HALIFAX REGIONAL SCHOOL BOARD Committee Report Ad Hoc EXCEL Review Committee

Transcription

1 Public Report No: Private Date: April 11, 2005 HALIFAX REGIONAL SCHOOL BOARD Committee Report Ad Hoc EXCEL Review Committee PURPOSE: BACKGROUND: To provide the Board with an interim report from the Ad Hoc Committee created to review the external evaluation of the EXCEL Childcare Program and HRSB Lunch Policy and bring recommendations to the Board for approval. In the fall of 2003, the Board requested in external review of the EXCEL Childcare Program. An RFP was issued and awarded to the Terrain Group. During the course of the review, the scope was expanded to include a review of the HRSB Lunch Policy. The final report was received by the Board in May The Board authorized the creation of an Ad Hoc Committee of the Board to review the observations and recommendations in the Terrain Group report and bring a response to the Board for decision. The Committee first met in September Following the school board election in October, the new Board Chair recreated this committee with new membership and retained the original mandate. The new committee has met on 6 occasions since December 1, The meetings have been open to all Board members. Bernadette Reid was selected Chair of the Committee. The other committee members are Debbie Barlow, Kim Berkers, Deborah Brunt, Wade Marshall and Grace Walker. The Committee agreed to retain the original mandate and proceed to analyze the recommendations and bring forward responses for Board approval. Prior to considering the report, the Committee received an overview of the operations of the EXCEL Program for greater understanding. The external evaluation report is divided into 2 sections EXCEL Childcare Program and HRSB Lunch Policy. Within these 2 sections, recommendations are divided into short term and long term. The Committee agreed that it was appropriate to deal with the long term recommendations first, since the Board s response and approval of direction on these recommendations would be required before a position could be taken on the short term recommendations. CONTENT: As noted in the Background section, the Committee received detailed information about the operation of the EXCEL programs and information about lunch supervision programs in general. This background information was important for Committee members to make informed decisions about the external report and the future direction of childcare programs in HRSB schools. HRSB EXCEL Long Term The Ad Hoc Committee directed that an interim report be brought to the full Board to consider responses to the long term recommendations in the external evaluation report.

2 The external evaluation recommendation is: That HRSB should further explore outsourcing the EXCEL Program, including a complete cost/benefit analysis; due to the significance and magnitude of this recommendations, it is suggested that should the recommendation get approved and adopted, that a detailed implementation plan be developed covering a period of time, which incorporates stakeholder consultation, proper action plans, accountabilities, timeframes, and identifies and communicates conditions for success ; the outsourced program be offered to prequalified organizations from the community, which are deemed capable of, and reputable in delivering these various services. In addition, the standards that have been set for the EXCEL Program should, at the very least be maintained, and preferably improved in any outsourced arrangement. Following a review of detailed information and extensive discussion, the following statements were formed: The Committee concluded that the availability of childcare services within HRSB is important. EXCEL currently provides services to over 6000 students in 55 schools. There was consensus that school buildings should be made available to provide these services when there is a requirement within the school community. The HRSB currently has childcare available through the EXCEL program in 55 schools of the HRSB. Schools interested in offering one or all of a before, lunch and/or after school program, can utilize EXCEL staff. In consultation with the principal, EXCEL establishes a program that is appropriate for that school. All of the administration is handled by EXCEL thus relieving the principal of the task. Program fees and wage rates for EXCEL staff are set by the Board. The EXCEL program is seen as an affordable and adequate solution to childcare by many parents. The Committee discussed the impact of total outsourcing such as the extent of programs that would be possibly terminated by an outside contractor, impact on parent fees, insurance risk, loss of revenue to the Board, impact on current EXCEL employees, etc. The EXCEL program generates its own revenue and is not a financial or otherwise burden on the HRSB. Current practice allows schools to determine their own service provider so even though EXCEL is the major provider, schools have the option to choose a provider that best meets their needs. Despite the EXCEL program existing for many years, there are no formal Board approved policies and procedures to guide the program. The program is guided by policies and practices adopted by staff and as outlined in EXCEL documentation. 2

