2015-18 Corporate Finance Department Business Plan

2015-18 Department Business Plan

Reporting Period: Q4/2017 FIN Q4/2017 Progress Report

Goal 1: Strathcona County finances continue to comply with legislation and are communicated to the community. Outcome: Strathcona County complies with Public Sector Accounting Standards (PSAS) and the Municipal Government Act and Regulations, and provides meaningful communication to the public.

Progress Update Initiative Status Milestones/Deliverables Achieved IP: In Progress NS: Not Started C: Complete WI: With Issue Identify and implement IP As is desirable, the annual audit continues changes to comply with to result in an unqualified opinion of upcoming PSAS updates Strathcona County’s financial statements.

PS3260 Liability for Contaminated Sites accounting standard was successfully implemented, as reported in the Strathcona County Financial Statements for the year ended December 31, 2015.

The County will build on the successful implementation of PS3260 Liability for Contaminated Sites accounting standard to ensure ongoing compliance. This will be achieved through further development of a sustainable annual process, which will include continued inter-departmental cooperation and communication. Review and evaluate existing IP A number of key policies have been financial policies by 2018 and reviewed and updated including: Allocation develop new policies as of Year-End Surplus, Financial Reporting, required Tangible Capital Assets Financial Reporting, and Investments. Upon discussion and review, four additional policies have been realigned to other departments.

The Debt Management and Financial Reserves policies were approved in 2017. Seven additional policies have also been reviewed and a report is currently under development to recommend administrative updates.

The remaining six financial lead policies are planned for review by 2018; however, due to emergent priorities and unexpected complexities, the Corporate Finance Policy review may take longer than anticipated.

With the development of a Long Term Financial Sustainability Plan, a significant

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component is to reconsider existing policies and develop new policies, as required. Strengthen the reporting of C Quarterly Management Reporting financial information and enhancements have been continuously performance measurement implemented since 2015, resulting in a through enhanced standard format that is professional, communication (i.e. Quarterly consistent, and repeatable, and shares a Management Reports) to the common look and feel with other financial community and align these reporting documents. The quarterly improvements with the Business management reports now include semi- Plan and Budget Implementation annual (Q2, Q4) Corporate Business Plan project Reporting to align with the Business Plan and Budget Implementation project.

As a reflection of the continued efforts to strengthen the reporting of financial information, Strathcona County was recently awarded the Canadian Award for Financial Reporting from the Government Finance Officers Association for a third year in a row.

In 2016, Council expense reporting was updated. The new report improves the transparency of council expenses, as well as results in efficiencies by automating the reporting process. This initiative was a collaborative effort between Finance, Information and Technology Services, and the Office of the Elected Officials. Identify and implement changes IP Due to personnel and consultant company to comply with updated ownership changes, we have experienced Purchasing Card Industry (PCI) some delays on the first phase of the standards project. The IT component of this project is much larger than originally anticipated and the project going forward will be reviewed by the CFO and possibly executive team to provide direction. Additional costs and resources are required from the IT side to become PCI compliant as an organization. Develop a program of internal IP The objective of this initiative is to maintain control reviews for future and strengthen the system of financial implementation with supporting controls in place at the County. The documentation establishment of an internal review committee has been reprioritized as priority processes continue to be identified and specifically addressed as capacity allows.

In 2017, new resources provided the increased capacity required to start to focus on the development of a program of internal control reviews. Currently the

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vision, scope and approach are being developed for engaging stakeholders, establishing the corporate review group, and determining priority target areas based on corporate risk.

Opportunities, Challenges and Other There are a number of upcoming Public Sector Accounting Standard (PSAS) changes including: - PS2200 Related Party Transactions - PS3420 Inter-Entity Transactions - PS3210 Assets - PS3320 Contingent Assets - PS3380 Contractual Rights To ensure full compliance with these standards for the December 31, 2018 financial statements, proactive research and planning will be required.

Due to emergent priorities and unexpected complexities, the Corporate Finance Policy review may take longer than anticipated. This project will be continually monitored and appropriate adjustments will be made to the schedule accordingly.

Key Performance Indicator/Measures Benchmark Progress Update Target (include year) Annual audit results confirm compliance Unqualified Unqualified Opinion Unqualified Opinion (2013) (2016) Opinion (2018) Public awareness that Strathcona County’s 41.8% (2016) TBD (2018) financial information is available on the web (very aware/moderately aware)

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Goal 2: Corporate Finance provides meaningful information to support decision making and long-term financial planning.

Outcome: A long-term financial plan is being established to support sustainability and is incorporated into decision making.

Progress Update Initiative Status Milestones/Deliverables Achieved IP: In Progress NS: Not Started C: Complete WI: With Issue Develop a long-term financial IP The Long Term Financial Sustainability framework in support of the Framework (LTFSF) will be the highest level Economic Sustainability financial document in the County. It will Framework set the basis for continuous long-term planning by establishing financial sustainability principles, consolidating financial strategies, and identifying the long-term financial planning process.

