Chair, Local Health Integration Network South East. Mark Donaldson A/Director, Accounting Policy and Financial Reporting Branch

Transcription

1 BOARD ITEM 4 F Ministry of Health and Long-Term Care Corporate Services Division Accounting Policy and Financial Reporting Branch 1075 Bay Street, 11 th Floor Toronto, ON M5S 2B1 Tel: (416) Fax: (416) Ministère de la Santé et des Soins de longue durée Division des services ministériels Direction de la méthode comptable et des rapports financiers 1075 rue Bay, 11 étage Toronto, ON M5S 2B1 Téléphone : (416) Télécopieur : (416) March 1, 2017 Memorandum To: From: Subject: Donna Segal Chair, Local Health Integration Network South East Mark Donaldson A/Director, Accounting Policy and Financial Reporting Branch Board-Governed Agency Attestation As in , and in support of the Agencies & Appointments Directive (AAD) and the publication of the Consolidated Financial Statements (CFS) of the Province of Ontario for the year ended March 31, 2017, Local Health Integration Network South East (LHIN- South East) is required to provide assurance that: To the best of your knowledge and belief, LHIN-South East is in substantial compliance with all applicable legislation, regulations, directives and policies; has maintained an effective system of internal controls; and has established and maintained a system of internal controls that supports the integrity and reliability of financial reports. This attestation is based on the Chief Executive Officer s (or equivalent authority) confirmation, in the capacity of operational and administrative head to the Board of Directors, that LHIN- South East is in substantial compliance with the following Statements of Responsibility: A. Reporting Requirements B. Legislative / Policy Requirements C. Internal Control System D. Record Keeping To provide you with the necessary guidance to navigate through the attestation process, attached to this memo are the following documents: 1. Board-Governed Agencies Attestation Guide which provides further direction and guidance on the Agencies & Appointments Directive s Compliance Attestation. 2. Key Risk Assessment Tool which is is intended to be an example of a tool that your agency may consider using when assessing compliance with the core requirements of the agency attestation process. 3. Key Q & As on Board Governed Agency Attestation which is a list of frequently asked questions regarding the Agency attestation memo and process. /2

2 -2- As part of the attestation process, you are required to include the following documents (templates attached) in your submission to the Minister, copying the Deputy Minister: Attestation Memo (signed by the Chair pdf file) Agency Exception Report (signed by the CEO (or equivalent) and the VP Finance (or equivalent) pdf file) Agency Briefing Note for Exceptions (Word file), if applicable Agency Fraud Awareness Schedule (signed by the CEO (or equivalent) pdf file) Please forward the documents listed above, duly approved, electronically to copying your program liaison Director Jane Sager no later than Tuesday, April 4, 2017 so that we are able to review the same and make a determination on the exceptions, if any, that are to be reported to the Office of the Provincial Controller Division (OPCD) by the prescribed reporting due date. The original signed documents must be addressed to the Chief Accountant and sent to the Ministry of Health and Long-Term Care, 1075 Bay Street, 11th Floor Toronto, ON M5S 2B1. Please contact your agency liaison branch in the Ministry if you require training or to arrange an information session on the attestation process. If you have any questions or require further clarifications, please contact Skanda Skanthavarathan (skanda.skanthavarathan@ontario.ca) at or Leonard Lobo (Leonard.Lobo@ontario.ca) at Thank you for your attention to this matter. Original signed by Mark Donaldson Attachments c: Paul Huras, Chief Executive Officer, Local Health Integration Network South East Sara Brown, Controller/Business Support Manager, Local Health Integration Network South East Justine Jackson, Assistant Deputy Minister and Chief Administrative Officer, Corporate Services Division, Ministry of Health and Long-Term Care Skanda Skanthavarathan, Chief Accountant, Accounting Policy and Financial Reporting Branch, Corporate Services Division, Ministry of Health and Long-Term Care Leonard Lobo, A/Manager Accounting and Reporting, Accounting Policy and Financial Reporting Branch, Corporate Services Division, Ministry of Health and Long-Term Care Tim Hadwen, Assistant Deputy Minister, Health System Accountability and Performance Division, Ministry of Health and Long-Term Care Jane Sager, Director, Local Health Integration Network Liaison Branch, Health System Accountability and Performance Division, Ministry of Health and Long-Term Care

