environment

Lessons from PGT’s Year One ofPerformance Reporting

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Lessons from PGT’s Year One ofPerformance Reporting (Cont’d)

• Benefits• Assisted with Core Services Review• Provides evidence to counteract anecdotal and out-

dated reputation• Allows government to more clearly see what

services are being delivered and at what standard• Clarifies accountability for, and implications, of

resource related decisions• Auditor General involvement adds rigour

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Discussion Agenda

• The Principles Themselves

• Application -- the human dimensions

of reporting

• Next steps

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•Reporting PrinciplesFor More Information And Copies of Reports,

Contact:– CCAF http://www.ccaf-fcvi.com– Public Guardian and Trustee of British

Columbia http://www.trustee.bc.ca/– Office of the Auditor General of British

Columbia http://www.bcauditor.com