1. School Board Audit Committee Training Introduction Overview of Provincial Initiatives - Audit Committees & Internal Audit

2. Session objectives
After completing this session you will better understand:
The Audit Committee and Internal Audit Initiative for the Province of Ontario

3. Background
Province transfers $20+ billion in funding to the school board sector
Transparency and accountability – key to public confidence
Ministry identified opportunities to modernize governance in the sector
Audit Committees
Internal Audit

4. Pillars of Effective Governance
Board of Trustees
Management
External Audit
Internal Audit

5. Role of Audit Committees
The primary role of the audit committee is to assist the board of trustees in fulfilling its duties related to governance and oversight
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.
The Audit Committee duties include reviewing:
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

6. Audit Committee Regulation
Regulation has been drafted in consultation with the 9 district school board Senior Business Officials and outlines:
Composition (external members)
Term of service
Appointment of members
Meetings
Duties and powers
Reports to board of trustees
Sector consultation on the Regulation (March 2010)
Effective date (September 2010)
Every board shall establish an audit committee in accordance with the Regulation no later than January 31, 2011
The first meeting of an audit committee shall be held no later than March 31,

7. Role of Internal Audit
Internal audit will support the Audit Committees by providing advice and recommendations on:
Financial and administrative policies
Controls
Compliance
Financial reporting matters
Risk management activities
The internal audit function will report to the Audit Committee through the Regional Internal Audit Manager
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

8. Internal Audit Objectives
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

9. Internal Audit Operational Model
Regional model
Based on geography (excluding French region)
Impacted by other boards in your region
Introducing concept of host board
Funding flowed to host board
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
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
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

10. Internal Audit Operational Model
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
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
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
TORONTO & AREA (6)
Peel DSB (Host)
Dufferin-Peel Catholic DSB
Toronto Catholic DSB
Toronto DSB
York Catholic DSB
York Region DSB

11. Pictorial Illustration of Regional Funding Model
Audit Manager
Sr Auditor
Boards A to C
Boards D to F
Auditor
Boards A & B
School Board A
School Board B
School Board E
SAMPLE REGION # 1
Boards C & D
Boards E & F
Auditors have a portfolio of boards
School Board C (Host)
School Board D
School Board F
Audit Committee
Board of Trustees
Hiring Panel

12. Internal Audit Funding
Funding allocation
$2M for
$5M for and onwards
Funding is part of board administration and governance allocation
Funding is enveloped – can only be spent to support internal audit function
2 components:
Staffing representing 85% of allocation
Other representing 15% of allocation for professional development, travel, supplies, etc.