Initial introduction to the LTFSF was brought to Priorities Committee on July 11th, and a final draft was brought to FINAC on Dec 15th. The plan is to present the LTFSF to the Priorities Committee prior to Council approval in Q1 2018 Partner with operations IP Corporate Finance is represented by two departments to develop Asset active members on the technical working Infrastructure Management committee and the Corporate Finance (AIM) plans and policies Director is a committed member of the Corporate Asset Management (CAM) Steering Committee. These committees are focusing on the development of a corporate asset management policy and framework.

Opportunities, Challenges and Other The completion of the LTFSF provides opportunity to ensure a consistent approach that considers all financial components for financial decision making.

Key Performance Indicator/Measures Benchmark Progress Update Target (include year) Percentage of achievement of milestones towards 75% (2017) 90% 0% (2014) implementing long-term financial framework (2018)

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Goal 3: Corporate Finance supports the organization with efficient and effective processes and tools to enable daily operations.

Outcome: Corporate Finance provides consistent tools, processes and standards to support the County financial function.

Progress Update Initiative Status Milestones/Deliverables Achieved IP: In Progress NS: Not Started C: Complete WI: With Issue Complete Business Process C The Business Process Mapping (BPM) Reviews for financial functions project was completed in 2016 and addressed the majority of critical financial processes. Targeted "quick wins" and "opportunity assessments" for key functions are being continually evaluated and implemented where immediate value is added and the payback period makes it worthwhile.

The deliverables created by the BPM project, such as the future-state process maps, are now available to be utilized to engage financial staff in departments across the County to confirm the Enterprise Resource System (ERP) requirements and look forward to an improved business future state.

The SC Business Transformation (BT) project will review and leverage these finance process maps in 2018 when the BT project partner joins the team.

With the realignment of the Advisory Services branch to Corporate Planning we've worked towards continuing to build our BlueWorks process repository with a focus on corporate Multi-Year Planning and Execution planning processes. We will look forward to completing our goal to formalize our corporate operational sustainment BPM methodology in 2018. This will not only enable us to maintain our strategic and financial business process maps and procedures but it will set us up corporately for an environment of continuous improvement long into the future. Evaluate and enhance the IP The corporate Business Transformation / Enterprise Resource Planning ERP Replacement project is now active. (ERP) and other related financial Financial staff throughout the organization systems in coordination with the have worked together to define an initial vendor, Corporate Planning, set of future state ERP financial

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Information Technology requirements during the Business Process Services, Human Resources, Mapping project. Utilities, Procurement Services This work will be referenced and reused in branch and other department the BT project. As the project progresses stakeholders into its readiness and acquisition phase, the Finance project Portfolio Lead, in connection with other finance subject matter experts, continues to work toward finalizing the RFP to select the Business Transformation partner in 2018. The existing ERP functional resources are aware of this work and will be engaged to participate in all aspects of this project, including partnerships between the replacement resources and business operations.

Targeted improvements identified from the Business Process Review project continue to be evaluated and implemented based on a constant consideration between the immediate value of improvements in the current financial systems and those that should wait for the Business Transformation / ERP Replacement Project.

Other financial systems continue to be upgraded and maintained such as Questica Budget, Insight Reporting and Bellamy. A version upgrade of our critical budgeting software Questica was completed successfully in 2017. Evaluate and develop an C An evaluation of the current Excel based improved variance reporting variance model and related operational system by 2018 departmental Excel spreadsheets has been completed and future state requirements were mapped in 2015.

Based on the approval of the corporate ERP Replacement project, it was decided to delay the development and implementation of a best-of-breed software solution until after the ERP project completion.

Lessons have been learned from a review of the existing Excel based model. Although we may implement smaller targeted improvements to the Excel model during the year as a typical operational improvement strategy, we have paused projects that will replace the variance model with a new version to enable alignment to the corporate ERP project.

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Opportunities, Challenges and Other There are a significant number of opportunities that have been identified through the Business Process Reviews, both for process improvements, as well as for targeted financial systems improvements. Acknowledging that maintaining status quo for the next few years is not an option while we move forward with the Business Transformation / ERP replacement project, the challenge will be to focus on those improvements whose immediate value justifies implementation, while simultaneously managing expectations from stakeholders for those improvements best addressed through Business Transformation / ERP replacement project.

The ongoing challenge for the organization is to understand the need to ensure we properly manage existing people, processes, technologies and business strategies even as we look forward to the Business Transformation / ERP replacement project. It is critical to ensure that operational management continues to have proper importance and focus during transitional phases of replacement. By engaging our existing expert internal functional ERP resources in Corporate Advisory Services, the corporation will help mitigate risk and add value to key activities of financial projects, processes, reporting and management of information. To minimize the tendency to work in isolated silos, we will partner with Advisory Services to apply the corporate lens to those key activities to ensure a thorough understanding of the corporate-wide impacts, increased identification of synergies between projects and business operations, ensuring better resource planning, risk mitigation, communication, and change management which leads us to better evidence-based corporate decision making and achievement of planned deliverables.

