Overview

The purpose of this report is to provide the results of the ministry audits in key areas of funding: day school enrolment, English as a Second Language (ESL) and Perfectionnement du français (PDF).

As part of the measures to strengthen accountability within the Education sector, the ministry conducts compliance audits in key areas in which school boards receive funding under the Grants for Student Needs funding model.

Compliance Area	Grant
Enrolment (Day School)	Core component of the Pupil and School Foundation Grants, Pupil Accommodation Grant, Language Grant, Geographic Circumstances Grant, Special Education Grants, Transportation Grant, School Board Administration and Governance Grant, and Learning Opportunities Grant
English as a Second Language (ESL) Perfectionnement du français (PDF)	Core component of the Language Grant

Scope and Approach

Compliance audit planning has set a target of up to 30 compliance audits to be conducted each year in the key areas of day school enrolment, English as a Second Language (ESL), Perfectionnement du français (PDF), average class size and teacher qualification and experience.

The Transfer Payments and Financial Reporting branch is responsible for planning, conducting and reporting on the compliance audits. The branch develops audit standards, tests and procedures with the assistance of school board staff and auditors from the Ministry of Finance and is also responsible for identifying and selecting boards for compliance audits.

The majority of boards selected for compliance audits are selected on a random basis, while a small number of boards are selected on the basis of 'field intelligence', which may involve a ministry evaluation of individual board reporting patterns and trends. Wherever possible, the four types of school boards (English, French, public and separate) are represented in the boards selected for audit.

Certain audits, such as enrolment, require selecting the schools to be visited. The initial sample size of schools selected is based on a provincial standard and depends on the number of elementary and secondary schools operated by the board. Starting in 2005-06, the testing of enrolment and English as a Second Language data for elementary schools has been conducted through desk audits. Hence the need to visit elementary schools has been significantly reduced.

All boards selected for a compliance audit are notified at least one month before the start of the audit field work and are asked to identify a person who will be the board contact. Boards are advised of the audit period (board fiscal year) and of the schools, if any, that have been selected for visits. The board contact is encouraged to accompany ministry staff during the visits. Additional schools may be visited depending on audit findings.

An audit interview is scheduled with board staff before and after the audit fieldwork. All findings are discussed with board staff and a report is issued for each audit. Audit findings are shared with board staff for comments before the audit report is issued to the Director of the board. The report outlines the testing that has been conducted, the findings and any adjustments.

Audit adjustments often result in grant recoveries from boards and may involve additional grant payments to boards. Audit adjustments are based on audit test findings conducted in the audit period; however depending on the nature of the findings, other techniques such as expanding testing to prior years or prorating errors may be necessary.

Because future compliance is a key objective of the ministry audit process, the audit report provides a series of recommendations, if required, to address any area of non-compliance or possible improvements to board internal controls. Follow-up audits may be necessary to ensure that boards have made the necessary changes or improvements.

Findings, Observations and Recommendations

Multi-Year Audit Activity Summary
	2007-08 Audit Plan			2006-07 Audit Plan
Audit Activity	# of Boards	# of schools	Grant Adjustments (Recovery) payment	# of Boards	# of schools	Grant Adjustments (Recovery) payment
Enrolment Day School	10	56	($563,690)	10	48	($787,292)
ESL and PDF	10	39	($89,502)	10	34	* $715,454

Due to a lack of understanding of ESL funding policy two boards failed to claim their full grant entitlement. As a result of board self-audits of their entire school populations significant additional grants were subsequently paid to these boards.

Enrolment (Day School)

• Ministry Requirements
• Objectives
• Findings and Observations
• Recommendations

Ministry Requirements

Boards are required to record enrolment and maintain enrolment records according to the format prescribed by the ministry and according to the enrolment register instructions provided by the ministry. In addition, the legislated grants regulation stipulates how boards calculate average daily enrolment.