3 The Committee believes that there would likely be a loss of programs as an external provider would not likely operate in all schools, especially those that may not generate a profit. As well, the Committee believes there could be an increase in fees to parents and job loss for some current employees. This conclusion was drawn on the basis of the response to the RFP in No board wide, regional or multi area solutions were gained from the past RFP process and there was no compelling data presented to the Committee to suggest that another RFP at this time would produce any different results. The Committee considered the issue of a complete cost/benefit analysis or the issue of full cost accounting. Current financial reporting is based on direct costs so that the net revenue of EXCEL does not include an allocation of indirect or overhead costs of the Board. Normally, full cost accounting is undertaken to establish a proper price for a product or service. Such an exercise has been considered unnecessary for setting program fees at this time. Although no formula has been established for allocating indirect costs to EXCEL, such an allocation would be immaterial in terms of total costs. EXCEL currently generates in excess of $400,000 of net direct revenue to the Board annually. Indirect costs, i.e., the incremental costs of overhead, would not significantly reduce this net direct revenue to the Board. Therefore, the Committee concluded that, in financial terms, EXCEL provides a benefit to the overall Board operation. A full cost accounting report is not relevant in a decision of retaining versus outsourcing. If an RFP were issued, the relevant analysis would consider the incremental impact on the financial position of the Board from either scenario. In effect, such an exercise is not useful until there are 2 or more valid options to evaluate. In summary, the Committee believes that childcare programs should continue to be available in HRSB schools, that these programs should be administered at a Board level than simply leaving it up to individual schools to manage their own programs. The Committee believes EXCEL has been a viable, cost effective option for school communities. The Committee concluded that there is no compelling data to indicate outsourcing would be a more beneficial option at this time. So the Committee concluded that EXCEL should be retained as a Board department and that a business plan be created for EXCEL that would provide for expansion and improvements in the programs to efficiently and effectively meet community and school needs. 3

4 HRSB Lunch Policy Long Term The external evaluation recommendation is If the HRSB wishes to remain involved in the lunch program, to some extent, in assisting with development of a solution with parents for this service, it is recommended HRSB consider outsourcing the Lunch Supervision, for non-bussed/transported students. Due to the significance and magnitude of this recommendation, it is suggested that if this is approved and adopted by the HRSB, that a detailed implementation plan be developed covering a period to time, which incorporates stakeholder consultation, proper action plans, accountabilities, timeframes, and identifies and communicates conditions for success ; that the outsourced activity be offered to prequalified organizations from the community, which are deemed capable of, and reputable in delivering this various service. Following the results of the long term EXCEL recommendation discussions, and further review of the lunch policy, the following statements were formed. Currently, mandatory bussed students are provided with lunch supervision at the expense of the Board. Schools are required to arrange for the supervision and in many cases, retain EXCEL or another service provider to provide the service rather than utilize school staff. In some cases, school staff provide the service. When schools decide to offer an optional lunch program to non-mandatory bussed students or walking students, the school decides who will provide the service. An outsourced lunch program service provider must be registered under the Daycare Act. This means the ratio must be no more that 15 students per monitor. The Committee concluded that outsourcing may mean a loss of current service to parents in some schools due to lack of space and staff at these ratios. As well, the potential for fee increases is quite likely. With respect to outsourcing, the Committee discussed other issues regarding handling of discipline issues, insurance, and impact on current EXCEL employees. There was no compelling evidence presented to the Committee to indicate that outsourcing would be a viable option to all of the current schools and students. Many of the relevant facts involved in the EXCEL analysis are also relevant to the lunch supervision issue. In summary, the Committee concluded that the current HRSB Lunch Policy requires further review before any further direction can be given on improving the administration of these programs. In view of the Committee s recommendation regarding outsourcing of the EXCEL 4

5 program, the Committee does not support outsourcing of the Lunch Supervision programs where it is feasible and appropriate for the Board, either through EXCEL or individual schools, to provide these services for students. COST: FUNDING: TIMELINE: APPENDICES: RECOMMENDATIONS: Based on the work of the Ad Hoc Committee to date: 1) the Committee recommends to the Board to keep the EXCEL program within the Halifax Regional School Board; 2) the Ad Hoc Committee also recommends to the Board that the Board instruct senior staff to develop policies and procedures for the running of the EXCEL program and any other childcare programs within the Board and that those policies and procedures go through the Policy and Program Committee and on for approval by the Board. COMMUNICATIONS: From: For further information please contact Bernadette Reid, Chair of the EXCEL Review Committee at or Richard Morris, Director of Financial Services, at Ext or at To: Full Board - April 27, 2005 File: dhanf/ad Hoc EXCEL Review Committee Rep. Date: April 11,