3 DATE: April 3, Adam Street Belleville, ON K8N 5K3 Tel: Fax: Toll Free: TO: FROM: SUBJECT: Minister of Health and Long-Term Care South East Local Health Integration Network Board-Governed Agency Attestation In support of the Agencies & Appointments Directive (AAD) requirements and the publication of the Consolidated Financial Statements (CFS) of the Province of Ontario for the year ended March 31, 2017, this Memo provides our assurance that, to the best of our knowledge and belief, the [agency name], herein referred to as the Agency, is in substantial compliance with all applicable legislation, regulations, directives, and policies; has maintained an effective system of internal controls; and has established and maintained a system of internal controls that supports the integrity and reliability of our financial reports. This attestation is based on the Chief Executive Officer s (or equivalent authority) confirmation, in the capacity of operational and administrative head, to the Board of Directors that the Agency is in substantial compliance with the following Statements of Responsibility: A. Reporting Requirements The Agency has prepared and submitted mandatory reporting requirements at the frequency established under the AAD and relevant legislations and regulations to the responsible minister for approval. These mandatory reporting requirements include Memorandum of Understanding (MOU), Annual Report and Business Plan. The statements and schedules supplied by the Agency in support of the financial reporting, have been prepared in accordance with applicable accounting standards (e.g. Public Sector Accounting Standards, Public Sector Accounting Standards PSAB for Government NPOs, International Financial Reporting Standards or other provincially approved framework), legislation, and Instructions and Guidelines as issued by the Office of the Provincial Controller. B. Legislative / Policy Requirements The Agency is in substantial compliance with all applicable statutory requirements. These applicable statutes may include, but are not limited to, the Public Service of Ontario Act, Freedom of Information and Protection of Privacy Act, Adjudicative Tribunals Accountability, Governance and Appointments Act, Financial Administration Act, French Language Services Act and the Archives and Recordkeeping Act.

4 The Agency is in substantial compliance with all legislative requirements pertaining to transactions with material financial impact to the Agency and to the Province s financial statements and such transactions were recorded accurately in accordance with authorized legislation including the Financial Administration Act. The Agency is in substantial compliance with all applicable Directives and Policies issued by the Ministry of Finance/Treasury Board Secretariat/Management Board of Cabinet. C. Internal Control System The Agency internal control systems are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for reporting purposes. The Agency has reviewed the Internal Control over Financial Reporting (i.e. assets, liabilities, revenue and expenses) and concludes that they were designed appropriately and operating effectively to help mitigate financial reporting risks in all material respects throughout the year ended March 31, The Agency has reviewed the results of internal control assessments (including, where applicable, those related to outsourced services, reports from their internal audit function, the management letter of recommendations from its external auditor and any reports by the Auditor General) for identified material deficiencies and has taken or will take appropriate actions to address these deficiencies. With respect to the requirements of this attestation, all material exceptions and associated risks, along with related remedial action plans have been disclosed in writing in the attached Agency Exception Report and reported to the ministry. The Agency has disclosed instances of known material fraud (if any) per the Agency Fraud Awareness Schedule. D. Record Keeping The books and records contained all transactions with material financial impact on the Agency and all such transactions are reported in accordance with applicable reporting requirements, directives, policies, and legislative requirements in all material respects. Business records have been maintained by the Agency and the rules and procedures applied are sufficient to safeguard and control public property, as supported by periodic internal audit of financial and management systems of control. Management s documentation and working files that support the preparation and completion of this Certificate and related Exception Report and Fraud Awareness Schedule are complete and available for review by the Office of the Provincial Controller Division, the Ontario Internal Audit Division and/or the Office of the Auditor General of Ontario. 2

5 Board-governed Agency Attestation Based on the above, and our review of the items noted in the attached Agency Exception Report, and Agency Fraud Awareness Schedule, we are attesting that, to the best of our knowledge and belief [Agency]; o o o is in substantial compliance with all applicable legislation, regulations, directives, and policies; has maintained an effective system of internal controls; and has established and maintained a system of internal controls that supports the integrity and reliability of the agency s financial reports for the year ended March 31, Donna Segal Agency Chair Date Paul Huras Chief Executive Officer _April 04, 2017 Date Sara Brown Acting Lead, Corporate Services/Controller _April 04, 2017 Date Cc Deputy Minister Attached: Agency Exception Report Agency Fraud Awareness Schedule 3

6 AGENCY EXCEPTION REPORT Agency Name South East Local Health Integration Network Item # Section Reference A, B, C, D Reporting [R]/ Compliance [C]/ Operating [O] Financial Impact (if any) Exception Type Description of Exception Remediation Action Plan Current Status Targeted Completion (DD/MM/YY YY) 1 B C 2 B C Y N CFWD CFWD All LHINs insurance coverage is provided by HIROC under a reciprocal insurance agreement Leasehold Agreement for office location. According to the government, all leasehold agreements are deemed non-compliant if negotiated independent of Infrastructure Ontario (IO); as it assumes there re contingent liabilities/unknown costs built into the lease agreement. For this reason, we add this item to the list, however, the SE LHIN negotiated a flat rate ten year lease to expire in This lease does not have any contingent liability due to the terms negotiated. All costs are fully known through the life of the lease. LHINs Legal and CEO s Council have been working on this issue over the past year +. As soon as the coverage expires, LHINs will undertake a new provider LHINs have been working with IO on this issue and provide annual accommodation s planning and reporting to the Ministry regularly. In progress Will continue until the end of the lease agreement in February April 2018 February 2021 Paul Huras Sara Brown Chief Executive Officer Acting Lead, Corporate Services/Controller Dated: April 4, 2017 Dated: April 4, 2017