For more information:

• Ontario Regulation 150/07, Calculation of Average Daily Enrolment for the 2007-2008 School Board Fiscal Year
• Ministry Enrolment Registers and Instructions
• Ontario Regulation 308, Supervised Alternative Learning for Excused Pupils
• Educational Funding 2007-2008 : Technical Paper

Objectives

The objectives of the enrolment audits and the compliance reviews was to ensure that the boards:

• accurately recorded enrolment according to the ministry enrolment registers and the guidelines for elementary and secondary schools
• accurately reported enrolment values to the Ministry through OnSIS.
• made the necessary changes in their enrolment recording and reporting based on findings and recommendations from the prior year's ministry audit.

Findings and Observations

In 2007-08 ten boards were selected for audit, twenty-nine secondary schools were visited and twenty-seven elementary school desk audits were conducted. As a result of audit findings, grants totalling $563,690 excluding declining enrolment protection, were recovered from school boards. Grants were adjusted in nine of the ten boards.

In 2006-07 ten boards were selected for audit, twenty-four secondary schools were visited and twenty-four elementary school desk audits were conducted. As a result of the audit findings grants totalling $787,292, excluding declining enrolment protection, were recovered from school boards. Grants were adjusted in six of the ten boards.

As a result of the compliance audits, the ministry has identified the following day school enrolment findings and observations:

• Confirmed school level enrolment values, as reported to the ministry through OnSIS, did not equal values reported in the monthly summaries of the school year-end full-time, part-time and half time enrolment registers.
• Pupils without valid medical reasons or attendance counsellor intervention were not removed from the register after 15 school days of consecutive absence.
• Schools failed to take pupils off the register on the date the pupil retired or transferred.
• Pupils that transferred or retired at the end of a semester were not removed from ministry registers due to a placeholder code that was improperly recorded on pupil timetables.
• Period lengths in the school enrolment Student Information Systems did not correspond to the actual period lengths.
• Common course codes were not included in the calculation of pupil full-time equivalency and as a result full-time pupils were incorrectly reported as part-time pupils.
• Some schools were unable to produce enrolment registers and records to substantiate enrolment values reported to the ministry.
• Schools failed to take SALEP pupils off the register when they were no longer of compulsory school age.
• In some cases pupils were identified as SALEP and maintained on the register prior to approval of the SALEP committee.
• Schools failed to properly complete the biographical section of the Ontario Student Record (OSR) folder.
• Pupils for whom boards may charge tuition fees were sometimes incorrectly reported as pupils of the board.
• Pupils enrolled in Care and Treatment programs were not admitted and/or demitted from enrolment registers in accordance with ministry requirements.
• School principals failed to demonstrate (by certifying) that they had reviewed for accuracy the enrolment values/data in enrolment registers at the end of the school year.
• Pupils recorded in the enrolment registers as participating in a reciprocal educational exchange program did not satisfy ministry policy for a valid pupil exchange program.
• Schools fail to retain, for audit purposes, the following for the current and the previous school year: 1) year-end full-time and part-time enrolment registers, 2) secondary pupil course timetables in effect on the count dates, 3) secondary pupil course change forms, 4) dated and stamped OSR request letters, 5) daily attendance reports, and 6) pupil registration/withdrawal forms.
• Appropriate attendance procedures and accurate Daily Attendance Records were not established for pupils enrolled in secondary school alternative programs.
• Appropriate admission procedures were not established to determine whether pupils should pay tuition fees.

