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

Thank You

Pamela NaborsPresident & Chief Executive Officer

407-531-1222pnabors@wcfla.com