7 AGENCY FRAUD AWARENESS SCHEDULE AGENCY NAME: South East Local Health Integration Network (South East LHIN) Agency Name Detailed Description Date of Fraud Occurrence (DD/MM/YYYY) Date Fraud Identified (DD/MM/YYYY) Date Investigation Started (DD/MM/YYYY) Date Investigation Completed (DD/MM/YYYY) Amount ($) Comments South East Local Health Integration Network N/A N/A N/A N/A N/A N/A N/A (Kindly check only ONE:) Agency Fraud Awareness Acknowledgement X There were no identified material fraud cases that were discovered during the fiscal year in this Agency The above schedule is complete as to any identified material fraud cases made aware to this Agency Paul Huras Chief Executive Officer Sara Brown Acting Lead, Corporate Services/Controller 04/04/2017 Date Signed (DD/MM/YYYY)

8 AGENCY BRIEFING NOTE FOR EXCEPTIONS AGENCY NAME : South East Local Health Integration Network Exception Report Ref # (item # from column B): 1 DESCRIPTION / BACKGROUND 1. Please re-state the actual exception as reported on the Agency Exception Report. 2. Provide sufficient details describing the circumstances that have created the issue. 3. What are the impacts to the ministry s public accounts? 4. Provide the dollar value of the financial impact. 5. What are the non-compliance issues and associated risks? 1. All LHINs insurance coverage is provided by HIROC under a reciprocal insurance agreement. Possible revenue stream of insurance if vendor has surplus, pooled self-insured policy. 2. Nature of Insurance Program members share in any surpluses and therefore not a true transfer of risks. 3. N/A 4. N/A 5. HIROC is a reciprocal insurance company, which could result in a contingent liability. Dividends paid out to members cannot be collected by the LHIN. ANALYSIS 1. Who is impacted? 2. What is the impact to the ministry s internal control environment? 3. What controls are being implemented to mitigate the risks and how? 4. How is risk measured or assessed? 5. Who is responsible for overseeing the implementation of the action plan? 1. MOHLTC 2. N/A 3. N/A 4. Potential revenue (if any) anticipated to be immaterial. 5. CEO

9 REMEDIATION ACTION PLAN 1. What is the action that is currently being taken to address this gap? 2. What is the action that is planned to be taken? 3. What is the estimated completion date for the action plan stated above? 4. Who has responsibility for implementation of the action plan? 1. LHINs Legal and CEO s Council have been working on this issue over the past year +. As soon as the coverage expires, LHINs will undertake a new provider. 2. No planned action until the coverage expires. 3. April CEO

10 AGENCY BRIEFING NOTE FOR EXCEPTIONS AGENCY NAME : South East Local Health Integration Network Exception Report Ref # (item # from column B): 2 DESCRIPTION / BACKGROUND 1. Please re-state the actual exception as reported on the Agency Exception Report. 2. Provide sufficient details describing the circumstances that have created the issue. 3. What are the impacts to the ministry s public accounts? 4. Provide the dollar value of the financial impact. 5. What are the non-compliance issues and associated risks? 1. Leasehold Agreement for office location. 2. The Ministry and FMB informed all LHINs that any facility lease agreement negotiated by the LHIN instead of with IO was considered to be non-compliant with the FAA. While we are identifying this as a possible non-compliance, the SE LHIN remains convinced that due to the structure and terms and conditions of the lease agreement, that we are compliant and do not hold a contingent liability. 3. N/A 4. N/A 5. According to the government, all leasehold agreements are deemed non-compliant if negotiated independent of Infrastructure Ontario (IO); as it assumes there re contingent liabilities/unknown costs built into the lease agreement. ANALYSIS 1. Who is impacted? 2. What is the impact to the ministry s internal control environment? 3. What controls are being implemented to mitigate the risks and how? 4. How is risk measured or assessed? 5. Who is responsible for overseeing the implementation of the action plan? 1. N/A 2. N/A 3. SE LHIN negotiated a flat rate ten year lease to expire in This lease does not have any contingent liability due to the terms negotiated. All costs are fully known through the life of the lease. 4. No risk as lease does not contain a contingent liability. 5. VP Operations

11 REMEDIATION ACTION PLAN 1. What is the action that is currently being taken to address this gap? 2. What is the action that is planned to be taken? 3. What is the estimated completion date for the action plan stated above? 4. Who has responsibility for implementation of the action plan? 1. LHINs have been working with IO on this issue and provide annual accommodations planning and reporting to the Ministry regularly 2. No plans until lease ends in February February VP Operations