Board Governance
Workforce Professional Development AcademyDecember 3, 2013 | Hilton Orlando
Pamela Nabors – President/CEO - Region 12Dalton Hall, CPA - Partner - Taylor, Lombardi, Hall & Wydra
Learning Objectives
Building Board Engagement & Community TrustEstablishing Compliance Systems with Appropriate Checks & BalancesCreating Intentional Community Partnerships
Fall of 2011
Governor’s letter issued, placing WCF on probation & calling for reform$5.3M in disallowed costs17 audit findingsDesignated a high-risk granteeHigh level of media scrutinyLack of accountability & community trustPerception - lack of transparency
Vision of the New Board
Resolve and end all problems of the pastRestore public’s trustCreate a great future for WCF
The Rebuilding ProcessBoard Re-appointed
- Key leadership from Central Florida appointed to new board
- Interim Executive Director appointed by DEO
- Governance structure developed- New committees established
- Internal operations revised by chair: - Met with staff- Established open door policy- Transition team reported other fiscal
issues:- Computers- Gift Cards- Vehicles- Advertising sponsorships
- Re-established connection with local elected official consortium
- Added reps from 5 counties to board committees
- CEO Executive Search Conducted- Hands-on board member operations support
Financial System Changes
PY 2011-2012Cost Allocation PlanPersonnel Activity Report (PAR) Process Developed Resolution of Inspector General Reviews & FindingsHired independent, knowledgeable third-party to perform fiscal procedures and deliver staff training
Financial System Changes
PY 2012-2013Review WCF’s existing policies & proceduresDevelop & deliver training strategyCreate continuous review strategy
Financial System Changes
Task #1 - Contracting/Procurement Policies• Reviewed existing policies & procedures• Developed policies for:
- Procurement- Contracting
• Provided recommendations to ensure board oversight, adequate internal controls & compliance with Federal & State requirements
• Trained staff• Obtained state approval
Task #2 - Accounting Policies & Procedures• Tightened internal controls, recommended separation of duties• Developed authority threshold tables – staff/board
Engagement Tasks
Financial System Changes
Task #3 - Financial Reporting/Budgeting
•Revised budget templates & financial reports: - Variances in budget to actual by funding source
- Standardized workforce industry line-items-Comments/Supplemental Schedules-Summary report template for board
Task #4 - Process Review of Key Fiscal Areas
•Identified gaps between staff understanding & actual policy requirements
•Identified errors or deficiencies•Streamline tasks• Reviewed eight key fiscal areas • Prepared detailed improvement matrix for each key area
Financial System ChangesProcess Review ExampleFor operating disbursements, reviewed current purchasing practice/process by selecting a sample of purchases ($100,000 or less) and staff reimbursements, obtained current policies and procedures, and determined whether:
purchasing & travel procedures were followed & a cost or price analysis
was performed, if applicable
check data agreed to invoice(s)
cost was allowable, reasonable, and
necessary
payment traced to general ledger posting
disbursement was supported by proper
documentation & approval
cost was properly charged (i.e., benefiting program or cost pool) &
classified
prior approval procedures were followed in
accordance with the Final Guidance on Prior Approval Procedures Memorandum
issued by DEO
cost was properly capitalized, if applicable; and practice agreed to
current policies & procedures and contained
proper internal controls
Financial System Changes
Task #4 – Process Review - observations noted:
Staff didn’t have a clear & consistent understanding of the following:- Procurement policies & procedures- Proper documentation and/or approvals- Proper justification of costs (need or benefit)- Cost/price analysis requirements
Allocations/direct program charges were incorrect or not properly substantiated
Reconnecting with Central Florida Community
New board engaged with media
President’s outreachNewly formed partnershipsMet with over 176 Central Florida
organizations and agencies
• Established formal partnerships with: - Second Harvest - Harvest Time International- Community Colleges & Technical
Schools
• Community being reengaged-trust being restored
• Media relations campaign
- Average 6 releases per month- Over 50% success rate on media hits
from press releases
Results – Board
Fully engaged Consortium & Board of DirectorsBoard providing organizational oversightConsortium actively involved in governanceTransparent in all board & program operations
Results - Fiscal
Positive resolution of all findings- Staff was receptive and welcomed opportunities to make changes
& improve processes, expressed willingness to perform in accordance with requirements
High-risk designation liftedProcedures in place to ensure continuous compliance
Active community partnershipsPositive press & media relations
Ready to transition to CareerSource Central Florida
Results – Community Engagement
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