Key Performance Indicator/Measures Benchmark Progress Update Target (include year) Overall satisfaction of internal stakeholders 62.3% (2015) 75% (2018) regarding processes and tools (ERP Scorecard)

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Goal 4: Corporate Finance provides excellent customer service and support to the organization.

Outcome: Consistent training and financial advice are provided to stakeholders in a timely, professional manner.

Progress Update Initiative Status Milestones/Deliverables Achieved IP: In Progress NS: Not Started C: Complete WI: With Issue Incorporate corporate County IP The Corporate Finance department has Connect System into business recently been reengaged by the corporate processes project team and has started work on the CFIN department's targeted service requests for the County Connect 2016 project schedule. It is expected that the targeted short list of CFIN services will be implemented and available early in 2018. Develop Strathcona County IP Various financial training activities have financial training programs for been developed. Internal courses for the existing and new employees in use of Insight Reporting software (basic financial positions and advanced) have been developed and continue to be provided to employees.

Staff continues to have access to hands on training material using cerlox resources such as, "Quick Financial Guide" and "JD Edwards A Basic Introduction". New training courses and/or cerlox training and reference material was created in 2015 such as: "Accounts Receivable Training Manual", "Bellamy Training for Treasury & Risk Management" and "Reserves Reporting Tool".

Additional opportunities for training development will continue to be identified and addressed as required.

The new Corporate Finance "Quick and Friendly Onboarding Guide" and reference manual has been created and shared with all CFIN staff after approval by the financial leadership team. It was received very positively and is a resounding success. The Onboarding Guide and the Administrative accompaniment has become a mandatory part of the department's new staff onboarding process in 2017. The Onboarding Process is managed and maintained by Corporate Advisory Services

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(CAS) administration who has also been asked to extend this onboarding process to the Corporate Planning department and the SCBT project team. CAS will continue to look forward to improving the onboarding manual / process and sharing it with other parts of the Strategic and Financial Management division in the next few years.

Opportunities, Challenges and Other As we manage and maintain the list of services that is now in County Connect for our customers, the challenge will be to evaluate and then leverage the added value and success of this initiative to a broader set of services in the future while also managing the other priority projects and services offered.

There is an opportunity to provide a more consistent minimum standard of onboarding in various financial roles for new employees throughout the corporate financial function with the re-use of the CFIN "Quick and Friendly Onboarding Guide".

Key Performance Indicator/Measures Benchmark Progress Update Target (include year) Overall satisfaction of internal stakeholders TBD (2014) TBD (2018) regarding service and support

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Goal 5: Corporate Finance maintains an encouraging, positive environment for staff to grow and participate.

Outcome: Employees are satisfied, empowered and motivated to learn, achieve and innovate.

Progress Update Initiative Status Milestones/Deliverables Achieved IP: In Progress NS: Not Started C: Complete WI: With Issue Actively practice and IP Corporate Finance continues to hold encourage open monthly staff meetings and periodic communication, active supervisor meetings, as well as weekly listening and participation Management Team meetings. All staff are invited to provide agenda items and to participate in the discussion. Further, individual branch meetings are regularly held to encourage discussion amongst smaller working teams.

An annual spring workshop is held to encourage staff engagement in developing and maintaining the department’s mission statement, corporate values and other department considerations. Team building activities also strengthen communication and willingness to participate amongst staff.

A celebrations and suggestions box that was implemented in 2015 to allow staff an opportunity for further communication continues to be successful, allowing staff opportunities to provide feedback, ideas, and accomplishments for celebration. Provide timely and meaningful IP Staff in the department have participated in recognition and feedback the Performance Planning and Review process, and have received performance plans for the upcoming year. Staff continues to be engaged on a regular basis for one-on-one performance conversations.

A Success Bulletin Board is being implemented to celebrate and recognize successes within the department. Encourage participation in IP In addition to specific training required for relevant training priority activities, there are a number of recurring opportunities for Corporate Finance staff to participate in learning and development including corporate training, Government Finance Officers Association activities, Risk and Insurance Management Society, financial system training, Service

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and Support Seminars, etc.

Staff have been encouraged to participate in secondment opportunities throughout the organization to encourage further learning, understanding, and connections throughout the organization.

In addition, a number of staff are choosing to further their personal education in programs such as NACLAA, accounting courses, University degree, CPA program, and project management training through NAIT.

It is important to maintain a current level of understanding and knowledge of best practices in the municipal accounting field and all related matters.

Key Performance Indicator/Measures Benchmark Progress Update Target (include year) Financial Services staff satisfaction 81.9% (2014) 85% (2018)