1. Workforce Professional Development Academy December 3, 2013 | Hilton Orlando Pamela Nabors – President/CEO - Region 12 Dalton Hall, CPA - Partner - Taylor, Lombardi, Hall & Wydra

2. Learning Objectives Building Board Engagement & Community Trust Establishing Compliance Systems with Appropriate Checks & Balances Creating Intentional Community Partnerships

3. Fall of 2011 Governor’s letter issued, placing WCF on probation & calling for reform $5.3M in disallowed costs 17 audit findings Designated a high-risk grantee High level of media scrutiny Lack of accountability & community trust Perception - lack of transparency

4. Vision of the New Board Resolve and end all problems of the past Restore public’s trust Create a great future for WCF

5. The Rebuilding Process Board 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

6. Financial System Changes PY 2011-2012 –Cost Allocation Plan –Personnel Activity Report (PAR) Process Developed –Resolution of Inspector General Reviews & Findings –Hired independent, knowledgeable third- party to perform fiscal procedures and deliver staff training

7. Financial System Changes PY 2012-2013 –Review WCF’s existing policies & procedures –Develop & deliver training strategy –Create continuous review strategy

8. 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

9. 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

10. Financial System Changes Process Review Example For 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

11. 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

12. Reconnecting with Central Florida Community New board engaged with media President’s outreach –Newly formed partnerships –Met 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

13. Results – Board Fully engaged Consortium & Board of Directors Board providing organizational oversight Consortium actively involved in governance Transparent in all board & program operations

14. 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 lifted Procedures in place to ensure continuous compliance

15. Active community partnerships Positive press & media relations Ready to transition to CareerSource Central Florida Results – Community Engagement

16. Pamela Nabors President & Chief Executive Officer 407-531-1222 pnabors@wcfla.com