Developing an Accountability Framework: Key Considerations

National Association of University Board Chairs & Secretaries

Victoria, British ColumbiaApril 22-25, 2004

Ken Snowdon, President, Snowdon & Associates Inc.

See accompanying Speaking Notes for the Saturday morning session (NAUBCS) Victoria, April 22-25

Overview

• Setting the Context: key points from Day 1

• Accountability Frameworks – What do we know?

• What is important to know?

Day 1 - recap

• David Turpin - Growing interest in accountability for many reasons

• Recognition – gov’t has a role to steer ‘social policy’

• Canadian universities have greater autonomy than other jurisdictions

• Issue : prospective accountability vs. retrospective

• Examples of accountability reporting framework at UVic.

• Glen Jones - Move towards ‘steering’ rather than direct control

• Reliance on Boards as the primary mechanism for accountability

• Identification of “gaps” in Board effectiveness and Senate effectiveness

• Do board members know what questions to ask about accountability?

• Do board members ask “tough questions”?

Day 1 recap

• …. Strong, effective boards are a requirement• Universities taken many steps to improve accountability

…But “does it matter” • New accountability ‘frameworks’ - Alberta and BC• Part of general increase in accountability – not specifically

targeted at universities• “cult of accountability”• Increased autonomy = increased accountability• Importance of “self-governance/regulation”• Needs to be recognition that provincial government is but

one stakeholder along with students, donors, community, federal government

Day 1 recap

• Robert Zemsky – ‘markets’ have their own accountability

• ‘market’ prices the perceived advantage

• Education ‘private good’

• ‘Public good’?

• Am I doing good?

• And how would I know?

• Charlie Graves – general positive view of universities BUT public not very aware of Boards – 30%

• Little awareness of current accountability measures

• But real interest in accountability for Broader Public Sector (BPS)

Implications

• Accountability Challenge = opportunity

• Need for greater profile of Boards

• Need for more info/exposure of current accountability measures in Universities

• Need for ‘new messages’ including new ‘twists’ on health care costs and the value of PSE investments??

Role of Boards

• “Boards provide a means for external society to exert some influence over the university but in a way that respects the peculiar conventions, norms, and values of the academy.

• … the institutional governing board may play a crucial role in fostering public confidence in the operation of universities.”

Jones & Skolnik, Governing Boards in Canadian Universities, The Review of Higher Education, Spring 1997, Vol. 20, No.3 pp.277-295

Accountability frameworks: what do we know?

Gov't 56%

Fees19%

Sales of Service9%

Donations & Non-Gov't Grants

10%

Investment Income and Misc. Income

6%

Principal Income Sources 2001/02 $16.9 billion“we get a ton of money from government” Basil Alexander

350,000

400,000

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Historical data

Projection scenario 1: limited growth

Projection scenario 2: stronger growth

Demand for full-time enrolment is expected to increase rapidly

Source: Statistics Canada data and AUCC estimates

Accountability – chronology (Ontario)

• 1988 to 1991: Inspection Audits of 3 Universities by Provincial Auditor

• 1991 to 1993: Task Force on University Accountability (“Broadhurst Report”)

• 1995-1998: Toward Introduction of the Public Sector Accountability Act

• 1999: Report of the Provincial Auditor on University Accountability

• 2000-2001: COU-Ministry Task Force on the Provincial Auditor’s Report

• 2001 Public Sector Accountability Act (proposed)• 2003: Multi-Year Base Funding Accountability Framework

(pending)• 2003/04 Bill 18 Expanding the powers of the Provincial Auditor

Ontario Financial Review Commission (2001)“basic building blocks of accountability”

• Proper legal status, strong governance, well-articulated mission and vision, and effective management;

• Well-defined relationships with all stakeholders including funders, service users, staff and ministry;

• Commitment to proper business planning, performance evaluation and continuous improvement; and

• A culture of openly and actively sharing financial and performance information with all communities that have an interest in the organization.

Council of Ontario Universities’ proposed framework

• Legal authority• Governance and management policies/practices• Mission statement, strategic plan, goals &

objectives• Performance measures and benchmarks including

reference to “program quality” • Sound financial management• Clear accountability relationships with all major

stakeholders and funders, including government.

Modified Accountability Disclosure Index (Laurier index)

Overview

• Statement of Objectives

• Descriptive Report/General Review

• Summary of Facts & Figures

• Financial Review

• Accounting Policies

• Directory Information

Service Performance

• Student Numbers

• Graduates

• Employment / Educ. Destination of Grads

• Publications

• Student/Faculty Ratio

• Measurement Targets

Modified Accountability Disclosure (MAD) Index (Laurier index)

Financial Information

• Operating Statement

• Depreciation

• Budget Information

• Unit cost per Student

• Cash Flow Statement

• Research Grants

• Overhead Allocation

Physical and Financial Condition

• Balance Sheet

• Faculty/Staff ratio

• Library

• Investments

• Commitments & Contingencies

• Equal Employment / Educational Opportunities information

• Building Usage

An Accountability Framework?

• What are you trying to do?

• How are you going to get there?

• How would you know if you are making any progress?

• Vision, Mission, Goals

• Strategies, Resources, ‘Key’ Policies

• Measures, benchmarks, targets

Reporting and policy review

What is important to know…?

How are you going to get there?Strategies, Resources, ‘Key’ Policies

What matters?

• Key policies– Resource allocation

– Human resources

– Financial

– Capital

– Enrolment management

What matters?

“What matters”? Based on your own institution - What are those key policy questions?