Recommendations

• Boards are to follow the instructions in the document Instructions for the Use of Computerized Enrolment Registers for Elementary and Secondary Schools. Boards should review this document each school year and prior to any reporting to the ministry.
• Boards are encouraged to review enrolment recording and reporting in a sample of schools on a regular basis. Ministry compliance testing procedures are available to boards and can be obtained by contacting their ministry Finance Officer.
• At a minimum, school staff is to retain enrolment registers; pupil timetables in effect on October 31; March 31 and course change forms; OSR request letters; pupil registration/ withdrawal forms; and Daily Absence Reports (telephone contact list) for the current and the prior school year.
• Boards are to ensure that school staff receives appropriate training of enrolment recording and reporting requirements.
• Boards are encouraged to consult their ministry Finance Officer regarding pupil and attendance requirements for alternative secondary school programs.
• Because the enrolment registers are the recognized source for enrolment information, school level enrolment values reported to the ministry in OnSIS submissions should equal values recorded in the year-end enrolment registers.
• Principals must notify attendance counsellors in writing, or by e-mail, when pupils of compulsory school age on the register have been absent for 15 consecutive school days. School counsellors are to provide reports in writing every 15 school days thereafter.
• Boards are to ensure that pupil full-time equivalency calculated in electronic registers is determined in accordance with ministry requirements.
• Boards are to ensure that pupils recorded as SALEP are of compulsory school age and have met the program requirements outlined in Ontario Regulation 308, Supervised Learning for Excused Pupils.
• Boards should review with school staff ministry criteria for Educational Exchange Programs (SB Memo #7 dated April 23, 2004).
• Boards should review with school staff the ministry criteria for reporting enrolment in e-learning courses (SB Memos 2008:SB27 & 2007:SB19).
• Boards are to ensure that pupils attending Care and Treatment programs are excluded from ministry enrolment registers.

English as a Second Language (ESL)/Perfectionnement du français (PDF)

• Ministry Requirements
• Objectives
• Findings and Observations
• Recommendations

Ministry Requirements

English as a Second Language (ESL)

For funding purposes boards may claim the number of immigrant pupils, enrolled in their schools on October 31, who entered Canada for the first time during the last four years and were born in a country other than Great Britain, Ireland, the United States, Australia and New Zealand.

Perfectionnement du français (PDF)

For funding purposes boards may claim the number of immigrant pupils, enrolled in their schools on October 31, who do not have Section 23 rights under the Canadian Charter of Rights and Freedoms, and who entered Canada for the first time during the last four years and were born in countries where French is a language of administration or schooling.

Beginning with the 2005-06 school year, the qualifying period for both ESL and PDF was expanded to four school years.

For more information:

• Ontario Regulation 152/07, Grants for Student Needs - Legislative Grants for the 2007-2008 School Board Fiscal Year
• Education Funding 2007-08 - Technical Papers

Objectives

The objectives of the ESL/PDF compliance audits was to ensure that the boards selected for audit:

• accurately reported the number of immigrant pupils who entered Canada within the last four years from a qualifying country
• retained immigration information in the pupil's OSR file to support the claims

Findings and Observations

In 2007-08 ten boards were selected for audit, twenty-nine secondary schools were visited and ten elementary school desk audits were conducted. As a result of the audit findings, grants totalling $89,502 were recovered from school boards. Grant adjustments were made in seven of the ten boards.

In 2006-07 ten boards were selected for audit, twenty-four secondary schools were visited and ten elementary school desk audits were conducted. As a result of the audit findings, net grants totalling $715,454 were paid to school boards. Grant adjustments were made in six of the ten boards.

The ministry has identified the following findings and observations as a result of the ESL/PDF field audits:

• Due to a lack of understanding of ESL funding policy two boards failed to claim their full grant entitlement. As a result of board self-audits of their entire school populations significant additional grants were subsequently paid to these boards.
• Immigration documents confirming the pupil's first date of entry into Canada were not retained in the pupil's OSR file.
  
  
• Schools incorrectly claimed pupils not enrolled on October 31 of the current school year.
• Schools reported pupils who first entered Canada outside the 4 year qualifying period.
• Schools failed to claim foreign exchange pupils, in a valid Education Exchange Program, for ESL/PDF funding.
• Fee-paying pupils and pupils who should be fee-paying were incorrectly claimed.
• Qualifying pupils were reported in the incorrect year.
• Pupils from non-qualifying countries incorrectly claimed
• School Internal records didn't reconcile to the number of pupils claimed.

Recommendations

• Boards should ensure that school staff receive appropriate training regarding ESL/PDF reporting requirements, including an overview of immigration documents.
• The ESL/PDF grant is structured to provide a different funding weight for each of the four qualifying years. Given this, boards should review procedures to ensure that the pupil's date of entry into Canada is being reported correctly, as this will affect the grants received.
• Boards are encouraged to review ESL/PDF reporting in a sample of their schools on a regular basis. Ministry compliance testing procedures are available to boards and can be obtained by contacting their ministry Finance Officer.